Lululemon Looks to Spread Wings as Core Keeps Growing

This week, LULU will begin testing “self-care” products online and 50 of its stores as part of the company’s strategy to dabble in white space and introduce innovation to its customers. New test categories include training and running. But the company says it remains committed to its core women’s business, projected to grow “in the low double digits” and men’s, with an annual growth target of 20 percent, for the next five years.

In July, Lululemon will open a 20,000-sq.-ft. experiential store in Chicago’s Lincoln Park section that will feature multiple studios, meditation space, healthy juice/food offerings and dedicated space for community gatherings. Meanwhile, the brand has expanded its membership program to a third city—Austin, TX—and has expanded its Buy Online, Pick Up In Store (BOPIS) capability to 115 doors.

In Q1, LULU’s North American business grew 18 percent as store traffic increase in the high single digits. Senior management says the company has significant growth opportunities in the region via its merchandise assortments, flexible store formats and unique event offerings. Meanwhile, the current full year FY19 outlook calls for a revenue range of $3.73-3.77 billion and a comparable sales increase in the low double digits on a constant dollar basis.