A customer appears to be at athletic attire within a Lululemon retail store.
Xaume Olleros | Bloomberg | Getty Pictures
Lululemon aims to double its 2021 profits in the following 5 many years, placing it on track to strike $12.5 billion in profits by 2026, as the retailer rides a wave of Covid pandemic-fueled desire for exercise session garments.
Lululemon on Wednesday announced a handful of more time-expression development targets, together with for its men’s organization, forward of a scheduled analyst working day occasion. It cited three key motorists of momentum in the coming many years: item innovation, shopper practical experience and marketplace growth.
The athletic clothing retailer is aiming to double its men’s revenue, double its digital gross sales and quadruple international profits, all in the subsequent 5 years. Lululemon teased the formal debut of a new membership featuring in the coming months, as well as its foray into Spain and Italy by means of new brick-and-mortar outlets.
“We remain early in our progress journey,” stated Lululemon Main Government Calvin McDonald, in a assertion. “I am psyched about getting our progress strategies to the following amount.”
Even now, some traders may possibly have been hoping for even more substantial targets. Lululemon shares closed the working day down almost 5%, at $385.40. The stock has fallen roughly 1.5% calendar year to date.
The retailer’s income grew far more than 40% in 2021 from the prior yr, totaling $6.25 billion, fueled by a potent immediate-to-buyer business enterprise and overseas momentum for its yoga trousers, leggings and sports bras. Which is compared with revenue of $3.98 billion in 2019.
In April 2019, Lululemon experienced laid out a quantity of financial targets, including doubling its then-nascent men’s small business by 2023. It ended up accomplishing the men’s intention two many years in advance of plan and also tripled digital earnings from 2018 to 2021.
Citing knowledge from The NPD Team, Lululemon said it gained a lot more industry share globally than any brand in the grownup lively clothing sector from 2019 to 2021. Its rivals contain giants these kinds of as Nike, Adidas and Under Armour, as properly as up-and-coming manufacturers like Vuori for adult men and Sweaty Betty for gals.
A wish amid customers to gown comfortably when shelling out far more time at house has propelled a lot of of these stores during the Covid pandemic.
The organization stated Wednesday that it projects earnings per share development to outpace income advancement in the future five years. It expects to enhance the sq. footage of its outlets every year in the very low double digits. Its women’s enterprise and North American division are projected to see very low, double-digit once-a-year compound progress premiums in earnings through 2026.
Lululemon’s chief fiscal officer, Meghan Frank, named the targets “bold but realistic.”
The enterprise cited modern initiatives together with its first-ever footwear assortment and a trade-in and resale program that it claimed need to assist to realize these fresh money targets.
Very last thirty day period, McDonald instructed analysts in the course of an earnings connect with that the original reaction to the footwear start experienced been “outstanding.” So significantly, Lululemon has only produced a constrained line of women’s running footwear, with men’s objects established to fall subsequent yr.
Uncover the complete financial press release from Lululemon right here.