A buyer appears at athletic clothing within a Lululemon shop.

Xaume Olleros | Bloomberg | Getty Visuals

Lululemon aims to double its 2021 profits in the upcoming five decades, putting it on track to hit $12.5 billion in revenue by 2026, as the retailer rides a wave of Covid pandemic-fueled desire for workout garments.

Lululemon on Wednesday declared a handful of more time-time period growth targets, including for its men’s business, in advance of a scheduled analyst working day event. It cited three essential drivers of momentum in the coming a long time: products innovation, shopper encounter and industry growth.

The athletic clothing retailer is aiming to double its men’s earnings, double its electronic revenue and quadruple international revenue, all in the future 5 years. Lululemon teased the official debut of a new membership providing in the coming months, as very well as its foray into Spain and Italy via new brick-and-mortar stores.

“We keep on being early in our advancement journey,” explained Lululemon Chief Government Calvin McDonald, in a assertion. “I am energized about having our progress tactics to the subsequent stage.”

Continue to, some buyers may well have been hoping for even even bigger targets. Lululemon shares shut the day down approximately 5%, at $385.40. The stock has fallen around 1.5% year to day.

The retailer’s gross sales grew far more than 40% in 2021 from the prior yr, totaling $6.25 billion, fueled by a powerful direct-to-consumer small business and overseas momentum for its yoga trousers, leggings and athletics bras. Which is as opposed with income of $3.98 billion in 2019.

In April 2019, Lululemon had laid out a variety of economical targets, which includes doubling its then-nascent men’s small business by 2023. It finished up obtaining the men’s objective two years forward of schedule and also tripled digital income from 2018 to 2021.

Citing data from The NPD Team, Lululemon explained it obtained far more market share globally than any manufacturer in the adult lively clothing sector from 2019 to 2021. Its rivals involve giants these types of as Nike, Adidas and Less than Armour, as effectively as up-and-coming brands like Vuori for guys and Sweaty Betty for women of all ages.

A motivation among the individuals to dress comfortably even though shelling out a lot more time at house has propelled lots of of these merchants all through the Covid pandemic.

The firm explained Wednesday that it tasks earnings per share development to outpace earnings expansion in the following 5 years. It expects to increase the square footage of its outlets each year in the low double digits. Its women’s business and North American division are projected to see lower, double-digit once-a-year compound growth rates in revenue via 2026.

Lululemon’s main economic officer, Meghan Frank, named the targets “bold but real looking.”

The enterprise cited latest initiatives which include its initial-at any time footwear selection and a trade-in and resale program that it reported ought to assistance to reach these new fiscal targets.

Previous month, McDonald instructed analysts for the duration of an earnings call that the preliminary response to the footwear launch had been “extraordinary.” So significantly, Lululemon has only released a confined line of women’s working footwear, with men’s products established to fall following yr.

Come across the comprehensive economic press release from Lululemon here.


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