Lululemon expands to Italy with first store in Milan

Dive Brief:

Lululemon expanded into Italy on Saturday with its first store in the country opening that day in Milan, according to an announcement. The company initially said in 2022 that it planned to open a location in Italy within the next 12 months.
At the 5,700-square-foot, two-floor location, shoppers can browse an assortment of men’s and women’s collections across activities including yoga, running and golf. Lululemon’s full product assortment will be available through an endless aisle tool, enabling visitors to search for products not available in store.
The company plans to connect with Italian consumers through partnerships with local studios, run clubs and an ambassador program, according to the announcement. Lululemon has a series of activations planned throughout the upcoming year.

Dive Insight:

Lululemon’s debut in Italy has come later than the company initially planned. In 2022, the activewear brand said it aimed to open its first stores in Spain, Italy and Thailand within the next 12 months. Nevertheless, Lululemon’s Italian debut is part of a broader plan to quadruple international revenue by 2026. 

“The Milan store opening marks a significant step in Lululemon’s international expansion,” the company said in its announcement, noting that the company already operates stores in “key markets” like the U.K., Ireland, Germany, France, Spain, the Netherlands, Norway, Sweden and Switzerland.

Lululemon is eyeing growth in other international markets as well. Earlier this year, the company announced plans to open 40 to 45 locations, including in China, Denmark, Belgium, Turkey and the Czech Republic. 

The focus on international comes amid slowing growth in the U.S., its largest market. The company noted slowing traffic in the region in an earnings call earlier this year, and that pattern continued into Q1 2025, CFO Meghan Frank said during an earnings call with analysts in June. 

“We did see a decline in store traffic, particularly in the U.S.,” Frank said during the earnings call. “As we moved from Q4 into Q1, we did see that moderate somewhat, but we did still for the first quarter see a lower traffic trend in stores relative to Q4.”

At the same time, Lululemon said it was raising prices to help combat the Trump administration’s tariffs. That comes as shoppers in the U.S. especially are being more cautious with their spending given inflation and other factors. Earlier this month, Jefferies analysts warned that the brand is discounting its merchandise at “alarming rates,” including in some of the retailer’s core categories. Lululemon’s competitors have also been outperforming the brand in both store traffic and digital since February, the analysts noted.

As Lululemon expands its international store openings, the company has made adjustments to its U.S. operations. In June, the company laid off about 150 corporate staffers at its store support centers as part of an organizational review.