A client appears to be like at athletic attire inside a Lululemon keep.
Xaume Olleros | Bloomberg | Getty Photographs
Lululemon aims to double its 2021 earnings in the up coming 5 a long time, putting it on track to hit $12.5 billion in product sales by 2026, as the retailer rides a wave of Covid pandemic-fueled demand for workout outfits.
Lululemon on Wednesday introduced a handful of more time-phrase growth targets, together with for its men’s business, in advance of a scheduled analyst working day party. It cited a few key motorists of momentum in the coming several years: merchandise innovation, shopper experience and sector growth.
The athletic attire retailer is aiming to double its men’s profits, double its digital profits and quadruple global earnings, all in the following five years. Lululemon teased the formal debut of a new membership presenting in the coming months, as properly as its foray into Spain and Italy through new brick-and-mortar shops.
“We stay early in our expansion journey,” mentioned Lululemon Chief Govt Calvin McDonald, in a assertion. “I am excited about using our expansion methods to the following degree.”
Nevertheless, some investors could have been hoping for even larger targets. Lululemon shares shut the day down practically 5%, at $385.40. The inventory has fallen around 1.5% 12 months to date.
The retailer’s product sales grew much more than 40% in 2021 from the prior calendar year, totaling $6.25 billion, fueled by a powerful direct-to-buyer small business and abroad momentum for its yoga trousers, leggings and sports bras. That’s when compared with revenue of $3.98 billion in 2019.
In April 2019, Lululemon had laid out a selection of fiscal targets, which include doubling its then-nascent men’s organization by 2023. It finished up obtaining the men’s objective two many years ahead of agenda and also tripled digital profits from 2018 to 2021.
Citing info from The NPD Group, Lululemon stated it received much more current market share globally than any model in the adult energetic apparel marketplace from 2019 to 2021. Its rivals incorporate giants these types of as Nike, Adidas and Below Armour, as nicely as up-and-coming brands like Vuori for gentlemen and Sweaty Betty for gals.
A wish among shoppers to costume comfortably though paying a lot more time at residence has propelled lots of of these retailers in the course of the Covid pandemic.
The corporation claimed Wednesday that it projects earnings per share advancement to outpace earnings growth in the following 5 years. It expects to improve the sq. footage of its stores yearly in the lower double digits. Its women’s company and North American division are projected to see minimal, double-digit once-a-year compound expansion fees in revenue by way of 2026.
Lululemon’s main economical officer, Meghan Frank, referred to as the targets “daring but practical.”
The business cited new initiatives such as its first-ever footwear selection and a trade-in and resale software that it claimed ought to support to reach these fresh monetary targets.
Last thirty day period, McDonald instructed analysts for the duration of an earnings phone that the original reaction to the footwear launch experienced been “extraordinary.” So considerably, Lululemon has only introduced a minimal line of women’s working shoes, with men’s merchandise set to fall next 12 months.
Find the comprehensive economic press launch from Lululemon right here.