lululemon investor presentation 2020

tax reform and taxes on repatriation of foreign earnings. So very excited about how -- any guest, any member that purchases it, is using it, and all the things we love about it, the versatility, the genre, and appeal to a number are all playing out, as well as our conversion numbers are very healthy. Hi, Michael, I'll take the first part of that question. The Company ended the year with 491 stores. Finally, our adjusted EBITDA for Q4 remained strong at 19.8 million . And finally, I am pleased to share that our adjusted earnings per share for the quarter were $1.65 versus $0.96 in 2019, which is significantly ahead of our expectations. Quarter, Number of $1.1 billion Search Thousands of Presentations by World Leading Companies, Join our mailing list to stay in the loop with updates and newest feature releases. The iconic yoga, run and party experience goes fully virtual for 2020 and introduces a new 10K distance. 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 believe that disclosing these measures on a constant dollar basis is useful to investors because it enables them to understand the level of growth of our business. I also want to give some context around these numbers and the quarter-after-the quarter performance we've been delivering. 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. In Atlanta, we co-hosted a charity event created in partnership with leading Atlanta fitness influencers, Mecca Day and EJ Houston. We delivered positive growth in e-commerce, which is even more impressive given the strong performance one year ago, and we continue to deliver at a high level across all major categories and geographies. . Discover lightweight, comfortable bottoms designed for every environment. 2019, Selling, general and administrative expenses, Basic weighted-average shares outstanding, Diluted weighted-average shares outstanding, Goodwill When I graduated from the Ivey Business School in 2010, I did what all my peers were doing: I got a job at an . Beauty Market . If I could just ask one more question, switching gears for a second. inc. (NASDAQ:LULU) is a healthy lifestyle inspired athletic apparel company for yoga, running, training, and most other sweaty pursuits, creating transformational products and experiences which enable people to live a life they love. A few key metrics tell the story. Stores Opened Creating Powerpoint presentations to Institutional Investors for the world-renowned Chief Investment Strategist, and his team of Portfolio Managers . Making the world smarter, happier, and richer. Our Q3 guidance reflects an impact of approximately 200 basis points of pressure from airfreight costs due to port congestion and capacity constraints. 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. 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. At an Analyst Day presentation in April 2019, CEO Calvin McDonald mentioned that more than seven million active guests shopped at Lululemon during 2018. And then in terms of open-store productivity, can you just remind me of the details of your question there? lululemon encourages and creates access to voter participation in the 2020 U.S. Election. 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. We expect gross margin in Q3 to increase 50 to 100 basis points versus Q3 of 2019. In 2020, it fell by 48 per cent. United States Securities and Exchange Commission Check your inbox: your 10% off code is on its way. This year, we will likely achieve the goal we set to double our men's business, and we remain on track to quadruple our international business by 2023, if not sooner. As Calvin mentioned, sales trends remain positive with total digital comp up 4% in Q2. Woodmere, Ohio. 10. So overall, what's very exciting is the balance of growth across all international markets, meaning they are all contributing significant growth and into our goal of quadrupling our international business by '23. For more information and to view the 2020 Impact Agenda, click here. $404.8 million 02/17/21. Great. Vendor Code of Ethics; Conducting Assessments & Remediation; Working With Our Suppliers to Create Meaningful Change; Programs to Build Better 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. You understand that any messages or information you send to our websites may be read or intercepted by others. I will also discuss specifics on our balance sheet, including our cash position, liquidity, and inventory. See active subscriptions. ICR, Inc. Thanks for taking my question and congrats on the results here. Working with lululemon has felt particularly important to us. Feet Lost So excited about what the future continues to hold for our international business. So China is definitely one of our key markets. Tax Great results. We collect personal data from you in connection with your access to and use of our websites, your in-store or online purchases of our products or services, or if you provide us with personal data through other channels or media, such as social media or an event registration service.In particular, we collect personal data directly from you in connection with the following activities: Registering for an account or filling in forms on our websites or in our stores (this includes information you provide when you request additional information, in writing or verbally, about our products or services or sign up to receive our e-mail newsletters, marketing messages or coupons); Completing a profile or uploading goals to our websites; Interacting with us on social media, such as by tagging us and/or our products, or permitting us to follow your social media profile; Purchasing any product or service from us;Providing design or product feedback or making other submissions to us; Requesting information or assistance from us, including correspondence with our customer service team and through social media; Participating in or responding to surveys or requests for opinions, feedback and preferences regarding our products and services; Participating in or registering for events, consumer contests, sweepstakes and other promotions; Using other features of our websites that may be offered from time to time, which may require such information in order to utilise the feature. Transfers to Canada are made pursuant to European Commission decision 2002/2/EC of 20 December 2001. Lululemon hosts sweat classes and other outdoor events designed to build a sense of community around the brand too. 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. rather than . Due to the impact that COVID-19 is having across the globe, and the rapid and continuous developments, we are not providing guidance for fiscal 2020 at this time. 08/13/20. The Motley Fool owns shares of and recommends Lululemon Athletica and Nike. %PDF-1.6 % . 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 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. 09/09/22. Please note that we provide different or additional privacy notices in connection with certain activities, programs, and offerings. EVP Celeste Burgoyne makes a pledge to offer leading mental wellbeing benefits to employees. d. Professional Advisors. And when do some of the facilities that have currently been shuttered in Vietnam need to start ramping, which hits later holiday demand, as well as spring? Quarterly Financial Supplements PDF. Canada 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. At the end of Dec. 1994, Nike stock traded at a P/E of 54, not quite as high as Lululemon's current 64 P/E but still frothy. 1-415-671-7676, lululemon athletica1818 Cornwall AveVancouver BCV6J 1C7, Working With Our Suppliers to Create Meaningful Change, lululemon athletica inc. Relative to 2019, our gross margin is benefiting from a higher e-com penetration and leverage on occupancy and depreciation. We have our eyes on the long game with MIRROR and the community we're building. Lululemon Athletica. rather than Lululemon offers pants, shorts, tops, and jackets for both leisure and athletic activities such as yoga and running. Our vertically integrated model and high margin structure allows us to use more airfreight while still delivering gross margin expansion. Inventories at the end of fiscal 2019 increased by 28% to "Lululemon hosting a workshop to resist capitalism while selling us $180 yoga pants is peak 2020," wrote Kevin Duffey on Twitter. Comparable store sales reflects net revenue from company-operated stores that have been open for at least 12 full fiscal months, or open for at least 12 full fiscal months after being significantly expanded. On June 29, 2020, Lululemon announced its intention not to be left behind. The company is building a powerful brand built on grassroots initiatives and millions of loyal customers. Eleanor French Lululemon is a yoga and exercise apparel company, whose business strategy is based on marketing a lifestyle rather than a product. tax reform and taxes on the repatriation of foreign earnings during fiscal 2018. Lululemon had a high guest retention rate of 92% among its top 20% of spenders. To opt-in for investor email alerts, please enter your email address in the field below and select at least one alert option. A transcript of the meeting will be available here. Fostered and maintained various relationships with athletic/wellness influencers and business owners in order to promote products, create and execute community events, find and maintain brand ambassadors and increase social media engagement. Watch the Replay. Our gross margin increases of 310 basis points relative to 2019 was driven by 290 basis points of leverage on occupancy depreciation and product team costs, and 60 basis points of favorability in foreign exchange, which was partially offset by a 40-basis-point decrease in product margin, driven by a 120-basis-point increase in airfreight related to COVID-19. A right to object to processing:You have the right to request that we stop processing personal data about you. Thanks for squeezing me in. For the reasons set forth in this Privacy Policy, the personal data that we collect may be transferred to and stored or otherwise processed by our holding company, corporate affiliates, subsidiaries, and service providers outside of Switzerland and the EEA, including (but not limited to) in the United States, Canada or Australia. We are committed to serving the best interests of our shareholders. Sep 2015 - Feb 20166 months. 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/). For the year, the anticipated margin expansion now includes 150 to 200 basis points of negative impact from additional airfreight costs but still in excess of Power 3 growth plan, which assumes modest gross margin expansion annually. The iconic yoga, run and party experience goes fully virtual for 2020 and introduces a new 10K distance. Comparable Hi, Brooke. Mar 26, 2020. A paid membership program focused on sweat. For Q2, total net revenue increased 61% to $1.5 billion, above our expectations of $1.3 million to $1.33 billion. And perhaps a little bit more detail on your outlook for China momentum into the second half. compared to About Before handing it back to Calvin, I want to express my gratitude to the entire Lululemon collective. View source version on businesswire.com: https://www.businesswire.com/news/home/20200326005653/en/, Investors: We continue to expect to open 45 to 55 net new company-operated stores in 2021. So it is a very important driver of innovation for our business. For us to repurchase and cancel shares between January 17, 2022, and January 16, 2023, NCIB is in place. Outside of a paid subscription, the opportunity around loyalty absolutely exists and is something that we will share later as we share our plans for the future. 1-203-682-8200, Media: So for Q3, we are planning to be slightly above last year -- of 2019 level for the quarter. 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. The deleverage relative to Q2 2019 is the result of the consolidation of MIRROR's results this year, but not in 2019 and deleverage on foreign exchange. Announces Second Quarter Fiscal 2022 Results: PDF : 08/18/2022: lululemon athletica inc. lululemon athletica Tapestry Investor Day 2022. June 2020 13 slides . As I mentioned, we anticipate it will be with us for the balance of the year, and we'll update on 2022. Employee Leadership Offerings: Be the place where people come to develop and grow as leaders for the world by 2023. 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. Operating margin was 22.3%, an increase of 80 basis points compared to fiscal 2018. Quarter Ended In the financial year of 2021, ending January 2022, the athletic apparel brand known as lululemon generated about 6.3 billion U.S. dollars in net . lululemon expands its Selfcare product line with Super Fine Face Mist made to hydrate and protect post-workout skin. March 2020 And the impact that COVID has had on TAM plays to the strengths and plays to our growth story and the opportunity that we see ahead for our brand. inc. (NASDAQ:LULU) today announced financial results for the fourth quarter and fiscal year ended Be first to know about our newest products, limited-time offers, community events, and more. 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. Fellowships will provide early-career Black journalists with mentoring and training in a CBC News or Radio-Canada Info newsroom. Great. is paul troutman still on oak island; is it sunnah to kiss your wife on forehead. We look forward to sharing more with you on the evolution of our loyalty programs at a later date. Sep 2019 - Sep 2020 1 year 1 month. I would now like to speak to our supply chain about the issues facing the entire industry. Auto Parts . 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. This was an incredible shift that reflects Lululemon's loyal customer base and a strong response to its latest products. As Calvin mentioned, we continue to navigate industrywide challenges with COVID-related factory closures, slowdowns at the ports, and reduced airfreight capacity impacting our business as we move into the second half of the year. Our EPS guidance continues to assume modest dilution from MIRROR in the 3% to 5% range, excluding acquisition and integration-related costs. Bras remained an important expansion opportunity for us. $1.4 billion Europe is just kind of what you thought? : For the fiscal year ended Here you will find key information and financial reports, puttingtheperformance oflululemon athleticaincinto perspective for you. And you've heard me say this before, this brand is early innings across products with activities, where we focus on run train yoga in OTM, categories within those activities, and both our men's and women's business. Our EPS guidance continues to assume modest dilution from MIRROR in the 3% to 5% range . Lululemon Athletica Inc. was founded in 1998 and is based in Vancouver, Canada. During the "When you compare that to other brands, that is very high," McDonald said. We're early, we're thinking long term, and that convergence was natural. We are, as I mentioned, managing accordingly. . Let me now shift to MIRROR. 1931 0 obj <>stream 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. VANCOUVER, British Columbia 11. Hi. Diluted EPS of $2.28 for the fourth quarter. To order presentation-ready copies of Toronto Star content for . on or about These locations currently remain closed. But taking profits now could be a very costly mistake. How we protected our teams reflects the unique culture and values of lululemon, Right. 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. Our approach continues to be grounded and prudently managing our expenses while also continuing to strategically invest in our long-term growth opportunities. The next question comes from Michael Binetti with Credit Suisse. Do you view this as transitory? Our Unique Proposition; News & Events. Great. 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.". Thank you so much for taking the question. Boxville is a very unique collection of shipping containers designed as a space for the community to gather and local businesses to engage in commerce. 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 . Despite these headwinds, we expect both strong revenue and EPS for the year, and we remain on track to deliver, or in some cases even exceed our goals as set forth in our Power 3 growth plan. And that has always driven our business. , Results are great. And we always had visions of being able to bring that to the digital platform. --(BUSINESS WIRE)-- That's right -- theythink these 10stocks are even better buys. 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. , as our teams executed against our Power of Three growth plan. At the end of the quarter, we had 245 million of availability remaining on our current share repurchase authorization. Thank you very much. Yes. Get stock recommendations, portfolio guidance, and more from The Motley Fool's premium services. Announces Third Quarter Fiscal 2022 Earnings Conference Call, Isabel Ge Mahe Joins lululemon Board of Directors, lululemon Studio, a New Fitness Platform, Launches on October 5th, lululemon athletica inc. A new infographic covers how the company achieved global gender pay equity, gender representation statistics, and continued commitments to pay equity. Good afternoon. Please go ahead. During the 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. The next question comes from John Kernan with Cowen. Joseph Teklits Total comparable sales includes comparable store sales and direct to consumer sales. Consider that in fiscal 1994, Nike sales declined 3.6% to $3.79 billion. March 26, 2020 . After many real and impactful conversations with their underrepresented employees and greater community, lululemons 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 the world. During this call, we will present both GAAP and non-GAAP financial measures. I'm happy to be on the call today to speak to our omni guest experience pillar, and to share some additional details on our second-quarter performance. 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. That continues to differentiate the brand and its unique position as premium but through quality innovation. A right to restriction of processing: You have the right to request that we restrict processing of your personal data, so that we can store such data but not otherwise process it. Hi, thank you. Adjusted income tax expense, effective tax rates, and diluted earnings per share exclude the amounts recognized in connection with I would also note that markdowns declined relative to 2019. One million four hundred sixty thousand three hundred eighty subordinate voting shares were repurchased between January 17 and July 6 . For example, this Privacy Policy does not apply to consumers located outside the EEA and Switzerland. Turning to our balance sheet highlights, we ended the quarter with $1.6 billion of total liquidity. Our supply chain and product teams are working diligently to mitigate these risks by shifting production out of Vietnam where possible with our vendors who operate in multiple countries, prioritizing production to ensure key fall holiday styles are produced first, and strategically increasing our use of airfreight. Change in 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. Not only were these initiatives the right thing to do for our people, but they kept our workforce whole and have enabled us to reopen stores with a full complement of educators and leadership teams and they are directly contributing to the strong results we've generated over the last several quarters. 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. the United States 41. CEO Elon Musk took the stage to share his "Master Plan 3," and to discuss how Tesla plans to . Lululemon expects fiscal third-quarter revenue in a range of $1.4 billion to $1.43 billion, with adjusted earnings per share of between $1.33 and $1.38. , and in many other countries globally. Please see our Terms and Conditions for additional details, including our Obligatory Capitalized Disclaimers of Liability. And now, back to Calvin for some closing remarks. Let me now share with you the details of our Q2 performance. 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 52 weeks ended Calvin or Meghan, I guess could you elaborate a little bit on the commentary you gave? Yeah, there are some large public companies that have bought leisure brands over the past couple of months. Stores Closed Cost basis and return based on previous market day close. Our momentum continued into this quarter and our results remain robust with revenue growing more than 60% when compared to the same period last year. Announces Third Quarter Fiscal 2022 Results, lululemon athletica inc. And at the time, I sort of indicated that it would just be a matter of time, we didn't see anything systemic in our men's business that raised any concerns for us. We may also wish to further use your personal data in promotional or marketing materials. February 2, 2020 Our Purpose, Vision & Values . But is the lower guidance a bad thing or a chance for investors to buy a stock on sale? in cash and cash equivalents compared to Company-operated store count and square footage summary excludes retail locations operated by third parties under license and supply arrangements. U.S. During the lululemon athletica, 9 Allee Scheffer, Luxembourg L-2520. Experienced and active freelance graphic designer with a strong reputation working in the creative industry in Vancouver and British Columbia. Investors. Industry. Square footage increased 8% versus last year, driven by the addition of 28 net new stores since Q2 of 2020. Lululemon's $500 million acquisition of high-tech fitness brand Mirror doesn't seem to be paying off. Meghan will have more to share regarding inventory and costs in a few moments. And then I guess just to wrap that question up, how does this impact the concept's ability to reach breakeven?

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