Lululemon just had one of its best years ever, and it proves athleisure isn't dying anytime soon
- Lululemon reported fourth-quarter and full-year 2018 earnings on Wednesday. CEO Calvin McDonald said this was one of its strongest years to date.
- Lululemon's success signals that the athleisure trend has no signs of fading out just yet, and it continues to be a market leader despite increased competition in the market.
- New brands such as Outdoor Voices, Hill City, and Bandier have cropped up in the market, offering their own take on athletic wear.
Lululemon is on fire.
The athleisure powerhouse reported strong fourth-quarter and full-year earnings for 2018 after market close on Wednesday, sending its share price soaring.After adjusting for currency fluctuations, same-store sales were up 17% for the year, making it one of its strongest years to date, CEO Calvin McDonald said in a call with investors on Wednesday afternoon.
Lululemon's success shows that the athleisure trend has no signs of fading out just yet and that it continues to be a market leader despite increased competition in the market.
New brands such as Outdoor Voices, Hill City, and Bandier have cropped up in the market more recently, offering their own take on athletic wear.
Lululemon is not resting on its laurels, however. The store is looking to its menswear business to drive growth and attract new customers.
The company told investors in a recent earnings call that it was on its way to achieving its goal to grow the men's wear category into a $1 billion business by 2020.Lululemon has also been testing membership plans to keep customers loyal. In December, it announced that it had been testing these programs in Edmonton, Canada, and later, in Denver. For a $128 annual fee, members were treated to a pair of pants or shorts, access to Lululemon's classes and events, and free shipping on online orders.
On Wednesday, the company said it plans to expand this service to additional US cities in 2019.