Athleta sale cuts up to 60%, pressuring Lululemon on value

Athleta’s Semi-Annual Sale ran from June 23 through June 28 with discounts of up to 60% sitewide, and its sale page showed 1,591 results spanning leggings, pants, bras, tops, swimwear, outerwear and dresses. That kind of broad markdowning does not just move inventory. It trains shoppers to expect urgency and value at the same time, which is exactly the mix Lululemon educators run into when guests walk in comparing prices on premium basics.

The current Athleta sale page included cuts on the Retreat Linen High Rise Wide Leg Pant, the Skyline High Rise Barrel Leg Pant, the Brooklyn Mid Rise Ankle Pant and the Elation Ultra High Rise 7/8 Legging, along with several bras and tops. Deal tracking put the promotion at more than 1,600 items, with some discounts tied to individual product markdowns rather than a flat across-the-board cut. For store teams, that matters because a deep competitor sale can change the tone of the conversation on the floor: guests ask when items will go on markdown, whether a favorite legging is worth buying now, and how one brand justifies full price when another is flashing 50% off or more.

That pressure lands in a market where premium activewear is still fighting for the same shopper. Gap Inc., which owns Athleta, said Athleta’s first-quarter fiscal 2026 sales fell 12% to $270 million and comparable sales declined 11%. Gap said the brand remains an important part of its portfolio, even as the company delivered its ninth consecutive quarter of positive comparable sales overall. In late May, Gap CEO Richard Dickson said Athleta’s turnaround was taking longer than expected and that the company was in a “rebuild year.” Aggressive promotions fit that picture: they pull demand forward, boost traffic and help clear inventory even as they make it harder to hold a clean full-price story.

Lululemon is not immune to the same market pressure. The company reported first-quarter fiscal 2026 revenue of $2.5 billion, up 4% year over year, but Americas net revenue fell 3% and comparable sales declined 5% in the quarter ended May 3, 2026. Lululemon also cut its full-year fiscal 2026 sales outlook to between $11.0 billion and $11.15 billion. For educators and key leaders, that makes margin discipline more than a back-office phrase. It shapes how teams talk about fabric, fit, longevity, community and service when a rival sale is teaching shoppers to shop the category through discounts first.