Lululemon Athletica aims to double sales within five years, and the Nike rival teased a new membership offering. Lululemon stock fell as it works on a buy point.
On Wednesday, Lululemon announced a target to double its 2021 revenue, to $12.5 billion by 2026. Its five-year growth strategy includes quadrupling international sales. It also expects to double digital sales and menswear sales, LULU said in a release Wednesday, ahead of an analyst day event.
Later this year, Lululemon expects to launch a new, two-tiered membership program "to create the most immersive fitness marketplace." LULU, known for premium leggings and yogawear, began piloting the program in 2021.
Rival fitness and retail giant Nike already offers a membership program.
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Lululemon Stock
Shares of Lululemon popped in early trading but reversed to fall 4.8% to 385.40 on the stock market today, just above the 200-day line. Lululemon stock has carved a cup-shape base with a 485.92 buy point but remains well below the entry for now.
Much of the base formed below the 200-day moving average, a technical negative. But IBD added LULU to SwingTrader April 13 with a 390.76 entry as the retail stock moved higher after a short consolidation above the 200-day line. Lululemon belongs to the IBD 50 list of top growth stocks.
As Lululemon stock comes off mid-March lows, its 50-day average is starting to trend up and an improving relative strength line has hit its highest level since December.
Among other athleticwear retail stocks, Nike dipped 0.9% Wednesday and women's yogawear brand Athleta-owner Gap was down 1.2%. Under Armour fell 1.1% and Peloton plunged 11%.
Covid Fuels Athleticwear
The Covid-19 pandemic fueled an athleticwear boom, boosting earnings for Lululemon and some peers. People stuck inside their houses during lockdowns and working from home sought out sweatpants and more comfortable clothes as living rooms turned into gyms.
