Lululemon Athletica, a sportswear company, has unveiled a five-year strategy
Last week, Lululemon Athletica Inc. (LULU) announced a five-year strategy.The corporation will concentrate its efforts on three primary areas of business, each of which should contribute significantly to revenue and profit growth. The new plan for Lululemon Athletica is to triple sales in three business areas at the same time.
The first direction is the men’s products category. For a long time, Lululemon Athletica was known for its women’s clothes, but the company’s early forays into the men’s clothing market showed that this area had a lot of promise. The administration intends to treble the revenue from the sale of men’s items by 2026. Remember that the corporation met its prior target of doubling men’s products sales by 2023, two years ahead of schedule. E-commerce represents the second half of the expected twofold increase.
Lululemon Athletica now has 574 retail locations in 17 countries, although online sales are the primary means of increasing brand exposure and acquiring new consumers. Online sales revenues accounted for more than 49 percent of total revenue in the fourth quarter of 2021, and their share of total revenue is expected to grow.Lululemon Athletica’s foreign business is the company’s third growth path.
Only 15% of the company’s total income came from outside North America in the previous fiscal year (which concluded on January 30). Lululemon Athletica sales now account for just 3% of the global sportswear market, implying significant room for expansion globally. Lululemon Athletica anticipates profitability to increase as sales increase.
Due to the application of technologies and cost optimization, management anticipates that profits per share growth will outperform sales growth through 2026. The Lululemon Athletica brand is crucial because it is growing in popularity and, according to the current Piper Sandler poll, it is the third most popular apparel brand among teens and young people.
