Lululemon Celebrating 25 Years With Continued Global Expansion

Dec 23, 2023

By focusing on community, Lululemon has continued to grow 25 years on.

When Lululemon opened its first store in 1998 in the Kitsilano neighborhood of Vancouver the brand focused on creating product focused on the local community. Now, 25 years later, they continue to take that community-minded focus to a global footprint.

"The same unique foundation that got us here will continue to guide us in our next phase of growth," says Celeste Burgoyne, Lululemon president of Americas and global guest innovation. "An obsession on product, a focus on human connection and looking for each and every opportunity to focus on community."

Lululemon started as an idea, says Calvin McDonald, CEO, taking a fresh idea in women's-focused activewear and building a community. The approach first resonated in Kitsilano and has since expanded to boast 650 stores in 18 countries.

Lululemon hit $1 billion in revenue in 2011 and reached $8 billion by 2022. A goal of $12.5 billion in sales by 2026 comes driven by three growth pillars, McDonald says. Lululemon's focus is on product, looking to double the men's business while growing women's in double digits. They want to build deeper connections with consumers by doubling the ecommerce business while growing store sales in doubles digits. And they have aggressive international market expansion plans, with a goal to quadruple business while growing North America in double digits.

Adding performance running, including trail, has offered a fresh perspective for Lululemon.

"We couldn't be more excited to look back and celebrate where we came from and look forward to where we are going as a brand," McDonald says.

Since opening in 1998, Lululemon expanded to the United States in 2003 and now has over 400 stores across North America. The expansion went global in 2004 by opening in Australia. Global growth continues with the brand opening its 100th store in China in May, its first stores in Spain in 2023 and a soon-to-open first store in Thailand.

The brand takes a unique stance on product focus, using its own research lab at its Vancouver headquarters to highlight the "feel of science" on products. "We can make prototypes in house, we test on athletes and guest ambassadors in the intended environment and activity," says Chantelle Murnaghan, vice president of research and product innovation. "We are iterating until we get those innovations exactly right. We talk about the science of feel a lot."

That focus, she says, blends art and science to drive the brand toward new technical and functional construction and materials. "It pushes us to take a more sensory focus to what we are building," Murnaghan says. "We are optimizing performance, but also enhancing our guest experience."

A women's-first approach to performance product has led Lululemon from the start.

With a continued growth focus, the brand's 2022 entry into women's performance footwear continues to expand in 2023, with more products expected moving forward. The brand is also highlighting updates in materials, such as the world's first bio nylon 6 that can help the brand's goal of textile-to-textile recycling.

For a brand intertwined with women—75% of the workforce is women, including over 70% of the leadership team—the sales strategy comes with dual prongs. Across North America, over 50% of the business is through digital channels, but McDonald says they remain "very committed to brick and mortar" as part of community connection.

Burgoyne says community events derive from stores, with an expectation of having one million guests participate in a community event in 2023 alone.

André Maestrini, executive vice president for international, says the brand grew the international business in 2022 by 35%. More is coming.

"We are a global brand, but a multi-local brand by creating these links with the community," he says. "We are not a brand of big sporting events or signage, we are a brand of people that in their own way are going to inspire you, whatever your level is. This is a brand about human connections, a brand that is relevant in the markets we are in."

"After 25 years," Burgoyne says, "we really do believe we are just getting started."