lululemon investor presentation 2020

We are, as I mentioned, managing accordingly. 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. ICR, Inc. Circularity: Offer our guests new options to extend the life of our products by 2025. 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. the United States LULU stock fell about 2% in after-hours action. Tesla shares tumbled after Wednesday's investor day was scant on details about future vehicles. 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 underlying demand for our brand is strong. Celeste Burgoyne -- President, Americas and Global Guest Innovation. Good afternoon. 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. In 2020, it fell by 48 per cent. . I would now like to speak to our supply chain about the issues facing the entire industry. Our business was particularly strong in quarter 2, and our guidance calls for momentum to continue in the back half of the year. For more information, visit www.lululemon.com. This helps us to provide you with a good experience when you browse our websites and allows us to improve our websites. 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? rather than , and we temporarily closed our distribution center in Gross margin was 58.0%, an increase of 70 basis points compared to the fourth quarter of fiscal 2018. 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. Get stock recommendations, portfolio guidance, and more from The Motley Fool's premium services. Please review these policies before you disclose any personal data when visiting such third-party websites. For all other inquiries, please contact gec.emea@lululemon.com. March 26, 2020 The event was featured in an . How should we think about this in terms of recovery? h|]k\7~AV}!EJbrMv(}Gg64fW9GH)'FGNL5NgJD &b-Tj TN%O( .PF$r And third are really the roles in categories that our brand plays in and how the guests are wearing and using the gear. 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. Youre reading a free article with opinions that may differ from The Motley Fools Premium Investing Services. $2.28 Please go ahead. Subscribe New All new decks. At . Let me add my congrats. Good afternoon. Q. Our Q3 guidance reflects an impact of approximately 200 basis points of pressure from airfreight costs due to port congestion and capacity constraints. Cost basis and return based on previous market day close. Hi, Lorraine. First, we grew total revenue 28% on a two-year CAGR basis to $1.5 billion. $518.5 million Looking at the second quarter, our results reflected broad-based strength across our channels, regions, and product categories. 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. , For 2022, our first full year as a public company, we delivered net revenue growth of over 20%. 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. Be first to know about our newest products, limited-time offers, community events, and more. Our approach continues to be grounded and prudently managing our expenses while also continuing to strategically invest in our long-term growth opportunities. 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. For all other inquiries, please contact[emailprotected]. I'm sure you remember last year when heading into COVID, our men's business was leading growth over women's. 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 . Here you will find key information and financial reports, putting the performance of lululemon athletica inc into perspective for you. On Thursday, reporting its third-quarter earnings results, Lululemon slashed its outlook for . Inventory grew 17% versus last year and was $790 million at the end of Q2. Joining me today to talk about our results are Calvin McDonald, CEO; Meghan Frank, CFO; and Celeste Burgoyne, president, Americas and Global Guest Innovation. Fantastic. . As I've mentioned before, Lululemon's unique approach to product innovation is driven by our Science of Feel innovation platform. When I graduated from the Ivey Business School in 2010, I did what all my peers were doing: I got a job at an . Transfers to Canada are made pursuant to European Commission decision 2002/2/EC of 20 December 2001. Erin Hankinson And at the time, I sort of indicated that it would just be a matter of time, we didn't see anything systemic in our men's business that raised any concerns for us. 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. 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. Working with lululemon has felt particularly important to us. It is you who brings our brand to life every day and enables our strong financial results. Thank you so much for taking the question. A conference call to discuss fiscal 2019 results is scheduled for today, The company just reported solid results for the fiscal first quarter. As Calvin mentioned, sales trends remain positive with total digital comp up 4% in Q2. Please go ahead. . Repatriation of The stores opened, he came back into the store, which stores still remain a wonderful acquisition vehicle for us to get new men into the business and into the brand. To learn more see our privacy policy. Labor Department . We will provide additional updates as the situation warrants. This was never more true than last year during the pandemic. $404.8 million A right to object to processing:You have the right to request that we stop processing personal data about you. That's right -- theythink these 10stocks are even better buys. The learnings from our membership test are considerable. . The above is based on 29 Wall Street analysts offering 12-month price targets for Lululemon in the last 3 months. Absolutely, Mark, and thanks for the question. Just wondering how you think that impacts the company's ability to continue to reach its goals? So it's pretty fluid, Matt, and we're comfortable -- sorry, Jay, very fluid and we're comfortable with sort of how we're positioned today in addressing it, but all and any pricing changes would be in Meghan's guidance and there's nothing of significant plan or that you should expect. 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. 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. Quarter, Number of Canada-based Lululemon completed the acquisition July 7. *Stock Advisor returns as of August 9, 2021. 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. Our freshest gear. A right of access:You have the right to request access to, or a copy of, the personal data we process about you. Our Unique Proposition. Those costs in the market are rising, which has an impact, ultimately, onto CAC. Yeah, no. Thank you and good afternoon. Please go ahead. 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. Mirror was on track to surpass US$100 million in revenue, according to a Lululemon investor presentation.) inc. lululemon athletica Great. Switching now to e-commerce. The next question comes from Matthew Boss with J.P. Morgan. In Q2, we repurchased 506,000 shares at an average price of $338. Due to the 53rd week in fiscal 2018, comparable sales are calculated on a one week shifted basis in fiscal 2019. 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're enthusiastic about the opportunities that exist for the business. . HTTPS://AWS.AMAZON.COM/ABOUT-AWS/GLOBAL-INFRASTRUCTURE/). The company sells its products through a chain of company-operated stores; outlets and warehouse sales; interactive workout platform; a network of wholesale accounts, such as yoga studios, health clubs, and fitness centers; temporary locations; and license and supply arrangements, as well as directly to consumer through mobile apps and lululemon.com e-commerce website. 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. These learnings were integral to our decision to complete the MIRROR acquisition, and hold true today. Lululemon Athletica Inc. was founded in 1998 and is based in Vancouver, Canada. 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. A limited-edition capsule evolving fashion and function for the ever-expanding needs of modern life. Lululemon Athletica Inc., together with its subsidiaries, designs, distributes, and retails athletic apparel and accessories for women and men. 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. In Thank you very much. Watch the Replay. Check your inbox: your 10% off code is on its way. 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. Consider that in fiscal 1994, Nike sales declined 3.6% to $3.79 billion. Comparable 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. , And with that, we'll be happy to take your questions. 0001172661-23-001474.xls. We had approximately $1.2 billion in cash and cash equivalents and nearly $400 million of available capacity under our revolving credit facility. 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 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. As I've said before, Lululemon remains in the early innings of our growth story, and I continue to be inspired and excited with the momentum we're seeing across the business. Total comparable sales increased 17%, or increased 18% on a constant dollar basis. Looking at our store channel, total revenue increased 142% versus last year and 9% on a two-year CAGR basis. For the full year of 2021, we now expect revenue to be in the range of $6.19 billion to $6.26 billion. 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 . In closing, I'd like to thank the entire Lululemon family, especially our teams in stores and our guest education center, and in our distribution centers around the world. Actual results and the timing of events could differ materially from those anticipated in the forward-looking statements as a result of risks and uncertainties, which include, without limitation: our ability to maintain the value and reputation of our brand; the acceptability of our products to our guests; the recent COVID-19 coronavirus outbreak and related government, private sector, and individual consumer responsive actions; our highly competitive market and increasing competition; our reliance on and limited control over third-party suppliers to provide fabrics for and to produce our products; suppliers or manufacturers not complying with our Vendor Code of Ethics or applicable laws; the operations of many of our suppliers are subject to international and other risks; an economic downturn or economic uncertainty in our key markets; increasing product costs and decreasing selling prices; our ability to anticipate consumer preferences and successfully develop and introduce new, innovative and updated products; our ability to accurately forecast guest demand for our products; our ability to safeguard against security breaches with respect to our information technology systems; any material disruption of our information systems; our ability to have technology-based systems function effectively and grow our e-commerce business globally; changes in consumer shopping preferences and shifts in distribution channels; the fluctuating costs of raw materials; our ability to expand internationally in light of our limited operating experience and limited brand recognition in new international markets; global economic and political conditions and global events such as health pandemics; our ability to deliver our products to the market and to meet guest expectations if we have problems with our distribution system; imitation by our competitors; our ability to protect our intellectual property rights; our ability to source and sell our merchandise profitably or at all if new trade restrictions are imposed or existing trade restrictions become more burdensome; changes in tax laws or unanticipated tax liabilities; our ability to manage our growth and the increased complexity of our business effectively; our ability to cancel store leases if an existing or new store is not profitable; increasing labor costs and other factors associated with the production of our products in South and E-commerce growth accelerated from 41% during the fiscal fourth quarter to 70% last quarter on a constant-currency basis. Lululemon hosts sweat classes and other outdoor events designed to build a sense of community around the brand too. Our Unique Proposition; News & Events. After the presentation, there will be an opportunity to ask questions. Moving to SG&A. Please note that our websites contain links to third-party websites that are not controlled or operated by lululemon. But is the lower guidance a bad thing or a chance for investors to buy a stock on sale? "When you compare that to other brands, that is very high," McDonald said. February 2, 2020 If I could just ask one more question, switching gears for a second. And then with the shutting of our stores and other shifts that were happening as a result, we saw that business slow both in the industry as well as with ourselves, even though we are putting on market share. lululemon investor presentation 2020. lululemon investor presentation 2020. I will also discuss specifics on our balance sheet, including our cash position, liquidity, and inventory. Making the world smarter, happier, and richer. That's why we see such balanced growth across markets, channels, and product categories. Lululemon had been looking for ways to meet its . So I think that embedded about 1,000 to 1,500 basis points of margin expansion in international. So it is a very important driver of innovation for our business. Lorraine Hutchinson -- Bank of America Merrill Lynch -- Analyst. And I have a quick follow-up for Meghan. Blog. The strategy is organized into three interconnected areas of focusBe Human, Be Well, and Be Planetwith 12 goals to drive progress. Strong guests' response to our merchandise offering and improving store trends and continued strength in e-commerce fueled our growth, and contributed to our increased outlook for the year, which I will take you through in a moment. Our focus on technical athletic apparel allows us to benefit from trends in consumer behavior that are becoming more important year after year, and our inventory, which leverages many key core styles with less seasonality, helps us navigate and mitigate disruptions within the supply chain. 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. I am proud of our leaders and teams for enabling us to meet and exceed these goals. Wellbeing for All: Provide access to wellbeing tools for more than 10 million people by 2025. But the general metrics and guest member usage is very, very strong. Finally, our adjusted EBITDA for Q4 remained strong at 19.8 million . February 2 Lululemon offers pants, shorts, tops, and jackets for both leisure and athletic activities such as yoga and running. 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. 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. Achieving strong sales results through the team and . And the impact of the Southern Vietnam closure is currently impacting approximately 20% of our second half inventory. I would also note that markdowns declined relative to 2019. Updates Revenue and Earnings Expectations for the Fourth Quarter Ahead of the ICR Conference, lululemon athletica inc. 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. 268 presentation decks . Gross margin was 55.9%, an increase of 70 basis points compared to fiscal 2018. A new infographic covers how the company achieved global gender pay equity, gender representation statistics, and continued commitments to pay equity. The Motley Fool has a disclosure policy. And, Meghan, maybe just a quick follow-up on the increased outlook for airfreight. 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? China, in particular, is a market where we have leaned in on an investment. Can you provide some additional insight about what's working really well in those geographies? To make the world smarter, happier, and richer. For the fourth quarter ended Great. 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. Hi, thank you. Despite these headwinds, we expect both strong revenue and EPS for the year, and we remain on track to deliver, or in some cases even exceed our goals as set forth in our Power 3 growth plan. Burgoyne becomes the first executive to serve at the President level in her role. 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. This includes approximately 35 to 40 stores in our international markets and represents a square footage percentage increase in the low-teens. June 24, 2020 . lululemon encourages and creates access to voter participation in the 2020 U.S. Election. Lululemon was reporting strong revenue growth before COVID-19 while also seeing improving margins and growing earnings. A right of rectification: You have the right to request that we correct or supplement inaccurate or incomplete personal data we process about you. Sep 2015 - Feb 20166 months. 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. 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. Flying on the latest positive earnings results, Lululemon Athletica ( NASDAQ: LULU ) reached an impressive US$50b market cap in the last week. Embrace hands-free happiness with our edit of bags for workouts and hangouts. 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. 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. Yeah. Fourth quarter revenue up 20% to Guests took three back-to-back classes, and Lululemon matched all ticket sales, which were then donated to the Black Women's Health Imperative. Thanks. SEC I had a follow-up first on the supply chain. The two-year CAGR continued to accelerate. The turnout for these classes has been really positive. WACC . lululemon Names Meghan Frank Chief Financial Officer, lululemon Appoints Celeste Burgoyne to President, Americas and Global Guest Innovation, lululemon Announces Leadership Appointments of EVP, International and VP, Global Head of IDEA, lululemons Latest Jackets and Outerwear Collection Stretches Beyond Expectations, Super Fine Face Mist is the Newest Addition to lululemons Selfcare Category, lululemon Partners with the Canadian Journalism Foundation and CBC/Radio-Canada to Create the Black Journalism Fellowship, Ice-Dyed Nulux: lululemons Newest One-of-a-Kind Run Collection, lululemon Partners with When We All Vote and Time to Vote, Keep Moving in Technical Loungewear this Fall, lululemon Expands On The Move Category with New Styles and Fabrics, lululemon Introduces New Light Support Bras This Summer, lululemon Acquires Home Fitness Innovator MIRROR, lululemon Commits to Inclusion, Diversity, Equity, and Action, lululemon Announces Global Gender Pay Equity Stats and Commitments, lululemon Announces Mental Wellbeing Commitments at the 2020 MAKERS Conference, lululemon Partners with Robert Geller on Second Collection, A Moment to Reflect, lululemon Appoints Nikki Neuburger Chief Brand Officer, 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). And that really is rooted in a number of very unique attributes to our brand. We expect our adjusted effective tax rate for the year to be similar to 2020. We're playing the long game and have much to unlock in the coming years. Become a Motley Fool member today to get instant access to our top analyst recommendations, in-depth research, investing resources, and more. I'll actually take that. 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're early, we're thinking long term, and that convergence was natural. 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. , as our teams executed against our Power of Three growth plan. Stores Opened The forward-looking statements made herein speak only as of the date of this press release and we undertake no obligation to publicly update such forward-looking statements to reflect subsequent events or circumstances, except as may be required by law. Unsubscribe at anytime. 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. Woodmere, Ohio. That's enough to turn a $10,000 investment into $400,000. We've established plans to improve the planet that we're committed to. For Q2, total net revenue increased 61% to $1.5 billion, above our expectations of $1.3 million to $1.33 billion. And when do some of the facilities that have currently been shuttered in Vietnam need to start ramping, which hits later holiday demand, as well as spring? So it really supports the early earnings in growth across multiple levers. Is it really just products coming out of that country or is it leading into the region? October 28, 2020. lululemon released its first-ever Impact Agenda detailing the company's long-term strategy to become a more sustainable and equitable business, minimize its environmental impact, and accelerate positive change both internally and externally. So we are early innings of our growth. Comparable store sales reflects net revenue from company-operated stores that have been open for at least 12 full fiscal months, or open for at least 12 full fiscal months after being significantly expanded. We continue to expect to open 45 to 55 net new company-operated stores in 2021. E-com contributed $597 million of top-line or 41% of total revenue. John Kernan -- Cowen and Company -- Analyst. 41. 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. Tapestry Acceleration Program Infographic. Lululemon stock took a beating after lowering guidance for the fourth quarter, falling 9%. 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.