- Prachi Singh |
Building upon a year of growth in 2018, Lululemon Athletica has announced a growth strategy for the next five years. Along with a plan to double men’s and digital revenues and quadruple international revenues, other key financial drivers of the company’s “Power of Three” strategic plan include total annual revenue growth in the low teens for the next five years; modest gross margin expansion annually; operating income growth to exceed revenue growth annually; EPS growth to equal or exceed operating income growth and annual square footage growth in the low double-digits.
“We’re ready to build upon our success and embark on the next phase of growth at Lululemon to realize the full potential of our brand,” said the company’s CEO Calvin McDonald in a statement, adding, “We believe Lululemon has a unique opportunity to push beyond traditional expectations to develop innovative products and become a fully experiential brand that creates compelling experiences for guests who want to completely live into the sweatlife.”
Lululemon announces “Power of Three” strategic plan
The company said that it plans to fuel growth through its “Power of Three” strategic plan to drive product innovation, create integrated omni guest experiences, and to expand deeper in key markets around the world. The company’s core women’s business and its agile store formats in North America will also remain focus areas and are expected to generate revenue growth in the low double digits annually for the next five years.
The company expects to more than double the size of its men’s revenues by 2023, while carrying out continued expansion in the women’s and accessories businesses. Both existing and new product categories are planned to grow, with lines supporting yoga, running and training. The company also plans to continue its product collaborations, expand its popular office/travel/commute category, and pursue new opportunities, such as selfcare.
The company added that on the international front, expanding across China, as well as the APAC and EMEA regions, will be continued areas of focus. The company also believes that considerable growth potential remains in both the US and Canada.
Lululemon plans to open a 25,000 sq. ft. experiential store in Lincoln Park in Chicago in July 2019, complete with yoga studios, meditation space, healthy juice and food, and areas for community gatherings.