Lululemon aims for $1 billion revenue
US-based yoga apparel firm Lululemon Athletica has said it expects to hit $1 billion in revenue during fiscal 2012, as productivity at its US stores climbs closer to that seen in its profitable Canadian outlets.
While Lululemon’s sales have increased, investors have been concerned that competition might start to slow its ascent.
“We’re not feeling it or seeing it on a global basis or even store by store,” CFO John Currie told the Reuters Global Consumer and Retail Summit on 27 June 2011, when the stock hit an all-time high.
Lululemon has seen an improvement in its store productivity in the United States in recent months, said Mr Currie, reaching $1100 to $1200 per square foot, well above its targets when it entered the US market.
The company is also looking to expand online, where it is replacing its site with an improved, in-house system.
While Lululemon remains focused on yoga, it has experimented with lines for other activities, including swimming, cycling and hiking. The firm’s men’s line is also expanding. In the fourth quarter of 2010, men’s items accounted for 13.7% of sales, the highest level ever, Mr Currie said.
“We try to allocate 18 to 20% of the floor space to men’s and we believe that it has the ability to grow into that. I don’t think we want to take it further because we’re women's focused,” Mr Currie said.
