Photo: The Canadian Press
The traditionally women’s athletic leisure retailer Lululemon Athletica Inc. announced ambitious plans to double revenues from men’s products and digital sales, and quadruple international earnings by 2023.
“We really are in the early innings of our full potential,” CEO Calvin McDonald said at the company’s first analyst day in five years held in New York City on Wednesday.
Lululemon anticipates its annual revenues will grow more than 10 per cent for the next five years with product innovation, omni-channel guest experiences and continued market expansion being primary drivers.
The company sees great potential for growth in men’s clothing.
“We have very low brand awareness with men,” McDonald said, explaining there is a huge opportunity to increase showing men how Lululemon’s clothes can be a good choice for their athletic and other pursuits.
The brand will soon launch a new running line dubbed Fast and Free aimed to help men achieve both those feelings with clothing that contains thermal-regulation properties as well, said Sun Choe, the company’s chief product officer. The line will include split shorts and singlets.
Growing the men’s offering will be part of Lululemon’s ongoing product innovation.
Lululemon wants to help outfit people for activities other than yoga, she said, and will focus on growing its offerings for runners, as well as people who do strength training. That means adding more high-support bras in addition to its popular lighter-support ones with strappy backs, for example, and creating more durable, flexible fabrics for the demands of a cross-fit workout.
The company wants to expand its accessories line as well, which it still sees as a start-up business, said Choe. It will focus on purses, as well as equipment such as fitness rollers and training gloves. Lululemon sees accessories as a way to bring younger people into the brand thanks to lower price points and boost sales that spike around holidays as people purchase gifts.
Lululemon will also roll out its self-care line to 50 stores this June, said Choe. It initially tested the products, which include a deodorant, dry shampoo and lip balm, at more than a dozen stores in Chicago, Orange County. Calif., and Toronto, and feels optimistic about the opportunity to grow the line.
McDonald said the company also has plans to create some new products in the footwear space but said more details would come at a later date.
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