Lululemon CEO not fazed by competition
15/08/2016
The Canadian brand achieved a 17% increase in revenue in the first quarter of 2016, having broken the £2 billion sales barrier in 2015. It has set the ambitious target of $4 billion in revenue by 2020.
Lululemon has recovered well after problems in 2013 that cost the company millions of dollars. It was forced to recall controversial yoga pants made from luon fabric that was found to be too sheer. It resulted in the resignation of Christine Day, CEO of the company at the time.
Speaking to The Associated Press, Mr Potdevin said he was confident Lululemon would not suffer as other brands jump on board the “athleisure” trend.
“We are in a very unique position at the intersection of function and fashion,” he said, adding that the importance Lululemon places on functionality is what separates them from the competition.
He believes that the brand has the potential to expand in a range of categories, including men’s, for which Lululemon is targeting $1 billion in sales by 2020.
Among the strategies that Lululemon is implementing to stimulate growth are a diversification of products (including menswear and swimwear), improving their e-commerce operations and increasing the number of stores they operate in North America. It also wants to increase its international presence, aiming to have 20% to 25% of its total sales coming from outside the US by 2020.
Image courtesy of Lululemon.
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