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The pressure to wear real pants has never been greater. But judging by Lululemon’s earnings yesterday, leggings could be the new business casual.
- Lululemon reported that Q1 revenue surged 88% to $1.2 billion, from $652 million a year earlier, beating analyst estimates. Net income grew to $145 million, from $28.6 million the previous year.
Stretching into new markets: To help fuel growth, Lulu is looking in the Mirror.
- Lululemon expects the “invisible” interactive gym (and Peloton rival) to drive as much as $275 million in revenue this year, giving the retailer an edge in the at-home fitness space and expanding the brand’s reach.
- CEO Calvin McDonald said the company is already seeing “a large number of non-Lululemon guests owning Mirror.”
The big number: The global athleisure market is expected to top $250 billion by 2026, per Allied Market Research. And sports bras aren’t just for the gym anymore.
WFH altered our wardrobes for good, Nora Kleinewillinghoefer, a principal analyst at Kearney, told Retail Brew. “We're going to see less formality in the workplace because we've spent a year proving that it’s maybe not necessary,” she said.
But, but, but: The question is whether Lulu's momentum can go the extra mile.
- “People have [already] stocked up their closets with athleisure,” Kleinewillinghoefer said, so new leggings might not be a priority.—JG
Correction: This story has been updated to note the global athleisure market is expected to top $250 billion, not $250 million, by 2026.