Lululemon (LULU) announces new 5-year targets at analyst day 2022

A buyer seems at athletic attire inside of a Lululemon keep.

Xaume Olleros | Bloomberg | Getty Illustrations or photos

Lululemon aims to double its 2021 revenue in the up coming five several years, placing it on track to strike $12.5 billion in revenue by 2026, as the retailer rides a wave of Covid pandemic-fueled desire for exercise routine dresses.

Lululemon on Wednesday declared a handful of more time-time period development targets, such as for its men’s organization, forward of a scheduled analyst day function. It cited 3 essential drivers of momentum in the coming decades: product innovation, buyer expertise and market growth.

The athletic attire retailer is aiming to double its men’s earnings, double its digital sales and quadruple global profits, all in the upcoming 5 many years. Lululemon teased the formal debut of a new membership providing in the coming months, as properly as its foray into Spain and Italy by new brick-and-mortar outlets.

“We continue to be early in our advancement journey,” claimed Lululemon Main Govt Calvin McDonald, in a statement. “I am psyched about getting our progress strategies to the upcoming level.”

Nonetheless, some investors may possibly have been hoping for even bigger targets. Lululemon shares closed the day down virtually 5%, at $385.40. The stock has fallen about 1.5% 12 months to day.

The retailer’s income grew far more than 40% in 2021 from the prior yr, totaling $6.25 billion, fueled by a powerful direct-to-shopper organization and abroad momentum for its yoga trousers, leggings and sports bras. Which is in comparison with earnings of $3.98 billion in 2019.

In April 2019, Lululemon experienced laid out a variety of fiscal targets, such as doubling its then-nascent men’s company by 2023. It ended up acquiring the men’s aim two a long time in advance of schedule and also tripled digital income from 2018 to 2021.

Citing details from The NPD Group, Lululemon stated it acquired far more marketplace share globally than any brand name in the grownup active clothing industry from 2019 to 2021. Its rivals incorporate giants this sort of as Nike, Adidas and Beneath Armour, as nicely as up-and-coming brands like Vuori for gentlemen and Sweaty Betty for females.

A motivation between people to gown easily while paying more time at dwelling has propelled lots of of these suppliers during the Covid pandemic.

The corporation stated Wednesday that it initiatives earnings for each share development to outpace profits growth in the subsequent 5 years. It expects to boost the square footage of its stores each year in the minimal double digits. Its women’s enterprise and North American division are projected to see lower, double-digit annual compound expansion fees in income by 2026.

Lululemon’s chief money officer, Meghan Frank, named the targets “daring but practical.”

The business cited latest initiatives including its to start with-at any time footwear selection and a trade-in and resale plan that it mentioned ought to assist to realize these refreshing economical targets.

Last month, McDonald told analysts through an earnings simply call that the first response to the footwear start experienced been “extraordinary.” So significantly, Lululemon has only released a minimal line of women’s running sneakers, with men’s objects set to fall next 12 months.

Locate the full financial push release from Lululemon below.

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