For Lululemon to accomplish its bold plans to develop its menswear enterprise, it wants to handle an easy downside, CEO Calvin McDonald instructed CNBC on Tuesday.
“We know our awareness and consideration within the men’s category is still low, and that is where the opportunity lies,” McDonald stated on “Halftime Report.”
Put one other means: men simply need to know Lululemon is promoting stuff for them.
Lululemon stated earlier this 12 months that it plans to double its menswear enterprise within the subsequent 5 years. It additionally has introduced plans to manufacture and promote its personal footwear line, persevering with its wide-ranging enlargement efforts.
“I see the growth coming from acquiring more men, driving market share with them and then driving share with the men as they experience Lululemon and get them to spend more,” McDonald stated.
Lululemon hasn’t introduced its third-quarter earnings but, however its second-quarter report in September confirmed gross sales for its men’s enterprise climbed 35%, outperforming the expansion of its girls’s attire.
McDonald stated Lululemon identified for its sports activities bras and leggings will proceed to broaden the attire it provides for men to embody each working and yoga-focused merchandise, in addition to more informal “on the move” attire.
“There is a lot of opportunity to expand beyond that,” McDonald stated. “That is the work we’ve been in and we’re going to continue to do that.”
Lululemon’s inventory is up round 69% year-to-date, buying and selling round $205 on Tuesday afternoon. Its 52-week excessive is $209.02.