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A client appears at athletic apparel inside of a Lululemon retail store.
Xaume Olleros | Bloomberg | Getty Images
Lululemon aims to double its 2021 revenue in the upcoming 5 decades, placing it on observe to hit $12.5 billion in income by 2026, as the retailer rides a wave of Covid pandemic-fueled demand from customers for exercise outfits.
Lululemon on Wednesday introduced a handful of extended-expression expansion targets, which includes for its men’s business, in advance of a scheduled analyst working day event. It cited three crucial drivers of momentum in the coming decades: merchandise innovation, client knowledge and marketplace enlargement.
The athletic attire retailer is aiming to double its men’s revenue, double its digital gross sales and quadruple international revenue, all in the following five years. Lululemon teased the official debut of a new membership offering in the coming months, as properly as its foray into Spain and Italy via new brick-and-mortar shops.
“We keep on being early in our growth journey,” reported Lululemon Main Government Calvin McDonald, in a statement. “I am energized about having our growth tactics to the up coming level.”
Nonetheless, some buyers may well have been hoping for even larger targets. Lululemon shares shut the working day down nearly 5%, at $385.40. The inventory has fallen around 1.5% 12 months to date.
The retailer’s revenue grew a lot more than 40% in 2021 from the prior calendar year, totaling $6.25 billion, fueled by a powerful direct-to-customer enterprise and overseas momentum for its yoga pants, leggings and athletics bras. That’s in contrast with profits of $3.98 billion in 2019.
In April 2019, Lululemon experienced laid out a quantity of monetary targets, like doubling its then-nascent men’s business by 2023. It finished up accomplishing the men’s aim two many years forward of routine and also tripled electronic revenue from 2018 to 2021.
Citing info from The NPD Group, Lululemon stated it gained much more sector share globally than any manufacturer in the grownup lively clothing industry from 2019 to 2021. Its rivals contain giants these types of as Nike, Adidas and Less than Armour, as well as up-and-coming brand names like Vuori for men and Sweaty Betty for women.
A wish between individuals to dress easily though paying out much more time at dwelling has propelled several of these vendors through the Covid pandemic.
The company stated Wednesday that it initiatives earnings per share growth to outpace earnings growth in the next 5 several years. It expects to raise the square footage of its outlets each year in the very low double digits. Its women’s company and North American division are projected to see small, double-digit yearly compound advancement premiums in profits as a result of 2026.
Lululemon’s chief money officer, Meghan Frank, identified as the targets “daring but realistic.”
The company cited current initiatives such as its initially-ever footwear collection and a trade-in and resale system that it mentioned should really assist to obtain these new economic targets.
Past thirty day period, McDonald explained to analysts all through an earnings simply call that the original reaction to the footwear start had been “unbelievable.” So significantly, Lululemon has only produced a constrained line of women’s operating sneakers, with men’s products established to fall next yr.
Uncover the whole fiscal press launch from Lululemon here.
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