Lululemon targets men's wear for future growth
Yoga and workout wear company Lululemon Athletica has unveiled plans to gain market share within the men's wear industry by making a substantial investment in the sector.
Speaking at the 15th Annual ICR XChange Conference in Miami on Wednesday (16 January), CEO Christine Day said: "The next opportunity is men's and I think for Canada in particular, this is an enormous growth lever for us."
A little over a year and a half ago, men's wear represented 8% of Lululemon's sales according to Day. In the year-to-date, men's wear accounts for 12%, with the holiday season peaking at 15% of sales.
"We know that we are gaining a lot of traction in Canada in men's and you'll see us making a substantial investment in our men's team," Day said.
"We have an offer out to a great GM candidate to run men's...you'll see us make a lot more concerted effort that will drive Canada and the US business."
The news came after the company raised its fourth-quarter sales target to be at the high end of its original guidance of between US$475 and $480m. It now also expects diluted earnings per share for the quarter to be $0.74, compared to its previous guidance of $0.71 to $0.73.
The company managed to avoid markdowns over the holiday season, with less than 2% of its stock on sale or marked down both before and after the holiday period. Day said this strategy of premium brand pricing continues to provide the company with business momentum and strong earnings capability.
Its Ivivva dance and active wear range for girls had an exceptional holiday season, according to Day. "We only had five showrooms in the US but they really drove a tremendous amount of business to our US e-commerce site," she said.
Lululemon Athletica also updated investors on its growth plans - in the US and internationally.
The active wear brand, which operates 211 stores around the world, of which 135 are in the US, said its plan to have 300 in the country is "well on its way".
Day said Lululemon will also invest in an East Coast distribution centre to shorten the replenishment time in stores, which is critical for it to handle volume, the availability of product and drive revenue in stores.
International growth is also on the agenda for Lululemon Athletica, with a focus on growing in Asia and Europe. "We're continuing to push forward on our international strategy," CFO John Currie said.
The company revealed it is in an "intense" search for its first permanent store in Hong Kong.
It also aims to open stores in the UK, Germany and the Netherlands as early as 2014, Currie said.
"2013 will be another year of extending the same strategy, working with showrooms in e-commerce to set the stage for additional store growth in 2014," Currie added.
Assessing the true cost of Lululemon's recall of its hugely popular black Luon pants back in March could take some time yet....
This report analyzes the worldwide markets for Sports and Fitness Clothing in US$ Million by the following Product Segments: Sports Apparel, and Fitness Clothing. The report provides separate comprehe...
Sportswear giant Nike has called for an inquiry by the Cambodian government into a dispute between police and thousands of garment workers at a factory it sources from....
The most-read stories on just-style this week include continuing protests in Cambodia over the sacking of garment workers, the news that apparel pricing edged up in May, and Tesco's decision to stop s...
The most-read stories on just-style this week include a report that China's cotton stocks policy may lead to higher prices, a look at whether the tide of social accountability is turning, and an admis...
Lululemon Athletica CEO Christine Day is to quit after the company announced a first quarter US$17.5m write-off linked to the recall of its popular black Luon leggings....
- MYANMAR SNAPSHOT: Textile and apparel industry
- Clothing seen as central focus for new Tesco CEO
- Alliance members buy more products from Bangladesh
- Indian apparel exporters discuss policy changes
- Change management key to PLM project success
- Crystal Group improves worker communication
- TIMELINE: Charney ousting from American Apparel
- Columbia Sportswear fined for mislabelled clothing
- “Made in USA” company rapped for deceptive claims
- VF Corp books "solid" Q2 performance
- Global market review of denim and jeanswear – forecasts to 2020
- Management briefing: Sourcing shifts: Changes and challenges
- Ethiopia – the emerging textile and clothing industry
- American Eagle Outfitters, Inc. : Reacting to a need for change
- Plunkett's Apparel & Textiles Industry Almanac 2014: Apparel & Textiles Industry Market Research, Statistics, Trends & Leading Companies