According to the folks at lululemon, the point of setting a long-term goal is to become connected to your future self.
Lulu lemon how to#
Want to sail around the world in 10 years? You’d better know how to sail in five, and open up a savings account by year one. They begin by visualizing what their life will look like in 10 years: What will I love? What will I have accomplished? Who will surround me? From there, the goal-setting works backwards: The big vision is broken down into five- and one-year goals to help make the long-term objective a reality. People interested in the program, whether lululemon employees or customers, are encouraged to read about goal setting on the company blog and fill out a vision worksheet. So, Lululemon is able to surprise the market to the upside by beating expectations, which only helps to push up the stock price.Lululemon’s goal-setting program is based on a 10-year plan and breaks down into three areas of life: health, personal, and career. And adding to Lululemon's bull case is the fact that Wall Street's consensus earnings forecasts for the next two fiscal years have consistently been raised over the past three months, while Nike's have fallen.
Nike, on the other hand, has boosted these same metrics 35% and 50% during the same time period. Even so, investors might hesitate to buy shares today because of the company's forward price-to-earnings (P/E) ratio of 53, which is even higher than Nike's 43.īut consider that over the past five years, Lululemon has increased quarterly revenue 182% and quarterly profit 288%. What about the valuation?Īlthough Lululemon's stock has surged in recent years, it's meaningfully lagged the broader S&P 500 's performance over the past 12 months. Therefore, it's not hard to see the outstanding potential this business still has in front of it. are substantial strategic priorities for Lululemon. "What's very exciting is the balance of growth across all international markets, meaning they are all contributing significant growth and into our goal of quadrupling our international business by '23," McDonald mentioned in response to an analyst's question during the conference call.Įxpanding beyond the women's category and outside the U.S. International revenue is up 43% annually on a two-year basis. Of the 45 to 55 new store openings planned this fiscal year, the majority (35 to 40) of them will be in foreign countries. With 86% of sales in fiscal 2020 coming from North America, Lululemon also has huge potential for international expansion.
Lulu lemon driver#
This could be a big growth driver in the future. The company has already achieved remarkable success, but it hasn't even pursued a direct strategy aimed at boosting sales from teens. I point this out because it highlights the untapped opportunity Lululemon has when it comes to younger customers. Lululemon came in fifth place with just 5% of teens choosing it as their top clothing brand. 1 clothing brand identified, by a wide margin, was Nike ( NYSE:NKE). Out of 10,000 teens surveyed in 44 states, the No. This goal was set in 2019 to be reached in 2023, so achieving an ambitious target an incredible two years ahead of schedule speaks to Lululemon's strong consumer relevance.Īnd since we're talking about the brand, the most recent Taking Stock With Teens survey conducted by Piper Sandler provides some important data about the apparel market. "We will double our men's business this year," CEO Calvin McDonald said on the Q2 earnings call. In fact, Lululemon's men's segment is thriving. Over the past two years, men's revenue increased 31% annually, more than the 28% growth rate for women's. What started as a business selling yoga pants to women has evolved into a complete lifestyle brand for everyone. In the most recent quarter, sales and operating profit jumped 61% and 134%, respectively, compared to the second quarter of 2020. It's obvious that the business is still just a tiny fraction of the overall industry, a fact that can be easily forgotten thanks to Lululemon's rapid growth. Lululemon's trailing 12-month sales totaled $5.5 billion, which accounts for approximately 3.2% of the global sports and fitness clothing market.
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