Lululemon’s Comeback: The Unlikely Boost from American Express

by

Now, just when we thought American Express couldn’t possibly raise the stakes higher, they threw a curveball with their Platinum card-enter: Lululemon. Yes, the athleisure brand struggling to keep its vibe intact in a cutthroat apparel arena is dishing out some serious cash back to these cardholders. A bold move? Absolutely. A potential game-changer? Oh, darling, one can only hope.

So, why might this seemingly absurd partnership turn Lululemon’s fortunes around, and more importantly, should we be scrambling to scoop up the stock now?

American Express and the Sweet, Sweet Cash Back

Here’s the deal (literally): Platinum cardholders can now enjoy a $75 quarterly credit at Lululemon. That’s a total of $300 a year slathered over your yoga pants purchases-glorious! Of course, not everyone will indulge, but come on, in a world where e-commerce is a king, who’s really going to pass up free money on trendy, overpriced workout gear?

Now, cut to the chase-about 5 million people allegedly have that shiny Platinum card (at least that’s what they say; there’s always the risk of whimsical exaggeration, no?). Let’s assume 3 million of these delightful souls take full advantage of the new Lululemon perk each quarter, which could pump a staggering $900 million into the retailer’s forecasted revenue. Sure, they’ll probably fork over a hefty kickback to AmEx for this privilege, but hey, what’s a little cash when you can woo the affluent crowd?

Lululemon could certainly use a little growth boost; their North American sales have been flatter than a pancake in a gym bag for the last few quarters. If they play their cards right (pun intended), that $900 million could very well be the breath of fresh air they desperately need.

International Ambitions

North America, bless its heart, has been a tough crowd lately for Lululemon. But don’t lose hope just yet! Across the pond, they’re faring much better-hello, China! Revenue there has shot up by 24% year-over-year, while the rest of the world is enjoying a more modest but still impressive growth of 15%. From under $1 billion to nearly $3 billion in revenue from outside North America since 2020-now that’s what I call a glow-up!

Loading widget...

With flagship stores opening in fashion capitals like Milan and a product lineup that’s shouting “buy me,” Lululemon’s consolidated revenue growth of 7% looks positively chummy for the next year.

Is Lululemon Stock a Bargain?

As the wallflowers at the North American dance, Lululemon’s stock has taken a nosedive-down 66% from its peak as of September 26, 2025. But does this price drop make it a hidden bargain? Potentially, if we’re playing the long game here. With a market cap of $20 billion, Lululemon now sports a price-to-earnings ratio (P/E) of 11.7, which sounds chintzy next to the S&P 500’s average of over 30. This could indicate some hefty investor jitters regarding their future.

Nevertheless, if we’re leaning on New Product Innovations, that shiny partnership with the Platinum card, and their relentless quest for global expansion, we might be in for quite the surprise. Lululemon could very well be on the brink of a resurgence that leaves skeptics (and perhaps even the Wall Street elite) getting left behind.

In summary, my lovelies, it’s never dull in the world of markets. Keep an eye on Lululemon; who knows, you might just want to grab a piece of the action-after all, do you really want to miss out on that cash back? 🏋️‍♀️

Read More

2025-10-01 03:07