A purchaser seems at athletic attire inside of a Lululemon store.
Xaume Olleros | Bloomberg | Getty Visuals
Lululemon aims to double its 2021 revenue in the up coming five several years, putting it on observe to hit $12.5 billion in profits by 2026, as the retailer rides a wave of Covid pandemic-fueled need for exercise routine clothes.
Lululemon on Wednesday announced a handful of longer-time period expansion targets, such as for its men’s enterprise, ahead of a scheduled analyst working day party. It cited 3 important drivers of momentum in the coming years: solution innovation, shopper practical experience and market place growth.
The athletic clothing retailer is aiming to double its men’s income, double its electronic profits and quadruple intercontinental earnings, all in the upcoming five several years. Lululemon teased the formal debut of a new membership providing in the coming months, as well as its foray into Spain and Italy by means of new brick-and-mortar shops.
“We continue to be early in our expansion journey,” stated Lululemon Main Executive Calvin McDonald, in a assertion. “I am energized about having our growth techniques to the upcoming stage.”
Continue to, some investors may well have been hoping for even greater targets. Lululemon shares closed the working day down nearly 5%, at $385.40. The stock has fallen approximately 1.5% yr to date.
The retailer’s revenue grew extra than 40% in 2021 from the prior yr, totaling $6.25 billion, fueled by a robust direct-to-buyer organization and abroad momentum for its yoga pants, leggings and sports bras. Which is in comparison with income of $3.98 billion in 2019.
In April 2019, Lululemon had laid out a quantity of economical targets, like doubling its then-nascent men’s organization by 2023. It ended up accomplishing the men’s objective two yrs in advance of plan and also tripled electronic profits from 2018 to 2021.
Citing information from The NPD Team, Lululemon explained it attained far more industry share globally than any brand name in the grownup active apparel market from 2019 to 2021. Its rivals include things like giants this kind of as Nike, Adidas and Below Armour, as very well as up-and-coming models like Vuori for adult men and Sweaty Betty for girls.
A need among the customers to gown comfortably though shelling out a lot more time at residence has propelled quite a few of these retailers for the duration of the Covid pandemic.
The company stated Wednesday that it projects earnings per share advancement to outpace income progress in the upcoming 5 several years. It expects to raise the square footage of its merchants annually in the lower double digits. Its women’s enterprise and North American division are projected to see lower, double-digit once-a-year compound expansion rates in income by 2026.
Lululemon’s chief economical officer, Meghan Frank, identified as the targets “bold but reasonable.”
The organization cited recent initiatives which includes its very first-ever footwear collection and a trade-in and resale software that it said need to assist to reach these contemporary fiscal targets.
Final thirty day period, McDonald explained to analysts for the duration of an earnings contact that the initial response to the footwear launch had been “extraordinary.” So significantly, Lululemon has only unveiled a restricted line of women’s operating sneakers, with men’s products established to fall up coming yr.
Obtain the whole fiscal push launch from Lululemon below.