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. Our Unique Proposition. So in terms of SG&A, we guided for Q3 the 300 to 350 basis points of deleverage relative to 2019. For more information on these non-GAAP financial measures, please see the section captioned "Reconciliation of Non-GAAP Financial Measures" included in the accompanying financial tables, which includes more detail on the GAAP financial measure that is most directly comparable to each non-GAAP financial measure, and the related reconciliations between these financial measures. Thanks for squeezing me in. 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. And then with the shutting of our stores and other shifts that were happening as a result, we saw that business slow both in the industry as well as with ourselves, even though we are putting on market share. And in terms of overall international profitability, we are profitable overall on international, and still, see a lot of opportunities there relative to the maturation of the international business in terms of its comparison to North America, particularly pleased with the growth rate we're experiencing in China, and see opportunities for both revenue and gross margin expansion and operating margin as that business expands. Sign up now! And you want that in these types of membership programs to drive that loyalty. February 2, 2020 Auto Manufacturers. For 2022, our first full year as a public company, we delivered net revenue growth of over 20%. 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. 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. Press Releases; Events & Presentations; Financial Information. February 3, 2019 Sustainable Materials: Achieve at least 75 percent sustainable materials for our products by 2025. Absolutely, Mark, and thanks for the question. How's the margin profile of the sustainable product look versus the current assortment? [Operator instructions] And now, I'd like to turn the call over to Cal. , A right to data portability: In certain circumstances, you have the right to request that we provide the personal data which you provided to us in a structured, commonly used and machine-readable format, and you have the right to transmit such data to another controller without hindrance from lululemon. These learnings were integral to our decision to complete the MIRROR acquisition, and hold true today. The specific purposes for which we process your personal data are set out below: To administer your online account and profile (the legal basis for this processing is our legitimate interest in better understanding user needs and expectations and improving our website); To provide products and services to you, which includes processing payments, sending notifications related to your purchases, and processing exchanges and returns (the legal basis for this processing is the performance of the purchase agreement between you and lululemon); To conduct or administer events, contests, prize draws, sweepstakes or other promotions in which you have participated (the legal basis for this processing is the performance of the agreement between you and lululemon related to such contest, prize draw, sweepstakes or other promotion); To respond to any communications from you, including to troubleshoot problems with our websites (the legal basis for this processing is our legitimate interest in providing you with a functional website); To analyse your use of and customise your experience on our websites (the legal basis for this processing is our legitimate interest in better understanding user needs and expectations and improving our websites); To develop and manage lululemon's business and operations (the legal basis for this processing is our legitimate interest in understanding shopping behaviour, improving our selection of products and services, and exploring ways to develop and enhance our business); To measure your social media engagement with our brand (the legal basis for this processing is our legitimate interest in understanding the efficacy of our marketing strategies); To detect, investigate and prevent fraudulent transactions, error, negligence, breach of contract, and other illegal activities and protect against harm to the rights, property or safety of lululemon and our users, customers, employees or the public, including by using video surveillance systems (the legal basis for this processing is our legitimate interest in preventing fraud, error, negligence, contractual breach and other illegal activities and protecting and securing our premises,customers, employees and the public); To comply with our legal obligations, including our tax obligations, those related to the prevention of fraud and money laundering, and those required for you to benefit from rights recognized by law, or any regulatory requirements or provisions (the legal basis for this processing is compliance with our legal obligations under laws in the EEA and Switzerland related to, for instance, taxation, money-laundering and terrorism financing and consumer protection law); To offer you opportunities to purchase products or services that we believe may be of interest to you, by supplementing the information we collect about you with information from third parties (the legal basis for this processing is our legitimate interest in providing information about products and services that may be of interest to you, unless applicable law requires us to obtain your consent, in which case we will do so). Before we begin the call, I'd like to remind our investors to visit our Investor site, where you'll find a summary of our key financial and operating statistics for the second quarter, as well as our quarterly infographic. . The following tables reconcile adjusted financial measures with the most directly comparable measures calculated in accordance with GAAP. Calvin McDonald 36. Our ability to sustain momentum quarter after quarter and year after year, and the incredible long-term prospects for our brand. Building on the Companys progress and learnings over the past two decades, lululemons Impact Agenda brings a new level of ambition that will guide the way the Company approaches and measures its work across all aspects of its business. 09/09/22. or Some examples include digital sweat classes and community events were top drivers of overall program engagement. Hi, Mark. Executives predict that sales will reach $5.6 . The strategy is organized into three interconnected areas of focusBe Human, Be Well, and Be Planetwith 12 goals to drive progress. To order presentation-ready copies of Toronto Star content for . February 2, 2020 McDonald sees Lululemon's market opportunity stretching way beyond the sports apparel market, which is big enough on its own at $115 billion, according to Euromonitor. lululemon Please note that our websites and communications may contain links to third-party websites that are not controlled or operated by lululemon. 4:30 p.m. Eastern time Setting the bar in technical fabrics and functional designs, Lululemon Athletica Inc. designs, distributes, and markets athletic apparel, footwear, and accessories for women, men, and girls. Good. U!4j*54U3 , @nl @:}"eAzd&;Y:2;k/>2C DK;zc$aFCpHV4. Closely monitoring the situation at this point, we do anticipate that the airfreight's environment will not improve for the balance of the year and thus, we've guided to the 150 to 200 basis points impact for this year, and we'll continue to update you as we move into '22. `F9HKb>*DpV Bva}d_uY)so6.~J6@&,xg+[ 0 Two experiential stores were opened last year in Chicago and the Mall of America near Minneapolis that provide locker rooms, healthy foods, and an enhanced shopping experience. January 27, 2019 Lululemon Stock. Our activation pairs our ambassadors with fitness instructors from the local community to lead over 140 complimentary fitness classes. As I've mentioned before, Lululemon's unique approach to product innovation is driven by our Science of Feel innovation platform. Quarter, Number of rather than I mean, so much is going on, right, so many puts and takes. February 2, 2020 Sumner, WA. 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 that has always driven our business. Thank you. I think everybody is saying I think it's now 150 to 200 basis points of negative impact for the year. Square Footage Expressed in Thousands, Number of 6. Industry. Adding branded footwear could be a huge incremental sales opportunity for the brand. The company just reported solid results for the fiscal first quarter. , and we temporarily closed our distribution center in Operating margin was 29.8%, an increase of 140 basis points compared to the fourth quarter of fiscal 2018. See active subscriptions. We now expect our fiscal year 2021 adjusted diluted earnings per share to be in the range of $7.38 to $7.48. Mar 26, 2020. Check your inbox: your 10% off code is on its way. . Is that -- some -- the gross margin happens to be a lot higher without some of these supply chain pressures and some of this is just cyclical than structural? And that really is rooted in a number of very unique attributes to our brand. 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. The Motley Fool has a disclosure policy. A transcript of the meeting will be available here. 1-415-671-7676, lululemon athletica1818 Cornwall AveVancouver BCV6J 1C7, Working With Our Suppliers to Create Meaningful Change, lululemon athletica inc. Lululemon operates in a competitive industry, but it's certainly expanding like it wants to be the next Nike. It operates in two segments, Company-Operated Stores and Direct to Consumer. 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 Inc., together with its subsidiaries, designs, distributes, and retails athletic apparel and accessories for women and men. 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. Thank you so much for taking the question. There will be some -- likely some puts and ticks in the margin as we move forward, and we do remain committed to the margin target that was in our Power 3 growth plan of modest expansion annually. As I mentioned, we anticipate it will be with us for the balance of the year, and we'll update on 2022. Tax During the Our stores continue to rebound, generating a two-year revenue CAGR of 9%, which is ahead of our expectations. I'll actually take that. (Non-GAAP), Tax on Lululemon saw encouraging demand for its core products, in addition to its launches in new lines like menswear and outerwear. Just wondering how you think that impacts the company's ability to continue to reach its goals? Our Impact Agenda is more than a set of commitments, said Calvin McDonald, Chief Executive Officer. If youre looking to ship to somewhere else, please choose your country. 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. The right to file a complaint:You have the right to file a complaint regarding our data protection practices with a supervisory authority. Due to the 53rd week in fiscal 2018, comparable sales are calculated on a one week shifted basis in fiscal 2019. Versatile bottoms designed for laid-back looks. on or about And can you remind us what is it about Lululemon that continues to allow you to be a leader when a lot of other companies are going to become a big resource -- they are going to be making investments in this category? . I was just curious where you've seen success, and then what you're excited about for the back half and into next year a bit leaning. Luxury Goods. The $5.6 billion sales year. 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. Watch the Replay. 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. 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. And I have a quick follow-up for Meghan. Drivers of the deleverage versus 2019 include consolidation of MIRROR's results this year but not in 2019, increased investments in brand-building for our growth initiatives and higher depreciation due to accelerating investment to support our e-commerce business in 2020 and 2021. On Thursday, reporting its third-quarter earnings results, Lululemon slashed its outlook for . is paul troutman still on oak island; is it sunnah to kiss your wife on forehead. We're playing the long game and have much to unlock in the coming years. Beginning of At . A few more details related to these results: in 2020, we achieved our goal to double our e-commerce business. I'll share some of the specific impacts of these issues with you as I take you through our Q2 financials and our guidance. So it's pretty fluid, Matt, and we're comfortable -- sorry, Jay, very fluid and we're comfortable with sort of how we're positioned today in addressing it, but all and any pricing changes would be in Meghan's guidance and there's nothing of significant plan or that you should expect. Inspired from all areas of design and pursing the highest quality of creative work. If I could just ask one more question, switching gears for a second. Company-operated Store Count and Square Footage1 New Zealand The reduction relative to last year is due primarily to deductions related to stock-based compensation. 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. Blog. The press release and accompanying quarterly report on Form 10-Q are available under the Investors section of our website at www. 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. This includes approximately 35 to 40 stores in our international markets and represents a square footage percentage increase in the low-teens. We will provide additional updates as the situation warrants. ICR, Inc. Our approach continues to be grounded and prudently managing our expenses while also continuing to strategically invest in our long-term growth opportunities. The learnings from our membership test are considerable. Guests want to engage deeper with us and each other, and they are willing to shift into the digital space to do so. We are now navigating an extraordinary environment, which is currently impacting our business. Fantastic. The acquisition will strengthen lululemons omni guest experiences through digital sweat. Eleanor French As you alluded, we're very happy with the overall growth in our men's business two-year CAGR of 31%. are compared to the 13 weeks ended Looking at our store channel, total revenue increased 142% versus last year and 9% on a two-year CAGR basis. Thank you so much. or When I graduated from the Ivey Business School in 2010, I did what all my peers were doing: I got a job at an . And, Calvin, just a quick follow-up, can you expand a little bit on the plans for membership? Announces Second Quarter Fiscal 2022 Earnings Conference Call, lululemon Expands International Footprint, Launching in Spain, lululemon athletica inc. The company sells its products through a chain of company-operated stores; outlets and warehouse sales; interactive workout platform; a network of wholesale accounts, such as yoga studios, health clubs, and fitness centers; temporary locations; and license and supply arrangements, as well as directly to consumer through mobile apps and lululemon.com e-commerce website. You said you were back in 2019 levels in the second quarter, which was ahead of plan, how are you planning for productivity for open stores in the back half? We continue to expect capital expenditures to be approximately $365 million to $375 million in 2021. 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. Our freshest gear. Profitability improved as this pipeline of releases more than offset . Thank you, Howard, and I'd like to welcome everyone to our second-quarter earnings call. 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. The Company repurchased 1.6 thousand shares of its own common stock at an average cost of. Ike Boruchow -- Wells Fargo Securities -- Analyst. When you look at the full year, we've got 10 to 30 basis points of deleverage for -- relative to 2020 and that is better than the 30 to 50 basis points that we disclosed previously. 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. is just kind of what you thought? Lululemon had a high guest retention rate of 92% among its top 20% of spenders. Diluted EPS of $2.28 for the fourth quarter. Lululemon's $500 million acquisition of high-tech fitness brand Mirror doesn't seem to be paying off. In Mirror was on track to surpass US$100 million in revenue, according to a Lululemon investor presentation.) Last year, it tested a line of self-care productsand is currently in the process of rolling out a loyalty program -- again, building that bond between brand and guest. 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. We take pricing, obviously, seriously in that we're constantly monitoring and testing. Employee Leadership Offerings: Be the place where people come to develop and grow as leaders for the world by 2023. I'll handle the first half and then handle the second part to your question on breakeven over to Meghan. For the full year of 2021, we now expect revenue to be in the range of $6.19 billion to $6.26 billion. $404.8 million Feb 14, 2023: 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. WACC . And as this scale and as we continue to draw collections and learn, we are not anticipating, or how we factored in, margin pressure results. Canada The summary below provides both GAAP and adjusted non-GAAP financial measures. We only share with service providers the personal data that they need to perform services for us. For example, this Privacy Policy does not apply to consumers located outside the EEA and Switzerland. To make the world smarter, happier, and richer. Thank you for the detail and best of luck. 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. You may have the option to link your social media account to our social media account (such as on Facebook). Our freshest gear. $2.28 Howard Tubin -- Vice President, Investor Relations. It also provides fitness-related accessories and footwear. Oct 07, 2021. And when you're going to air freight products, is that airfreight for upside or is that airfreight to potentially meet holiday demand? Does it kind of push it out a little bit more? SEC That's helpful. The strength of our brand and strong financial position will help us manage through the day-to-day, while continuing to effectively plan for and invest in our future." Subsequent to hTmO0+ EJ_B(e4&7qhiR%.H}sw< yH($#%qd%^`pN#BYhP.ISG0R#F 0F`Xeu^T^ Am =$^G$u^R"^:)EZxkrLFZ)?a>hS2e7Y1\ 1D7X?Z.YZj~@|bd$9zRj)T#a Comparable sales increase 20%. the Quarter, Number of Those costs in the market are rising, which has an impact, ultimately, onto CAC. Flying on the latest positive earnings results, Lululemon Athletica ( NASDAQ: LULU ) reached an impressive US$50b market cap in the last week. 1931 0 obj <>stream I mean, these are just really stellar results. A new infographic covers how the company achieved global gender pay equity, gender representation statistics, and continued commitments to pay equity. 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. Traffic was strong and increased over 150% versus last year. I am grateful to everyone who has dedicated their knowledge and experience to help us define our approach.. 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. 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. The Black Lives Matter movement acted as a powerful catalyst within lululemon. 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. 2020 was a year unlike any otherand it presented both challenges and opportunities as world events shifted around us. Comps increased 4% on top of the 157% increase last year. 12. Earnings, U.S. lululemon expands its Selfcare product line with Super Fine Face Mist made to hydrate and protect post-workout skin. It's really driven throughout the performance on top-line and leverage on occupancy and depreciation and then we do, at this point in time, we're maintaining our Power 3 growth plan which caused calls for modest expansion in gross margin as you lookout. 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. The new Navigation Stretch Down Collection is technically designed to keep you moving comfortably in winter conditions. 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. Guys, let me add my congrats on a really nice quarter. And when I look at the growth, it is balanced across all the categories, which is very healthy. We achieved doubling our e-commerce business last year. We expect our adjusted effective tax rate for the year to be similar to 2020. , at , 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.
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