Canadian retailer Lululemon (LULU) says it plans to double its revenue in the next five years to
$12.5 billion U.S. as the company leverages strong demand for exercise clothing.
Lululemon announced a handful of long-term growth targets ahead of a scheduled analyst day
event. It cited three key drivers of momentum in the coming years: product innovation, customer
experience and market expansion.
The athletic apparel retailer that is based in Vancouver, B.C. is aiming to double revenue from
its men’s clothing segment, double its digital sales, and quadruple international revenue, all by
2026. Lululemon teased the official debut of a new membership offering in the coming months,
as well as its expansion into Spain and Italy through new brick-and-mortar retail stores.
Lululemon’s sales grew more than 40% in 2021 from the prior year, totaling $6.25 billion U.S.,
fueled by a strong direct-to-consumer business and overseas momentum for its popular yoga
pants, leggings and sports bras. That compares with revenue of $3.98 billion U.S. in 2019.
Lululemon said Wednesday that it projects earnings-per-share growth to outpace revenue
growth in the next five years. It expects to increase its square footage annually in the low double
digits. Its women’s business and North American division are projected to see low, double-digit
annual compound growth rates in revenue through 2026.
The company’s stock has risen 25% over the past 12 months to $404.66 a share.