I just wanted to follow up on that last answer. Quarter2, Total Gross And then in terms of open-store productivity, can you just remind me of the details of your question there? "When you compare that to other brands, that is very high," McDonald said. 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. endstream endobj 1932 0 obj <>stream Yeah, no. Calvin McDonald It seems like most of this is cyclical and much of this can be recovered fairly quickly as the supply chain begins to open up. For all other inquiries, please contact [email protected]. I'll handle the first half and then handle the second part to your question on breakeven over to Meghan. February 3, 2019 When I graduated from the Ivey Business School in 2010, I did what all my peers were doing: I got a job at an . Still, with the stock trading at a frothy price-to-earnings (P/E) ratio of 64 times forward earnings estimates, some investors might be tempted to lock in a big short-term gain. 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. 02/17/21. Great, thanks. , 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 . Yes. We've opened a head office in Shanghai, we're leaning in hiring and supporting local teams within that market, and in our store expansion, as well as our digital innovation and support. February 2, 2020 lululemon athletica inc. 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. E-com contributed $597 million of top-line or 41% of total revenue. Results are great. On the following pages, you will find key shareholder information and financial reports to help provide perspective on our financial news, performance and events. Quarterly Infographic PDF. So maybe, Calvin, as we think about 28% revenue growth relative to 2019 in the second quarter, mid-20s in the first quarter, is there a way to rank the drivers of the outperformance that you're seeing relative to that 19% pre-pandemic? rather than That's right -- theythink these 10stocks are even better buys. 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 During this call, we will present both GAAP and non-GAAP financial measures. Q2 spend relates primarily to store capital for new locations, relocation and renovations, supply chain investment, and technology spend to support our business growth. And I think that combined with our ability to gain market share against our competitors is helping to fuel the business, and will continue as we look forward to the years. f. Consent. 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. I will now turn it over to Meghan. Yeah. 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. 6. Listen to Webcast. Electric vehicle maker Tesla hosted a 2023 investor day presentation in Austin, Texas, on Wednesday. Learn More, Lululemon Athletica(LULU 1.66%)Q22021 Earnings CallSep 08, 2021, 4:30 p.m. During the We have our eyes on the long game with MIRROR and the community we're building. 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? 41. Direct to consumer net revenue increased 35%. If I could just ask one more question, switching gears for a second. And the second is the power of human connection through our educators through the strength of our community and the investments we make at grassroots through our people, through our ambassador community, and then the exciting addition of MIRROR into that community. 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. Total comparable sales includes comparable store sales and direct to consumer sales. inc. lululemon athletica And as you mentioned, with the revised guidance of -- we're looking to achieve between $6.2 billion, $6.3 billion this year, putting us two years ahead. rather than %PDF-1.6 % So for Q3, we are planning to be slightly above last year -- of 2019 level for the quarter. Does it kind of push it out a little bit more? 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. 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. lululemon athletica, 9 Allee Scheffer, Luxembourg L-2520. We are working with the right partners to help in the manufacturing and the creation, and therefore, the commercialization of these goods. Thank you, Howard, and I'd like to welcome everyone to our second-quarter earnings call. 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. 02/09/23. In addition, I am thrilled that we're able to achieve productivity in our open stores equal to levels we saw in 2019 and happy to see these results sooner than we expected. And when I look at the growth, it is balanced across all the categories, which is very healthy. Those interested in participating in the call are invited to dial 1-800-319-4610 or 1-604-638-5340, if calling internationally, approximately 10 minutes prior to the start of the call. Thank you so much for taking the question. "Lululemon hosting a workshop to resist capitalism while selling us $180 yoga pants is peak 2020," wrote Kevin Duffey on Twitter. 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. hTA0 nCms!B4 CG/=jL;;DAV Straight to your inbox. You can refer to our earnings release for more information and reconciliations to our GAAP metrics. If you have any questions about the security of personal data collected by lululemon contact us HERE. We had approximately $1.2 billion in cash and cash equivalents and nearly $400 million of available capacity under our revolving credit facility. the End of the The next question comes from Lorraine Hutchinson with Bank of America. Guests want to engage deeper with us and each other, and they are willing to shift into the digital space to do so. Press Releases; Events & Presentations; Financial Information. $881.3 million Results of this caliber enable us to now develop our next five-year growth plan, and we'll come back to you next year with an updated view of what the future can hold for Lululemon. The next question comes from Brooke Roach with Goldman Sachs. Stores Opened Livestreamed from Tesla's electric vehicle manufacturing facility in Texas, CEO Elon Musk focused much of his presentation on the company's "Master Plan 3," which laid out what steps needed to be taken . After all, the newsletter theyhave run for over a decade, Motley Fool Stock Advisor, has tripled the market.*. How should we think about this in terms of recovery? Gross margin was 58.0%, an increase of 70 basis points compared to the fourth quarter of fiscal 2018. So it is a very important driver of innovation for our business. e. Compliance with Law. To opt-in for investor email alerts, please enter your email address in the field below and select at least one alert option. At the end of the quarter, we had 245 million of availability remaining on our current share repurchase authorization. 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. Fulfilled all retail clerk duties in a high volume, high traffic store with over 100K weekly sales. Our approach continues to be grounded and prudently managing our expenses while also continuing to strategically invest in our long-term growth opportunities. The company also sells fitness accessories, such as bags, yoga mats, and equipment. Comparable sales increase 20% London, England, United Kingdom . 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. of the Quarter, Gross Square compared to It has 2,000 ambassadors around the world and a team of guest educators helping gather feedback from customers and cultivating a global community around the brand using digital marketing and social media. The Power 3 initiatives focusing on product, guest experience, and market expansion are still the key areas of focus that we will drive our innovation through. How much of a percentage of the assortment can this represent over time? Good afternoon, and let me add my congratulations. To make the world smarter, happier, and richer. 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? Cost basis and return based on previous market day close. Joseph Teklits Right. 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. 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. Invest better with The Motley Fool. Now let me take a moment to share with you a few highlights from several exciting community activations we recently hosted throughout the quarter. The summary below provides both GAAP and adjusted non-GAAP financial measures. Our stores continue to rebound, generating a two-year revenue CAGR of 9%, which is ahead of our expectations. Inventory grew 17% versus last year and was $790 million at the end of Q2. Given this strategic opportunity, we will suspend our membership tests that have been underway and apply the learnings to how we build out the MIRROR platform for guests. Hi, good afternoon. Tesla shares tumbled after Wednesday's investor day was scant on details about future vehicles. Labor Department . If you are a member of the press and seeking more information on these stories and others, please contact [email protected]. Fourth quarter revenue up 20% to $1.4 billion. 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. And with that, we'll be happy to take your questions. The below changes in net revenue show the net change for fiscal 2019 compared to fiscal 2018. 1. 1931 0 obj <>stream 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/). The iconic yoga, run and party experience goes fully virtual for 2020 and introduces a new 10K distance. The Motley Fool owns shares of and recommends Lululemon Athletica. 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. ~^C`llhH5vY]-#~0 b lululemon encourages and creates access to voter participation in the 2020 U.S. Election. 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. Adjusted income tax expense, effective tax rates, and diluted earnings per share exclude the amounts recognized in connection with Equally, we know that the pandemic drove forward, accelerated some of the guest behaviors that play to the strength of our brand. January 27, 2019 The event was featured in an . Feb 14, 2023: Questions or comments about this Privacy Policy and or data protection practices should be directedhere. 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. World Health Organization 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 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. 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. This range now assumes our e-commerce business grows in the mid-teens, relative to the outsized strength we experienced in 2020. During the Announces Fourth Quarter and Full Year Fiscal 2019 Results, https://www.businesswire.com/news/home/20200326005653/en/. Absolutely, Mark, and thanks for the question. , The next question comes from Matthew Boss with J.P. Morgan. Sign up to our emails to join The lululemon Community and enjoy 10% off your next order. The next question comes from Ike Boruchow with Wells Fargo. 1-604-732-6124 are compared to the 13 weeks ended March 26, 2020 Please go ahead. Brunswick Group It's only a fraction of Nike's $41 billion top line, but that wide gap hints at the opportunity in front of the company. Drivers of the deleverage continue to include our investment in MIRROR brand-building. Please go ahead. We're so excited to welcome lululemon to the Fertifa family. As you know, we also see continued growth opportunities within North America. 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. You can do so by contacting your countrys supervisory authority. Analysts had been looking for Lululemon to . We're playing the long game and have much to unlock in the coming years. Moving to SG&A. February 2, 2020 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. But everything we do around human connection, science of feel that's fueling that. 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. We have physical, technical and administrative measures in place to help protect personal data from loss, unauthorised access or processing, modification, disclosure, damage, alteration, destruction or other misuse. When looking at total revenue, our guidance range implies a two-year CAGR of approximately 25%, which is higher than our three-year revenue CAGR of 19% leading up to 2020 and is well ahead of the low-teens CAGR we contemplated in our Power 3 growth plan. Get stock recommendations, portfolio guidance, and more from The Motley Fool's premium services. lululemon athletica1818 Cornwall AveVancouver BCV6J 1C7, Working With Our Suppliers to Create Meaningful Change, lululemon athletica inc. We saw strong performance in our nonscrubs business, which increased 59%. EVP Celeste Burgoyne makes a pledge to offer leading mental wellbeing benefits to employees. Additionally . Our success was our people, and honouring commitments to our landlords and vendors. The enhancements were continuing to make to our desktop and mobile sites, which include expanding our alternative payment methods, improved storytelling, more predictive search, and more seamless checkout, all combined to continue to elevate their online guest experience. 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. . , Chief Executive Officer, commented: "2019 was a strong year for Lululemon Subscribe . lululemon And I am pleased to now hand it over to Celeste, who will share some additional details with you on our stores and e-commerce business. New Zealand U!4j*54U3 , @nl @:}"eAzd&;Y:2;k/>2C DK;zc$aFCpHV4. Investors have been high on the company's long-term growth prospects across growing digital and international sales, and the latest results showed continued momentum in these areas. Traffic was strong and increased over 150% versus last year. Q. Updates Revenue and Earnings Expectations for the Fourth Quarter Ahead of the ICR Conference, lululemon athletica inc. While in another jurisdiction for processing, your personal data may be accessed by the courts, law enforcement, and national security authorities of that jurisdiction. These include the rights to revoke your consent and to object to processing (for example, you have the right to revoke your consent to receive the newsletter at any time by clicking on the unsubscribe link at the bottom of our newsletter emails). WACC . The Company ended the year with 491 stores. Our teams are incredibly deserving of this new rate and we feel it sets us up strongly going into what will be a busy Q4. 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? People Who Make Our Products Sub Navigation. In Chicago, beginning in July and running through October, Lululemon is partnering with Urban Juncture Foundation to host a community pop-up on Chicago's Southside in the Boxville marketplace. . , we temporarily closed all of our retail locations in Mainland China. During the Best of luck to the holidays. 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. 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. View source version on businesswire.com: https://www.businesswire.com/news/home/20200326005653/en/, Investors: And, Calvin, just a quick follow-up, can you expand a little bit on the plans for membership? Let me now share more color on our second-quarter results, starting with product innovation. Thank you very much. We believe continue to be unique differentiators and drivers of the brand and have obviously been in place and fuel the growth that we've seen so far. These statements are based on management's current expectations but they involve a number of risks and uncertainties. While we strive for our Foolish Best, there may be errors, omissions, or inaccuracies in this transcript. The company has a grassroots foundation driving the growth of the brand. , in line with recommendations by public health officials and in accordance with governmental authority orders, we have taken actions to close certain retail locations and to reduce operating hours. 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. Lululemon was reporting strong revenue growth before COVID-19 while also seeing improving margins and growing earnings. Employee Leadership Offerings: Be the place where people come to develop and grow as leaders for the world by 2023. Please note that our websites contain links to third-party websites that are not controlled or operated by lululemon. We now expect our fiscal year 2021 adjusted diluted earnings per share to be in the range of $7.38 to $7.48. On a two-year CAGR basis, total revenue increased 28% with North America up 26% and International increasing 43%. 1-415-671-7676, lululemon athletica1818 Cornwall AveVancouver BCV6J 1C7, Working With Our Suppliers to Create Meaningful Change, lululemon athletica inc. The Black Lives Matter movement acted as a powerful catalyst within lululemon. We are really proud to be able to bring the Lululemon brand to our guests in these unique and compelling ways, and we're excited about what is yet to come. In addition, the comparable sales and store productivity metrics given on today's call are in constant dollars. 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. Transfers to Canada are made pursuant to European Commission decision 2002/2/EC of 20 December 2001. . Quarterly Financial Supplements PDF. 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. 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. We disclose your personal data to our holding company, subsidiaries and affiliates, including lululemon athletica inc.lululemon usa inc. and lululemon athletica canada inc., for the purposes described in the Use of Your Personal Data section ABOVE. Skilled in technical programs, brand strategy, web design and collaborative leadership. And then Calvin, on international, when we gathered to the analyst's day and you gave us the initial guidance of quadrupling revenues by 2023, I think the comment was that international is going to reach breakeven in 2018 and would be 10 to 15% of earnings by 2023. Quarter Ended For more information, visit www.lululemon.com. 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. By Q.ai . Sep 2015 - Feb 20166 months. After submitting your request, you will receive an activation email to the requested email address. A reconciliation of GAAP to non-GAAP measures is included in our quarterly report on Form 10-Q and in today's earnings press release. A new infographic covers how the company achieved global gender pay equity, gender representation statistics, and continued commitments to pay equity. Our partnership with LanzaTech, a biotech company, which allows us to create the world's first yarn and fabric using recycled carbon emissions. Mirror was on track to surpass US$100 million in revenue, according to a Lululemon investor presentation.) And perhaps a little bit more detail on your outlook for China momentum into the second half. For Q2, total net revenue increased 61% to $1.5 billion, above our expectations of $1.3 million to $1.33 billion. We opened eight stores outside of North America in quarter two and remain on track to open 35-40 stores this year internationally. 4:30 p.m. Eastern time The iconic yoga, run and party experience goes fully virtual for 2020 and introduces a new 10K distance. So excited about what the future continues to hold for our international business. With this strategy firmly in place, we've introduced fabrics and products that engineer specific on-body sensations. Speaking of the outlook, Lululemon reinstated a detailed annual forecast for the first time since the pandemic started. Strong guests' response to our merchandise offering and improving store trends and continued strength in e-commerce fueled our growth, and contributed to our increased outlook for the year, which I will take you through in a moment. We are committed to serving the best interests of our shareholders. Let me now shift to MIRROR. Before I hand it over to Meghan, I'd like to speak for a minute on labor and what we're seeing regarding store and call center staffing. Our Service Providers. If you would like to exercise any of these rights or if you have any questions or enquiries relating to our privacy practices or procedures, you may write to the Privacy Officer at the addresses provided below. Discover lightweight, comfortable bottoms designed for every environment. Looking at our store channel, total revenue increased 142% versus last year and 9% on a two-year CAGR basis. At . January 27, 2019 Thanks, Matt. Thank you. Announces First Quarter Fiscal 2022 Earnings Conference Call. These forward-looking statements also include our guidance and outlook statements. 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. 8. Lululemon - Investor Presentations and Pitch Decks. 5. We are committed to serving the best interests of our shareholders. Watch the Replay. For Q3, we expect revenue in the range of $1.4 billion to $1.43 billion, representing a two-year CAGR of 24% to 25%. I also want to give some context around these numbers and the quarter-after-the quarter performance we've been delivering. March 2020 I'm proud of our recent announcements to develop advanced raw materials that will help us live into our goals and create a healthier world.