- Prachi Singh
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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.
Picture:Facebook/Lululemon
