Can LULU sustain its revenue growth into 2026?

**Lululemon Athletica Inc. (LULU) is poised to sustain its revenue growth into 2026**, based on several key factors:

1. **Consistent Growth Track Record**: Lululemon has demonstrated a strong growth trajectory in recent years. The company reported a 13% revenue increase in Q4 2024, with total revenue reaching $3.61 billion. This growth is part of a broader trend, with annual revenue increasing from $9.6 billion in 2023 to $10.6 billion in 2024, marking a 10.4% annual growth.
2. **Strategic Expansion Plans**: Lululemon's ambitious international growth plans and strategic expansion into new markets are key drivers for future growth. The company aims to double its revenue by 2026 to $12.5 billion, a goal supported by a five-year growth plan that includes plans to double men’s, double digital, and quadruple international revenues.
3. **New Product Innovations**: Lululemon's continuous introduction of new product innovations has been well-received by customers, contributing to its growth. The company's Power of Three ×2 growth strategy focuses on product innovation, guest experience, and market expansion, which are expected to fuel further growth.
4. **Financial Guidance and Confidence**: Lululemon's financial guidance for 2025 indicates a revenue range of $11.15 billion to $11.3 billion, representing a 5% to 7% growth. The company's repurchase of $332 million of stock in Q4 demonstrates confidence in its long-term prospects.
5. **Market Position and Brand Strength**: Lululemon's strong brand and positive brand purchase intent suggest a robust market position. The company's net promoter scores are improving, and digital traffic is strengthening, which bodes well for sustained growth.

However, it's important to note that Lululemon faces macroeconomic challenges and potential consumer caution, which could impact growth. Nonetheless, the company's track record, strategic initiatives, and financial performance indicate a positive outlook for sustaining revenue growth into 2026.