Lululemon is growing beyond the women's yoga pants that made it famous as competition heats up

Lululemon has been doubling down on menswear and plans to grow this category into a $1 billion business by 2020. The company said in a recent earnings call that it is well on its way to achieving this.

"Men's is one of our largest and most exciting areas of future growth," McDonald told investors on Wednesday.

Lululemon launched its self-care collection in October. This includes deodorant, dry shampoo, cleanser, moisturizer, and balm. These items are not currently available online but only in select stores.

"We believe this category holds great opportunity for us and is a natural extension for our brand," McDonald said on Wednesday. "We continue to attract and acquire new guests, while building greater share of wallet with our highly engaged existing guests."

In December, Lululemon announced that it had been testing a new loyalty program in Edmonton, Canada. It later announced testing in Denver. For a $128 annual fee, members were treated to a pair of pants or shorts, access to Lululemon's classes and events, and free shipping on online orders.

On Wednesday, McDonald said Lululemon plans to expand this service to additional US cities in 2019, as it has seen "wonderful take up" so far. This loyalty program provides the company with a new stream of revenue and access to more customer data.