A woman walks into a store of yogawear retailer Lululemon Athletica in downtown Vancouver June 11, 2014. Reuters/Ben Nelms
Lululemon Athletica Inc. outlined a new five-year plan intended to double sales to $12.5 billion by 2026, in part by expanding its offerings to men.
The athletic-wear retailer aims to double the revenue it gets from men’s products and its digital channel, while quadrupling international sales from 2021 levels, the company said in a statement. Executives are meeting with analysts and investors at an event in New York on Wednesday.
"We remain early in our growth journey, with our strong product engine, proven ability to create enduring guest relationships, and significant runway in core, existing, and new markets,” said Lululemon Chief Executive Officer Calvin McDonald. The company said it has already delivered on its 2023 growth goals and now is targeting a compound annual growth rate of about 15% from 2021 to 2026.
Under McDonald, who took the top job in 2018, Lululemon has pumped investment into its menswear business and added product lines to attract new customers. It has also expanded in international markets across Europe and Asia, including China, in search of more growth. Since he took over, Lululemon shares have tripled in value.
Management made a big bet on in-home fitness when it acquired Mirror, a maker of interactive exercise screens, for $500 million in 2020. Footwear is another area of focus, with Lululemon debuting a sneaker line earlier this year. The move takes the company further from its yoga-wear roots and intensifies competition with apparel giants such as Nike Inc. and Adidas AG in categories like running shoes and trainers.
In March, Lululemon gave an optimistic sales outlook for its fiscal year that ends next January. Management sees annual sales of as much as $7.62 billion. The board also authorized a new share buyback program of as much as $1 billion.
Like most retailers, Lululemon has struggled to cope with supply-chain snags. Capacity limits, staff shortages and reduced store hours hurt holiday sales.
Lululemon’s stock rose 3.4% in 2022 through Tuesday’s close, compared with a 13% decline for the Nasdaq Composite Index.
