Lululemon goals to double its 2021 earnings within the subsequent 5 years, hanging it heading within the correct route to hit $12.5 billion in sales by 2026, because the retailer rides a wave of Covid pandemic-fueled demand for workout garments.

Lululemon on Wednesday announced a handful of longer-time interval growth targets, together with for its men’s industry, before a scheduled analyst day occasion. It cited three key drivers of momentum within the coming years: product innovation, buyer ride and market expansion.

The athletic apparel retailer is aiming to double its men’s earnings, double its digital sales and quadruple world earnings, all within the subsequent 5 years. Lululemon teased the dependable debut of a brand new membership offering within the coming months, as neatly as its foray into Spain and Italy via new brick-and-mortar stores.

“We remain early in our growth scuttle,” acknowledged Lululemon Chief Executive Calvin McDonald, in a commentary. “I am brooding about taking our growth programs to the subsequent stage.”

The corporate’s shares rose better than 2% in premarket buying and selling on the news.

The retailer’s sales grew better than 40% in 2021 from the prior one year, totaling $6.25 billion, fueled by a sturdy declare-to-consumer industry and in a single other country momentum for its yoga pants, leggings and sports actions bras. That is in contrast with earnings of $3.98 billion in 2019.

In April 2019, Lululemon had laid out a replacement of monetary targets, together with doubling its then-nascent men’s industry by 2023. It ended up reaching the boys’s purpose two years before schedule and furthermore tripled digital earnings from 2018 to 2021.

Citing info from The NPD Community, Lululemon acknowledged it received extra market half globally than any brand within the grownup tantalizing apparel industry from 2019 to 2021. Its competitors consist of giants similar to Nike, Adidas and Beneath Armour, as neatly as up-and-coming brands treasure Vuori for men and Sweaty Betty for girls folk.

A desire amongst customers to gown very easily while spending overtime at dwelling has propelled many of these outlets for the interval of the Covid pandemic.

Lululemon shares are up about 25% all around the last 12 months. The inventory closed Tuesday at $404.66.

The corporate acknowledged Wednesday that it projects earnings per half growth to outpace earnings growth within the subsequent 5 years. It expects to elongate the sq. footage of its stores yearly within the low double digits. Its girls folk’s industry and North American division are projected to witness low, double-digit annual compound growth charges in earnings via 2026.

Lululemon’s chief monetary officer, Meghan Frank, called the targets “dauntless nevertheless practical.”

The corporate cited most neatly-liked initiatives together with its first-ever shoes sequence and a replace-in and resale program that it acknowledged ought to relief to make these new monetary targets.

Last month, McDonald told analysts for the interval of an earnings call that the initial response to the shoes initiate had been “not doubtless.” To this level, Lululemon has handiest released a miniature line of girls folk’s trainers, with men’s items plight to drop subsequent one year.

Lululemon is anticipated to half extra spherical these targets, and answer analysts’ questions, for the interval of a gathering plight to kick off later Wednesday morning.

Safe the fat earnings press liberate from Lululemon right here.

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