Lululemon is launching its first men’s footwear line and casual sneaker, signaling its entry into the increasingly competitive athletic apparel market. The retailer announced on Thursday the debut of its first casual sneaker, named “Cityverse,” along with two new running shoes, all available in both men’s and women’s styles. Cityverse will launch on February 13, with the running models debuting in March and May.
This move is part of a broader strategy that Lululemon announced in April 2022, aiming to double its men’s business and grow revenue to $12.5 billion by 2026. “Doubling the men’s business is absolutely a key growth pillar for us,” said Lululemon’s chief brand officer, Nikki Neuburger, in an interview with. “While footwear is a relatively small category for us and we’re early in our footwear journey, we’re excited by the prospect of just the role it plays in offering him more choice.”
Neuburger emphasized that this launch is an addition to Lululemon’s core strategy rather than a central element. “The launch is just ‘icing on the cake and a bonus’ for Lululemon because the company’s growth strategy isn’t reliant on footwear,” she said.
Lululemon is experiencing slower growth compared to previous years, amidst increasing competition from legacy players like Nike and newer entrants such as On Running. In the three months ending October 29, Lululemon posted a 19% jump in sales, a decrease from a 28% spike in the same quarter the previous year.
Despite this, most of Wall Street still views Lululemon as a top-tier retailer. However, some firms anticipate its growth to moderate as the company matures and sector-wide demand slows. Last week, HSBC downgraded Lululemon to hold from a previous buy rating, citing expectations that its strong performance compared to other retailers will narrow as demand slows.
Neuburger stated that apparel will remain the “juggernaut” and “core” of Lululemon’s overall business. However, the expansion into men’s footwear will provide a competitive edge against brands like Nike, Adidas, Hoka, and On Running, which have all made men’s footwear central to their offerings.
Lululemon’s CEO, Calvin McDonald, highlighted in the company’s third-quarter earnings call in December that brand awareness among men remains low, at about 13% in the U.S., 12% in Australia, and single digits in regions outside of North America. These figures indicate significant growth potential in the men’s category.
To differentiate itself from the competition, Lululemon plans to leverage its innovative approach to design and proprietary technologies. “The innovative approach we take into design and our proprietary technologies … that is not something that other brands are offering across all of their models in their assortment,” Neuburger said.
By focusing on innovation and brand strength, Lululemon aims to carve out a significant presence in the men’s footwear market, complementing its already robust apparel business.
