Lululemon aims to double revenue by 2026
Athleticwear company Lululemon announced on Wednesday a new five-year target strategy outlining its plan to double revenue by 2026 to $12.5 billion.
The Vancouver, Canada-based company said it plans to double its 2021 revenue of $6.25 billion over the coming five years, adding it expects significant growth across "key pillars including product innovation, guest experience, and market expansion," according to a press release.
Dubbed the 'Power of Three ×2', the growth strategy includes a plan to double men’s and digital revenues, and to quadruple international revenues relative to 2021. The company’s women’s business, store channel, and North American operations will continue to play an important role in the strategy, with women’s and North America each expected to generate low double digit compound annual growth rates (CAGR) in revenue over the next five years, while stores are expected to grow in the mid-teens.
Having achieved its 2023 men’s growth target two years early, Lululemon said it expects to double the size of its men’s revenues by 2026, along with ongoing expansion in its women’s and accessories businesses.
The company will leverage Science of Feel, its lens for innovation, to innovate across categories, with significant runway within Core performance (Run, Train, Yoga and On the Move) as well as exciting opportunities in Play (Tennis, Golf and Hike) and new categories such as footwear, which was recently launched.
On top of a tripling of its digital revenue between 2018 and 2021, the company projects to double its digital revenues by 2026. To accomplish this goal, Lululemon will continue to create experiences by harnessing the power of its guest relationships to build stronger connections across both physical and digital, cultivate its community, and inspire through innovation.
Last week, the company announced the expansion of Lululemon Like New, the brand’s first trade-in and resale program, available nationwide in the United States beginning April 22.
Finally, Lululemon said it is on track to quadruple its international revenue relative to 2018 in 2022. Under its new strategy, the activewear giant expects to again quadruple its international revenues relative to 2021 by 2026. Engaging guests in China Mainland, growing its core markets, and scaling and entering new countries across APAC and Europe will be key to delivering on its new goal, adding it plans to open its first stores in Spain and Italy.
“The success of our Power of Three formula in delivering on our 2023 growth strategy supports our goal to double the business over the next five years,” said Calvin McDonald, chief executive Officer.
“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. Following our compelling track record of delivering against our goals, I am excited about taking our growth strategies to the next level to serve more and more guests around the world.”
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