Lululemon Athletica aims to double revenues to 12.5 billion dollars by 2026
Lululemon Athletica Inc. has announced its new Power of Three ×2 growth strategy. As part of this plan, the company plans to double its 2021 revenue of 6.25 billion dollars to 12.5 billion dollars by 2026.
“The success of our Power of Three formula in delivering on our 2023 growth strategy supports our goal to double the business over the next five years,” said Calvin McDonald, the company’s chief executive officer.
“We remain early in our growth journey, with our strong product engine, proven ability to create enduring guest relationships, and significant runway in core, existing, and new markets,” McDonald added.
Lululemon targets 12.5 billion dollars revenues by 2026
The company said in a release that it expects to double men’s and digital revenues, and to quadruple international revenues relative to 2021.
Additionally, the company added that its women’s business, store channel, and North American operations will continue to play an important role in the strategy, with women’s and North America each expected to generate low double digit compound annual growth rates (CAGR) in revenue over the next five years, while stores are expected to grow in the mid-teens.
Having grown revenue from 3.3 billion dollars in 2018 to 6.25 billion dollars in 2021, the company will continue to focus on its three strategic pillars - product innovation, guest experience and market expansion, to fuel revenue growth over the next five years:
While engaging guests in China Mainland, growing its core markets, Lululemon said, scaling and entering new countries across APAC and Europe will be key to delivering on its new goal. The company also plans to open its first stores in Spain and Italy.
In addition to doubling men’s and digital, and quadrupling international revenues, other key financial goals of the company’s Power of Three ×2 growth strategy include total net revenue CAGR of 15 percent between 2021 and 2026, modest operating expansion annually, EPS growth to outpace revenue growth and annual square footage growth in the low double digits.
“We are setting bold but realistic 2026 targets from a position of financial strength, while delivering on our 2023 goals with significant growth across our core business,” said Meghan Frank, Lululemon’s chief financial officer.