lululemon athletica Prepares for World Domination
The yoga-gear maker is on a mean growth streak, but the vast majority of sales still come from within its core markets of Canada and the U.S., with just 3.9% of last year's $1 billion in revenue coming from outside North America. In dollar terms, that turned out to $38.9 million in fiscal 2011.
Out of the 174 retail stores it operates throughout the world, there are 18 in Australia and just one in New Zealand, with the rest in North America.
I see that as a major global opportunity for Lululemon, and the company has just nominated Jerry Stritzke for election to the board to help on the international front. Stritzke is currently the COO of another luxury brand that's been enjoying growth abroad: handbag maker Coach (NYS: COH) . China in particular has been very promising for Coach.
Stritzke also served as an executive at Limited Brands (NYS: LTD) , including time as the COO for its popular women's brand Victoria's Secret, although that was before it began expanding its stores abroad two years ago.
Lululemon already has its sights set on tapping into Asian and European markets, and Stritzke's experience will definitely come in handy. Lululemon founder and Chairman Chip Wilson made it pretty clear, saying, "We're at an exciting and important chapter for Lululemon, and Jerry's experience with international brands such as Coach and Victoria's Secret will be an amazing addition to our board as we continue to build strong relationships in new communities around the world."
As Lululemon pushes into Europe and Asia, both of which are hotbeds for luxury brands, this could be the beginning of a whole new leg of growth for the company. Of course, it won't be easy. Nike (NYS: NKE) has been rocking and rolling abroad for some time now, and the company still has one of the strongest brands in the world.
While Lululemon is a Canadian company looking to dominate the world through international growth, there are also a handful of domestic names doing the same thing. These 3 American Companies Set to Dominate the World are already banking on emerging-market growth as we speak. Get the free report now.
At the time this article was published Fool contributorEvan Niuowns shares of lululemon athletica, but he holds no other position in any company mentioned. Check out hisholdings and a short bio. The Motley Fool owns shares of lululemon athletica.Motley Fool newsletter serviceshave recommended buying shares of lululemon athletica and Coach. The Motley Fool has adisclosure policy. We Fools don't all hold the same opinions, but we all believe thatconsidering a diverse range of insightsmakes us better investors. Try any of our Foolish newsletter servicesfree for 30 days.
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