D. Tighe
Research expert covering consumer behavior, sporting goods retail, and the global toy industry.
For a long time, the global sportswear market had been primarily dominated by brands from the United States and Germany. That is, until a Canadian challenger entered the ring and became one of the biggest names in the industry. lululemon athletica Inc. is a manufacturer and retailer of yoga-inspired athletic apparel based in British Columbia. With annual revenue figures of about 350 million U.S. dollars back in 2008, lululemon’s global sales have grown consistently and reached over nine and a half billion U.S. dollars during its 2023 fiscal year. This is more than double the amount generated just three years earlier. Although the company is predominantly known for its up-market women’s leggings and yoga pants, lululemon also markets a menswear range, swimwear goods, and yoga equipment. Recently, lululemon even launched its first footwear products.
The country with the highest share of outlets unsurprisingly accounted for the highest share of revenue. Close to 70 percent of lululemon sales were generated in the headquarters' neighboring country of the United States alone. In fact, only about 20 percent of the company’s sales were made outside of these two countries. This distribution of net revenue also reflects lululemon's global workforce to a degree: of the roughly 38,000 people employed by lululemon athletica, over half were based in the United States. And like the customer base, the majority of the company’s workforce was made up of women.
If the previous 10 years are anything to go by, then lululemon's future looks bright and ripe with opportunity. And according to forecasts, the company is expected to see its annual sales increase by roughly 15 percent.
lululemon athletica worldwide
Since its foundation in 1998, lululemon has successfully expanded throughout North America, Europe, Asia, and Oceania. As of January 2024 (the end of the company's 2023 financial year), the United States held more than half of the enterprise's international stores. Canada used to account for the second-highest number of locations, however, the country has recently been overtaken by China, which held nearly 130 stores. The number of lululemon retail stores worldwide came to more than 700 that year.The country with the highest share of outlets unsurprisingly accounted for the highest share of revenue. Close to 70 percent of lululemon sales were generated in the headquarters' neighboring country of the United States alone. In fact, only about 20 percent of the company’s sales were made outside of these two countries. This distribution of net revenue also reflects lululemon's global workforce to a degree: of the roughly 38,000 people employed by lululemon athletica, over half were based in the United States. And like the customer base, the majority of the company’s workforce was made up of women.
The rise of e-commerce
Over the years, lululemon's e-commerce segment grew exponentially. 2020 marked the first time the company had generated more of its net revenue through its direct-to-consumer channel than with its corporate-owned stores. DTC sales made up just over half of the total, while the company's physical stores generated less than 40 percent of the revenue. While the coronavirus pandemic may have had a positive impact on lululemon's online sales that year, the spike was not simply a fad, as the DTC segment remained just as lucrative as the physical store segment ever since.If the previous 10 years are anything to go by, then lululemon's future looks bright and ripe with opportunity. And according to forecasts, the company is expected to see its annual sales increase by roughly 15 percent.
