lululemon investor presentation 2020 lululemon investor presentation 2020

So for Q3, we are planning to be slightly above last year -- of 2019 level for the quarter. March 26, 2020 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. Youre reading a free article with opinions that may differ from The Motley Fools Premium Investing Services. Updates Revenue and Earnings Expectations for the Fourth Quarter Ahead of the ICR Conference, lululemon athletica inc. 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. 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). During the These learnings were integral to our decision to complete the MIRROR acquisition, and hold true today. The below changes in net revenue show the net change for fiscal 2019 compared to fiscal 2018. So in terms of the supply chain, we are assuming that Southern Vietnam begins of Phase 3 opening mid-September and that's what's implied in our guidance. Toronto, Canada Area. $404.8 million 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. Our vertically integrated model and high margin structure allows us to use more airfreight while still delivering gross margin expansion. 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. Trending: Addressable Market . A right of rectification: You have the right to request that we correct or supplement inaccurate or incomplete personal data we process about you. 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. Stores Open Thanks for taking my question and congrats on the results here. If reasonably necessary or required to meet legal or regulatory requirements, resolve disputes, prevent fraud and abuse, or enforce our terms and conditions, lululemon may also keep personal data as required, after an account is closed or is no longer necessary to provide services. We will soon introduce MIRROR to guests in Canada, where Lululemon has an impressive level of recognition. boxer zchter saarland; neil postman: wir informieren uns zu tode errterung This compares to adjusted net income and diluted EPS as adjusted of 18.6 million and $0.09 per share in Q4 2021, respectively. While women's products made up 69% of total revenue in fiscal 2020 . Congrats on all the momentum. (Non-GAAP), Tax on Gross square feet added/lost during the quarter includes net square foot additions for company-operated stores which have been renovated or relocated in the quarter. Thank you. 8. Gotcha. South East Asia Let me now shift to MIRROR. We will also collect personal data, such as your name and e-mail address, when you sign up to receive our email newsletter, in order 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 consent). The learnings from our membership test are considerable. Sustainable Product Innovation: Make 100 percent of our products with sustainable materials and end-of use solutions, toward a circular ecosystem by 2030. Comparable store sales increased 9%, or increased 10% on a constant dollar basis. Please go ahead. . I will also discuss specifics on our balance sheet, including our cash position, liquidity, and inventory. February 2, 2020 Our momentum continued in Q2 with our top and bottom-line results exceeding our expectations. A few key metrics tell the story. We expect to launch our first products using Mylo next year. February 2, 2020 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. Lululemon Subscribe . 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. Please go ahead. Just any color around that would be really helpful. lululemon reserves the right to change this Privacy Policy from time to time. Does it create an opportunity to take some pricing to offset cost increases, whether it's in labor or other areas? Let me shift now to our outlook for Q3 and the full-year 2021. For us to repurchase and cancel shares between January 17, 2022, and January 16, 2023, NCIB is in place. Earnings, U.S. 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. Lululemon finished fiscal 2019 with $3.98 billion in revenue. To order presentation-ready copies of Toronto Star content for . at the Total Events & Presentations: Quarterly Reports: Annual Reports: SEC Filings: End of Day Stock Quote: Unsubscribe . endstream endobj 1933 0 obj <>stream Become a Motley Fool member today to get instant access to our top analyst recommendations, in-depth research, investing resources, and more. 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. Due to the 53rd week in fiscal 2018, comparable sales are calculated on a one week shifted basis in fiscal 2019. We have always supported and invested in our people. And I have a quick follow-up for Meghan. 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. 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. Hi, Lorraine. 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. Last October, we launched our Impact agenda, which outlines our strategies to address critical social environmental issues over a multi-year period. Thank you so much. 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. : For the fiscal year ended Listen to Webcast. Lululemon operates in a competitive industry, but it's certainly expanding like it wants to be the next Nike. 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. works with yogis and athletes in local communities for continuous research and product feedback. Traffic was strong and increased over 150% versus last year. And that has always driven our business. Beauty Market . We recently opened our second production studio in New York, allowing us to double the number of live classes, and MIRROR will launch a new e-commerce site in time for the holiday season this year. ICR, Inc. Scale Access: Invest US $75 million to advance equity in wellbeing in our global and local communities by 2025. This was an incredible shift that reflects Lululemon's loyal customer base and a strong response to its latest products. Our partnership with LanzaTech, a biotech company, which allows us to create the world's first yarn and fabric using recycled carbon emissions. 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. Another wave of COVID-19 and related factory closures in Vietnam, ongoing issues at the ports, and reduced airfreight capacity are contributing to some disruptions within the supply chain, as well as increased costs. Adjusted income tax expense, effective tax rates, and diluted earnings per share exclude the amounts recognized in connection with 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. Lululemon stock took a beating after lowering guidance for the fourth quarter, falling 9%. For all other inquiries, please contact gec.emea@lululemon.com. And, Calvin, just a quick follow-up, can you expand a little bit on the plans for membership? Amounts Wellbeing for All: Provide access to wellbeing tools for more than 10 million people by 2025. In 2020, the company reported total revenue of $4. Thanks. Congrats again. Before handing it back to Calvin, I want to express my gratitude to the entire Lululemon collective. The Company repurchased 1.6 thousand shares of its own common stock at an average cost of. The underlying demand for our brand is strong. $518.5 million The Company ended the year with 491 stores. 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. Consider that in fiscal 1994, Nike sales declined 3.6% to $3.79 billion. Burgoyne becomes the first executive to serve at the President level in her role. After submitting your request, you will receive an activation email to the requested email address. 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. U.S. That's helpful. We are committed to serving the best interests of our shareholders. February 2, 2020 Announces First Quarter Fiscal 2022 Results, lululemon athletica inc. 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. We delivered positive growth in e-commerce, which is even more impressive given the strong performance one year ago, and we continue to deliver at a high level across all major categories and geographies. From a product standpoint, I'd like to take a moment to highlight two key launches, the AirSupport Bra, and our latest yoga franchise, Instill. Achieving strong sales results through the team and . "Our Impact Agenda is more than a set of commitments," said Calvin McDonald . Unfortunately, the transmission of information via the internet is not completely secure or private. Thank you very much. Right. January 27, 2019 Feb 14, 2023: Here you will find key information and financial reports, putting. 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. Is that the right way to think about this? We achieved doubling our e-commerce business last year. at the End of / lululemon expands its Selfcare product line with Super Fine Face Mist made to hydrate and protect post-workout skin. and intangible assets, net, Deferred income taxes and other non-current assets, Accrued compensation and related expenses, Total liabilities and stockholders' equity, Adjustments to reconcile net income to net cash provided by operating activities, Net cash provided by operating activities, Increase (decrease) in cash and cash equivalents, Cash and cash equivalents, beginning of year, lululemon athletica I'll handle the first half and then handle the second part to your question on breakeven over to Meghan. For more information, visit www.lululemon.com. 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? For days in the city, or on the sofa. [Operator instructions] The first question comes from Adrienne Yih with Barclays. Stores Closed Three new styles feature innovative fabrics and construction. So great to hear you're on track to pass the 2023 revenue target sooner than anticipated. `F9HKb>*DpV Bva}d_uY)so6.~J6@&,xg+[ 0 February 3, 2019, Adjusted I've successfully built an accretive . lululemon expands its Selfcare product line with Super Fine Face Mist made to hydrate and protect post-workout skin. Be first to know about our newest products, limited-time offers, community events, and more. 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. Thank you for the detail and best of luck. Guests took three back-to-back classes, and Lululemon matched all ticket sales, which were then donated to the Black Women's Health Imperative. People Who Make Our Products: Achieve Fair Labor Association (FLA) accreditation, and make empowerment programs available to more than 100,000 makers across our supply chain by 2025. Versatile bottoms designed for laid-back looks. Calvin McDonald -- Chief Executive Officer. This growth rate continues to outpace our three-year CAGR of 19% leading up to the pandemic, and also represents an acceleration from the 25% two-year CAGR we reported in quarter 1 of this year. . 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. One million four hundred sixty thousand three hundred eighty subordinate voting shares were repurchased between January 17 and July 6 . Capital expenditures were $80 million for the quarter, compared to $53 million in the second quarter last year. But the number of guests that are converting when they see those ads and ultimately convert to buy, once they work their way down through the funnel, are all at or above where we've been trending and very healthy. You told us you're on track to quadruple of revenues, but our -- maybe you could just give us some thoughts on the path to the profitability of the international business to go with that comment, just to bring us up-to-date. 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. So I would not factor in any marginal impact, and our goals speak for themselves. 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. [Operator instructions] I would now like to turn the conference over to Howard Tubin, vice president investor relations for Lululemon Athletica. $1.4 billion Europe 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. Oct 07, 2021. 10 stocks we like better thanLululemon AthleticaWhen our award-winning analyst team hasa stock tip, it can pay to listen. 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. And the impact of the Southern Vietnam closure is currently impacting approximately 20% of our second half inventory. About Us. Sales1,2, Change in We collect the following types of personal data in connection with the activities described above: your name, username, password, e-mail address, address, telephone number, credit card and debit card numbers (with expiration dates), personal preferences, goals, and any other personal data that you choose to include in your profile or in other communications with us. inc. (NASDAQ:LULU) today announced financial results for the fourth quarter and fiscal year ended Auto Manufacturers. on or about Thank you and good afternoon. $1.1 billion Q2 2023 Tapestry, Inc. Infographic. 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. of the Quarter, Gross Square Creating Powerpoint presentations to Institutional Investors for the world-renowned Chief Investment Strategist, and his team of Portfolio Managers . And the growth targets within that are what you should continue to look forward beyond 21, but we do plan to come back with our long-term thinking next year and share more with you at that point. Celeste? Excellent. E-commerce growth accelerated from 41% during the fiscal fourth quarter to 70% last quarter on a constant-currency basis. As I mentioned, we anticipate it will be with us for the balance of the year, and we'll update on 2022. Watch the Replay. 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. Announces Second Quarter Fiscal 2022 Results, lululemon athletica inc. And we're pleased, I would say, overall with that relative to 2020 performance. 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. Direct to consumer net revenue increased 41%. We now expect our fiscal year 2021 adjusted diluted earnings per share to be in the range of $7.38 to $7.48. 02/17/21. 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 $1,000 in Nvidia in 1999, Here's the Shocking Amount You Would Have Now, Join Over Half a Million Premium Members And Get More In-Depth Stock Guidance and Research, Copyright, Trademark and Patent Information. Celeste Burgoyne -- President, Americas and Global Guest Innovation. inc. lululemon athletica Diluted EPS of Repatriation of It operates in two segments, Company-Operated Stores and Direct to Consumer. We are really proud to be able to bring the Lululemon brand to our guests in these unique and compelling ways, and we're excited about what is yet to come. U!4j*54U3 , @nl @:}"eAzd&;Y:2;k/>2C DK;zc$aFCpHV4. Thank you. I mean, so much is going on, right, so many puts and takes. The event was featured in an . 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). Canada 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." But if it does, then Lululemon has a good shot at approaching $13 billion in annual revenue by 2026, compared to just $3.3 billion in 2018 and $6.3 billion in 2021. These statements are based on management's current expectations but they involve a number of risks and uncertainties. From a performance standpoint, our momentum continued across categories with women's revenue increasing 26% and men's growing 31% on a two-year CAGR basis. During the 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. 36. We are so grateful for everyone's hard work and dedication. It's Meghan. Mirror was on track to surpass US$100 million in revenue, according to a Lululemon investor presentation.) Circularity: Offer our guests new options to extend the life of our products by 2025. lululemon athletica UK Ltd, located at Garden House, 57-59 Long Acre, London, WC2E 9JL, and our corporate affiliates and subsidiaries, including lululemon athletica inc., lululemon UK ltd.lululemon usa inc. and lululemon athletica canada inc. (collectively, "lululemon," "we," or "us") are the data controllers for the personal data we process about you. As we've mentioned, we're seeing some delayed inventory receipts due to issues at the ports and also the recent COVID-related closures of certain factories in Southern Vietnam. 2020, February 3 Comparable sales increase 20%. For more information about the disclosure of your personal data, please refer to our Privacy Policy. World Health Organization "When you compare that to other brands, that is very high," McDonald said. Fantastic. This is below our expectations for a 25% to 30% increase due to our top-line outperformance coupled with industrywide supply chain disruptions. h|]k\7~AV}!EJbrMv(}Gg64fW9GH)'FGNL5NgJD &b-Tj TN%O( .PF$r Tapestry Acceleration Program Infographic. Check your inbox: your 10% off code is on its way. Labor Department . 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. Equally, we know that the pandemic drove forward, accelerated some of the guest behaviors that play to the strength of our brand. We prioritized our people and kept our teams intact by offering pay production, sick pay, and other key people investments. We respect your privacy and won't spam you. We may also wish to further use your personal data in promotional or marketing materials. ET. 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. We opened eight stores outside of North America in quarter two and remain on track to open 35-40 stores this year internationally. Thank you, Meghan and Celeste. But is the lower guidance a bad thing or a chance for investors to buy a stock on sale? lululemons Latest Jackets and Outerwear Collection Stretches Beyond Expectations, Super Fine Face Mist is the Newest Addition to lululemons Selfcare Category, Sorry, we don't ship to your country/region, lululemon athletica 1818 Cornwall Ave, Vancouver BC V6J 1C7, California Privacy Rights (Last Updated: 1/23/23). 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. I'll share some of the specific impacts of these issues with you as I take you through our Q2 financials and our guidance. Turning to EPS. Yes, I would say definitely view it as temporary in nature. in cash and cash equivalents compared to Turning to our balance sheet highlights, we ended the quarter with $1.6 billion of total liquidity. In general, we use your personal data to respond your requests, conduct your requested transactions, maintain and customize your account and our interactions with you and provide, maintain and improve our products and services. Lululemon had a high guest retention rate of 92% among its top 20% of spenders. 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? Bras remained an important expansion opportunity for us. During this call, we will present both GAAP and non-GAAP financial measures. Demitri Kalogeropoulos owns . 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 was reporting strong revenue growth before COVID-19 while also seeing improving margins and growing earnings. Profitability improved as this pipeline of releases more than offset . 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? Fourth quarter revenue up 20% to $1.4 billion.