Lululemon Athletica Inc (NASDAQ:LULU) shares initially dipped 2% to $366.00 Friday morning following Nike's second-quarter earnings report and strategic pivot under its new CEO, Elliott Hill. Nike shares fell 5.5% to $72.86 Friday morning following the report.

What To Know: Nike's report highlighted better-than-expected earnings, with revenue reaching $12.35 billion, surpassing Wall Street estimates.

However, Hill's comments about Nike regaining its dominance by reinvigorating its athlete-first approach, enhancing wholesale relationships, and leveraging value channels like Nike Value Stores to address inventory challenges signal a potential shakeup in market dynamics.

Lululemon has built its success on premium pricing, yoga-inspired apparel, and direct-to-consumer strategies. With Nike now pledging to "reinvest in brand stories" and reconnect with wholesale channels, analysts fear the competitive landscape could shift, drawing consumers away from Lululemon's niche.

Nike's commitment to balancing digital and physical retail, as highlighted in the second-quarter report, could also pose risks to Lululemon's omnichannel strategy.

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How To Buy LULU Stock

Besides going to a brokerage platform to purchase a share – or fractional share – of stock, you can also gain access to shares either by buying an exchange traded fund (ETF) that holds the stock itself, or by allocating yourself to a strategy in your 401(k) that would seek to acquire shares in a mutual fund or other instrument.

For example, in Lululemon Athletica (NASDAQ:LULU)'s case, it is in the Consumer Discretionary sector. An ETF will likely hold shares in many liquid and large companies that help track that sector, allowing an investor to gain exposure to the trends within that segment.

According to data from Benzinga Pro, LULU has a 52-week high of $516.37 and a 52-week low of $226.19.