Lululemon Athletica Inc (NASDAQ: ) announced that it intends to double its revenue and reach $12.5 billion in 2026. The company is driven by stronger sales of workout clothing after the Pandemic.

A number of long term growth goals were set by the retailer of athletic apparel. It cited as its primary drivers three growth factors in the coming years, including product innovation, customer experience and market growth.

The company said it will attempt to double its men’s and digital sales, and boost international revenue by fourfold in the following five years.

Lululeon has also indicated that it will soon launch a new member service and open new brick-and–mortar shops in Spain, Italy, and other markets.

“We remain early in our growth journey,” said Calvin McDonald, CEO of Lululemon. “I am excited about taking our growth strategies to the next level.”

Lululemon’s sales surged over 40% in 2021 from 2020, reporting a total of $6.25 billion, driven by increased demand for its yoga pants, leggings, and sports bras.

According to the company, it expects EPS to grow faster than revenue over the next five years. It also anticipates that its square footage will increase on a yearly base in the low to mid double digits.

Lululemon also estimates its women’s and North American businesses to record a low double-digit annual growth rate in revenue in the next five years.

John Zolidis from Quo Vadis Capital stated that the guidance provided implies an $680 per share value, which provides a 68% increase over three years up to early 2025.

“We believe the Street is inclined to believe LULU’s targets given success achieving previous three year goals much faster than anticipated. Accordingly, we see the stock holding its premium multiple and believe investors should remain with long positions, or buy on weakness,” Zolidis wrote to clients.

Jim Duffy, a Stifel analyst, also expressed positive views on LULU stock.

“These objectives are stronger than our expectations of +low/mid-teens revenue CAGR and mid-teens+ EPS CAGR, but still leave room to deliver multi-year upside… We are encouraged by the confident outlook,” Duffy wrote.

By Senad Karaahmetovic