The optimistic lululemon has raised its annual revenue forecast from $25.5-25.8 to $25.5-26 billion. “The two quarter growth has made us take a positive step in striving for us $4 billion annual revenue in 2020,” CEO Laurent Potdevin said in a statement.
The growth of lululemon revenue stems from the sale of brand straight stores and e-commerce. Sales of stores that have opened for more than a year have increased by 7% in the same period, according to Reuters’s data, analysts are expected to grow at 4%.
The performance of e-commerce is more eye-catching. Revenue reached $113 million, up 29% from a year earlier, up 7% from the first quarter of this year, due to an increase in Web site traffic and an increase in conversion rates.
Pad tried to make lululemon more diversified in the crowded market. He seeks to expand the men’s clothing business, international expansion and more technological innovation for the product.
Men’s clothing is undoubtedly the key to lululemon’s success, and lululemon’s plan is 2020, with a business of $1 billion. “Men’s clothes are our most unknown secret,” pardwyn said.