As it moves into new categories for growth, athletic apparel company Lululemon has started to sell products for personal care through eCommerce and in 50 stores. The personal care selections encompass a deodorant, face moisturizer, lip balm and dry shampoo, CNBC reported.
CEO Calvin McDonald told analysts this month, according to the outlet, “The main driver continues to be our core categories across both men’s and women’s.” McDonald continued, “However, we’ve identified several areas of white space where we can test the waters and bring innovation to our guests.” And, extending beyond its line of body care products, the company has also reportedly plans to roll out a footwear line.
The company’s stock has shot up over 50 percent year-to-date as of the market close on Monday (June 17), and the market value for the company has reached almost $24 billion. As a point of comparison, shares of Nike have increased by just about 11 percent, and its market cap has reached a bit more than $129 billion. The S&P 500 Retail ETF, however, has only risen approximately 2.9 percent.
Wells Fargo Analyst Ike Boruchow wrote in a note, according to the outlet, “We believe that the athletic industry remains one of the bright spots in a tough retail environment, and Lululemon has some of the strongest momentum and visibility within the sector.”
In other Lululemon news, reports surfaced in December that the company has been experimenting with a loyalty program that is so successful it will be brought soon into more markets. Through its third-quarter earnings call, the company revealed that it has charged certain members $128 yearly for free shipping, curated experiences and more.
And shoppers would even pay more for the program, according to reviews from its Edmonton initial test market, which could cause the company to raise the fee. At the time of the report, the fee covers a pair of shorts or pants, as well as workout classes, curated events and free expedited shipping. McDonald said on the company’s quarterly conference call, according to CNBC in December, “Guests are seeing value beyond just the product.”