Lululemon expects a revenue increase by 20.5 per cent. In 2019, Lululemon initiated a strategic transformation plan to accelerate its international expansion and diversify its clothing line to include men’s wear. The Canadian fashion and sporting company improved its initial economic forecasts between October and December. Lululemon planned to reach a maximum of 1,330 million dollars in the fourth quarter of 2019. However, its revenues are set to reach 1,380 million dollars.
Lululemon Athletica has acquired a stake in 7mesh. Lululemon makes performance gear for sports like yoga and running. And 7mesh, also based in Canada, makes cycling apparel like jackets and shorts. Lululemon wants to dispel the impression that it does only yoga gear and is a yoga-inspired apparel maker. In recent years, it has sought to sell more clothes meant for running, swimming, and even outer wear. New ventures like 7mesh are part of Lululemon’s ten-year plan to generate 50 per cent of net new profitability from businesses and product categories where it doesn't currently compete.
Athletic apparel has become a very crowded market and sales and traffic trends have put pressure on yoga-inspired manufacturers like Lululemon. Because athletic apparel has become increasingly trendy, a number of non-traditional players have jumped into the category and started competing with the legacy players.