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Since taking the helm at Lululemon<\/strong> in 2018, Calvin McDonald has overseen a period of massive growth. The activewear brand\u2019s stock has more than<\/strong> tripled<\/strong> since he became CEO and revenues have exploded \u2014 from approximately $3 billion<\/strong> a year when he started to nearly $10.5 billion<\/strong> in 2024. And McDonald isn\u2019t stopping there.<\/p>\n Speaking with CNBC<\/em>\u2019s Sara Eisen at the NRF Big Show in January, McDonald said he plans to double the business again <\/strong>through a combination of product innovation, entrance into new categories, global expansion <\/strong>and store growth<\/strong>. It\u2019s a bold ambition, especially given the fact that Lululemon currently faces more competition than ever before from upstart athleisure brands like Vuori<\/strong> and Alo Yoga<\/strong>.<\/p>\n \u201cI believe the brand and its opportunity for growth and innovation is significant,\u201d said McDonald at the event. \u201cI talk a lot about being in the early innings of our opportunity in categories and the way in which the guest is looking for solutions.\u201d<\/p>\n Here\u2019s how he plans to do it.<\/p>\n In 2019, McDonald unveiled the \u201cPower of Three\u201d growth plan, which aimed to \u201cdouble men\u2019s, double digital and quadruple international revenues\u201d<\/strong> over five<\/strong> years. As McDonald proudly pointed out, the company arrived early at all of those targets, so just four<\/strong> years later it released an update \u2014 the \u201cPower of Three x2\u201d strategy. This new plan aims to double the company\u2019s revenue (from 2022 numbers) to $12.5 billion<\/strong> by 2026 \u2014 a milestone McDonald said the company is also on track to reach early.<\/p>\n Slowing down clearly isn\u2019t in McDonald\u2019s repertoire, which makes sense since he\u2019s a proud Ironman participant. In fact, that alignment of personal and professional passions was part of what lured him away from his position as President and CEO of Sephora<\/strong>, where McDonald said he was very happy. <\/p>\n \u201c[Being CEO of Lululemon], it\u2019s a bit my dream job,\u201d he said. \u201cHealth and exercise and fitness have always been important to me, and this was the opportunity to bring my personal passion together with my professional passion. Now I get to travel around the world, see our stores, activate our community, and do [Ironman] races in China and Korea and Australia and Europe.\u201d<\/p>\n Despite his celebration-worthy track record so far at Lululemon, McDonald clearly feels the race is far from won \u2014 hence the continued moving of the finish line. But he\u2019s not wasting time worrying about his other competitors<\/strong> in this race: \u201cWe\u2019ve never had 100%<\/strong> of our guests\u2019 wardrobe,\u201d McDonald said. \u201cI\u2019d love to have that, but the reality is there\u2019s always been room in the wardrobe for competitors, and there\u2019s a lot of share [we can take] from the global incumbents [like Adidas<\/strong> and Nike<\/strong>] out there that I think all of us are benefiting from. I still think Lululemon is uniquely positioned in the marketplace against them.\u201d<\/p>\n As Eisen pointed out, Lululemon\u2019s new target of $12.5 billion in annual revenue is equivalent to <\/strong>what Nike brings<\/strong> in in a single quarter<\/strong>, so it makes sense that those are the champions McDonald wants to topple rather than the newer entrants in the more niche athleisure sector. <\/p>\n \u201cWe grew our market share in the Q3 period in the premium athletic category,\u201d McDonald pointed out. \u201cThere\u2019s a lot of share [in that category] that Lululemon doesn\u2019t have, and we continue to see an opportunity to get a piece of. So their [Vuori, Alo Yoga, etc.] growth and success isn\u2019t coming at the expense of our success and our growth.<\/strong> I believe the brands are differentiated enough.\u201d<\/p>\n McDonald sees two<\/strong> wide-open paths for Lululemon\u2019s continued expansion: new categories and new global markets. Lululemon is currently present in 26<\/strong> countries, with a single-digit<\/strong> market share in many of them. Even in the U.S., where Lululemon is a market leader, McDonald said he thinks the country is \u201cfar from conquered.\u201d<\/strong><\/p>\n \u201cOur men\u2019s business is 25%<\/strong> of our sales in the U.S. and awareness [of the men\u2019s offering] is in the mid-30s. As the brand grows, as the assortment grows, we\u2019re growing away from a yoga brand for her, so in the U.S. the opportunity is to continue to drive awareness as a brand for him.<\/strong> We still see a tremendous amount of growth opportunity in the U.S., through our stores, through our product innovation and category expansion.\u201d<\/p>\n China also is a major growth opportunity, and one that McDonald has doubled down on. When he joined, the company had less than 10 <\/strong>stores in that market. That number is now at 140<\/strong>, and China has become Lululemon\u2019s second<\/strong>-biggest market after the U.S. Despite its growth, though, \u201cwe have single-digit market share [in China] and low teens in awareness, so I\u2019m super excited about the opportunities. There\u2019s a growing culture there of mindfulness and health and our brand, through community, supports that with differentiated products.\u201d<\/p>\n For Lululemon, global expansion is tied directly to store expansion, said McDonald: \u201cWe\u2019ll always be a brand rooted in physical retail; it\u2019s a big part of what differentiates us<\/strong>,\u201d he said. \u201cWe talk about community and our DTC model, and one of the advantages is [having] that human relationship with guests. It allows us to really understand what their needs are, be agile, shift and adjust and service them. So physical retail will always be a huge part of this brand.\u201d<\/p>\n With more than 700<\/strong> stores globally and plans to double the business, McDonald said that means the world can expect many more Lululemon stores to crop up \u2014 perhaps not double<\/strong> the current number, but certainly a significant amount.<\/p>\n And key to making those stores a success is actually seeing them in person, said McDonald: \u201cI\u2019m on the road usually half of every month in markets,\u201d he said. \u201cI don\u2019t believe you can lead a global organization without physically being in the market. <\/strong>You definitely can\u2019t lead a global retail organization without investing in and talking to your frontline employees, hearing what\u2019s working, what\u2019s not, seeing what the potential is. And you definitely can\u2019t lead an authentic brand based on relationships, if you\u2019re not out there with employees as well as your local ambassadors.\u201d<\/p>\n![\"Lululemon](\"https:\/\/www.retailtouchpoints.com\/wp-content\/uploads\/2025\/01\/NRF-Big-Show-2025-Jason-Dixson-Photography-250114-095100-9894-1280x854.jpg\")
An Ever-Moving Growth Goal<\/strong><\/h2>\n
There\u2019s \u2018Room in the Wardrobe\u2019 for Everyone<\/strong><\/h2>\n
One Path to the Prize: Global Expansion<\/strong><\/h2>\n
Another Path to the Prize: Category Expansion<\/strong><\/h2>\n
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