Tag: Lululemon

  • Lululemon and employer branding

    Lululemon and employer branding

    Lululemon Athletica Inc. is beefing up benefits to attract and retain workers, offering full-time employees from three to six months of paid parental leave. The gender-neutral benefit awards three months of paid leave to full-time workers who have been at the yogawear company for two years. Employees with five or more years at the firm qualify for six paid months off. At Lululemon, workers are considered full-time if they work 24 hours a week.

    “When you think about an investment, there’s also all of those areas where it’s really hard to quantify because of the contribution and the return,” said Susan Gelinas, senior vice president for people and culture at Vancouver-based Lululemon. “We just see this as something that’s right to do for our people.”

    In the U.S., without any federal requirement for paid parental leave, it’s up to individual companies to offer a benefit, and about 35 percent do, according to a survey from the Society for Human Resource Management. Still, 84 percent of workers in the U.S. don’t have access to paid family leave, according to data from the Bureau of Labor Statistics.

    The majority of Lululemon’s full-time staffers in the U.S. have been with the company for two or more years, while one-fifth have worked there five or more years. As of January 2018, about 60 percent of Lululemon’s 13,400 workers were based in the U.S. The company declined to say how much the new policy would cost.

    Employees working in Canada already receive some paid parental leave, a portion of which comes from the government’s unemployment insurance program. That compensation is partial, and Lululemon’s offer there is a “paid top-up,” Gelinas said in an interview.

  • Lululemon eyes massive growth in China

    Lululemon eyes massive growth in China

    Lululemon is on track to make China its second-largest market by 2026 through an extensive store expansion in the country, according to China Daily.

    The athleisure apparel brand said it aims to increase its store number in the country – currently 71 – to 220 over the next five years. These stores include flagship stores and community-based stores.

    “Our new goal is to quadruple our international business again by 2026,” Calvin McDonald, CEO of Lululemon, told China Daily in an exclusive interview. “The Chinese mainland will be a big part of that opportunity as we continue to invest in the market, in stores, in digital and build a community.”

    The China lockdowns caused nearly a third of Lululemon’s stores to temporarily close for a period of time. Lululemon aims to open the majority of its 40 new stores in Mainland China where it has achieved a cumulative annual growth rate of 60 per cent during the past three years.

    The retailer also forecasts its digital expansion will double the company’s revenue in five years after it tripled between 2018 and 2021.

  • Lululemon eyes massive growth in China

    Lululemon eyes massive growth in China

    Lululemon is on track to make China its second-largest market by 2026 through an extensive store expansion in the country, according to China Daily.

    The athleisure apparel brand said it aims to increase its store number in the country – currently 71 – to 220 over the next five years. These stores include flagship stores and community-based stores.

    “Our new goal is to quadruple our international business again by 2026,” Calvin McDonald, CEO of Lululemon, told China Daily in an exclusive interview. “The Chinese mainland will be a big part of that opportunity as we continue to invest in the market, in stores, in digital and build a community.”

    According to MarketBeat, the China lockdowns caused nearly a third of Lululemon’s stores to temporarily close for a period of time. Lululemon aims to open the majority of its 40 new stores in Mainland China where it has achieved a cumulative annual growth rate of 60 per cent during the past three years.

    The retailer also forecasts its digital expansion will double the company’s revenue in five years after it tripled between 2018 and 2021.

  • H&M, Lululemon back $250 million Fashion Climate Fund

    H&M, Lululemon back $250 million Fashion Climate Fund

    Lululemon Athletica and H&M Group are among backers of a $250 million fund aiming to speed up efforts to cut carbon emissions in the fashion industry’s supply chain, non-profit group Apparel Impact Institute said on Wednesday.

    Bringing together clothing brands, philanthropic donors and other industry stakeholders, the institute’s Fashion Climate Fund also hopes to unlock a further $2 billion in funding once effective solutions have been found and scaled up.

    Other early backers include the H&M Foundation and the Schmidt Family Foundation. More are expected to be announced in the coming months, with the fund hoping to raise $10 million from each.

    “The urgency to address the climate issues has never been more acute. Early-stage innovations and new solutions play a critical role, but the impact does not happen before they can be scaled, and the industry starts adopting and implementing them,” said the H&M Foundation’s Christiane Dolva.

    “The Fashion Climate Fund will support new programmes and solutions with a structured pipeline for getting from pilot to scale. We believe it provides a powerful mechanism to overcome the challenges of getting new solutions implemented by the industry, and thereby accelerate the progress on climate action.”

    While many of the world’s leading companies have committed to reaching net-zero emissions across their businesses by mid-century and to halving emissions by 2030, the Apparel Impact Institute said many large barriers remain.

    A recent study it conducted with the World Resources Institute found 96% of the fashion industry’s emissions come from third-party farms and factories used by multiple firms.

    The fund will help finance a range of initiatives including expanding the use of renewable energy, developing next-generation materials, ditching the use of coal in manufacturing and improving energy efficiency.

    It hopes that the use of philanthropic capital to help fund early stage projects and the forging of partnerships with retailers to scale up successful initiatives will encourage other industry participants to help meet future funding needs.

  • Lululemon unveils its first footwear range

    Lululemon unveils its first footwear range

    Sportswear brand Lululemon has revealed its first-ever footwear collection for women, with a men’s collection to launch next year.

    The company will launch its debut running shoe called Blissfeel on 22 March online and in select stores across the UK, North America and Mainland China.

    Three additional styles will be released later in the year. Chargefeel – a cross-training shoe designed for gym training and short runs which will be available to buy alongside Restfeel – a post-workout shoe. While in the autumn the retailer will release Strongfeel, a training shoe designed to be used for “multi-directional movement”.

    Lululemon said that it applied insights and expertise gained over its 20 years of designing experience to create shoes that focused specifically on women’s requirements. It added that each design is meant to deliver a specific feeling and aims to create a balance of cushioning and support.

    Lululemon CEO Calvin McDonald commented: “Footwear is the natural next step for us to expand and apply our long history of innovation in fit, feel and performance, and it represents an exciting moment for our brand. We are entering the footwear category the same way we built our apparel business—with products designed to solve unmet needs, made for women first.”

    Sun Choe, chief product officer at Lululemon, said: “We intentionally started with women first because we saw an opportunity to solve for the fact that, more often than not, performance shoes are designed for men and then adapted for women.”

    “That didn’t sit well with us. Innovating for women is in Lululemon’s DNA – now we’re bringing that same expertise to footwear, and women were part of this journey every step of the way.”

  • Lululemon warns of demand risks from potential virus resurgence

    Lululemon warns of demand risks from potential virus resurgence

    Lululemon Athletica on Tuesday warned of more store closures and risks to demand from a potential resurgence in COVID-19 cases, even as it forecast first-quarter revenue above analysts’ estimates.

    The company said any surge in cases, including the new variants, could hamper demand and disrupt the supply chain at a time its stores are struggling with capacity restrictions, sending its shares down 1.6% in extended trading.

    The company’s stock, however, has gained 64% over the past 12 months, as Lululemon saw a surge in demand for its leggings and sports bras from stuck-at-home consumers looking for comfortable apparel.

    “Regardless of vaccines, the sense of comfort will continue to sell and Lululemon has found a very strong assortment in between comfort and activewear,” said Jessica Ramirez, retail analyst at Jane Hali & Associates.

    The company is also banking on its home fitness startup acquisition, Mirror, to provide an additional revenue stream this year, and expects its top line to rise as much as 65% to $275 million in 2021 on the booming demand for online workout classes.

    Lululemon said it would ramp up investments in the startup, which offers subscriptions for live workout classes on mirror-like video monitors, to sustain its growth. The Canadian company forecast first-quarter revenue of $1.10 billion to $1.13 billion, above analysts’ estimate of $999.5 million, according to IBES data from Refinitiv. It expects first-quarter adjusted earnings per share of 86 cents to 90 cents, above estimates of 82 cents.

    Lululemon’s full-year earnings per share expectations of $6.30 to $6.45, however, were below estimates of $6.72.

    Net revenue rose 24% to $1.73 billion in the fourth quarter, beating estimates of $1.66 billion, as online sales jumped 92% on a comparable basis.

  • Lululemon comes unharmed out of the Covid-19 Crisis

    Lululemon comes unharmed out of the Covid-19 Crisis

    Lululemon has emerged from the Covid-19 crisis as one of its greatest retail survivors, posting an operating surplus in the first quarter while almost all of its apparel contemporaries were bleeding red ink.

    Net revenue was US$652 million, a decrease of ‘just’ 17 percent at a time when apparel brands like Guess dropped by 51.5 percent, and Puma by 50 percent.

    Lululemon reported $32.8 million income from operations in the quarter to May 3, down 75 percent on the same period last year, but an outlier in the industry.

    “Lululemon has managed through the crisis better than every company in our coverage universe (with Nike perhaps the lone exception),” analysts led by Sam Poser wrote, reported by Marketwatch. “Lululemon has cemented its position as the best publicly-traded company in the specialty retailer sector, in our view.”

    In its results statement, Lululemon said Covid-19 forced the closure of all of its company-operated stores in North America and Europe, with others in some Asia-Pacific markets over differing periods during the pandemic.

    But direct-to-consumer revenue soared 70 percent on a constant-currency basis as the company targeted housebound consumers eager to buy comfortable exercise wear in place of their normal office attire.

    Direct to consumer net revenue represented 54 percent of total sales compared to 26.8 percent for the first quarter of last year.

    “We are learning more every day about our guests — how they enjoy interacting with us online and what makes them comfortable as stores reopen,” said CEO Calvin McDonald.

    “Our strong digital business demonstrates the strength of our guest connection and the long-term opportunity to create further omni experiences going forward.”

    Perhaps the most alarming downside to the quarter was an increase in inventories of 41 percent to $625.8 million.

  • Lululemon bucks trend thanks to ‘strong brand, great products’

    Lululemon bucks trend thanks to ‘strong brand, great products’

    While some retailers lost momentum in the third quarter, Lululemon firmly bucked the trend and continued its run of strong growth unabated.

    On the top line, total sales grew by a robust 22.5 percent, supported by a strong underlying comparable uplift of 16 percent. Both physical stores and the digital channel contributed to growth.

    On the bottom line, operating income rose by 29.3 percent driven by higher sales and improved margins. Net income was up by 33.4 percent.

    Lululemon remains a great example of what can be accomplished by the development of a strong brand alongside offering great products. Not only does this produce a loyal following of engaged customers, it also means that price integrity can be maintained ensuring that excessive discounting is not needed to sell through merchandise. This latter factor is one of the reasons why Lululemon has been able to improve margins against the backdrop of a more promotional environment.

    Part of Lululemon’s success comes from it leaning more heavily into areas where it is less developed. One aspect of this comes from the menswear business where it is succeeding in capturing more interest and spending. The technical detailing of Lulu’s products resonant with many of its male shoppers as does the uncomplicated styling.

    Despite a run of growth, we believe the company is nowhere near the finish line in menswear and it has a lot of potentials to attract more customers and secure a greater proportion of their spending.

    Another area of success has been geographical expansion where Lululemon continues to make inroads to areas like Europe. Here there is scope to strengthen the profile of the brand through the continued hosting of events such as the Sweatlife Festival in Berlin and London, which will provide buoyancy to future growth.

    Brand and range innovation

    As much as successfully seizing new opportunities has aided Lululemon’s growth story, the company also deserves credit for the work it has done to improve sales to existing customers through brand and range innovation. These things have supported the strong uplift in comparable sales across North America and other regions.

    On the range side, the push into non-traditional fitness categories, such as personal care, has paid dividends. This is mostly because Lululemon has added products mindfully and ensured that they stick to its principles of functionality and technicality – such as body lotion that cools you down after a workout – rather than just expanding the assortment in a random way. A lot of core consumers are now adding self-care products to their baskets which is helping Lululemon increase the size of an average transaction. We expect the personal care lines to be very popular over the holiday period.

    The continued enhancement of stores, and the recent opening of new concepts such as the Lincoln Park shop, have also helped Lululemon to outperform. These locations allow the company to better showcase its products, connect with consumers in a more meaningful way, and generate incremental revenue streams from classes and foodservice. While Lululemon cannot open such high-profile outlets in every location, it has enormous scope to open more in big cities and to develop a diluted form of the concept in smaller regional locations.

    As much as Lululemon succeeds because of the strength of its offer, we are most excited about the company’s pivot to creating a community with membership programs and classes. Not only does this lock in loyalty, it also provides significant scope for future revenue development and ensures physical shops will remain a destination.

  • Lululemon partners with local organisations to increase access to yoga

    Lululemon partners with local organisations to increase access to yoga

    Lululemon stores in Australia and New Zealand are teaming up with local nonprofits and charitable organizations to increase access to yoga and meditation.

    Stores this month will distribute grants to nonprofits and charities of their choosing that are working to break down social, physical and economic barriers to yoga and meditation.

    This is part of Lululemon’s global Here to Be program, which aims to spread the health benefits of yoga and meditation to more people around the world.

    The program first launched in 2016 and was brought to Australia and New Zealand earlier this year. Now, local stores are starting to have an impact on their communities.

    Lululemon stores in Mosman, Balmain, Chatswood and Warringah Mall, for instance, are teaming up to provide a grant to The Yoga Impact Charity, which offers yoga classes for refugees and teaches yoga teachers how to teach trauma-informed yoga to refugees.

    “As a company rooted in yoga and committed to personal development, we aim to create real change within our local communities through our social impact program Here To Be,” Paul Tinkler, managing director for Lululemon in Australia and New Zealand, said in a statement.

    “Our purpose is to elevate the world by unleashing the full potential within everyone one of us. We are accelerating our efforts across social impact, as a main agenda point for the year and we’re honored to be working with organizations that are up to big things in this area. We’re excited to see the positive changes across our communities.”

    Here to Be has provided more than US$10 million in grants globally and developed more than 500 grassroots nonprofit partnerships. It also has donated more than 10,000 yoga mats and says it’s just getting started.

    The retailer on Wednesday announced it will donate US$1 million over the next three years to a program that will teach mindfulness techniques, such as deep breathing and yoga, to thousands of United Nations staff and aid workers, who report experiencing high rates of burnout.

    The program, called Peace on Purpose, aims to equip UN staff with the tools to care for themselves so they can care for others.

    The funding from Lululemon will help Peace on Purpose to train more than 3000 UN development and humanitarian workers in-person over the next three years, build a hub of digital resources and develop condensed trainings and curriculum translations to reach 30,000 staff.

    “With increasing need for international humanitarian aid and peacekeeping, we want to cultivate the long-lasting benefits of mindfulness tools and sustain support for those whose mission is to serve others,” Calvin McDonald, CEO of Lululemon, said in a statement.

    Research following selected trainings found that over half the participants saw an improvement in overall well-being as seen in key psychological risk factors, such as work-related self-compassion, anxiety and depression, symptoms related to trauma and feelings of distress.

  • Lululemon launches free coursed for store managers

    Lululemon launches free coursed for store managers

    Lululemon is partnering with Swinburne University of Technology to offer a free diploma of business for store managers, regional managers and training managers.

    The course, which Lululemon is fully funding, is comprised of eight units covering personal skills for leaders, HR and staff management, marketing, operations, finance, and strategic skills.

    The units have been adapted from Swinburne’s existing course, so content can be immediately applied to participants’ day-to-day work at Lululemon, and employees are able to take the 18-month course on a 21-month time-frame to focus on their business during the busy peak trading period in Q4.

    Lululemon Australia and New Zealand managing director Paul Tinkler said the course provides an opportunity for its team leaders to develop long-term retail careers.

    “The course reinforces the skills they already demonstrate and addresses any potential gaps in their learning, setting them up for success over the long term,” Tinkler said.

    The move follows a similar partnership between Battery World and TAFE institutions in Queensland, New South Wales and Victoria to make it easier for staff to earn a Certificate II qualification in auto electric technology.

    The franchisor worked with TAFE to develop an accelerated course that takes into account the practical tasks staff do in-store on a daily basis and offers classes outside of normal office hours, so employees can continue working while earning the qualification.

    Battery World expects the tailored courses to lead to an increase in the number of qualified employees in its franchise network and higher staff retention rates, as employees get the opportunity to upskill and feel more valued.

    “We know that employees who feel valued and are given the chance to extend their knowledge tend to want to stick with an employer,” Coralee Haskew, Battery World’s operations trainer said.

    “It’s not just younger staff who want to extend their skills. We have younger and older staff who want to grow their strength in the business. It’s not just a millennial thing.”

    The Lululemon x Swinburne diploma of business was offered for the first time this year, with a total of 14 eligible managers commencing study in March. They are expected to graduate at the end of October 2020.

    Intake will occur yearly and will be available to Lululemon store managers, regional managers and training managers who have been with the business for a minimum of 12 months.

    Following the successful completion of the course, students are eligible to apply for an undergraduate degree with up to eight credits. Store managers who successfully complete the course and have three years of full-time employment will be granted entry into Swinburne’s graduate certificate of business administration, which leads directly into a master of business administration.

  • Lululemon expands beyond apparel Products

    Lululemon expands beyond apparel Products

    Athleisure retailer Lululemon has ventured into a new category, launching a line of gender-neutral personal care products.

    The Vancouver-based retailer unveiled on Tuesday its new line of self-care products which include moisturizer, dry shampoo, deodorant and lip balm.

    The new products will be sold online and in 50 Lululemon stores. It will also be displayed at selected studio partners in North America and on Sephora’s online store.

    The retailer said their partnership with Sephora extends the company’s ability to reach new guests while partnering with an authority in the personal care space.

    “Over the years, we’ve heard the feedback that transitioning from sweat to life isn’t always easy,” said Sun Choe, Lululemon’s chief product officer. “Lululemon has always been in the work of creating solutions for sweaty problems and our selfcare line is an extension of that approach.”

    According to the retailer, throughout the two-year research and development process, the company’s selfcare team spent time with athletes, ultimately recognising a gap in the transition point from sweat to life where sweat-related skin and hair problems exist.

    The products were launched after a successful test earlier this year.

    According to Lululemon, its self care products have also received the Clean at Sephora seal, which certifies that they are free of ingredients like sulfates, parabens and phthalates.

    For the fifth consecutive quarter, the company has beat its forecast, posting a 16 per cent increase in comparable sales and a 20 per cent lift in net revenue to $782.3 million for the first quarter ending May 5.

    The company ended the first quarter of fiscal 2019 with $576.2 million in cash and cash equivalents compared to $966.6 million at the end of the first quarter of fiscal 2018.

    “Lululemon continues to see strong momentum across the entire business,” said Calvin McDonald, company CEO. “I’m inspired by our teams who are executing at high levels.”

    The retailer said for the second quarter of fiscal 2019, they expect net revenue to be in the range of $825 million to $835 million based on a total comparable sales increase in the low double digits on a constant dollar basis.

  • China sales Profit Down for Lululemon Athletica

    China sales Profit Down for Lululemon Athletica

    Lululemon Athletica has reported a massive 70 per cent growth in first-quarter China sales, part contributing to a stellar performance globally.

    Both sales and profit exceeded the company’s forecast and analysts expectations. Sales of its relatively new men’s range grew 26 per cent proved another highlight.

    “Our guests responded well to both our men’s and women’s assortments,” CEO Calvin McDonald told analysts on a conference call after the results were released.

    “They engage with us across channels as our store and digital businesses were both strong and our brand continues to resonate well in our core North American market, as well as in Europe and Asia Pacfiic.”

    Earnings surged 28.5 per cent in the quarter to May 5, reaching to US$75.2 million, on sales up 20.4 per cent to $782.3 million. However those figures were boosted a little by a shift in the calendar. Taking that into effect, and on a same-store basis, sales rose 14 per cent.

    Sales in Asia rose 40 per cent, led by China’s 70 per cent gain. The Canadain company opened its first stores in three new Chinese cities during the quarter: Shaanxi, Xi’an and Chongqing. It plans to add as many as 12 more to its network this year.

    Lululemon also relaunched its Chinese website to complement its presence on Tmall and WeChat and websites in Japan and Korea were also launched.

  • Lululemon says e-commerce investment pays off

    Lululemon says e-commerce investment pays off

    Athleisure retailer Lululemon’s investment in e-commerce — revamping its website and improving on direct-marketing efforts to draw new customers — has paid off. Lululemon has posted a 46 per cent increase in its online revenue last year, adding that it has reached an e-commerce penetration rate of 26 per cent.

    The company announced it will be investing aggressively in e-commerce in new territories and plans to open e-commerce markets in France, Japan and Germany. The retailer also said it will roll out its “order online, pick up in store” program across the US by the winter holidays this year.

    The Canada-based retailer said they will step up on their international expansion plans, saying more than half of its planned 40 to 50 store openings this year would be in overseas markets.

    Lululemon posted a 24 per cent increase in revenue to $3.3 billion for the fiscal year ending February 3 from the $2.65 billion from the previous corresponding period.

    “Lululemon has delivered one of its strongest years yet, a result of broad-based strength across the business,” said company CEO Calvin McDonald in a press release.

    “We are energised to build upon our momentum and to seize the many opportunities ahead for Lululemon around the world.”

    For the fourth quarter, Lululemon said net revenue rose 26 per cent to $1.2 billion aided by holiday sales.

    Total revenue for fiscal 2018 was $3.3 billion.

    The retailer’s profitability in Asia and Australia more than offset the operating loss in Europe. Now with the company having 21 stores in Europe, Lululemon said it was about a year and half away from breaking even in Europe.

    The company forecast the momentum would continue this year, saying they expect a net revenue to be in the range of $3.7 billion to $3.74 billion for the full fiscal 2019.

  • The shares of Lululemon athletica have risen 90% in 2018

    The shares of Lululemon athletica have risen 90% in 2018

    Over the past 12 months, shares of lululemon athletica have risen 90%. The most recent surge came after an upgrade on 2018 holiday season guidance, helping the athletic-wear stock rebound from a slump brought on by a broad stock market sell-off at the end of the year. Lululemon has enjoyed several tailwinds. Athleisure (that is, activewear and sports-inspired clothing for all situations) has continued to grow in popularity, and consumers have been generously spending — to the tune of 4.9% more on clothing alone in 2018, according to the U.S. Census Bureau. After a blockbuster run, though, Lululemon may have a difficult time repeating that same success in the new year.

    It is easy to see why shares of the clothing company have come roaring back. During the all-important holiday shopping season, management updated revenue guidance to between $1.14 billion and $1.15 billion, up from previous guidance of $1.12 billion. Earnings per share also got an upgrade to a range of $1.72 to $1.74, up from a range of $1.64 to $1.67.

    The results are impressive, but Lululemon has been measured by how it approaches expansion. Through the third quarter of 2018, there were 426 physical stores, up a net 22 from the start of the year. Instead of growing primarily by new openings, the company has instead benefited from a surge in same-store sales at existing stores — which increased 6% during the third quarter — as well as directing traffic to the online store. Direct-to-consumer sales were 25.3% of revenue in the third quarter, compared with 21.2% in the same period in 2017.

    Lululemon is not alone in the athleisure-wear category, though. Gap and its Old Navy and Athleta brands continue to grow their presence in sportswear, and the largest sports-only chain, Dick’s Sporting Goods, has also launched its own branded lines of clothing. Yet in spite of the competition, Lululemon has continued to resonate with new and existing buyers, both here in the states and abroad.

    The maker of stretchy pants and other sports-inspired clothing could nevertheless continue to run higher. After all, Lululemon has momentum on its side, both on the top and bottom lines. Even should sales growth take a breather, management has said it thinks gross profit margin on product sold could continue to expand, especially as a result of the emphasis on direct selling online and new higher-margin products such as coats and sweaters.

    On the other hand, there is reason for investors to give pause before jumping on the bandwagon. Even after earnings nearly doubled in 2018, the stock still trades at a premium, largely because share performance matched that of earnings. The trailing-12-month price-to-earnings (P/E) ratio currently sits at 52.5, a metric that only slightly improves to 43.2 when using free cash flow — a better measure of profitability, as it factors only for basic operating expenses and capital expenditures and excludes items such as depreciation and amortization.

    On a one-year forward basis, the P/E is currently at 40. Paying for decades’ worth of profits that haven’t yet been realized only makes sense if the bottom line continues to expand at breakneck speeds, and that’s what is implied in the rich valuation. Thus, there’s little room for error, and if there’s any slowdown at Lululemon, the stock could suffer losses at current levels.

    Of course, for those looking to the long term, Lululemon looks like a solid bet on the apparel industry of the future. Nevertheless, after renewed investor optimism over new fourth-quarter guidance, the stock is too rich for my taste.

  • Brands planning to cash in on rising menswear trend

    Brands planning to cash in on rising menswear trend

    This week, Nike launched its new collection of yoga wear for men. While this was the company’s first foray into men’s yoga apparel, the move was very much in line with competitors who have been making a push into the menswear apparel market recently. Lululemon, whose bread and butter has long been women’s yoga trousers, is one of those competitors. Former CEO Laurent Potdevin described menswear as one of the brand’s “best-kept secrets.” The company is now looking to grow this division into a billion-dollar business.

    Gap also jumped on the bandwagon last year, with its new casual menswear brand Hill City. But a push into menswear stretches beyond the athletic wear market – Madewell rolled out menswear in September, Saks Fifth Avenue recently closed its womenswear store in Brookfield Place but kept its menswear location open, sisters Mary-Kate and Ashley Olsen launched their own menswear collection for fashion brand The Row last year, and the list continues.

    These brands are all looking to capitalise on a big change in fashion, and that is that in the not too distant future, menswear may outgrow womenswear.

    Business intelligence firm Gartner L2 estimated that in just two years, revenue growth of men’s clothing will surpass that of women’s clothing. This data is backed up by Euromonitor International, which estimated that men’s lines will outperform women’s over the next six years. 

    “Fashion has always been about women but men are finally having their time,” says Lizzy Bowring, catwalk director at trend-forecasting agency WSGN.

    Bowring believes that the rise of a young, fashion-conscious male consumer is a key reason for this. “It’s the younger men that are driving the push for menswear,” she says. “These men are more savvy and aware, and there is a lot of competition to look the part.”

    Ayako Homma, beauty and fashion consultant at Euromonitor International, echoed these thoughts in an email.

    “One key trend is men’s changing perception of fashion. Men are spending more time, effort and money on their grooming and appearance,” she wrote.

    Experts say that this peak in menswear can be traced back to a boom in streetwear clothing, which has been driven by brands such as Supreme, Yeezy, and Off-White. These brands have experienced explosive growth in recent years and are considered to be redefining the fashion landscape.

    These labels have been embraced by luxury players, a move that has in turn given new life to some of the luxury brands.

    Louis Vuitton recently hired industry pro Virgil Abloh to become its new artistic director. Abloh is responsible for setting up perhaps the buzziest streetwear brand of all, Off-White, which was recently ranked the hottest label in the world.

    “The men’s business has exploded in the past five years,” Roopal Patel, fashion director of Saks Fifth Avenue said. Patel said the focus had shifted to bringing in newer menswear-focused labels such as Off-White.

    “We’ve gone from just category addressing to designers looking at how they’re going to wardrobe a man’s lifestyle, everything from work to evening to weekend to sport,” she said.

    Industry insiders say this trend is here to stay. “It’s more than a buzz. It’s a deeper trend,” said Sidney Toledano, head of LVMH’s fashion group. He continued: “There’s strong demand across the men’s fashion industry, in all its shapes and forms, and which comes in part from a younger clientele. We see it very clearly in the sales.”