When Lululemon Athletica Inc. reported a 1% year-over-year rise in net revenue in the Americas for Q2 2025 — alongside a 4% drop in comparable sales — it wasn’t just a blip on the financial radar. It was a crack in the armor of a brand that’s spent a decade defining premium athleisure. And now, a new wave of competitors, many backed by celebrities and built on the quiet power of shapewear, are stepping through it.
The Shapewear Surge
It’s not just leggings and sports bras anymore. Brands like Yitty, Honeylove, and Skims are no longer confined to undergarment aisles. They’re moving into the territory Lululemon once owned: high-performance, high-style activewear designed for everyday life. Yitty’s Seamless Solutions High-Waist Shaping Brief, priced at $34 on Amazon, isn’t just affordable — it’s positioned as a daily essential, offering sculpting without the squeeze. Meanwhile, Honeylove’s SuperPower Targeted Compression Brief, retailing at $84, brings flexible boning and up to 3X sizing, making it a favorite among customers who’ve long felt excluded by traditional athleisure brands.
These aren’t niche products anymore. They’re part of a broader cultural shift. Women aren’t just buying clothes for the gym anymore — they’re buying clothes that make them feel confident walking into a meeting, dropping kids at school, or grabbing coffee. And shapewear brands, long dismissed as “underwear,” are answering that need with precision engineering and celebrity clout.
The Lululemon Paradox
Lululemon still commands loyalty. Its color-blocked leggings, its “best activities for each piece” labeling, its cult-like resale market — none of that has vanished. But here’s the twist: its most popular sizes sell out within minutes, leaving customers frustrated. Meanwhile, competitors are quietly filling the gaps. Athleta, owned by Gap Inc., matches Lululemon’s aesthetic and pricing almost exactly — its Conscious Crop Bra at $59, its inclusive sizing, its focus on functional design. It’s not a challenger. It’s a mirror.
And then there’s Alo Yoga. Its ⅞ High-Waist Airlift Legging, priced at $128, isn’t just a legging — it’s a statement. The brand’s expanded into knitwear, nightwear, and even home goods, blurring the line between activewear and lifestyle. It’s not built for CrossFit, but it’s perfect for brunch after yoga. That’s the new market: performance meets polish, without the intensity.
Celebrity Power and Accessibility
What makes Yitty and Skims different isn’t just price — it’s personality. Kim Kardashian’s Skims didn’t just launch a brand; it launched a movement around body inclusivity. Yitty, backed by influencers and featured in Oprah Daily’s 2025 shapewear roundup, taps into the same energy: real bodies, real needs, real affordability. While Lululemon’s $98 leggings remain status symbols, Yitty’s $34 briefs are impulse buys. And that’s the danger: when your product becomes a luxury, someone else will make the same thing — and make it accessible.
Even Spanx, the original shapewear titan, is evolving. Its Oncore Mid-Thigh Shaping Shorts aren’t hidden anymore — they’re worn as part of the outfit. The same goes for Shapermint and Maidenform. These aren’t “secret weapons.” They’re visible, intentional, and increasingly stylish.
The Bigger Picture: A 0+ Billion Market
The global athletic apparel market is worth over $100 billion. And it’s no longer about who makes the best running shorts. It’s about who understands the emotional connection people have with their clothes. Lululemon’s sales dip isn’t just about supply chain hiccups or inflation — it’s about changing expectations. Customers want versatility. They want size inclusivity. They want brands that don’t just sell gear, but affirm identity.
Meanwhile, Sweaty Betty from London brings bold patterns and a British edge. Nike dominates availability and versatility. Vuori leans into comfort with neutral tones. Even OV (Outdoor Voices) and Satisfy carve out niches — one for casual outdoor vibes, the other for hardcore runners.
Lululemon didn’t lose because it made bad products. It’s losing because the market evolved faster than its brand story did.
What’s Next?
Expect more celebrity-backed shapewear brands to launch athleisure lines in 2025 and 2026. Yitty’s already testing a matching crop top. Skims is rumored to be developing a performance collection. And if Lululemon doesn’t respond with real inclusivity — not just size ranges, but design philosophy — it risks becoming the next Abercrombie: iconic, but out of touch.
The new rules? Comfort without compromise. Style without exclusivity. And if you can’t deliver that? Someone else will — and they’ll price it at $34.
Frequently Asked Questions
Why is Lululemon losing ground despite strong revenue growth?
Lululemon’s 1% revenue increase in the Americas masks a 4% drop in comparable sales, meaning existing customers are buying less. While overall revenue rose due to higher prices or new store openings, repeat customers are shifting to more inclusive, affordable brands like Yitty and Skims that offer similar styling without the premium markup or size limitations.
How are shapewear brands different from traditional athleisure labels?
Shapewear brands like Yitty and Honeylove focus on sculpting and comfort in everyday wear, not just workouts. They use targeted compression, flexible boning, and inclusive sizing — features once reserved for undergarments — now integrated into visible, stylish pieces. Their marketing leans on real-body testimonials and celebrity influence, contrasting with Lululemon’s performance-driven branding.
Is Athleta a bigger threat to Lululemon than Yitty?
Yes — and for different reasons. Athleta matches Lululemon’s quality, pricing, and style under the same corporate umbrella as Gap, giving it massive distribution and marketing power. Yitty threatens Lululemon’s emotional appeal and price point. Athleta is the direct competitor; Yitty is the cultural disruptor. Together, they represent both the structural and psychological challenges Lululemon now faces.
What does the rise of $34 shapewear mean for luxury athleisure?
It signals the end of the “premium = better” myth. Consumers now expect high performance at accessible prices. If a $128 Alo Yoga legging can’t outperform a $34 Yitty brief in shaping and comfort, the premium pricing model becomes unsustainable. Brands must justify their cost with innovation, not just branding — or risk becoming irrelevant.
Are men being left out of this shift in athleisure?
Yes — and that’s a strategic gap. While Lululemon, Athleta, and Alo focus on women, brands like Path Projects and Satisfy are carving out men’s running-specific niches. But no major shapewear brand has yet launched a male-focused compression line. That’s the next frontier: men’s body-contouring activewear, a largely untapped segment with growing demand.
What’s the long-term impact on retail and inventory?
Retailers are already adjusting. Nordstrom and Amazon now feature shapewear brands alongside traditional athleisure labels, blurring category lines. Lululemon’s frequent sell-outs suggest poor inventory forecasting — while Yitty’s Amazon-first model thrives on just-in-time fulfillment. Expect more direct-to-consumer brands to bypass traditional retail, using data-driven sizing and rapid restocking to undercut legacy players.
