The presentations will be broadcast live over the internet beginning at 9:00 AM ET and can be accessed on the investor relations section of Company's website, www.lululemon.com. Reconciliation of Non-GAAP Financial Measures John Ballard owns shares of Lululemon Athletica and Nike. . . ICR, Inc. %PDF-1.6 % 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. 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. The reduction relative to last year is due primarily to deductions related to stock-based compensation. That continues to differentiate the brand and its unique position as premium but through quality innovation. We disclose personal data 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. The next question comes from Erin Murphy with Piper Sandler, please go ahead. Before we get started, I'd like to take this opportunity to remind you that our remarks today will include forward-looking statements reflecting management's current forecast of certain aspects of Lululemon future. Hi, Michael, I'll take the first part of that question. We're just ramping up synergies, like the 200 stores that play to our strength in the key leads in each of those locations. 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. Bras remained an important expansion opportunity for us. So China is definitely one of our key markets. A few key metrics tell the story. London, England, United Kingdom. works with yogis and athletes in local communities for continuous research and product feedback. And we achieved these results based upon our performance before, during, and as we emerge from COVID-19. We now expect our fiscal year 2021 adjusted diluted earnings per share to be in the range of $7.38 to $7.48. Lululemon Stock. A right of access:You have the right to request access to, or a copy of, the personal data we process about you. Dec 10, 2020. Announces Second Quarter Fiscal 2022 Earnings Conference Call, lululemon Expands International Footprint, Launching in Spain, lululemon athletica inc. A right of erasure: You have the right to request that we delete personal data about you. . Q2 2023 Tapestry, Inc. Investor Presentation. 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. Consider that in fiscal 1994, Nike sales declined 3.6% to $3.79 billion. Understanding we'll be hearing more next year, but just any initial thoughts you can share on how we should be thinking about your top-line growth algorithm beyond 2021 and how, if at all, the drivers may change versus the prior plan? McDonald also announced last year at the Analyst Day that the brand has plans to enter the footwear market. rather than We're monitoring how macro factors currently impacting the cost of digital marketing are creating some pressure on customer acquisition costs at MIRROR. ET. 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. 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. Lululemon finished fiscal 2019 with $3.98 billion in revenue. The legal basis for this processing is the performance of the agreement between you and lululemon related to the Promotion. Listen to Webcast. A replay will be made available online approximately two hours following the live call for a period of 30 days. After submitting your request, you will receive an activation email to the requested email address. John Kernan -- Cowen and Company -- Analyst. We've established plans to improve the planet that we're committed to. [Operator instructions] I would now like to turn the conference over to Howard Tubin, vice president investor relations for Lululemon Athletica. the Quarter, Total Gross 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. Welcome to our Investors page. And those scenarios played out. Updates Revenue and Earnings Expectations for the Fourth Quarter Ahead of the ICR Conference, lululemon athletica inc. Some examples include digital sweat classes and community events were top drivers of overall program engagement. Invest better with The Motley Fool. | Learn more about Julia Vodarek's work experience, education, connections & more . The next question comes from John Kernan with Cowen. Lululemon saw encouraging demand for its core products, in addition to its launches in new lines like menswear and outerwear. 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. Calvin or Meghan, I guess could you elaborate a little bit on the commentary you gave? Q4 2020: HTML Open 2020 Q4 2020 Press releases: Show 2020 Q4 2020 webcast: We are now navigating an extraordinary environment, which is currently impacting our business. During the We're well-positioned within that TAM to address it in a very effective leading way. Our popular Align franchise offers are the most distraction-free and weightless sensation, and we've expanded to include tops and bras in addition to our popular tight. And perhaps a little bit more detail on your outlook for China momentum into the second half. June 2020 13 slides . 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. 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. Feb 14, 2023: : For the fiscal year ended Thank you, Brooke. 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. And now, back to Calvin for some closing remarks. Our vertically integrated model and high margin structure allows us to use more airfreight while still delivering gross margin expansion. Michael Binetti -- Credit Suisse -- Analyst. We expect to launch our first products using Mylo next year. Key Takeaways. 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. We believe these adjusted financial measures are useful to investors in evaluating the trend in our operating performance as the adjustments do not directly relate to our ongoing business operations. A conference call to discuss fiscal 2019 results is scheduled for today, inc. (NASDAQ:LULU) today announced financial results for the fourth quarter and fiscal year ended So I think that embedded about 1,000 to 1,500 basis points of margin expansion in international. Comparable Thanks for signing up, youll soon start getting the inside scoop on the latest gear, our favourite workouts, events and much more. And, Calvin, just a quick follow-up, can you expand a little bit on the plans for membership? Learn More. Beginning of Here you will find key information and financial reports, putting the performance of lululemon athletica inc into perspective for you. Caitlin Churchill , for further information on these adjustments. Setting the bar in technical fabrics and functional designs, U.S. Adding these lifestyle features should translate to further robust growth over time. Please go ahead. the United States For more information about our privacy practices in another jurisdiction, please refer to the privacy policy available in our stores, or posted on our website, for that jurisdiction. February 3, 2019, Adjusted We continue to be pleased with the performance of MIRROR, and let me highlight several initiatives we have on track for this year. With this strategy firmly in place, we've introduced fabrics and products that engineer specific on-body sensations. lululemon expands its Selfcare product line with Super Fine Face Mist made to hydrate and protect post-workout skin. The turnout for these classes has been really positive. Q. Quarter, Number of Operator? For all other inquiries, please contact gec.emea@lululemon.com. Our success was our people, and honouring commitments to our landlords and vendors. Can you help us think through some of the puts and takes of that leverage component and SG&A into the back half of this year? Great. Embrace hands-free happiness with our edit of bags for workouts and hangouts. The Investor Relations website contains information about Canada Goose Inc.'s business for stockholders, potential investors, and financial analysts. 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. Ecosystem . 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. Fourth quarter revenue up 20% to Lululemon stock took a beating after lowering guidance for the fourth quarter, falling 9%. In addition, the comparable sales and store productivity metrics given on today's call are in constant dollars. Walmart Inc. (NYSE: WMT) hosted the virtual 2021 Investment Community Meeting on February 18, 2021. Document Date Form View; Feb 15, 2023: SC 13G: View HTML. Please go ahead. One, the membership test, we learned a lot. And in terms of breakeven, we haven't put a fine point on that, but we are focused as Calvin mentioned, unrolling and initiatives for 2021, including store ramps, Canada entry, and e-commerce, let's say, rebound. You see a slight variance in growth, but overall, they're all double-digit, all very strong. . Let me shift now to our outlook for Q3 and the full-year 2021. Productivity in stores returned to 2019 levels, representing continued improvement versus 88% productivity we realized in Q1 of this year. hTA0 nCms!B4 CG/=jL;;DAV I will now turn it over to Meghan. 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. endstream endobj 1932 0 obj <>stream Discover information about lululemon's quarterly results and find annual reports. South East Asia And based upon this revised forecast, I am pleased to share that we will surpass our 2023 revenue target by the end of this year, two years ahead of schedule. 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. Inventories at the end of fiscal 2019 increased by 28% to Announces Second Quarter Fiscal 2022 Results, lululemon athletica inc. Creating Powerpoint presentations to Institutional Investors for the world-renowned Chief Investment Strategist, and his team of Portfolio Managers . I would also note that markdowns declined relative to 2019. We are seeing good growth, we are investing in the country, supporting the teams, and overall, the international business, like our business in North America and some of our category opportunities, very early, and growth across all channels in the markets and product categories. 02/17/21. Luxury Goods. Celeste Burgoyne -- President, Americas and Global Guest Innovation. Joining me today to talk about our results are Calvin McDonald, CEO; Meghan Frank, CFO; and Celeste Burgoyne, president, Americas and Global Guest Innovation. Full year revenue of $4.0 billion. 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. 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". In this case, we will ask for your specific consent. 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. lululemon athletica Here you will find key information and financial reports, putting. 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. is just kind of what you thought? How much of a percentage of the assortment can this represent over time? And on a two-year CAGR basis, we are pleased to see an acceleration relative to our first quarter. As Calvin mentioned, sales trends remain positive with total digital comp up 4% in Q2. U.S. 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. Straight to your inbox. On Thursday, reporting its third-quarter earnings results, Lululemon slashed its outlook for . Q2 spend relates primarily to store capital for new locations, relocation and renovations, supply chain investment, and technology spend to support our business growth. Lorraine Hutchinson -- Bank of America Merrill Lynch -- Analyst. These forward-looking statements also include our guidance and outlook statements. Stores Open Here you will find key information and financial reports, puttingtheperformance oflululemon athleticaincinto perspective for you. tax reform and taxes on the repatriation of foreign earnings during fiscal 2018. 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. February 3, 2019 The below changes in net revenue show the net change for fiscal 2019 compared to fiscal 2018. Canada-based Lululemon completed the acquisition July 7. 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. I will also discuss specifics on our balance sheet, including our cash position, liquidity, and inventory. Toronto, Canada Area. 2020, February 3 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. Our ability to sustain momentum quarter after quarter and year after year, and the incredible long-term prospects for our brand. We currently have approximately 95% of our stores opened globally, we're engaging with guests inside our stores and through our community activations, and our e-commerce business remains strong. 10. Excellent results. Profitability improved as this pipeline of releases more than offset . 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. 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? About Us. For all other inquiries, please contact[emailprotected]. For example, when your personal data is processed for email marketing purposes, you have the right to object to such processing at any time by clicking on the unsubscribe link at the bottom of such marketing communications. 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. Sustainable Materials: Achieve at least 75 percent sustainable materials for our products by 2025. We're early, we're thinking long term, and that convergence was natural. March 26, 2020 For example, this Privacy Policy does not apply to consumers located outside the EEA and Switzerland. --(BUSINESS WIRE)-- Made for pre-workout warmups, neighborhood strolls, and rest days this is the technical and versatile gear designed for all aspects of life. Turning to EPS. One, starting with our product, the premium nature of it, the focus and obsession on innovation through the science of feel that truly creates a product that performs in a unique way to the guests and provides a sensorial experience that's unique and different with the quality that they know they're getting for what they buy and pay. Gross margin was 58.0%, an increase of 70 basis points compared to the fourth quarter of fiscal 2018. To make the world smarter, happier, and richer. (Non-GAAP), Tax on And it's a reflection of building deeper relationships with our existing guys and spending more and continuing to acquire and bring in a new male guest into the business, and we will share the role men's plays in our future growth plans early next year when we sort of reset but it continues to be very strong across all markets around the globe, it's driven both by current spending more and our acquisition of new guests. Experienced and active freelance graphic designer with a strong reputation working in the creative industry in Vancouver and British Columbia. Discover lightweight, comfortable bottoms designed for every environment. I am grateful to everyone who has dedicated their knowledge and experience to help us define our approach.. 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. 0001172661-23-001474.rtf. After the presentation, there will be an opportunity to ask questions. 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. I'll actually take that. Please see our Terms and Conditions for additional details, including our Obligatory Capitalized Disclaimers of Liability. I wanted to focus on the men's business for a minute. August 4, 2020. A transcript of the meeting will be available here. If we make changes, we will notify you by revising the date at the top of this Privacy Policy. Blog. Our Q3 guidance reflects an impact of approximately 200 basis points of pressure from airfreight costs due to port congestion and capacity constraints. U.S. In this Privacy Policy, "personal data" means any information about an individual whose identity is apparent or can be ascertained, directly or indirectly. Thank you and good afternoon. Thanks, Matt. at the End of 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. 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. in cash and cash equivalents compared to are compared to the 52 weeks ended $2.28 We now expect our fiscal year 2021 adjusted diluted earnings per share to be in the range of $7.38 to $7.48. For more information and to view the 2020 Impact Agenda, click here. Buy These 2 Stocks in 2023 and Hold for the Next Decade, Warren Buffett's Latest $2.9 Billion Buy Brings His Total Investment in This Stock to $66 Billion in 4 Years, If You Invested $1,000 in Nvidia in 1999, Here's the Shocking Amount You Would Have Now, Join Over Half a Million Premium Members And Get More In-Depth Stock Guidance and Research, Copyright, Trademark and Patent Information. The Company ended the year with 491 stores. Since our holding company, subsidiaries and affiliates are located around the world, please note that these disclosures involve cross-border transfers of your personal data as described in the Data Transfers section BELOW. When you access and use our websites, we also automatically collect data, including personal data, using cookies, pixels and local storage. 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. In Atlanta, we co-hosted a charity event created in partnership with leading Atlanta fitness influencers, Mecca Day and EJ Houston. 2020 was a year unlike any otherand it presented both challenges and opportunities as world events shifted around us. Adding branded footwear could be a huge incremental sales opportunity for the brand. Vendor Code of Ethics; Conducting Assessments & Remediation; Working With Our Suppliers to Create Meaningful Change; Programs to Build Better 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. And when I look at the growth, it is balanced across all the categories, which is very healthy. Absolutely, Mark, and thanks for the question. Feb 9, 2023. If we receive data about you in this manner, we combine that data with the personal data we collect directly from you. Please go ahead. Square Feet at We provide constant dollar changes in net revenue, total comparable sales, comparable store sales, and direct to consumer net revenue because we use these measures to understand the underlying growth rate of net revenue excluding the impact of changes in foreign exchange rates. Description. The Black Lives Matter movement acted as a powerful catalyst within lululemon. 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 lululemon athletica . b. 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. Lululemon offers pants, shorts, tops, and jackets for both leisure and athletic activities such as yoga and running. 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. 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. We're enthusiastic about the opportunities that exist for the business. 11. View All; SEC Filings. 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. During the Yeah. To order presentation-ready copies of Toronto Star content for . Last October, we launched our Impact agenda, which outlines our strategies to address critical social environmental issues over a multi-year period. Diluted EPS of 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. Lululemon had a high guest retention rate of 92% among its top 20% of spenders. The event was featured in an . Let me now share more color on our second-quarter results, starting with product innovation. Skip to main content. There's a lot in that question, and I'll unpack a bit of it. For 2022, our first full year as a public company, we delivered net revenue growth of over 20%. Thanks, Ike. So I would not factor in any marginal impact, and our goals speak for themselves. 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. lululemon We now have MIRROR shop-in-shops in a 150 Lululemon store, and our plans call for 200 shops in time for the holiday season. One million four hundred sixty thousand three hundred eighty subordinate voting shares were repurchased between January 17 and July 6 . At the end of Q3, we expect inventory levels to increase approximately 15% to 20% relative to Q3 2020. In our digital channel, revenues increased 66% on a two-year CAGR basis, above our expectations of approximately 55% growth. 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. In Copies of the Standard Contractual Clauses we use to facilitate this transfer of data are available HERE and HERE. The below changes in net revenue show the net change for the fourth quarter of fiscal 2019 compared to the fourth quarter of fiscal 2018. Thank you so much. The data we automatically collect includes your IP address, browser type, access times, pages viewed, the frequency of your visits to our websites, the routes by which you access our websites, and your use of any hyperlinks available on our websites. inc. We opened eight stores outside of North America in quarter two and remain on track to open 35-40 stores this year internationally. $1.1 billion Unsubscribe at anytime. This article is a transcript of this conference call produced for The Motley Fool. Yeah, there are some large public companies that have bought leisure brands over the past couple of months. In our store channel, sales increased 9% on a two-year CAGR basis, above our expectations of approximately flat. 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. lululemon released its first-ever Impact Agenda detailing the companys long-term strategy to become a more sustainable and equitable business, minimize its environmental impact, and accelerate positive change both internally and externally. 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. lululemon athletica UK Ltd, located at Garden House, 57-59 Long Acre, London, WC2E 9JL (lululemon, we or us) are the data controller for the personal data we process about you in connection with the Promotion. Good. In Q2, we repurchased 506,000 shares at an average price of $338. . Hi, Mark. Lululemon was reporting strong revenue growth before COVID-19 while also seeing improving margins and growing earnings. We will soon introduce MIRROR to guests in Canada, where Lululemon has an impressive level of recognition. Does it kind of push it out a little bit more? Now let me take a moment to share with you a few highlights from several exciting community activations we recently hosted throughout the quarter. We will provide additional updates as the situation warrants. Events & Presentations: Quarterly Reports: Annual Reports: SEC Filings: End of Day Stock Quote: Unsubscribe . Subject to certain limitations and exceptions, you have the following legal rights regarding our processing of your personal data: A right to obtain information:You have the right to request information about how we process your personal data. 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.