Lululemon is set to inaugurate its 100th store in the Europe, Middle East, and Africa (EMEA) region with a landmark debut in Warsaw, Poland. Executed through a franchise partnership with Arion Retail Group, this expansion spearheads an aggressive 2026 roadmap that includes record entries into five other markets: India, Austria, Hungary, Romania, and Greece. The centennial opening signals a calculated geographic rebalancing; while the brand’s North American revenue growth slowed to a stagnant 2 per cent in late 2025, international sales expanded by 33 per cent, transforming the EMEA theatre into a vital hedge against domestic saturation.
Diversifying the revenue engine via menswear and innovation
The retailer’s ‘Power of Three ×2’ strategy is currently prioritizing the masculine demographic to offset softening demand in its core women’s segment. Lululemon aims to double its global menswear revenue by the end of 2026, leveraging high-performance technical lines that command a 22 per cent higher average transaction value in EMEA than in the U.S. By emphasizing ‘high-touch’ physical showrooms in Tier-1 cities like London and Warsaw, the brand is successfully converting affluent urban professionals to its premium priced technical outerwear and footwear.
Case Study: The High Street Kensington model
Earlier this February, Lululemon reinforced its ‘key city’ strategy by opening its 13th London store on High Street Kensington. This site serves as a blueprint for the 100th store in Warsaw, functioning as a ‘community hub’ that blends retail with movement-based experiences. This high-engagement model has allowed the brand to maintain an operating margin in the low-20s, even as competitors like Alo Yoga and Vuori intensify their pursuit of European market share. Lululemon is a premium technical athletic apparel leader specializing in yoga, training, and running gear. The company is currently executing a five-year plan to reach $12.5 billion in annual revenue by late 2026. Founded in 1998, it has transitioned from a niche Canadian yoga brand to a global athleisure powerhouse with a presence in over 30 countries.
