Dive Brief:
- As its sales outside the U.S. continue to grow, Lululemon announced plans to expand into six new markets next year, including Greece, Austria, Poland, Hungary, Romania and India.
- Customers of the brand will be able to shop the European markets online at eu.lululemon.com. Customers in India can access Lululemon through online marketplaces Tata CLiQ Luxury and Tata CLiQ Fashion, according to a press release.
- The move builds on Lululemon’s strategy to expand into new markets and follows the brand’s entry into Italy over the summer.
Dive Insight:
Lululemon’s plans to push into new markets come as the brand faces challenges in the North American market.
“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,” Sarah Clark, senior vice president of Europe, the Middle East and Africa, said in a statement.
In its most recent quarter, Lululemon posted overall revenue growth of 7%, but in the Americas, revenues fell 2%. The brand has attributed stagnation in the North American market in part to intense competition and missing key trends. The athletics space has seen rising competition from the likes of Skims, Vuori and Athleta.
“Most of Lululemon’s problems are confined to North America where the brand is dominant in its segment and is highly saturated in terms of store numbers and consumer penetration,” GlobalData Managing Director Neil Saunders said in an email. “It needs to get back on track with more product innovation and better designs — something a change in leadership may inspire.”
To that end, Lululemon CEO Calvin McDonald is set to step down next month after seven years at the helm. Elliott Investment Management, which has acquired a more than $1 billion stake in Lululemon, is actively pushing for the board to hire Ralph Lauren executive Jane Nielsen as its next CEO.
