Lululemon is a multibillion-dollar leader in the high-end active put on category that owns and operates 600 stores, 40 of which are located in Europe. Its roots date back to 1998 when it opened as “Lululemon Athletica, ” a yoga-wear brand geared toward women plus yoga enthusiasts.
With in-store services, a heavy emphasis on community symbolized by its well-loved, reusable shopping bags, the brand offers an upscale buying and product experience.
Demand for athletic wear has grown exponentially since those early days, and in 2022 Lululemon continues to lead the way, with its second-quarter revenue soaring 29% year over 12 months. What’s more, the particular company’s three-year compound annual growth rate increased simply by 25% for women and 30% for men.
Today’s success does stand in contrast to challenges it has seen in the past with unsteady leadership, item mishaps and supply chain delays. For example, Lululemon co-founder Chip Wilson stepped down in 2013 after a series of inflammatory remarks about its new line of leggings. That set off the consumer controversy. Now, inflation is observed as a looming risk to that will double-digit growth.
“The consumer is becoming much more cautious about spending, inch said Neil Saunders, managing director and retail analyst at GlobalData. “And while I think Lululemon’s customer loyalty will hold it in good stead, a consumer downturn is bad news for any brand, plus it might take some associated with the heat out of Lululemon’s development. ”
Nevertheless, the company continues to innovate and diversify into different categories and wider tech offerings. Two years ago, this acquired technology and in-home exercise startup, Mirror, for $500 million and this year it launched a new membership program . The company also unveiled women’s footwear products this yr.
Those types of initiatives are reflective of Lululemon’s ambitious five-year plan set in April 2022 along with three strategic pillars — innovation, guest experience plus international expansion — at its core. What’s more, it aims to double its digital sales and quadruple its international revenue by 2026.
Though the diversification efforts have been met with mostly positive reactions so far, some analysts worry its wider product breadth could dilute focus with regard to the brand that grew from humble roots.
Watch the video above to learn more about what makes Lululemon a global innovator in athleisure and active wear.