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On Wednesday, Lululemon announced an ambitious business plan following a historic fiscal year.
The athletic apparel retailer’s “Power of Three x2” strategy states that it will reach $12.5 billion in revenue by 2026 — twice the amount it earned in 2021.
Lululemon will continue its investment in women’s apparel and the North American market. But it will put significant emphasis on growing two other areas of the business: menswear and the international market.
- By 2026, the company plans to increase men’s apparel revenue to twice the amount it garnered in 2021.
- Its international market revenue should quadruple, the brand said.
- Over the next five years, Lululemon expects a 15% growth in total net revenue CAGR.
The plan also includes a component for environmental sustainability and supporting diversity.
CFO Meghan Frank called the plan “bold but realistic” in a statement.
A Historic Year
The news follows Lululemon’s March earnings report release, which revealed the company earned a total of $6.25 billion in annual revenue in 2021 — a record.
A large chunk of those sales came during the fourth quarter, when Lululemon earned $2.1 billion in total revenue.
