Lululemon Expects to Launch Men’s Shoes in First Quarter of 2024
After officially entering the footwear game in early 2022 with a sneaker designed specifically for the needs of female athletes, Lululemon is ready to expand the category to include men.
On the company’s third-quarter earnings conference call with analysts on Thursday evening, Lululemon CEO Calvin McDonald announced that the company is “gearing up” to launch men’s footwear in the first quarter of 2024 — calling it an “important moment” for the company.
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“We’ll have much more to share as our pipeline of innovation continues to generate newness and versatility for our male guests,” McDonald said. “We continue to be excited about footwear and the newness that the team has in the category that we’ll be bringing forward in 2024. But we’re seeing enough positive signals from guests that we have an opportunity in this category, and we’re going to take a long-term view and build it.”
As for the rest of its men’s business, McDonald told analysts on Thursday that brand awareness among male consumers “remains low,” with approximately 13 percent in the U.S., 12 percent in Australia and single digits everywhere else outside of North America.
“Building awareness and consideration remains top of mind for us, and we see ample opportunity to increase the media and brand-building commitment to the men’s business,” the CEO added. “An example of this strategy is our recent targeted TV campaign. In Q3, we tested TV [ads] in the U.S. with a campaign focused on bringing new male guests into the brand featuring our iconic ABC bottoms. We are encouraged by the early results and the buzz created by this targeted investment, and we plan to continue the campaign next year.”
Lululemon first debuted footwear in March 2022. To launch the collection, Lululemon took a women-first approach, relying on data and foot scans from women to create a shoe specifically designed for the female foot. In June 2022, McDonald told analysts that demand for the new shoes were in excess of supply and “far exceeded” the company’s expectations.
On Thursday’s call, McDonald reflected on Lululemon’s footwear business so far, noting that he is “pleased” with its performance. “It’s a small category for us, especially in our Power of Three x2 growth plan in terms of the role that it plays in our growth targets,” the CEO said. “I’m glad we’re in footwear. I’m excited with what we’re learning, and now we’re seeing some of the early successes as we continue to test and learn.”
The news that Lululemon is moving into men’s shoes early next year comes as the Vancouver, British Columbia-based athletic company reported mixed results in the third quarter of 2023.
Net revenue in the period increased 19 percent to $2.2 billion compared to $1.9 billion the same time last year. The business grew by 12 percent in North America and by 49 percent in the rest of the world. Lululemon added a net of 14 new stores during the quarter for a total of 686.
However, net income slipped 2.6 percent to $248.7 million, or $1.96 a diluted share, from $255.5 million, or $2 a share, from a year earlier.
Looking ahead, the company nudged up its full-year profit guidance and is now looking for adjusted EPS to range from $12.34 to $12.42, ahead of the $12.02 to $12.17 projected in August.
Lululemon’s revenue guidance also moved a little higher, with the top line now expected to grow by about 18 percent to a range of $9.55 billion to $9.58 billion.
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