A customer looks at sportswear inside a Lululemon store.
Zum Ulrus | Bloomberg | Getty Images
Lululemon It aims to double its 2021 revenue in the next five years, putting it on track to reach $12.5 billion in sales by 2026, as the retailer rides a wave of pandemic-fueling demand for exercise clothing.
Lululemon on Wednesday announced a few long-term growth goals, including the men’s business, ahead of its scheduled Analyst Day event. She cited three main drivers of momentum in the coming years: product innovation, customer experience, and market expansion.
The sportswear retailer aims to double its men’s revenue, double its digital sales, and quadruple international revenue, all in the next five years. Lululemon teased the official debut of its first new membership offering in the coming months, as well as its entry into Spain and Italy with new stores.
“We are still early in our growth journey,” Calvin MacDonald, Lululemon CEO, said in a statement. “I’m excited to take our growth strategies to the next level.”
Retail sales grew more than 40% in 2021 over the previous year, with total sales of $6.25 billion, buoyed by strong direct-to-consumer business and external momentum for yoga pants, leggings, and sports bras. This compares to revenue of $3.98 billion in 2019.
In April of 2019, Lululemon has set a number of financial goalsIncluding doubling the then-startups of men’s businesses by 2023. The men’s target ended up being met two years ahead of schedule, and digital revenue tripled from 2018 to 2021.
The company’s shares are up about 25% over the past 12 months.
Lululemon said Wednesday that it expects earnings per share to outpace revenue growth in the next five years. It expects to increase its square footage annually in the low double digits. The Women’s Business division and the North America division are expected to experience low double-digit annual revenue growth rates through 2026.
Megan Frank, Lululemon’s chief financial officer, called the goals “bold yet realistic.”
The company cited recent initiatives including The first ever shoe collection and Barter and Resale Program He said he should help achieve these new financial goals.
Lululemon is expected to share more about these goals, and answer questions from analysts, during a meeting scheduled to begin later Wednesday morning.
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