Lululemon will enter six new markets in 2026 through franchise agreements with Arion Retail Group in Europe and Tata CLiQ in India. The expansion represents the brand’s largest single-year international push as it confronts a 2 percent revenue decline in North America and prepares for a leadership transition following CEO Calvin McDonald’s departure.
Lululemon announced plans for its most ambitious international expansion to date, entering six new markets in 2026: Greece, Austria, Poland, Hungary, Romania and India. The move will be executed through franchise agreements with Arion Retail Group in Europe and Tata CLiQ in India, reinforcing the brand’s strategy to scale globally while navigating a challenging North American retail environment.
The new stores will offer Lululemon’s full range of technical athletic apparel and accessories for yoga, running, training, tennis and golf. European customers will also have access to online shopping via lululemon.eu, while Indian consumers can shop through Tata CLiQ Luxury and Tata CLiQ Fashion. Sarah Clark, Senior Vice President for EMEA, said: “As we continue to see strong demand for the Lululemon brand around the world, we’re thrilled to grow our presence and communities across Europe and Asia Pacific with entry into six new markets in 2026.”
Why now?
The expansion comes as Lululemon faces slowing growth in North America, where revenues fell 2 percent last quarter amid rising competition from brands like Vuori, Skims and Athleta. Overall global sales revenue grew 7 percent, reaching approximately $2.57 billion for the quarter, but analysts warn that saturation in the US market and missed product trends have pressured performance.”
Leadership shake-up
To address these challenges, CEO Calvin McDonald will step down next month after seven years at the helm. Activist investor Elliott Investment Management, which holds a stake of over $1 billion (€910 million), is pushing for Ralph Lauren executive Jane Nielsen as a potential successor. Analysts expect leadership changes to accelerate innovation and strengthen Lululemon’s competitive edge.
Strategic outlook
International expansion remains a key pillar of Lululemon’s growth strategy. With a presence in more than 30 markets today, the brand has recently entered Italy and opened stores in Denmark, Turkey and Belgium. The six new markets represent its largest single-year push, signaling confidence in global demand and the scalability of its franchise model, which reduces operational risk while enabling rapid market penetration.
Preparations for store openings and community activations will continue into 2026, with details on locations and timelines to follow.
