Lululemon, the fashion brand that helped define “athleisure” to shoppers around the world, was one of the newest entries on this year’s Fortune 500, which ranks U.S. companies by revenue. The apparel maker, led by CEO Calvin McDonald, debuted in 461st place on the back of $8.1 billion in revenue for 2022, a nearly 30% increase from the year before. Lululemon now makes almost three times as much revenue as it did in 2018, when McDonald became CEO.
But how was Lululemon able to convince shoppers to pay a premium for its clothing, such as a pair of leggings that can sell for upwards of $100?
