lululemon investor presentation 2020

I think everybody is saying I think it's now 150 to 200 basis points of negative impact for the year. lululemon Announces Global Gender Pay Equity Stats and Commitments, lululemon Announces Mental Wellbeing Commitments at the 2020 MAKERS Conference, Sorry, we don't ship to your country/region, lululemon athletica 1818 Cornwall Ave, Vancouver BC V6J 1C7, lululemon Commits to Inclusion, Diversity, Equity, and Action, California Privacy Rights (Last Updated: 1/23/23). To opt-in for investor email alerts, please enter your email address in the field below and select at least one alert option. Great. *Average returns of all recommendations since inception. The Company ended the year with 491 stores. A new infographic covers how the company achieved global gender pay equity, gender representation statistics, and continued commitments to pay equity. February 3, 2019, lululemon athletica A replay will be made available online approximately two hours following the live call for a period of 30 days. *Average returns of all recommendations since inception. Thanks to our unique innovations across both fabrics and construction, empowered by our proprietary research, we're very excited about our product positioning and we know that bras is a wonderful category to drive loyalty with our guests. Listen to Webcast. Bras remained an important expansion opportunity for us. 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. Congrats on all the momentum. 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. Hi, Lorraine. VANCOUVER, British Columbia -- (BUSINESS WIRE)-- lululemon athletica inc. (NASDAQ:LULU) today announced financial results for the fourth quarter and fiscal year ended . It's definitely a combination of both. 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. For more information about the disclosure of your personal data, please refer to our Privacy Policy. This included a 63% increase in North America and a 49% increase in our international business. Feb 9, 2023. Any forward-looking statements that we make on this call are based on assumptions as of today, and we expressly disclaim any obligation or undertaking to update or revise any of these statements as a result of new information for future events. 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. Announces First Quarter Fiscal 2022 Results, lululemon athletica inc. 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 1931 0 obj <>stream 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. Operating margin was 29.8%, an increase of 140 basis points compared to the fourth quarter of fiscal 2018. Description. 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. Our Impact Agenda is more than a set of commitments, said Calvin McDonald, Chief Executive Officer. Get stock recommendations, portfolio guidance, and more from The Motley Fool's premium services. At the end of Q3, we expect inventory levels to increase approximately 15% to 20% relative to Q3 2020. Great, thanks. Tapestry Investor Day 2022. Let me now share with you the details of our Q2 performance. Howard Tubin Please read this Notice before entering the Promotion to make sure you understand how we process your personal data in connection with the Promotion. 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. Or maybe said differently, do you believe that TAM coming out of this crisis is larger, broadly multiyear for the Lulu brand or are you taking accelerated market share, or is it a combination of both? This includes operating results for MIRROR that excludes acquisition and integration-related costs. Tax Subscribe New All new decks. I was just curious. So in terms of SG&A, we guided for Q3 the 300 to 350 basis points of deleverage relative to 2019. John Ballard owns shares of Lululemon Athletica and Nike. Does it kind of push it out a little bit more? View source version on businesswire.com: https://www.businesswire.com/news/home/20200326005653/en/, Investors: The below changes in net revenue show the net change for fiscal 2019 compared to fiscal 2018. There's a lot in that question, and I'll unpack a bit of it. 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. Three new styles feature innovative fabrics and construction. You "When you compare that to other brands, that is very high," McDonald said. Invest better with The Motley Fool. These include our participation in the Mylo consortium that will allow us to make products using an infinitely renewable material made from the root structure of mushrooms. hTA0 nCms!B4 CG/=jL;;DAV Thanks for squeezing me 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. So China is definitely one of our key markets. 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. 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. 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 . Foreign Invest better with The Motley Fool. . Fourth quarter revenue up 20% to Here you will find key information and financial reports, putting. We take pricing, obviously, seriously in that we're constantly monitoring and testing. We may also wish to further use your personal data in promotional or marketing materials. June 2020 13 slides . Check your inbox: your 10% off code is on its way. So excited about what the future continues to hold for our international business. It's a powerful and distinctive companion to our hugely successful Align product line and we will further solidify our leadership position within the yoga category. Canada-based Lululemon completed the acquisition July 7. And the impact of the Southern Vietnam closure is currently impacting approximately 20% of our second half inventory. This is below our expectations for a 25% to 30% increase due to our top-line outperformance coupled with industrywide supply chain disruptions. These forward-looking statements also include our guidance and outlook statements. It is you who brings our brand to life every day and enables our strong financial results. Athletic apparel retailer Lululemon Athletica Inc. on July 7 completed its $500 million acquisition of Curiouser Products Inc., according to a regulatory filing.. Curiouser Products, which does business as Mirror, is an at-home fitness company that offers weekly live classes, on-demand workouts and one-on-one personal training. And I have a quick follow-up for Meghan. Inventories at the end of fiscal 2019 increased by 28% to Unless otherwise required by applicable law, lululemon will take reasonable steps to destroy or permanently de-identify personal data it holds if such personal data is no longer needed for the purpose for which it was collected. We continue to monitor the situation and work closely with local authorities to prioritize the safety of our people and guests. The iconic yoga, run and party experience goes fully virtual for 2020 and introduces a new 10K distance. While women's products made up 69% of total revenue in fiscal 2020 . We need to collect personal data, such as your name and e-mail address, in order to process your Promotion. In addition, our revenue increased across each of our major regions, up 26% in North America, and up 43% in our international markets, both on a two-year CAGR basis. For example, if you decide to participate in certain interactive areas or features of our websites, such as creating a public profile and posting your goals, you consent to the disclosure of this information to other users of our websites. SEC Change in Inspired from all areas of design and pursing the highest quality of creative work. Walmart Inc. (NYSE: WMT) hosted the virtual 2021 Investment Community Meeting on February 18, 2021. Welcome to our Investors page. 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. 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. A right of erasure: You have the right to request that we delete personal data about you. For Q2, total net revenue increased 61% to $1.5 billion, above our expectations of $1.3 million to $1.33 billion. 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. 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. Investor Presentation. LULU stock fell about 2% in after-hours action. 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. Ecosystem . Hi, Michael, I'll take the first part of that question. 09/09/22. 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. Thank you, Meghan and Celeste. : The Company ended fiscal 2019 with Please also refer to the Promotion Terms and Conditions at https://www.eu.lululemon.com/en-lu/content/terms-of-sale/030619_Terms_of_Sale.html. In 2020, it fell by 48 per cent. Sep 2015 - Feb 20166 months. I wanted to follow up on the international business and the momentum that you're seeing there. 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? Gross profit for the second quarter were $843 million or 58.1% of net revenue, compared to 54.2% of net revenue in Q2 2020, and 55% of net revenue in Q2 2019. $1.4 billion And, Calvin, just a quick follow-up, can you expand a little bit on the plans for membership? Joseph Teklits 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. The press release and accompanying quarterly report on Form 10-Q are available under the Investors section of our website at www. Water and Waste: Reduce freshwater use intensity by 50 percent to manufacture our products, and reduce single-use plastic packaging by 50 percent by 2025. For detailed information on the cookies we use and the purposes for which we use them, see our Cookie Policy. SG&A expenses were $541 million or 37.3% of net revenue, compared to 39.1% of net revenue in Q2 2020 and 36% of net revenue in Q2 2019. A limited-edition capsule evolving fashion and function for the ever-expanding needs of modern life. Thanks. February 2, 2020 Versatile bottoms designed for laid-back looks. It also provides fitness-related accessories and footwear. And we always had visions of being able to bring that to the digital platform. 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. The acquisition will strengthen lululemons omni guest experiences through digital sweat. 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. Combined, these give us a unique strength to keep growing MIRROR. And then, secondly, for Meghan, on the second quarter comment, you called out an open-store productivity back at 2019 levels, how are you planning that for the back half? These locations currently remain closed. 65. This article is a transcript of this conference call produced for The Motley Fool. E-com contributed $597 million of top-line or 41% of total revenue. World Health Organization Twelve commitments detail specific actions across a range of global issues including diversity and inclusion, mental wellbeing, climate change, and circularity. 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. 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 The Black Lives Matter movement acted as a powerful catalyst within lululemon. Lululemon saw encouraging demand for its core products, in addition to its launches in new lines like menswear and outerwear. Repatriation of ET. Second, we saw further improvement in our brick-and-mortar channel with open stores generating productivity in line with 2019. Our Purpose, Vision & Values . Subject to certain limitations and exceptions, you have various legal rights regarding our processing of your personal data, which are set out in our Privacy Policy. Please go ahead. Quarterly Financial Supplements PDF. This range now assumes our e-commerce business grows in the mid-teens, relative to the outsized strength we experienced in 2020. And the program was embraced by men at a higher rate than we were expecting. I am grateful to everyone who has dedicated their knowledge and experience to help us define our approach.. . 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. Setting the bar in technical fabrics and functional designs, Lululemon was reporting strong revenue growth before COVID-19 while also seeing improving margins and growing earnings. `F9HKb>*DpV Bva}d_uY)so6.~J6@&,xg+[ 0 We're enthusiastic about the opportunities that exist for the business. Howard Tubin -- Vice President, Investor Relations. Quarter. 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. [Operator instructions] I would now like to turn the conference over to Howard Tubin, vice president investor relations for Lululemon Athletica. VANCOUVER, British Columbia, March 29, 2022--lululemon athletica inc. (NASDAQ:LULU) today announced financial results for the fourth quarter and fiscal year ended January 30, 2022. 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. 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. United States Securities and Exchange Commission 1-604-732-6124 . Consider that in fiscal 1994, Nike sales declined 3.6% to $3.79 billion. works with yogis and athletes in local communities for continuous research and product feedback. Last October, we launched our Impact agenda, which outlines our strategies to address critical social environmental issues over a multi-year period. 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. I'll handle the first half and then handle the second part to your question on breakeven over to Meghan. 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. Handled customer-service . 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 . We have our eyes on the long game with MIRROR and the community we're building. 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. It's Meghan. 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. lululemon will use the information you provide to deliver you relevant information about our products and services, including offerings based on your preferences and purchase history. E-commerce comps skyrocketed 170% in Europe last quarter, and management is continuing to move forward with new store openings in Greater China. 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. Calvin, I guess my question is with lead times that are generally six months plus, I'm wondering if you can give us some more details on the amount of exposure that you have maybe to Vietnam. 4:30 p.m. Eastern time February 2, 2020 Document Date Form View; Feb 15, 2023: SC 13G: View HTML. Learn More, Lululemon Athletica(LULU 1.66%)Q22021 Earnings CallSep 08, 2021, 4:30 p.m. Comparable At the end of the quarter, we had 245 million of availability remaining on our current share repurchase authorization. Unfortunately, the transmission of information via the internet is not completely secure or private. 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. 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? Thank you. Sign up to our emails to join The lululemon Community and enjoy 10% off your next order. 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 . 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. For more information and to view the 2020 Impact Agenda, click here. A right of rectification: You have the right to request that we correct or supplement inaccurate or incomplete personal data we process about you. in cash and cash equivalents compared to Total comparable sales includes comparable store sales and direct to consumer sales. For 2022, our first full year as a public company, we delivered net revenue growth of over 20%. The presentation of this financial information is not intended to be considered in isolation or as a substitute for, or with greater prominence to, the financial information prepared and presented in accordance with GAAP. I had a follow-up first on the supply chain. Made from our newest innovation in technical performance fabric called smooth cover, this fabric offers our hug sensation, which provides incredible support through every pose in your practice. For example, this Privacy Policy does not apply to consumers located outside the EEA and Switzerland. We are, as I mentioned, managing accordingly. The Motley Fool has a disclosure policy. A constant dollar basis assumes the average foreign exchange rates for the period remained constant with the average foreign exchange rates for the same period of the prior year. Lululemon had been looking for ways to meet its . February 2, 2020 We're just ramping up synergies, like the 200 stores that play to our strength in the key leads in each of those locations. And, Meghan, maybe just a quick follow-up on the increased outlook for airfreight. Adjusted net income for the quarter was $216 million or $1.65 per diluted share, compared to adjusted earnings per diluted share of $0.74 in Q2 of 2020 and $0.96 in Q2 of 2019. Announces Third Quarter Fiscal 2022 Results, lululemon athletica inc. 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. On the following pages, you will find key shareholder information and financial reports to help provide perspective on our financial news, performance and events. Actual results may differ materially from those contained in or implied by these forward-looking statements due to risks and uncertainties associated with our business, including those we have disclosed in our most recent filings with the SEC, including our annual report on Form 10-K, and our quarterly reports on Form 10-Q.