For a company that has made its 25-year-old yoga pants franchise a multi-category player in the activewear industry, Vancouver-based Lululemon Athletica said Wednesday (April 20) that the next five years of its journey will be led by the growth of its international, digital and menswear businesses.
In a statement coinciding with its annual Analyst Day meeting being held in New York today, the premium sports and workout equipment supplier extended the growth trends it outlined there. a month away as it released its fourth quarter results and unveiled its expansion plans. sneakers, tennis and golf.
Since then, Lululemon has weathered a downtrend in the retail sector, with its shares rising more than 30% in 30 days, at a time when the S&P 500 and S&P Retail Index fell 2% and 5% respectively.
“We remain at the start of our growth journey, with our strong product engine, proven ability to build lasting customer relationships, and significant track in core markets, existing and new,” said Lululemon CEO, Calvin McDonald, in a statement from the company, which aims to quadruple its international revenue while doubling its digital and menswear categories by 2026.
Put the Lou in Lulu
It’s not like Lululemon isn’t already expanding into these targeted areas and attracting business and customers from big global rivals like Nike and Adidas.
During the company’s earnings call in March, Chief Financial Officer Meghan Frank told investors it was “important to note that we remain in the early days of our growth trajectory outside of North America. noting that international revenue had increased by 50% in 2021 but still only amounted to 15% of Lululemon’s total global sales.
“From 2019 to 2021, in the adult activewear industry, lululemon gained more market share globally than any brand in this industry,” proclaimed the company’s latest growth plan. company, showing sales that had grown from $3.3 billion in 2018 to $6.25 billion in 2021.
Regarding the decision to outfit more men and bring men into its stores and website, the retailer said its ambitious 5-year plan was the result of achieving its pre-growth target for the category two years ahead of schedule.
Watch out for the gap
To be sure, Lululemon will face increasing competition from rivals with existing footprints and decades of presence in the international market, such as the Gap’s Athleta brand which currently does not offer menswear. Even with the company’s new growth targets in place, the Canadian company said it was not losing sight of its core market and said it would also continue to expand its womenswear and accessories business.
Like its aspirations in men and internationally, Lululemon’s plans to double its digital business are following a similar trajectory and continuing past growth rates, the company said, noting that its digital revenues had tripled. between 2018 and 2021 and would increase again by 2 times by 2026.
To do this, the company said it will “harness the power of customer relationships” through stronger physical and digital retail connections, continued product innovation, and brand and brand building efforts. community, including its “Like New” resale program which will be available nationwide beginning Friday, April 22—Earth Day.
Based on what it called “learnings from its pilot membership program,” as well as strong customer feedback, Lululemon also said it would launch a new two-tier membership program later this year. year.
“The intention of the program is to build engagement with its brand, community and products, to create the most immersive fitness marketplace in the industry,” the company said, in an anonymous appeal to its many rivals.