During its investor day Wednesday, Lululemon said that by 2023 it plans to more than double its men’s apparel and digital sales and boost international growth in places such as China. And executives said they will look to expand the sneaker line launched about a year and a half ago.
“While we view [Lululemon’s] targets as easily achievable, we see [the company’s] aggressive trajectory challenging [Under Armour’s] achievement of its investor day targets,” analyst Camilla Yanushevsky, said in a report Thursday.
Under Armour, like Lululemon, sees its biggest growth opportunities in online sales and branded stores, footwear and international sales. While Lululemon is going after male customers, Under Armour started in that category and has been expanding its women’s products.
Under Armour “will have a tough time chasing [Lululemon’s] fitness crowd,” said Yanushevsky, an equity analyst at CFRA Research, noting that Lululemon has strong brand loyalty and is expected to make strides capturing Under Armour’s men’s market.