How are you doing? Inclusion, Diversity, Equity, and Action: Reflect the diversity of the communities we serve and operate in around the world by 2025. I am incredibly proud of how lululemon navigated the year. Square footage increased 8% versus last year, driven by the addition of 28 net new stores since Q2 of 2020. Thank you, Howard, and I'd like to welcome everyone to our second-quarter earnings call. The highlight was standout performance from the direct-to-consumer channel where robust growth in e-commerce helped Lululemon report a small profit even with stores closed. Switching now to International, our sales trends continue to be robust with all major regions generating strong double-digit sales growth on a two-year CAGR basis. And we've established multi-year targets. Looking at our store channel, total revenue increased 142% versus last year and 9% on a two-year CAGR basis. And while we are navigating temporary headwinds in our supply chain, which are impacting both top line and gross margin, we are pleased with our momentum headed into the second half. HTTPS://AWS.AMAZON.COM/ABOUT-AWS/GLOBAL-INFRASTRUCTURE/). lululemon encourages and creates access to voter participation in the 2020 U.S. Election. 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. 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. Those costs in the market are rising, which has an impact, ultimately, onto CAC. The iconic yoga, run and party experience goes fully virtual for 2020 and introduces a new 10K distance. As a reminder, we reported EPS of $0.96 in Q3 of 2019. Sep 2019 - Sep 2020 1 year 1 month. Welcome to our website shipping to Europe. Absolutely, Mark, and thanks for the question. lululemons Latest Jackets and Outerwear Collection Stretches Beyond Expectations, Super Fine Face Mist is the Newest Addition to lululemons Selfcare Category, Sorry, we don't ship to your country/region, lululemon athletica 1818 Cornwall Ave, Vancouver BC V6J 1C7, California Privacy Rights (Last Updated: 1/23/23). Senior Private Client Manager is a client-centric Leader committed to developing and motivating a team of Private Client Sales Managers leading Stylists as Curators to create a culture of improvement and high performance. To make the world smarter, happier, and richer. And when I look at the growth, it is balanced across all the categories, which is very healthy. Thank you. Please go ahead. And with that, we'll be happy to take your questions. 65. Versatile bottoms designed for laid-back looks. By Q.ai . . The increase versus 2020 reflects increased investment in our supply chain, digital capabilities, new store openings, and renovations, including MIRROR shop-in-shops, as well as other technology and general corporate infrastructure projects. The acquisition will strengthen lululemons omni guest experiences through digital sweat. We are committed to serving the best interests of our shareholders. the United States inc. Please refer to Note 15 to the audited consolidated financial statements included in Item 8 of Part II of our Report on Form 10-K to be filed with the One is general fitness, awareness to being well, living well, to the importance of functional apparel, which is critical, and again, plays to our strength. Listen to Webcast. Hi, Brooke. hTA0 nCms!B4 CG/=jL;;DAV Theyjust revealed what they believe are thetenbest stocksfor investors to buy right now and Lululemon Athleticawasn't one of them! As we've mentioned, we're seeing some delayed inventory receipts due to issues at the ports and also the recent COVID-related closures of certain factories in Southern Vietnam. Guys, let me add my congrats on a really nice quarter. 2. Lululemon saw encouraging demand for its core products, in addition to its launches in new lines like menswear and outerwear. Let me shift now to our outlook for Q3 and the full-year 2021. Store Sales2, Change in Employee Pay Equity: Expand gender pay equity to full pay equity by 2022. We expect our adjusted effective tax rate for the year to be similar to 2020. Unaudited; Expressed in thousands, except per share amounts, Constant dollar changes in net revenue, total comparable sales, comparable store sales, and direct to consumer net revenue. $2.28 So it is a very important driver of innovation for our business. Adding these lifestyle features should translate to further robust growth over time. In this case, we will ask for your specific consent. In many cases, you can identify forward-looking statements by terms such as "may," "will," "should," "expects," "plans," "anticipates," "outlook," "believes," "intends," "estimates," "predicts," "potential" or the negative of these terms or other comparable terminology. 08/13/20. Fantastic. At the end of the second quarter, we had 95% of our stores open. and continues to spread in 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. Thank you so much for taking the question. February 3, 2019 lululemon expands its Selfcare product line with Super Fine Face Mist made to hydrate and protect post-workout skin. Youre reading a free article with opinions that may differ from The Motley Fools Premium Investing Services. This growth rate continues to outpace our three-year CAGR of 19% leading up to the pandemic, and also represents an acceleration from the 25% two-year CAGR we reported in quarter 1 of this year. Our EPS guidance continues to assume modest dilution from MIRROR in the 3% to 5% range . Copies of the Standard Contractual Clauses we use to facilitate this transfer of data are available HERE and HERE. Water and Waste: Reduce freshwater use intensity by 50 percent to manufacture our products, and reduce single-use plastic packaging by 50 percent by 2025. And that really is rooted in a number of very unique attributes to our brand. For all other inquiries, please contact[emailprotected]. Relative to 2019, our gross margin is benefiting from a higher e-com penetration and leverage on occupancy and depreciation. One, the membership test, we learned a lot. at the at the end of fiscal 2018. are compared to the 52 weeks ended I would also note that markdowns declined relative to 2019. Get stock recommendations, portfolio guidance, and more from The Motley Fool's premium services. The above is based on 29 Wall Street analysts offering 12-month price targets for Lululemon in the last 3 months. Investors expected lululemon athletica (LULU 1.66%) to deliver a large increase in revenue over the year-ago weakness, . Hi. If youre looking to ship to somewhere else, please choose your country. of the Quarter, Gross Square , at 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, go ahead. After the presentation, there will be an opportunity to ask questions. Q. Quarter Ended VANCOUVER, British Columbia Gotcha. I was just curious. We will double our men's business this year, and our international business is ahead of the 4-time growth we put out to be completed by the end of '23. When we look to Q4, we're really pushing into our omnichannel strengths and will be agile across both channels, meaning the demand where it comes to us but we're sharing slightly above 2019 productivity for Q3. Handled customer-service . 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. February 2, 2020 At the end of Q3, we expect inventory levels to increase approximately 15% to 20% relative to Q3 2020. We will provide additional updates as the situation warrants. Effective November 23, Meghan Frank will become the companys first female CFO. But is the lower guidance a bad thing or a chance for investors to buy a stock on sale? Best Growth Stock to Buy: Nike Stock vs. Lululemon Stock, This Hot Growth Stock Is Still a Buy After Enormous Gains, Buy the Dip in 2023 on These Potentially Explosive Stocks, 2 Reasons to Avoid a Roth 401(k) for Your Retirement Savings, Want $1 Million in Retirement? As with all our articles, The Motley Fool does not assume any responsibility for your use of this content, and we strongly encourage you to do your own research, including listening to the call yourself and reading the company's SEC filings. But really pleased overall, I would say, with the operating flow-through of our business and remain on track to Power 3 growth plan as we've discussed. Sumner, WA. ~^C`llhH5vY]-#~0 b For the fourth quarter ended 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. . We're early, we're thinking long term, and that convergence was natural. Europe Making the world smarter, happier, and richer. We are committed to serving the best interests of our shareholders. On the following pages, you will find key shareholder information and financial reports to help provide perspective on our financial news, performance and events. You can do so by contacting your countrys supervisory authority. March 26, 2020 Electric vehicle maker Tesla hosted a 2023 investor day presentation in Austin, Texas, on Wednesday. The event was featured in an . Quarterly Infographic PDF. But everything we do around human connection, science of feel that's fueling that. Yeah, no. A right of erasure: You have the right to request that we delete personal data about you. Flying on the latest positive earnings results, Lululemon Athletica ( NASDAQ: LULU ) reached an impressive US$50b market cap in the last week. In our digital channel, revenues increased 66% on a two-year CAGR basis, above our expectations of approximately 55% growth. 10 stocks we like better thanLululemon AthleticaWhen our award-winning analyst team hasa stock tip, it can pay to listen. Discover information about lululemon's quarterly results and find annual reports. During the Thanks, Matt. It's definitely a combination of both. E-com contributed $597 million of top-line or 41% of total revenue. I'll actually take that. ; our ability to successfully open new store locations in a timely manner; our ability to comply with trade and other regulations; the service of our senior management; seasonality; fluctuations in foreign currency exchange rates; conflicting trademarks and the prevention of sale of certain products; our exposure to various types of litigation; actions of activist stockholders; anti-takeover provisions in our certificate of incorporation and bylaws; and other risks and uncertainties set out in filings made from time to time with the Setting the bar in technical fabrics and functional designs, Sep 2015 - Feb 20166 months. For example, this Privacy Policy does not apply to consumers located outside the EEA and Switzerland. Our success was our people, and honouring commitments to our landlords and vendors. Subject to certain limitations and exceptions, you have various legal rights regarding our processing of your personal data, which are set out in our Privacy Policy. U.S. 10% WELCOME OFFER: Fair Processing Notice. World Health Organization Quarter. I'm excited about these three new partnerships and it's just the beginning of Lululemon's commitment to be a leader in the industry related to product, sustainability, and innovation. 0001172661-23-001474.xls. . How we protected our teams reflects the unique culture and values of lululemon, It operates in two segments, Company-Operated Stores and Direct to Consumer. Working with lululemon has felt particularly important to us. And just a few weeks ago, we announced our multi-year collaboration with Genomatica, a recognized leader in sustainable materials to create a lower impact plant-based nylon. February 2, 2020 Good afternoon. Calvin McDonald -- Chief Executive Officer. February 3, 2019, Adjusted , we temporarily closed all of our retail locations in Mainland China. We also transfer personal data to service providers that process personal data for us in the United States, Canada and other locations (as an example, Amazon Web Services process information for us in various data center locations, including those listed at HTTPS://AWS.AMAZON.COM/ABOUT-AWS/GLOBAL-INFRASTRUCTURE/). Equally, we know that the pandemic drove forward, accelerated some of the guest behaviors that play to the strength of our brand. Howard Tubin 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. We continue to expect gross margin for the year to expand between 150 to 200 basis points compared to the modest increase we saw in 2020. Executives predict that sales will reach $5.6 . We may also wish to further use your personal data in promotional or marketing materials. We are leveraging airfreight to meet our guidance, and what's contemplated in our guidance is 150 to 100 -- sorry, 150 to 200 basis points of deleverage for the full year in terms of airfreight impact. Our momentum continued in Q2 with our top and bottom-line results exceeding our expectations. The membership test gave us access to thousands of guests that were behaving in this way in MIRROR, at the end of this year is going to give us access to hundreds of thousands. Quarter2, Total Gross lululemon's net revenue worldwide 2008-2021. During the Constant dollar changes in net revenue, total comparable sales, comparable store sales, and direct to consumer net revenue, and the adjusted financial results are non-GAAP financial measures. at the End of And I'll start there because I think those to me are the most important and signal the health and the engagement of the community both with each other as well as near the product. The presentation of this financial information is not intended to be considered in isolation or as a substitute for, or with greater prominence to, the financial information prepared and presented in accordance with GAAP. The next question comes from John Kernan with Cowen. lululemon expands its Selfcare product line with Super Fine Face Mist made to hydrate and protect post-workout skin. Learn More, Lululemon Athletica(LULU 1.66%)Q22021 Earnings CallSep 08, 2021, 4:30 p.m. As I've mentioned before, Lululemon's unique approach to product innovation is driven by our Science of Feel innovation platform. So great to hear you're on track to pass the 2023 revenue target sooner than anticipated. And then in terms of open-store productivity, can you just remind me of the details of your question there? This compares to adjusted net income and diluted EPS as adjusted of 18.6 million and $0.09 per share in Q4 2021, respectively. Can you talk about your confidence in sustaining this level beyond the recovery period and what we should think about puts and takes for gross margin just thematically as we look out beyond '21? I'm sure you remember last year when heading into COVID, our men's business was leading growth over women's. Operating margin was 22.3%, an increase of 80 basis points compared to fiscal 2018. Vendor Code of Ethics; Conducting Assessments & Remediation; Working With Our Suppliers to Create Meaningful Change; Programs to Build Better This performance not only speaks to the success of our kick-starting, our store's initiatives and the strength of our merchandise assortment but it also speaks to our educators and store teams who bring our brand to life every day for our guests. Early innings is a great thing. Lululemon Athletica Inc. was founded in 1998 and is based in Vancouver, Canada. Its a holistic approach that reflects who we are, guided by our purpose to elevate the world by realizing the full potential within every one of us. 1-604-732-6124 Our Unique Proposition. We are updating our guidance for the full year. . How should we think about this in terms of recovery? We're enthusiastic about the opportunities that exist for the business. After many real and impactful conversations with their underrepresented employees and greater community, lululemon's Senior Leadership Team made the following commitments to stand up and fund Inclusion, Diversity, Equity, and Action within the organization to support meaningful, lasting change in . 5. Stores Opened lululemon Names Meghan Frank Chief Financial Officer, lululemon Appoints Celeste Burgoyne to President, Americas and Global Guest Innovation, lululemon Announces Leadership Appointments of EVP, International and VP, Global Head of IDEA, lululemons Latest Jackets and Outerwear Collection Stretches Beyond Expectations, Super Fine Face Mist is the Newest Addition to lululemons Selfcare Category, lululemon Partners with the Canadian Journalism Foundation and CBC/Radio-Canada to Create the Black Journalism Fellowship, Ice-Dyed Nulux: lululemons Newest One-of-a-Kind Run Collection, lululemon Partners with When We All Vote and Time to Vote, Keep Moving in Technical Loungewear this Fall, lululemon Expands On The Move Category with New Styles and Fabrics, lululemon Introduces New Light Support Bras This Summer, lululemon Acquires Home Fitness Innovator MIRROR, lululemon Commits to Inclusion, Diversity, Equity, and Action, lululemon Announces Global Gender Pay Equity Stats and Commitments, lululemon Announces Mental Wellbeing Commitments at the 2020 MAKERS Conference, lululemon Partners with Robert Geller on Second Collection, A Moment to Reflect, lululemon Appoints Nikki Neuburger Chief Brand Officer, Sorry, we don't ship to your country/region, lululemon athletica 1818 Cornwall Ave, Vancouver BC V6J 1C7, California Privacy Rights (Last Updated: 1/23/23). Stores Open 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. These include our participation in the Mylo consortium that will allow us to make products using an infinitely renewable material made from the root structure of mushrooms. f. Consent. 36. February 2, 2020 While we strive for our Foolish Best, there may be errors, omissions, or inaccuracies in this transcript. Burgoyne becomes the first executive to serve at the President level in her role. $518.5 million I think everybody is saying I think it's now 150 to 200 basis points of negative impact for the year. Diluted EPS of Markets, North America international, and channels online and stores. Reconciliation of Non-GAAP Financial Measures We're so excited to welcome lululemon to the Fertifa family. Founded in 1993 by brothers Tom and David Gardner, The Motley Fool helps millions of people attain financial freedom through our website, podcasts, books, newspaper column, radio show, and premium investing services. And the membership tests, although very effective, the challenge, COVID aside, was that it was challenged to scale, it was rooted in physical, and we couldn't offer it everywhere. And as I mentioned, we're going to stay within the guidance we gave on dilution, and we're going to leverage the strengths of the synergy and learned a ton this holiday. And those scenarios played out. Actual results and the timing of events could differ materially from those anticipated in the forward-looking statements as a result of risks and uncertainties, which include, without limitation: our ability to maintain the value and reputation of our brand; the acceptability of our products to our guests; the recent COVID-19 coronavirus outbreak and related government, private sector, and individual consumer responsive actions; our highly competitive market and increasing competition; our reliance on and limited control over third-party suppliers to provide fabrics for and to produce our products; suppliers or manufacturers not complying with our Vendor Code of Ethics or applicable laws; the operations of many of our suppliers are subject to international and other risks; an economic downturn or economic uncertainty in our key markets; increasing product costs and decreasing selling prices; our ability to anticipate consumer preferences and successfully develop and introduce new, innovative and updated products; our ability to accurately forecast guest demand for our products; our ability to safeguard against security breaches with respect to our information technology systems; any material disruption of our information systems; our ability to have technology-based systems function effectively and grow our e-commerce business globally; changes in consumer shopping preferences and shifts in distribution channels; the fluctuating costs of raw materials; our ability to expand internationally in light of our limited operating experience and limited brand recognition in new international markets; global economic and political conditions and global events such as health pandemics; our ability to deliver our products to the market and to meet guest expectations if we have problems with our distribution system; imitation by our competitors; our ability to protect our intellectual property rights; our ability to source and sell our merchandise profitably or at all if new trade restrictions are imposed or existing trade restrictions become more burdensome; changes in tax laws or unanticipated tax liabilities; our ability to manage our growth and the increased complexity of our business effectively; our ability to cancel store leases if an existing or new store is not profitable; increasing labor costs and other factors associated with the production of our products in South and Please also refer to the Promotion Terms and Conditions at https://www.eu.lululemon.com/en-lu/content/terms-of-sale/030619_Terms_of_Sale.html. In 2020, it fell by 48 per cent. Circularity: Offer our guests new options to extend the life of our products by 2025. endstream endobj 1932 0 obj <>stream Yeah, there are some large public companies that have bought leisure brands over the past couple of months. In closing, I'd like to thank the entire Lululemon family, especially our teams in stores and our guest education center, and in our distribution centers around the world. And from that, some of the behaviors that we were able to observe was how it drove brand love, their connection to the community, both the brand as well as to each other, which is really important. And we're excited about the ability to scale it. On a two-year CAGR basis, total revenue increased 28% with North America up 26% and International increasing 43%. I am grateful to everyone who has dedicated their knowledge and experience to help us define our approach.. 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. About Lululemon, known for its 128 yoga leggings, is facing mockery on social media for promoting an event about "decolonising gender" and how to "resist capitalism". We want to be by 2030, 100% of our products made with sustainable materials, and that's what these partnerships are gearing and working toward for us. . Does it create an opportunity to take some pricing to offset cost increases, whether it's in labor or other areas? Our activation pairs our ambassadors with fitness instructors from the local community to lead over 140 complimentary fitness classes. Lululemon's $500 million acquisition of high-tech fitness brand Mirror doesn't seem to be paying off.
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