LULULEMON UNVEILS 5-YEAR GROWTH PLAN
Building upon a year of considerable growth in 2018 and having already delivered on several of its key 2020 goals, Lululemon is meeting with investors and analysts today to outline its growth strategy for the next five years. The company 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 growth strategy includes a plan to double the size of its men’s and digital revenues by 2023, and to quadruple international revenues. 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.
“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 CEO Calvin McDonald. “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.”
The Power of Three strategic plan also includes contributions from new product categories and offerings, such as its membership program which is currently in pilot, as the company further leverages its position as an experiential brand for guests across channels.
The company also is sharing its vision — to be the experiential brand that ignites a community of people living the sweatlife through sweat, grow and connect — which it believes speaks to guests who want flexibility and choice as they lead a healthy, mindful lifestyle.
“Lululemon is purpose-driven and is positioned well to continue to inspire guests living the sweatlife across multiple experiences,” McDonald added. “We believe we are operating from a position of strength as we invest in creating dynamic experiential moments for our communities to connect and come together.”
The company created and hosted more than 4,000 local events last year and demonstrated success with larger-scale experiences such as the SeaWheeze half-marathon in Vancouver and 10K runs in Edmonton and Toronto. The company’s run clubs and yoga partnerships have long been a staple of the company’s community-based foundations and success.
To embody its experiential brand ambitions, the company announced it will open a 25,000 square-foot 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.
“Our new five-year strategic plan reflects the potential we see across several areas of our business,” commented PJ Guido, the company’s chief financial officer. “The three main growth pillars are consistent with our prior plan, and we will continue to grow our core business while expanding into new categories to drive earnings growth and shareholder return.”
