Retail Dive: Lululemon to Exceed 2023 Revenue Goal Prediction by End of 2021
(Image source: The Guardian)
Athletic retailer, Lululemon is expecting to exceed its revenue goal for 2023 by the end of this year. It would be 2 years earlier than its previous projection stated in the Power of Three Growth plan.
“In 2020, we achieved our goal to double our e-commerce business. This year, we will likely achieve the goal we set to double our men’s business, and we remain on track to quadruple our international business by 2023, if not sooner,” according to CEO Calvin McDonald.
Despite the speculation that Lululemon’s fast growth rate was boosted significantly by the pandemic, the company has proven otherwise with its growth this year.
In the last quarter, the net revenue grew 61% to $1.5 billion – from both e-commerce and brick-and-mortar stores. The retailer expects that the total annual revenue to reach over $6 billion, higher than the previous projection of $5 billion.
Regarding the Mirror’s acquisition, CEO McDonald explained that it was necessary for the long-term growth of Lululemon. The brand intends to introduce Mirror to all customers in Canada soon. The athletic retailer can end its paid membership pilot with mirror as it’s hard to scale physical interactions but Mirror will provide visibility.
However, investors and analysts are less convinced, especially when Lululemon disclosed very little information regarding this acquisition. This might be the only noise that Lululemon should solve in order to keep a clean and attractive profile in front of investors.
Source: Lululemon to surpass 2023 revenue goal by the end of the year
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