Lululemon aiming for millennial market

Like all brands, Lululemon has hopped on the train to court the millennial consumer. While they are working on expanding their number of stores, in an overly saturated retail market that might not be the best approach. However, if they can get more shoppers, they can at least stay on track to make their brand a 4 billion dollar business by 2020.

After reporting positive fourth quarter results, the brand has announced they will be launching a global ad campaign for the first time. The news was reported by Fashionista.

The company's chief executive officer Laurent Potdevin said they have found success with influencer based marketing, but they are still working on communicating a larger global message. "As we grow as a global brand, it's becoming extremely important," he said in an earnings conference call.

The company has partnered with a creative agency (that is remaining anonymous) to help them build content for millennials. The global ad campaign is set to launch in May.

Although Lululemon is going after a larger market share, they did well with the customers they have last year.

For the fourth quarter of 2016, net revenue increased 12 percent to 789.9 million dollars. For the overall year, it was up 14 percent to 2.3 billion dollars. Comparable sales were up 8 percent and 6 percent. Last year, the company also returned to positive operating income growth for the first time in three years.

Leggings continued to be their top category, while sports bras were their newest top category. The brand also saw growth in men's wear too.

This year, they plan on expanding their accessories and outerwear categories, as well as growing their omnichannel approach.

The downside for Lululemon is this morning their stock tumbled more than 20 percent after the company announced that first quarter results were off to a slow start. Weak store traffic and fewer online purchases are setting the company up for its first quarterly sales decline since the recession as reported by CNBC.

Four analysts downgraded the company's shares, putting them on pace for the second worst day of trading in history.

photo: via Lululemon Facebook