endstream endobj 1933 0 obj <>stream The next question comes from Matthew Boss with J.P. Morgan. Learn More. 2. Oct 07, 2021. And those scenarios played out. The reduction relative to last year is due primarily to deductions related to stock-based compensation. We collect the following types of personal data in connection with the activities described above: your name, username, password, e-mail address, address, telephone number, credit card and debit card numbers (with expiration dates), personal preferences, goals, and any other personal data that you choose to include in your profile or in other communications with us. "Our most loyal [customers] are incredibly loyal.". Announces Second Quarter Fiscal 2022 Earnings Conference Call, lululemon Expands International Footprint, Launching in Spain, lululemon athletica inc. We currently have approximately 95% of our stores opened globally, we're engaging with guests inside our stores and through our community activations, and our e-commerce business remains strong. How's the margin profile of the sustainable product look versus the current assortment? And that includes MIRROR consolidated in this year's numbers and not in 2019, as well as brand building, which would include both that MIRROR piece as well as our current Feel campaign. To opt-in for investor email alerts, please enter your email address in the field below and select at least one alert option. This press release includes estimates, projections, statements relating to our business plans, objectives, and expected operating results that are "forward-looking statements" within the meaning of the Private Securities Litigation Reform Act of 1995, Section 27A of the Securities Act of 1933 and Section 21E of the Securities Exchange Act of 1934. 08/13/20. 02/09/23. The next question comes from Jay Sole with UBS. Total comparable sales increased 17%, or increased 18% on a constant dollar basis. And then I guess just to wrap that question up, how does this impact the concept's ability to reach breakeven? Thank you, Howard, and I'd like to welcome everyone to our second-quarter earnings call. Total Oct 2021 - Present1 year 6 months. Thank you. Calvin McDonald -- Chief Executive Officer. These results reflect the ongoing strength across all major areas of the business. The next question comes from Erin Murphy with Piper Sandler, please go ahead. Effective November 23, Meghan Frank will become the companys first female CFO. , . During the Unsubscribe at anytime. Feet Lost February 3, 2019, lululemon athletica I will now turn it over to Meghan. Looking at the second quarter, our results reflected broad-based strength across our channels, regions, and product categories. Yeah, no. If you follow a link to any of these websites, please note that these websites have their own privacy policies and that lululemon does not accept any responsibility or liability for these policies.Please review these policies before you disclose any personal data when visiting such third-party websites. works with yogis and athletes in local communities for continuous research and product feedback. Fourth quarter revenue up 20% to Before I open it up to questions, I wanted to take a look back on these results and the previous quarters and speak for a moment about the unique business model that drives their success, enables our strong performance, and allows us to navigate COVID-19 and the current headwinds impacting our supply chain. The next question comes from Lorraine Hutchinson with Bank of America. "Lululemon hosting a workshop to resist capitalism while selling us $180 yoga pants is peak 2020," wrote Kevin Duffey on Twitter. the United States We look forward to sharing more with you on the evolution of our loyalty programs at a later date. Jul 2021 - Present1 year 9 months. at the end of fiscal 2018. Sep 2019 - Sep 2020 1 year 1 month. We prioritized our people and kept our teams intact by offering pay production, sick pay, and other key people investments. McDonald continued: "I want to thank our people around the globe for the results they delivered in 2019, and for their perseverance and commitment to our brand each and every day.". For 2022, our first full year as a public company, we delivered net revenue growth of over 20%. The Investor Relations website contains information about Canada Goose Inc.'s business for stockholders, potential investors, and financial analysts. Our Purpose, Vision & Values . Following an acquisition announcement this summer, lululemon will offer MIRROR in its stores in the United States, starting with 18 locations this holiday season. are urged to consider these factors carefully in evaluating the forward-looking statements contained herein and are cautioned not to place undue reliance on such forward-looking statements, which are qualified in their entirety by these cautionary statements. Announces Second Quarter Fiscal 2022 Earnings Conference Call: PDF : 07/05/2022: lululemon Expands International Footprint, Launching in Spain: PDF : 06/02/2022: lululemon athletica inc. FINANCIAL STRENGTH Free cash flow of $156M Fully undrawn $175 million revolving credit facility As of July 6, 2022, there was $160M in cash and equivalents. About Last October, we launched our Impact agenda, which outlines our strategies to address critical social environmental issues over a multi-year period. We achieved doubling our e-commerce business last year. In addition, our revenue increased across each of our major regions, up 26% in North America, and up 43% in our international markets, both on a two-year CAGR basis. The Black Lives Matter movement acted as a powerful catalyst within lululemon. Announces Fourth Quarter and Full Year Fiscal 2019 Results, https://www.businesswire.com/news/home/20200326005653/en/. Lululemon management said as much in a 2019 analyst presentation, noting that it sees the company as being in business to solve guests' unmet needs, something that it is doing better than competitors. Our freshest gear. But everything we do around human connection, science of feel that's fueling that. Thanks and congrats on another great quarter. As I've mentioned before, Lululemon's unique approach to product innovation is driven by our Science of Feel innovation platform. inc. lululemon athletica Yeah, there are some large public companies that have bought leisure brands over the past couple of months. People Who Make Our Products: Achieve Fair Labor Association (FLA) accreditation, and make empowerment programs available to more than 100,000 makers across our supply chain by 2025. We're well-positioned within that TAM to address it in a very effective leading way. The Company repurchased 1.6 thousand shares of its own common stock at an average cost of. A right to revoke your consent: When our processing is based on your consent, you have the right to revoke such consent at any time. August 4, 2020. I wanted to focus on the men's business for a minute. We will soon introduce MIRROR to guests in Canada, where Lululemon has an impressive level of recognition. But the number of guests that are converting when they see those ads and ultimately convert to buy, once they work their way down through the funnel, are all at or above where we've been trending and very healthy. For all other inquiries, please contact[emailprotected]. That's helpful. Calvin, I guess my question is with lead times that are generally six months plus, I'm wondering if you can give us some more details on the amount of exposure that you have maybe to Vietnam. Speaking of the outlook, Lululemon reinstated a detailed annual forecast for the first time since the pandemic started. hTmO0+ EJ_B(e4&7qhiR%.H}sw< yH($#%qd%^`pN#BYhP.ISG0R#F 0F`Xeu^T^ Am =$^G$u^R"^:)EZxkrLFZ)?a>hS2e7Y1\ 1D7X?Z.YZj~@|bd$9zRj)T#a February 2, 2020 For all other inquiries, please contact gec.emea@lululemon.com. Diluted EPS of $2.28 for the fourth quarter. Invest better with The Motley Fool. Lululemon - Investor Presentations and Pitch Decks. We're also excited about how MIRROR can be the vehicle through which we offer long-term benefits to our guests, such as membership programs and special experiences. That being said, we are carefully monitoring the current developments in labor markets, particularly in North America, and we remain committed to doing what's right for our store and DC team. Subject to certain limitations and exceptions, you have the following legal rights regarding our processing of your personal data: A right to obtain information:You have the right to request information about how we process your personal data. Operating margin was 22.3%, an increase of 80 basis points compared to fiscal 2018. Invest better with The Motley Fool. Become a Motley Fool member today to get instant access to our top analyst recommendations, in-depth research, investing resources, and more. We have our eyes on the long game with MIRROR and the community we're building. Adjusted income tax expense, effective tax rates, and diluted earnings per share exclude the amounts recognized in connection with Please read this Privacy Policy from time to time to make sure you understand how we process your personal data and the choices you have with respect to such processing. The gross margins in 2Q, they're above what you typically do for the holiday quarter pre-COVID, which is where there's a lot of leverage in the business. As Calvin mentioned, sales trends remain positive with total digital comp up 4% in Q2. Early innings is a great thing. Stores Opened We are monitoring this closely and leaning into the agility of our supply chain, the strength of our planning and allocations team, and the powerful partnerships with our vendors to help mitigate the risks where we can. Labor Department . And, Calvin, just a quick follow-up, can you expand a little bit on the plans for membership? Shares of the yogawear maker climbed 1.5% to 369.07 in Thursday's stock market trading.Lululemon stock is working on a 383.64 cup . So there's been a lot of fantastic innovations and partnerships in that space with the pilot around our resell program, the partnerships, be it with Mylo, LanzaTech, or Genomatica announced this past quarter in the SuperCluster. inc. (NASDAQ:LULU) today announced financial results for the fourth quarter and fiscal year ended McDonald also announced last year at the Analyst Day that the brand has plans to enter the footwear market. Square Footage Expressed in Thousands, Number of lululemon athletica UK Ltd, located at Garden House, 57-59 Long Acre, London, WC2E 9JL (lululemon, we or us) are the data controller for the personal data we process about you in connection with the Promotion. It is you who brings our brand to life every day and enables our strong financial results. But those brands that have been acquired have been in the market, we've competed against them before and we've always liked our unique and differentiation within what has been a crowded marketplace and yet we continue to put up the results we've put up in the past number of years. Skilled in technical programs, brand strategy, web design and collaborative leadership. If you are a consumer in the European Economic Area ("EEA") or Switzerland, this privacy policy ("Privacy Policy") explains how we process your personal data when you shop in our stores, access or use our websites, register for and attend events, engage with us on social media or otherwise interact with us. Let me add my congrats. Subsequent to I would also note that markdowns declined relative to 2019. If you do link your social media account to our social media account, the social media service may share certain data about you and your activities with us in accordance with their privacy policies and your privacy settings on their services. Total comparable sales includes comparable store sales and direct to consumer sales. Gross square feet added/lost during the quarter includes net square foot additions for company-operated stores which have been renovated or relocated in the quarter. We're just ramping up synergies, like the 200 stores that play to our strength in the key leads in each of those locations. , And how do you think that the overall environment will respond to a situation where everybody is being challenged by supply chain issues in Asia? , As a reminder, all participants are in listen-only mode and the conference is being recorded. And the growth targets within that are what you should continue to look forward beyond 21, but we do plan to come back with our long-term thinking next year and share more with you at that point. We look for opportunities both where we could price up to and/or price down to be positioned in the marketplace based on assortment in range work. We're so excited to welcome lululemon to the Fertifa family. Macy's, Inc. to Report Fourth Quarter and Full-Year 2022 Results on March 2, 2023 View Release Thanks, Ike. Dec 10, 2020. I'm sure you remember last year when heading into COVID, our men's business was leading growth over women's. . This was never more true than last year during the pandemic. lululemon makes major five commitments to support the Black Lives Matter movement and meaningful, lasting change in the world. We are committed to serving the best interests of our shareholders. Joseph Teklits After the presentation, there will be an opportunity to ask questions. On Thursday, reporting its third-quarter earnings results, Lululemon slashed its outlook for . Embrace hands-free happiness with our edit of bags for workouts and hangouts. Announces First Quarter Fiscal 2022 Results, lululemon athletica inc. So in terms of the supply chain, we are assuming that Southern Vietnam begins of Phase 3 opening mid-September and that's what's implied in our guidance. Adjusted operating income for the quarter was $299 million or 20.6% of net revenue compared to 15% of net revenue in Q2 2020, and 19% of net revenue in Q2, 2019. inc. The Motley Fool owns shares of and recommends Lululemon Athletica and Nike. Setting the bar in technical fabrics and functional designs, We may also disclose your personal data with applicable regulators or other authorities when we believe doing so is reasonably necessary to comply with applicable law or legal process (including requests from authorities), to respond to claims (including inquiries by you in connection with your purchases from lululemon), or to protect the rights, property or personal safety of lululemon, our users, employees or the public. Moving to SG&A. Consider that in fiscal 1994, Nikesales declined 3.6% to $3.79 billion. Those interested . The learnings from our membership test are considerable. The next question comes from Mark Altschwager with Baird, please go ahead. Third, even with the recovery in our stores, our e-commerce business remains solid. Any impact on their spend. The press release and accompanying quarterly report on Form 10-Q are available under the Investors section of our website at www. If you follow a link to any of these websites, please note that these websites have their own privacy policies and that lululemon does not accept any responsibility or liability for these policies. Currently, the category represents mid-single-digit penetration, and we see an opportunity to grow this category into the low to mid-teens in the coming years. This result comes on top of the 157% increase in Q2 of last year, which benefited from our online warehouse sale, an event that we did not repeat this year. Furthermore, we do not believe the adjustments are reflective of our expectations of our future operating performance and believe these non-GAAP measures are useful to investors because of their comparability to our historical information. Guests took three back-to-back classes, and Lululemon matched all ticket sales, which were then donated to the Black Women's Health Imperative. And really, we always saw a convergence between these two strategies. Are the opt-in rates a little bit lower than what you expected? Does it create an opportunity to take some pricing to offset cost increases, whether it's in labor or other areas? Thanks for signing up, youll soon start getting the inside scoop on the latest gear, our favourite workouts, events and much more. 10% WELCOME OFFER: Fair Processing Notice. lululemon athletica We've shared and continue to see our brand gaining market share across categories, men's and women's. Our Unique Proposition. 24. While this level of inventory can support our increased revenue guidance I'm going to walk through in a moment, it is lower than we had initially targeted due to supply chain challenges. Our obsession with raw material and our investment in our product is what we do, is what we obsess about, and its really what drives why the guests feel different and continue to sort of be loyal to this product and brand. We've established plans to improve the planet that we're committed to. Let me now share more color on our second-quarter results, starting with product innovation. And just as you look forward, could you just talk about if you see any of the current issues leading into spring? So it is a reflection of the industry. You can refer to our earnings release for more information and reconciliations to our GAAP metrics. This helps us to provide you with a good experience when you browse our websites and allows us to improve our websites. I am grateful to everyone who has dedicated their knowledge and experience to help us define our approach.. U.S. And perhaps a little bit more detail on your outlook for China momentum into the second half. It's what separates us from others and I don't see that changing with the landscape of who's out there and who owns whose out there. Lululemon is a yoga and exercise apparel company, whose business strategy is based on marketing a lifestyle rather than a product. Our approach continues to be grounded and prudently managing our expenses while also continuing to strategically invest in our long-term growth opportunities. Celeste Burgoyne -- President, Americas and Global Guest Innovation. A constant dollar basis assumes the average foreign exchange rates for the period remained constant with the average foreign exchange rates for the same period of the prior year. We take pricing, obviously, seriously in that we're constantly monitoring and testing. That's right -- theythink these 10stocks are even better buys. Wellbeing for All: Provide access to wellbeing tools for more than 10 million people by 2025. Made for pre-workout warmups, neighborhood strolls, and rest days this is the technical and versatile gear designed for all aspects of life. Be first to know about our newest products, limited-time offers, community events, and more. lululemon Announces Global Gender Pay Equity Stats and Commitments, lululemon Announces Mental Wellbeing Commitments at the 2020 MAKERS Conference, Sorry, we don't ship to your country/region, lululemon athletica 1818 Cornwall Ave, Vancouver BC V6J 1C7, lululemon Commits to Inclusion, Diversity, Equity, and Action, California Privacy Rights (Last Updated: 1/23/23). The Company repurchased 1.1 million shares of its own common stock at an average cost of. Sustainable Materials: Achieve at least 75 percent sustainable materials for our products by 2025. So I think the -- I know the TAM has been impacted by those macro trends. We also retain personal data for as long as you have your account, or as long as is needed to be able to provide the services or products to you, or (in the case of any contact you may have with our Guest Education Centre) for as long as is necessary to provide support-related reporting and trend analysis. Copies of the Standard Contractual Clauses we use to facilitate this transfer of data are available HERE and HERE. In Thank you, Brooke. and available at www.sec.gov, including, without limitation, our most recent reports on Form 10-K and Form 10- Drivers of the deleverage continue to include our investment in MIRROR brand-building. Thank you for standing by, this is the conference operator. Our EPS guidance continues to assume modest dilution from MIRROR in the 3% to 5% range, excluding acquisition and integration-related costs. --(BUSINESS WIRE)-- Gotcha. VANCOUVER, British Columbia, March 29, 2022--lululemon athletica inc. (NASDAQ:LULU) today announced financial results for the fourth quarter and fiscal year ended January 30, 2022. Gross profit for the second quarter were $843 million or 58.1% of net revenue, compared to 54.2% of net revenue in Q2 2020, and 55% of net revenue in Q2 2019. . The summary below provides both GAAP and adjusted non-GAAP financial measures. Lululemon Athletica Inc. was founded in 1998 and is based in Vancouver, Canada. Experienced and active freelance graphic designer with a strong reputation working in the creative industry in Vancouver and British Columbia. tax reform and taxes on repatriation of foreign earnings. Combined, these give us a unique strength to keep growing MIRROR. E-com contributed $597 million of top-line or 41% of total revenue. Now let me take a moment to share with you a few highlights from several exciting community activations we recently hosted throughout the quarter. Investor Presentation. Lululemon learned some things about what customers want in a shoe from its previous partnership to sell athletic footwear from the brand Athletic Propulsion Labs (APL). Comparable store sales increased 9%, or increased 10% on a constant dollar basis. The challenge right now with a variety of changes that have happened in the digital marketing space, is the cost -- CPM, the cost to get MIRROR, which has low awareness right now, and we're working toward in front of guests. Quarter, Number of And in fact, those behaviors are what gave us the conviction and confidence to go ahead with the MIRROR acquisition because we saw a natural synergy between the two. Feb 14, 2023: At the end of the second quarter, we had 95% of our stores open. Gross margin was 58.0%, an increase of 70 basis points compared to the fourth quarter of fiscal 2018. For more information, visit www.lululemon.com. And if I could just follow up with a question for Meghan on the SG&A leverage outlook, there are a lot of moving pieces within the outlook, some investments in brand-building, higher wages. In this Privacy Policy, "personal data" means any information about an individual whose identity is apparent or can be ascertained, directly or indirectly. It's Meghan. $1.4 billion It operates in two segments, Company-Operated Stores and Direct to Consumer. So it really supports the early earnings in growth across multiple levers. That's why we see such balanced growth across markets, channels, and product categories. As you know, in our Impact agenda that we published, our first one last year on our Be Human, be well, be planet pillars in our Be Planet, our commitment is to make 100% of our products with sustainable materials by 2030, as well as investing into circularity, which is extending the life of our products and providing options and choices for our guests. Can you provide some additional insight about what's working really well in those geographies? And we continue to see the members, you said MIRROR, number of sweats, number of members per households sweating increase and hold very high numbers. The average price target is $469.34 with a high forecast of $548.00 and a low . Meghan will have more to share regarding inventory and costs in a few moments. I just wanted to follow up on that last answer. As you alluded, we're very happy with the overall growth in our men's business two-year CAGR of 31%. We're enthusiastic about the opportunities that exist for the business. And we've established multi-year targets. Due to the 53rd week in fiscal 2018, the below changes in total comparable sales, comparable store sales, and direct to consumer net revenue are calculated on a one week shifted basis such that the 13 weeks ended These jurisdictions may not provide the same level of data protection as your home jurisdiction and may not be considered by the European Commission to offer adequate protections for personal data. And that really is rooted in a number of very unique attributes to our brand. rather than Lululemon Athletica Inc., together with its subsidiaries, designs, distributes, and retails athletic apparel and accessories for women and men. John Kernan -- Cowen and Company -- Analyst. Please note that our websites contain links to third-party websites that are not controlled or operated by lululemon. Thank you, Meghan and Celeste. I think everybody is saying I think it's now 150 to 200 basis points of negative impact for the year. World Health Organization To the extent possible, the team is looking to multi-source and leverage other countries, as well as prioritize fall holiday key styles to the best of their ability, and airfreight is a muscle that as a growth company, we often leverage and we continue to do so as we navigate the supply chain challenges in the second half. Thanks, Matt. `F9HKb>*DpV Bva}d_uY)so6.~J6@&,xg+[ 0 We retain personal data only for as long as necessary to achieve the purpose for which such personal data was collected, unless a different retention period is required under applicable law. Personal data may be disclosed or transferred as part of, or during negotiations of any purchase, sale, lease, merger, amalgamation or any other type of acquisition, disposal, securitisation or financing involving lululemon. We recently opened our second production studio in New York, allowing us to double the number of live classes, and MIRROR will launch a new e-commerce site in time for the holiday season this year. If reasonably necessary or required to meet legal or regulatory requirements, resolve disputes, prevent fraud and abuse, or enforce our terms and conditions, lululemon may also keep personal data as required, after an account is closed or is no longer necessary to provide services. at the End of A paid membership program focused on sweat. During the quarter, we opened 11 net new stores. You understand that any messages or information you send to our websites may be read or intercepted by others. Get stock recommendations, portfolio guidance, and more from The Motley Fool's premium services. for further information on these adjustments. Thank you very much. Circularity: Offer our guests new options to extend the life of our products by 2025. Buy These 2 Stocks in 2023 and Hold for the Next Decade, Warren Buffett's Latest $2.9 Billion Buy Brings His Total Investment in This Stock to $66 Billion in 4 Years, If You Invested $1,000 in Nvidia in 1999, Here's the Shocking Amount You Would Have Now, Join Over Half a Million Premium Members And Get More In-Depth Stock Guidance and Research, Copyright, Trademark and Patent Information. We'll continue monitoring the rising costs associated with CAC while we move ahead with launching exciting new innovations and leveraging the synergies Lululemon brings to the relationship. On June 29, 2020, Lululemon announced its intention not to be left behind. Lululemon was reporting strong revenue growth before COVID-19 while also seeing improving margins and growing earnings. We are updating our guidance for the full year. When I graduated from the Ivey Business School in 2010, I did what all my peers were doing: I got a job at an . Please note that we provide different or additional privacy notices in connection with certain activities, programs, and offerings. Switching now to e-commerce. Thank you so much. So we're excited heading into the holiday, But I did want to call it out because we're monitoring it. I guess, I imagine it was a challenge to get reads on the tests given everything that's been going on in the last 18 months, but I mean do you still see an opportunity to have a loyalty program that exists outside of the MIRROR platform or what form might that take? Great. Relative to 2019, our gross margin is benefiting from a higher e-com penetration and leverage on occupancy and depreciation. We continue to expect capital expenditures to be approximately $365 million to $375 million in 2021. The Motley Fool owns shares of and recommends Lululemon Athletica. U!4j*54U3 , @nl @:}"eAzd&;Y:2;k/>2C DK;zc$aFCpHV4. I will also discuss specifics on our balance sheet, including our cash position, liquidity, and inventory. A right of access:You have the right to request access to, or a copy of, the personal data we process about you. If you are a member of the press and seeking more information on these stories and others, please contact media@lululemon.com. Our activation pairs our ambassadors with fitness instructors from the local community to lead over 140 complimentary fitness classes. at the end of fiscal 2018. Lululemon had been looking for ways to meet its .

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