Shares of Lululemon Athletica Inc. rose 2.0% in premarket trading, after the yoga gear company unveiled plans to double its 2021 revenue of $6.25 billion to $12.5 billion by 2026. That implies a compounded annual growth rate (CAGR) of 15% for revenue through 2026, and the company expects CAGR for earnings per share to exceed revenue growth. The company also expects annual square footage growth in the low double digits percentage range. “We are setting bold but realistic 2026 targets from a position of financial strength, while delivering on our 2023 goals with significant growth across our core business,” said Chief Financial Officer Meghan Frank. The company said it’s growth plan includes a doubling in men’s and digital revenue and a quadrupling in international revenue. Lululemon’s stock has gained 3.4% year to date through Tuesday, while the S&P 500 has lost 6.4%.
Market Pulse Stories are Rapid-fire, short news bursts on stocks and markets as they move. Visit MarketWatch.com for more information on this news.
