Lululemon Athletica is thinking big as it looks to build on the momentum it gained throughout the pandemic.
The athletic apparel retailer unveiled a five-year plan to double its revenue by 2026 to $12.5bn. It cited three key drivers of growth going forward: product innovation, customer experience and market expansion.
In addition, Lululemon’s women’s business and North American operations are expected to generate low, double-digit annual compound growth rates in their respective categories. Annual square footage growth is expected in the low double digits.
Lululemon reported $6.25bn in revenues for 2021 (up from $3.3bn in 2018), which put it two years ahead of schedule in achieving 2023 revenue goals which it announced several years ago.
“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 CEO Calvin McDonald. “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.”
Lululemon CFO Meghan Frank called the financial targets “bold but realistic” and coming from a position of financial strength, “while delivering on our 2023 goals with significant growth across our core business”.
“We have a long runway ahead and are well-positioned to build on our strong momentum and deliver sustainable long-term value creation for all our stakeholders,” she added.
