US fashion ecommerce is maturing just as AI, social commerce, and resale gain traction. Slower growth and costly returns are raising the stakes, reshaping how consumers discover, decide, and buy.

The athleisure retailer pulled yet another line of leggings after complaints that they were too sheer.

News about delayed tariffs, activist pressure on retailers, and a failed JC Penney deal closed out 2025.

It may be a new year, but we’re still catching up on what happened during the last week of 2025. Here’s everything you may have missed.

Lululemon athletica’s CEO Calvin McDonald will relinquish his role on January 31, 2026 to an as-yet-unnamed successor. Whoever that person is will face the task of restoring the brand’s authority in a category it once dominated—particularly in North America, where sales have been stagnant or negative for seven straight quarters. Whoever takes the helm at lululemon should look to refocus the brand on its athleisure roots. The company needs to make sure that its core product lines are resonating with consumers before devoting significant resources into other categories like footwear, where it faces a tougher path to building credibility amid entrenched competition.

Lululemon announced a deal with the NFL to sell fan apparel for all 32 teams. The collection will include men’s and women’s clothing, along with accessories. Lululemon, like Abercrombie & Fitch and Best Buy before it, sees the NFL partnership as an opportunity to appeal to the league’s massive and engaged fanbase. In lululemon’s case, it has a strong chance of winning over the growing numbers of women who, thanks to Taylor Swift, are tuning in more often to games, and looking for stylish ways to rep their favorite teams.

Lululemon athetica warned the end of the de minimis exemption will be more damaging to its bottom line than tariffs alone. De minimis’ abrupt end is pressuring retailers’ supply chains and their operating models. In addition to tariff-proofing their manufacturing strategies, companies that relied on duty-free shipments to the US must now also invest in local fulfillment and face the full weight of tariff costs. While companies are looking to offset some of those expenses by reducing operating costs, most of the burden will ultimately be passed onto consumers—which could curb demand heading into the all-important holiday season.

Dupes are being purchased at high rates among affluent consumers, even more than those with lower incomes. 70% of high-income US adults (earning $150,000 or more) have tried a dupe private label product, per April 2025 First Insight data. This outpaces the 53% of mid-income consumers ($51,000 to $149,000) and the 41% of low-income consumers (under $50,000) that bought dupes.

Athleisure brands lululemon athletica and Vuori are expanding their presence overseas as the US market cools. With the US market looking increasingly uncertain, it’s no surprise that brands like lululemon and Vuori are looking to international markets to shift growth into a new gear. This trend will likely pick up among apparel brands this year, as they look for ways to mitigate the impact of tariffs and reduce their reliance on US shoppers.

The news: Lululemon is suing Costco for selling dupes. In a lawsuit filed June 25, the athleisure brand accuses the wholesale giant of infringing on its design patents by selling knockoff sweatshirts, jackets, and other activewear. Lululemon seeks an immediate halt to sales of the disputed products and unspecified monetary damages. Our take: For nearly as long as there have been name brands, there have been knockoffs. But the rise of dupe culture on TikTok—combined with increasingly cost-conscious consumers looking—is pushing more shoppers toward cheaper alternatives and more brands to the brink. It's become a growing headache for companies like Estée Lauder, which have struggled as buyers opt for low-priced lookalikes. Lululemon’s lawsuit marks a significant escalation in the brand’s efforts to protect its designs. If it succeeds, it could set a precedent—and signal that the era of unchecked dupes may be nearing a turning point.

The news: Lululemon beat earnings expectations and met revenue forecasts in Q1, but softening demand in its core Americas market cast a shadow over the results. Our take: Even premium brands aren’t immune to macro pressures. As consumers grow increasingly cost-conscious, discretionary purchases—especially those with big price tags—are easy for consumers to postpone. Lululemon’s challenge now is not just product innovation, but convincing shoppers its value proposition is worth the premium.

This earnings season revealed retailers with strong value propositions and efficient omnichannel operations are positioned to outperform, while those relying on middle-market discretionary spending face challenges.

Withings unveils AI-enabled smart mirror at CES: But consumers’ low interest in prior smart mirror products isn't likely to change.

Alibaba touts early Singles Day successes: Apple, lululemon, and Nike were among the biggest beneficiaries as price-conscious shoppers took advantage of steep discounts and other promotions.

Global consumers feel pressured by society to improve their well-being: Marketers have a unique opportunity to re-write the narrative of the well-being space with a lighter spin.

Now is the time for brands to build relationships with Gen Alpha: The generation is worth over $28 billion in direct spending, with billions more indirectly.

Dupe culture goes mainstream: Target and e.l.f. Beauty are among the companies benefiting from Gen Zers’ affinity for cheaper versions of premium products.

Self-reported spending is down 6% among US teens (which includes Gen Alpha and Gen Z consumers), but they are still shelling out on beauty, according to Piper Sandler’s latest Taking Stock with Teens survey.

Consumers care about sustainability, but often aren’t willing to buy environmentally friendly products if they’re deemed lower quality, especially if it costs more. One solution for retailers and consumers is resale, an industry worth $108.64 billion in 2024, per our December 2023 forecast. Not all environmental initiatives have to be at the consumer level, though.