Lululemon, which last week called its early holiday sales “strong” and forecasted total Q4 revenues of $3.14 to $3.17 billion, intends to put extra attention on the men’s business and launch footwear for him in 2024.
While the brand’s Q3 men’s sales increased by 15 percent, the group admitted men’s brand awareness for Lululemon is low and ranges from 13 percent in the US to 12 percent in Australia and in the single digits in all other global markets. An effort is underway to increase media and brand building around men’s offerings. In Q3, the company tested a new men’s campaign in the US featuring its ABC bottoms and the advertising will continue in 2024 as the brand launches its first footwear offerings for men and focuses on its core franchises new Soft Jersey and Steady State product concepts.
Elsewhere, Lululemon says it remains optimistic about its potential outside North America, where Q3 sales grew by “strong double digits” in all markets, including a 53 percent increase in Greater China, where the group currently operates 114 stores. CEO Calvin McDonald told analysts that every market Lululemon is in within APAC and the EMEA expanded revenues by double digits during the period despite single-digit unaided brand awareness. In the EMEA specifically, the company is investing in some new markets by opening stores. Australia remains the brand’s most mature international market.
The company’s Power of Three ×2 growth plan calls for a doubling of the business from 2021 net revenue of $6.25 billion to $12.5 billion by 2026. The key pillars of the plan are product innovation, guest experience, and market expansion, and the growth strategy includes a plan to double men’s, double DTC and quadruple international net revenue relative to 2021.
