Lululemon (LULU) announces new 5-year targets at analyst day 2022
Customer looks inside Lululemon to see athletic wear.
Xaume Olleros | Bloomberg | Getty Images
LululemonIt aims at doubling its 2021 revenues in five years. That would put it on track for $12.5 billion in sales by 2026.
Lululemon announced Wednesday a few longer-term growth goals, including one for the men’s division, before a scheduled analyst event. Three key factors that will drive momentum over the next years were product innovation, customer experience, and expansion of market share.
This athletic apparel retailer aims to quadruple its global revenue in five years. It also plans on doubling its men’s sales. Lululemon announced the launch of its new membership program in the next few months. It also revealed plans to expand into Spain and Italy via new brick-and mortar shops.
Calvin McDonald, Chief Executive Officer at Lululemon stated that “we remain early in the growth journey.” “I’m excited to take our growth strategies up a notch.”
In 2021, sales increased by more than 40% compared to the previous year. They reached $6.25 Billion. This was a result of a strong direct business as well as overseas momentum for yoga pants, leggings, and bras. This compares to the revenue of $3.98 million in 2019.
The April 2019 issue Lululemon had laid out a number of financial targetsIt was able to achieve its ambitious goals, such as doubling the size of its male business in 2023. It was two years faster than planned to reach the men’s target and has also tripled its digital revenues from 2018 to 2021.
Shares of the company have increased 25% in 12 months.
Lululemon announced Wednesday that earnings per share growth will outpace revenue growth over the next five year. The company expects to grow its annual square footage by the low-double digits. The company’s North American and women-owned businesses are forecast to grow at low rates, compounding in double digits annually through 2026.
Lululemon Chief Financial Officer Meghan Frank described the goals as “bold, but realistic.”
It cited several recent initiatives, including the first-ever footwear collectionAnd a trade-in and resale programThis should be a step towards achieving these financial targets.
Lululemon will likely share information about these goals and answer questions from analysts during Wednesday’s meeting.
This is a developing story. Stay tuned for new updates.