A buyer appears to be like at athletic attire inside a Lululemon retailer.
Xaume Olleros | Bloomberg | Getty Photos
Lululemon goals to double its 2021 income within the subsequent 5 years, placing it on observe to hit $12.5 billion in gross sales by 2026, because the retailer rides a wave of pandemic-fueled demand for exercise garments.
Lululemon on Wednesday introduced a handful of longer-term progress targets, together with for its males’s enterprise, forward of a scheduled analyst day occasion. It cited three key drivers of momentum within the coming years: product innovation, buyer expertise and market enlargement.
The athletic attire retailer is aiming to double its males’s income, double its digital gross sales, and quadruple worldwide income, all within the subsequent 5 years. Lululemon teased the official debut of a brand new membership providing within the coming months, in addition to its foray into Spain and Italy by means of new brick-and-mortar retailers.
“We stay early in our progress journey,” mentioned Lululemon Chief Government Calvin McDonald, in a press release. “I’m enthusiastic about taking our progress methods to the subsequent degree.”
The retailer’s gross sales grew greater than 40% in 2021 from the prior 12 months, totaling $6.25 billion, fueled by a powerful direct-to-consumer enterprise and abroad momentum for its yoga pants, leggings and sports activities bras. That is in contrast with income of $3.98 billion in 2019.
In April of 2019, Lululemon had laid out a number of financial targets, together with doubling its then-nascent males’s enterprise, by 2023. It ended up reaching the lads’s aim two years forward of schedule and in addition tripled digital income from 2018 to 2021.
The corporate’s shares are up about 25% over the previous 12 months.
Lululemon mentioned Wednesday that it tasks earnings-per-share progress to outpace income progress within the subsequent 5 years. It expects to extend its sq. footage yearly within the low double digits. Its ladies’s enterprise and North American division are projected to see low, double-digit annual compound progress charges in income by means of 2026.
Lululemon’s Chief Monetary Officer Meghan Frank known as the targets “daring however real looking.”
The corporate cited current initiatives together with its first-ever footwear collection and a trade-in and resale program that it mentioned ought to assist to realize these contemporary monetary targets.
Lululemon is anticipated to share extra round these targets, and reply analysts’ questions, throughout a gathering set to kick off later Wednesday morning.
This story is creating. Please examine again for updates.
