Lululemon said on Wednesday at its analyst day that it would place a greater emphasis on its men's category, projecting that it will double the size of revenues in that category by 2023, according to a company press release emailed to Retail Dive.
The company also announced that it would expand its women's and accessories business, which includes the addition of its own footwear, CEO Calvin McDonald said on a call with analysts. Lululemon has been selling shoes on its website since 2017 through a partnership with Athletic Propulsion Labs.
The company's five-year growth strategy is centered around a "Power of Three" concept, which includes product innovation, omni guest experiences and market expansion. Lululemon projects that its digital revenues will more than double by 2023, while its international revenue will quadruple over the next five years.
Lululemon has been talking about placing a greater emphasis on its men's category, and those ambitions are even more apparent after the company shared its five-year plan.
"What we really want to be able to do is focus on guest acquisition and brand awareness. We feel like in this space we don't have enough guys that really know Lululemon to be a brand for them and really try to get over the idea that Lululemon is a women's brand," Chief Product Officer Sun Choe said on the call. This pitches it into tighter competition with Nike, which has been pushing hard to grow its female customer base as of late and also recently launched a yoga line targeting athletes of all types.
But Lululemon also noted that it will expand product offerings in its women's categories as well. Lululemon on the call said it will begin exploring more opportunities in footwear, though it didn't provide many details beyond that. The company in August 2017 formed a partnership with Athletic Propulsion Labs, and has since expanded to include colors exclusive to Lululemon. This further positions the company to rival specialty players like Under Armour and Nike, as well as direct-to-consumer brand Fabletics, which in 2017 added shoes to its product offering. The company will continue to expand its selfcare offerings, as well as its office, travel and commute categories.
"We are impressed by LULU's dominant position in aspirational athleisure wear and believe LULU can continue to gain share of the market (particularly in men's) through innovation, expand product categories, and grow significantly internationally," according to an analyst note from B Riley FBR. "However, we remain on the sidelines until we see a more attractive entry point."
Lululemon also noted that it would be opening stores, including an experiential store in Lincoln Park, Chicago, that will open in July. The 25,000-square-foot store will include a yoga studio, meditation spaces, juice and food and community gathering areas. This comes at a time when many retailers are shuttering stores.
"We believe lululemon has a unique opportunity to push beyond traditional expectations to develop innovative products and become a fully experiential brand that creates compelling experiences for guests who want to completely live into the sweatlife," CEO Calvin McDonald said in a statement.