Lululemon, the Vancouver-based activewear giant, has announced its ambitious goal to double its revenue by 2026.
The company plans to achieve this by focusing on key pillars including product innovation, guest experience, and market expansion.
With its growth strategy dubbed as the ‘Power of Three ×2’, Lululemon aims to double its men’s and digital revenues, along with quadrupling its international revenues relative to 2021.
In addition, the company will continue to prioritize its women’s business, store channel, and North American operations, with each expected to generate low double-digit compound annual growth rates in revenue over the next five years.
Lululemon’s stores are also anticipated to experience growth in the mid-teens.Regarding product innovation, Lululemon has already achieved its 2023 men’s growth target two years ahead of schedule.
The company aims to double the size of its men’s revenues by 2026, as well as expand its women’s and accessories businesses.When it comes to guest experience, Lululemon has seen a tripling of digital revenue between 2018 and 2021.
The company envisions doubling its digital revenues by 2026.
To achieve this, Lululemon plans to create unique experiences by leveraging the power of its guest relationships to build stronger connections, both in physical and digital realms.
The brand will focus on cultivating its community and inspiring through innovation.
As part of this effort, Lululemon recently launched Lululemon Like New, its first trade-in and resale program, which will be available nationwide in the United States.Market expansion is another critical aspect of Lululemon’s growth strategy.
The company is on track to quadruple its international revenue by 2022 relative to 2018.
Looking ahead, Lululemon aims to quadruple its international revenues once again, relative to 2021, by 2026.
Key initiatives include engaging guests in China Mainland, growing in core markets, and scaling and entering new countries across the Asia-Pacific (APAC) region and Europe.
Lululemon also plans to open its first stores in Spain and Italy.Calvin McDonald, the CEO of Lululemon, expressed confidence in the company’s growth strategies, stating, ‘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.
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.’.
