Lululemon (NASDAQ:LULU) stock is on the move Wednesday after the athletic wear company revealed a five-year plan to increase its business.
Let’s go over all the details of that plan below!
- First off, the company is calling this plan its Power of Three ×2 growth strategy.
- This has it planning to double its 2021 revenue of $6.25 billion to $12.5 billion by 2026.
- Accordingly, it expects growth across product innovation, guest experience and market expansion.
- Currently, the company is led by its women’s business, store channel and North American operations.
- These will continue to be strong performers during the growth period.
- However, its big plans to double revenue require it to look elsewhere for growth.
- This has the company seeking to double the size of its men’s revenues over the next five years.
- In this same vein, it intends to increase revenue growth via new product categories.
- To go along with that, Lululemon is looking to introduce a new two-tiered membership program later this year.
- The goal here is to create a stronger tie to its brand with a more immersive fitness marketplace.
- Finally, the company is looking to quadruple its international revenue over the next five years.
- This will see it entering new countries in Europe, including Spain and Italy, and the Asia-Pacific region.
- It will also be focusing on mainland China as part of this growth plan.
Investor reaction to this plan is currently tepid with low trading volume. As of this writing, only about 770,000 shares of LULU stock have changed hands. That’s still a ways off from its daily average trading volume of almost 1.5 million shares.
LULU stock is down 1.7% as of Wednesday morning.
Investors seeking more stock market news for today are in the right place!
InvestorPlace has them covered with all the latest stock market happenings for Wednesday! That includes why shares of Procter & Gamble (NYSE:PG) stock are rising, what’s hitting streaming stocks, as well as this morning’s biggest pre-market stock movers. You can find all of that at the following links!
More Wednesday Stock Market News
- Why Is Procter & Gamble (PG) Stock Up Today?
- Streaming Stocks Alert: Why Are NFLX, DIS, PARA, WBD, ROKU Stocks Down Today?
- Today’s Biggest Pre-Market Stock Movers: 10 Top Gainers and Losers on Wednesday
On the date of publication, William White did not have (either directly or indirectly) any positions in the securities mentioned in this article. The opinions expressed in this article are those of the writer, subject to the InvestorPlace.com Publishing Guidelines.