Lululemon released a fresh, five-year growth plan on Wednesday ahead of its first investor day five years and new CEO Calvin McDonald.
"We believe Lululemon has a unique opportunity to push beyond traditional expectations to develop innovative products and […]
Key areas of focus at Lululemon include the expansion of its business, growth overseas in markets like China, shaping a stronger e-commerce platform and building of a loyal shoppers.
Rivals Nike and Under Armor have said they plan to target female shoppers more with new yoga pants and sports bras, threatening to wade into Lululemon's turf. But Lululemon, in turn, has said the biggest growth opportunity. It has been said to be $ 1 billion in sales annually by next year. It's also getting into personal-care products, like deodorant, looking for other ways to lure shoppers to its stores.
McDonald said Lululemon is planning to invest more in creating dynamic experiential moments "for customers. This is a 25,000-square-foot store in Chicago's Lincoln Park this July, which offers yoga studios, meditation spaces, and juice and food.
In the latest fiscal year, Lululemon's sales $ 3.3 billion, with sales 12 months, 18%, compared with growth of 7% during the prior year.
Nike, which brought in $ 36.4 billion in sales globally in 2018, holds 18.3% of the overall US sportswear market, which includes apparel and footwear, according to data compiled by Euromonitor. Adidas is second with 6%, Under Armor with 4.1%, Skechers with 2.6% and Lululemon with 1.9% as of the end of 2018, according to the firm.
In the women's athletic apparel category, though, Lululemon is second to
Ahead of Wednesday's meeting, a handful of analysts said they believe Lululemon wants to reach his revenue goal – for $ 4 billion by next year – ahead of schedule. Nomura Instinet analyst Simeon Siegel believes the retailer's sales can eclipse $ 6.5 billion by 2023.
"However, it seems like sales or margins are approaching a peak," Siegel said in a note to clients. "It is more likely [management] to do so."
This is a developing story. Please check back for updates.