lululemon investor presentation 2020 lululemon investor presentation 2020

The two-year CAGR continued to accelerate. Company-operated store count and square footage summary excludes retail locations operated by third parties under license and supply arrangements. Luxury Goods. 24. March 2020 Thank you, Brooke. Third, even with the recovery in our stores, our e-commerce business remains solid. , and in many other countries globally. During the Celeste? rather than 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. 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. We had approximately $1.2 billion in cash and cash equivalents and nearly $400 million of available capacity under our revolving credit facility. Lorraine Hutchinson -- Bank of America Merrill Lynch -- Analyst. We continue to monitor the situation and work closely with local authorities to prioritize the safety of our people and guests. Good afternoon. 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. Relative to 2019, our gross margin is benefiting from a higher e-com penetration and leverage on occupancy and depreciation. 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. March 26, 2020 Lululemon had a high guest retention rate of 92% among its top 20% of spenders. Trending: Addressable Market . To make the world smarter, happier, and richer. Thank you, Meghan and Celeste. Employee Leadership Offerings: Be the place where people come to develop and grow as leaders for the world by 2023. endstream endobj 1933 0 obj <>stream 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 Thanks. Reconciliation of Non-GAAP Financial Measures Thanks and congrats on another great quarter. 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. The Motley Fool has a disclosure policy. So in terms of SG&A, we guided for Q3 the 300 to 350 basis points of deleverage relative to 2019. As you know, we also see continued growth opportunities within North America. Lululemon - Investor Presentations and Pitch Decks. We are so grateful for everyone's hard work and dedication. Electric vehicle maker Tesla hosted a 2023 investor day presentation in Austin, Texas, on Wednesday. 7. lululemon.org: Establish a lululemon centre of excellence for social impact to support wellbeing by 2021. At the end of the quarter, we had 245 million of availability remaining on our current share repurchase authorization. I think everybody is saying I think it's now 150 to 200 basis points of negative impact for the year. It's definitely a combination of both. 3. How we protected our teams reflects the unique culture and values of lululemon, Walmart Inc. (NYSE: WMT) hosted the virtual 2021 Investment Community Meeting on February 18, 2021. The next question comes from Lorraine Hutchinson with Bank of America. 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. 1-604-732-6124 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. This range now assumes our e-commerce business grows in the mid-teens, relative to the outsized strength we experienced in 2020. Feb 9, 2023. A replay will be made available online approximately two hours following the live call for a period of 30 days. $404.8 million inc. Ike Boruchow -- Wells Fargo Securities -- Analyst. [Operator instructions] And now, I'd like to turn the call over to Cal. $1.4 billion Second, we saw further improvement in our brick-and-mortar channel with open stores generating productivity in line with 2019. If you do link your social media account to our social media account, the social media service may share certain data about you and your activities with us in accordance with their privacy policies and your privacy settings on their services. These results reflect the ongoing strength across all major areas of the business. So China is definitely one of our key markets. 1-203-682-8200, Media: Made from our newest innovation in technical performance fabric called smooth cover, this fabric offers our hug sensation, which provides incredible support through every pose in your practice. Sep 2015 - Feb 20166 months. frP09,VPA kXshv-3S xg{'rz eP_lbIQ*bgK|5dbpdtO8kjQ*@+j*ffMuw/edeO:-^Iu{?9?cv!_(WMQ7U _7rl32!y=!_A|7c&86 hbb OFaFpoUzUz$}qWezu1wXc91 We share personal data with third parties that perform services for us, including customer support, web hosting, information technology, payment processing, product fulfilment, fraud control, direct mail and email distribution, contest, event, sweepstakes and promotion administration, and analytics services. 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. One million four hundred sixty thousand three hundred eighty subordinate voting shares were repurchased between January 17 and July 6 . And we're pleased, I would say, overall with that relative to 2020 performance. $518.5 million The next question comes from Erin Murphy with Piper Sandler, please go ahead. And you want that in these types of membership programs to drive that loyalty. Some examples include digital sweat classes and community events were top drivers of overall program engagement. His start-up, Properly, is revolutionizing the art of the real estate transactionand racking up millions in VC capital. Is it really just products coming out of that country or is it leading into the region? Operator? 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. Get stock recommendations, portfolio guidance, and more from The Motley Fool's premium services. These forward-looking statements also include our guidance and outlook statements. Creating Powerpoint presentations to Institutional Investors for the world-renowned Chief Investment Strategist, and his team of Portfolio Managers . lululemon encourages and creates access to voter participation in the 2020 U.S. Election. 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. 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. tax reform and taxes on the repatriation of foreign earnings during fiscal 2018. I would now like to speak to our supply chain about the issues facing the entire industry. It's Calvin. 10 stocks we like better thanLululemon AthleticaWhen our award-winning analyst team hasa stock tip, it can pay to listen. Is that the right way to think about this? The iconic yoga, run and party experience goes fully virtual for 2020 and introduces a new 10K distance. Thanks, John. Looking at our business over the course of the second quarter and the first half of the year, I continue to be excited about our day-to-day progress. We ensure, with the signature of Standard Contractual Clauses adopted by the European Commission, that personal data transferred outside the EEA and Switzerland is maintained with at least the same level of security and protection for personal data that is required under applicable law. There's a lot in that question, and I'll unpack a bit of it. 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.Please review these policies before you disclose any personal data when visiting such third-party websites. Tax March 26, 2020 is just kind of what you thought? You 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. Lululemon was already one of the hottest retail growth stories before the pandemic, but COVID-19 accelerated the advantages the company has in its digital sales channels. Quarter. and continues to spread in Thanks for taking my question and congrats on the results here. Good afternoon, and let me add my congratulations. 65. Excellent results. And I have a quick follow-up for Meghan. The Motley Fool owns shares of and recommends Lululemon Athletica. We're so excited to welcome lululemon to the Fertifa family. The Investor Relations website contains information about Canada Goose Inc.'s business for stockholders, potential investors, and financial analysts. Drivers of the deleverage continue to include our investment in MIRROR brand-building. Jul 2021 - Present1 year 9 months. 10. Thanks, Celeste. And now, back to Calvin for some closing remarks. Canada 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. A transcript of the meeting will be available here. Joseph Teklits Feet Added on or about If we receive data about you in this manner, we combine that data with the personal data we collect directly from you. For Q3, we expect revenue in the range of $1.4 billion to $1.43 billion, representing a two-year CAGR of 24% to 25%. Yeah, there are some large public companies that have bought leisure brands over the past couple of months. Internet Retail. Combined, these give us a unique strength to keep growing MIRROR. 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. So it really supports the early earnings in growth across multiple levers. We have physical, technical and administrative measures in place to help protect personal data from loss, unauthorised access or processing, modification, disclosure, damage, alteration, destruction or other misuse. By Q.ai . All but one of these locations have since reopened. And we've established multi-year targets. That's enough to turn a $10,000 investment into $400,000. 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. In 2020, it fell by 48 per cent. In the financial year of 2021, ending January 2022, the athletic apparel brand known as lululemon generated about 6.3 billion U.S. dollars in net . 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. And just a few weeks ago, we announced our multi-year collaboration with Genomatica, a recognized leader in sustainable materials to create a lower impact plant-based nylon. Employee Pay Equity: Expand gender pay equity to full pay equity by 2022. Sign Up. Q2 spend relates primarily to store capital for new locations, relocation and renovations, supply chain investment, and technology spend to support our business growth. the Beginning b. lululemon reserves the right to change this Privacy Policy from time to time. I would also note that markdowns declined relative to 2019. Total 268 presentation decks . When looking at SG&A for the full year, we now expect deleverage of 10 to 30 basis points versus 2020. United States Securities and Exchange Commission I am incredibly proud of how lululemon navigated the year. Howard Tubin -- Vice President, Investor Relations. But taking profits now could be a very costly mistake. Making the world smarter, happier, and richer. Learn More, Lululemon Athletica(LULU 1.66%)Q22021 Earnings CallSep 08, 2021, 4:30 p.m. It's only a fraction of Nike's $41 billion top line, but that wide gap hints at the opportunity in front of the company. We've shared and continue to see our brand gaining market share across categories, men's and women's. And finally, I am pleased to share that our adjusted earnings per share for the quarter were $1.65 versus $0.96 in 2019, which is significantly ahead of our expectations. Comps increased 4% on top of the 157% increase last year. While we strive for our Foolish Best, there may be errors, omissions, or inaccuracies in this transcript. . So I think the -- I know the TAM has been impacted by those macro trends. Login. We expect our adjusted effective tax rate for the year to be similar to 2020. 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. There are obviously between bottoms and tops and shorts and outerwear and some of the accessories. Let me now share more color on our second-quarter results, starting with product innovation. The bottom line: The opportunity cost of missing out on big gains over the long haul is too high to worry about locking in a measly 100% gain off the recent lows. The legal basis for this processing is the performance of the agreement between you and lululemon related to the Promotion. January 27, 2019 Please read this Notice before entering the Promotion to make sure you understand how we process your personal data in connection with the Promotion. To learn more see our privacy policy. Direct to 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. Thank you so much for taking the question. 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. Obviously, the environment's really dynamic and fluid today. Lululemon learned some things about what customers want in a shoe from its previous partnership to sell athletic footwear from the brand Athletic Propulsion Labs (APL). A few key metrics tell the story. Erin Hankinson 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. You understand that any messages or information you send to our websites may be read or intercepted by others. 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. Now let me take a moment to share with you a few highlights from several exciting community activations we recently hosted throughout the quarter. Making the world smarter, happier, and richer. Fulfilled all retail clerk duties in a high volume, high traffic store with over 100K weekly sales. How are you doing? Thanks, Jay. the United States 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. 11. Hi. 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. are compared to the 13 and 52 weeks ended At the end of Dec. 1994, Nike stock traded at a P/E of 54, not quite as high as Lululemon's current 64 P/E but still frothy. But everything we do around human connection, science of feel that's fueling that. If you are a member of the press and seeking more information on these stories and others, please contact media@lululemon.com. 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. It also excludes the impact of any future share repurchases. A right to revoke your consent: When our processing is based on your consent, you have the right to revoke such consent at any time. Looking at our store channel, total revenue increased 142% versus last year and 9% on a two-year CAGR basis. Youre reading a free article with opinions that may differ from The Motley Fools Premium Investing Services. . We are committed to serving the best interests of our shareholders. For more information, visit www.lululemon.com. The company is building a powerful brand built on grassroots initiatives and millions of loyal customers. Equally, we know that the pandemic drove forward, accelerated some of the guest behaviors that play to the strength of our brand. lululemon.com. Get stock recommendations, portfolio guidance, and more from The Motley Fool's premium services. Please go ahead. Thank you, Calvin. Lululemon Athletica. 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. Please refer to Note 15 to the audited consolidated financial statements included in Item 8 of Part II of our Report on Form 10-K to be filed with the , 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. lululemon athletica 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. Demitri Kalogeropoulos owns . 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. 02/09/23. 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. 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? Berkshire's profit plummeted by 91 per cent. And the program was embraced by men at a higher rate than we were expecting. lululemon athletica, 9 Allee Scheffer, Luxembourg L-2520. Scale Access: Invest US $75 million to advance equity in wellbeing in our global and local communities by 2025. Thank you so much. February 3, 2019 We're just ramping up synergies, like the 200 stores that play to our strength in the key leads in each of those locations. Square footage increased 8% versus last year, driven by the addition of 28 net new stores since Q2 of 2020. Any impact on their spend. Adjusted tax expense for the quarter was $83.5 million or 27.9% of pre-tax earnings, compared to an adjusted effective tax rate of 28.9% a year ago. 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. 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. Our approach continues to be grounded and prudently managing our expenses while also continuing to strategically invest in our long-term growth opportunities. Thank you. The Company repurchased 1.1 million shares of its own common stock at an average cost of. 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). Sign up now! So it is a very important driver of innovation for our business. Good afternoon. This helps us to provide you with a good experience when you browse our websites and allows us to improve our websites. 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. lululemon makes major five commitments to support the Black Lives Matter movement and meaningful, lasting change in the world. 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. Thank you so much. And seeing what we saw within the physical and our relationship with the MIRROR team, gave us the confidence to proceed with that. Please note that our websites contain links to third-party websites that are not controlled or operated by lululemon. 10% WELCOME OFFER: Fair Processing Notice. 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. Stores Closed For more information about our privacy practices, please refer to our privacy policy available in our stores or on our website at https://www.lululemon.co.uk/en-gb/legal/privacy.html for UK residents or https://www.eu.lululemon.com/en-lu/content/privacy.html for EU resident (Privacy Policy). You see a slight variance in growth, but overall, they're all double-digit, all very strong. Stores Open Our freshest gear. "Our Impact Agenda is more than a set of commitments," said Calvin McDonald . We share personal data with our legal, financial, insurance and other advisors in connection with the kinds of corporate transactions described above or in connection with the management of all or part of lululemons business or operations. We continue to be pleased with the performance of MIRROR, and let me highlight several initiatives we have on track for this year. At the end of Q3, we expect inventory levels to increase approximately 15% to 20% relative to Q3 2020. . Our ability to sustain momentum quarter after quarter and year after year, and the incredible long-term prospects for our brand. Search Thousands of Presentations by World Leading Companies . And as Calvin mentioned, we'll come back and update that plan as we move into next year. Please go ahead. It is you who brings our brand to life every day and enables our strong financial results. Stores Opened During the Michael Binetti -- Credit Suisse -- Analyst. I will now turn it over to Meghan. During the quarter, we opened 11 net new stores. Lululemon's $500 million acquisition of high-tech fitness brand Mirror doesn't seem to be paying off. 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. 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. Moving to SG&A. are compared to the 52 weeks ended We continue to expect capital expenditures to be approximately $365 million to $375 million in 2021. For more information about the disclosure of your personal data, please refer to our Privacy Policy. Please go ahead. To make the world smarter, happier, and richer. Lululemon is starting to tap the $3 trillion global wellness market. If we think about the holiday environment coming, how are you thinking about maybe some opportunities that could be presented around pricing, if we are in an environment where a lot of companies are having trouble sourcing the units they need, or they would want to really fulfill the demand -- the consumer demand that's out there? Thank you. We continue to expect to open 45 to 55 net new company-operated stores in 2021. 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. Gotcha. Check your inbox: your 10% off code is on its way. We are leveraging airfreight to meet our guidance, and what's contemplated in our guidance is 150 to 100 -- sorry, 150 to 200 basis points of deleverage for the full year in terms of airfreight impact. Fostered and maintained various relationships with athletic/wellness influencers and business owners in order to promote products, create and execute community events, find and maintain brand ambassadors and increase social media engagement. New Zealand 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. 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. I just wanted to follow up on that last answer. Investors expected lululemon athletica (LULU 1.66%) to deliver a large increase in revenue over the year-ago weakness, . 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. Sep 2019 - Sep 2020 1 year 1 month. Fourth quarter revenue up 20% to $1.4 billion. McDonald also announced last year at the Analyst Day that the brand has plans to enter the footwear market. 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. Investors who bought shares of lululemon athletica (LULU 1.66%) at the height of the COVID-19 fears in March when the stock briefly traded around $150 per share would already be sitting on a two-bagger. Announces Second Quarter Fiscal 2022 Earnings Conference Call, lululemon Expands International Footprint, Launching in Spain, lululemon athletica inc. Thanks for signing up, youll soon start getting the inside scoop on the latest gear, our favourite workouts, events and much more. Announces First Quarter Fiscal 2022 Results, lululemon athletica inc. We've recently announced that we will raise the minimum base pay for our store and guest education center roles in North America, taking our new base pay to $15 to $17 per hour, depending on the location and roll, plus all levels are eligible for a monthly bonus on top of base pay. As of January 30, 2022, it operated 574 company-operated stores under the lululemon brand in the United States, Canada, the People's Republic of China, Australia, the United Kingdom, Japan, New Zealand, Germany, South Korea, Singapore, France, Malaysia, Sweden, Ireland, the Netherlands, Norway, and Switzerland. February 2, 2020 The next question comes from Mark Altschwager with Baird, please go ahead. 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. Quarter2, Total Gross In our store channel, sales increased 9% on a two-year CAGR basis, above our expectations of approximately flat. In particular, the way the test was set up, as you know, is it was a paid membership program, and our guests received a number of benefits linked to sweat. Caitlin Churchill The strategy is organized into three interconnected areas of focusBe Human, Be Well, and Be Planetwith 12 goals to drive progress. For example, this Privacy Policy does not apply to consumers located outside the EEA and Switzerland. A limited-edition capsule evolving fashion and function for the ever-expanding needs of modern life. Lululemon saw encouraging demand for its core products, in addition to its launches in new lines like menswear and outerwear. We've established plans to improve the planet that we're committed to.