The Canadian government issued a press release on May 25 stating that “the expansion of Lululemon’s global headquarters in its hometown of Vancouver promises to significantly boost British Columbia’s prosperity.” The release also indicates that the Canadian athleisure brand is committed to growing and investing in the creation of more than 2,600 local jobs in Vancouver over the next five years, which has already resulted in a revitalization of British Columbia’s workforce and economy.
With its origins in British Columbia, Lululemon employs nearly 9,000 Canadian workers (as of 2022) and “continues to employ thousands of Canadians while bringing people with unique skill sets from abroad to the province, fueling Canada’s innovation engine,” said Immigration, Refugees and Citizenship Canada (IRCC) in the release.
It adds: “This expansion project, and the growth of the company, will benefit from the collaboration of the federal and provincial governments after being recognized as a significant investment project under the Canada-British Columbia Immigration Agreement. This recognition allows the company to further welcome international talent in a variety of high-skilled occupations.” The government anticipates that Lululemon’s expansion, including the development of in-store support centers and global training centers, will result in significant employment growth and knowledge transfer over the next several years.
Lululemon released its annual report at the end of March. The company reported annual revenue growth of 30 percent for fiscal 2002, to $8.11 billion from $6.26 billion the previous year. However, a $407.9 million impairment charge negatively impacted annual operating income and net income. As a result, FY22 operating income was essentially flat at $1.33 billion, while net profitability declined 12 percent to $854.8 million from $975.3 million.
For 2023, Lululemon forecasts revenue growth of 15 to 16 percent to between $9.3 billion and $9.41 billion. The company also said it will spend $660-680 million on capital expenditures in FY23, including the cost of expanding its distribution network. These projects include a new distribution center in the Los Angeles area and expansion of centers in Columbus, Ohio, and Toronto, Canada.
