Canada's Lululemon aims to double revenue to $12.5 bn by 2026

Lululemon Athletica is on track to successfully achieve 2023 revenue and earnings growth targets ahead of schedule.

The company’s Power of Three ×2 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, the company said in a media release.

In addition to doubling men’s and digital, and quadrupling international revenues, other key financial goals of the company’s Power of Three ×2 growth strategy include total net revenue CAGR of 15 per cent between 2021 and 2026, modest operating expansion annually, EPS growth to outpace revenue growth and annual square footage growth in the low double digits.

“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.”

From 2019 to 2021, in the adult active apparel industry, Lululemon gained more market share globally than any brand in this industry, across the markets that The NPD Group tracks. Having grown revenue from $3.3 billion in 2018 to $6.25 billion in 2021, the company will continue to focus on its three strategic pillars to fuel revenue growth over the next five years: Product Innovation, Guest Experience, Market Expansion

Lululemon has added its Impact Agenda priorities, including supporting its people and creating a healthier planet, to its successful Power of Three growth model. The new plan includes focusing on building an environment that is equitable and inclusive, advancing equity in wellbeing across its communities, and working to prevent environmental harm and helping to restore the planet.

Fibre2Fashion News Desk (KD)