Lululemon Sees High Growth Potential Amid Other Retailers Shutting Their Doors

Lululemon Athletica Inc. (LULU) has established some lofty goals for 2020 and beyond as it looks to expand its growth with more stores, a self-care line, a stronger focus on men’s products, and an increase in women accessories and product offerings as well as deeper penetration internationally.

Lululemon made the announcement about its five-year targets as part of its Power of Three strategic plan. The athletic wear company said it plans to double both its men’s and digital revenues while quadrupling its international revenues. The company not only anticipates it will generate more revenue growth, but it expects low double-digit increases 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,” Calvin McDonald, Lululemon CEO said in a statement. “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.”

As part of its Power of Three growth strategy, Lululemon intends to add new product categories and extend its membership program which is currently in the pilot stage. The company has its eye on three priorities over the next five years – product innovation, guest experiences, and market expansion.

The company said it intends to add new product categories like a self-care line while expanding its office/travel/commute category. Lululemon also said it will add more events and new store formats that “inspire, provoke and celebrate guests who live a healthy and mindful lifestyle across multiple experiences.”

Lululemon also has plans to expand its presence in the regions of China, Asia-Pacific, Europe, the Middle East, and Africa as well as growing its reach in the U.S. and Canada. The company has plans to open a 25,000 square foot experiential store in Chicago by July. The new store format will include “yoga studios, meditation space, healthy juice and food, and areas for community gatherings.”

“lululemon is purpose-driven and is positioned well to continue to inspire guests living the sweatlife across multiple experiences,” McDonald said. “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.”

Shares of Lululemon stock were down 0.68 percent as of 2:54 p.m. ET on Thursday.