Lululemon Athletica is acquiring its franchisee, Lululemon Mexico, which operates 15 stores since entering Mexico in 2017. Despite alleged struggles in North America, Lululemon has maintained double-digit growth in Mexico. The brand's global revenue grew from $1.37 billion in 2013 to $10.1 billion in 2023. The company now has about 400 stores in North America, 40 in Europe, and 100 in Asia-Pacific.
Source: Emerging Real Estate Digest
Lululemon Athletica has agreed to acquire the real estate and operations of its franchisee in Mexico, Lululemon Mexico. The Mexican business has 15 stores and has been in business in Mexico since 2017. All employees reportedly will migrate to the new entity.
Celeste Burgoyne, President of the Americas at Lululemon, said in a statement that, "Mexico remains an exciting market for Lululemon.. We believe we are well-positioned to continue expanding in the region."
The brand has somewhat struggled in the rest of North America, but in Mexico the company has continued to grow and maintain double-digit growth. Chip Wilson, Lululemon's founder and CEO, recently blamed the decline on the brand trying to "become like the Gap, everything to everyone."
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In spite of that criticism, the brand has continued to grow revenues. In 2013, the company reported global revenue of approximately $1.37 billion, which grew steadily to $6.26 billion by 2020. Despite challenges, revenue continued to rise, reaching $8.0 billion in 2021 and $10.1 billion in 2023.
Lululemon's first venture in Latin America was in Mexico which it entered in 2017 as part of a broader international expansion plan. The first space in Mexico was a showroom in Polanco, and the first store opened one year later in 2018 in Artz Pedregal Mall. Lululemon is also in Puerto Rico in the Mall of San Juan, but not any other countries in Latin America according to the company's website.
As of 2024, the company has around 400 stores in North America, 40 in Europe, and 100 in Asia-Pacific.
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