Despite supply chain issues, inflation and the ongoing impact of COVID-19, apparel retailer Lululemon said it began the year on a strong note as it continues its five-year growth plan.
“While we are not immune to these challenges, our omni operating model, balanced growth strategy, and unique approach toward innovation enable the positive results we are reporting today and anticipate for the full year,” CFO Meghan Frank said Thursday (June 2).
The Canadian company’s earnings report showed a 32% increase in revenue in North America and 29% internationally. The report also said direct-to-consumer revenue rose by 32%, and accounted for 45% of the company’s total net revenue, versus 44% in the first quarter of 2021.
“In the first quarter of 2022, continued momentum in the business enabled us to achieve a strong start to the year,” said Calvin McDonald, Lululemon’s CEO. “These results provide a solid foundation as we begin our next five-year journey and deliver against our new Power of Three ×2 growth plan.”
See also: The Next 5 Years at Lululemon Will Be All About International, Digital and Menswear
That plan, launched in 2019, aims to double the company’s digital and men’s revenues by 2026, while quadrupling international revenues.
On an earnings call in March, Frank reminded investors it was “important to note that we remain in the early days of our growth trajectory outside of North America,” pointing out that international revenues rose 50% in 2021 but still only accounted for 15% of Lululemon’s total worldwide sales.
As for its digital ambitions, the company has said its digital revenues tripled between 2018 and 2021 and projected they would grow two-fold again by 2026.
Lululemon said it will reach this goal by tapping into the “power of guest relationships” through stronger physical and digital retail connections, ongoing product innovation, and brand and community-building efforts.
Based on what it called “learnings from its pilot membership program,” in addition to strong customer feedback, Lululemon has said it will launch a new, two-tiered membership program later this year.