Before we begin the call, I'd like to remind our investors to visit our Investor site, where you'll find a summary of our key financial and operating statistics for the second quarter, as well as our quarterly infographic. Our Q3 guidance reflects an impact of approximately 200 basis points of pressure from airfreight costs due to port congestion and capacity constraints. 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. Lululemon was reporting strong revenue growth before COVID-19 while also seeing improving margins and growing earnings. It's made from a proprietary Ultralu fabric and expands our offering into the high-impact training category. During this call, we will present both GAAP and non-GAAP financial measures. U.S. I guess, I imagine it was a challenge to get reads on the tests given everything that's been going on in the last 18 months, but I mean do you still see an opportunity to have a loyalty program that exists outside of the MIRROR platform or what form might that take? The next question comes from Jay Sole with UBS. To learn more see our privacy policy. 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. 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. [Operator instructions] The first question comes from Adrienne Yih with Barclays. Thank you so much. So I would not factor in any marginal impact, and our goals speak for themselves. inc. The new Navigation Stretch Down Collection is technically designed to keep you moving comfortably in winter conditions. I would also note that markdowns declined relative to 2019. Caitlin Churchill As you know, we also see continued growth opportunities within North America. And the impact of the Southern Vietnam closure is currently impacting approximately 20% of our second half inventory. Stores Closed d. Professional Advisors. We've established plans to improve the planet that we're committed to. Tax This was an incredible shift that reflects Lululemon's loyal customer base and a strong response to its latest products. Guests want to engage deeper with us and each other, and they are willing to shift into the digital space to do so. 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. We continue to be pleased with the performance of MIRROR, and let me highlight several initiatives we have on track for this year. We prioritized our people and kept our teams intact by offering pay production, sick pay, and other key people investments. Q2 2023 Tapestry, Inc. Infographic. Sep 2019 - Sep 2020 1 year 1 month. It also excludes the impact of any future share repurchases. boxer zchter saarland; neil postman: wir informieren uns zu tode errterung lululemon expands its Selfcare product line with Super Fine Face Mist made to hydrate and protect post-workout skin. Revenue, Adjustments due to foreign exchange rate changes. at the end of fiscal 2018. We provide constant dollar changes in net revenue, total comparable sales, comparable store sales, and direct to consumer net revenue because we use these measures to understand the underlying growth rate of net revenue excluding the impact of changes in foreign exchange rates. 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. Moving to SG&A. , we temporarily closed all of our retail locations in , and we temporarily closed our distribution center in Due to the 53rd week in fiscal 2018, comparable sales are calculated on a one week shifted basis in fiscal 2019. 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. Our momentum continued in Q2 with our top and bottom-line results exceeding our expectations. Tesla shares tumbled after Wednesday's investor day was scant on details about future vehicles. If you would like to exercise any of these rights or if you have any questions or enquiries relating to our privacy practices or procedures, you may write to the Privacy Officer at the addresses provided below. Experienced and active freelance graphic designer with a strong reputation working in the creative industry in Vancouver and British Columbia. Fellowships will provide early-career Black journalists with mentoring and training in a CBC News or Radio-Canada Info newsroom. So in terms of SG&A, we guided for Q3 the 300 to 350 basis points of deleverage relative to 2019. 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. the End of the 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. Inclusion, Diversity, Equity, and Action: Reflect the diversity of the communities we serve and operate in around the world by 2025. 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. We opened eight stores outside of North America in quarter two and remain on track to open 35-40 stores this year internationally. As I mentioned, we anticipate it will be with us for the balance of the year, and we'll update on 2022. Questions or comments about this Privacy Policy and or data protection practices should be directedhere. Lululemon stock took a beating after lowering guidance for the fourth quarter, falling 9%. Finally, our adjusted EBITDA for Q4 remained strong at 19.8 million . Can you provide some additional insight about what's working really well in those geographies? And in terms of breakeven, we haven't put a fine point on that, but we are focused as Calvin mentioned, unrolling and initiatives for 2021, including store ramps, Canada entry, and e-commerce, let's say, rebound. Square Feet at Learn More, Lululemon Athletica(LULU 1.66%)Q22021 Earnings CallSep 08, 2021, 4:30 p.m. Celeste Burgoyne -- President, Americas and Global Guest Innovation. Diluted EPS of $2.28 for the fourth quarter. February 2, 2020 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. Fourth quarter revenue up 20% to $1.4 billion. 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. and continues to spread in 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. June 24, 2020 . lululemon athletica1818 Cornwall AveVancouver BCV6J 1C7, Working With Our Suppliers to Create Meaningful Change, lululemon athletica inc. If you have any questions about the security of personal data collected by lululemon contact us HERE. Investor Presentation. Internet Retail. endstream endobj 1933 0 obj <>stream The company also sells fitness accessories, such as bags, yoga mats, and equipment. Making the world smarter, happier, and richer. , we temporarily closed all of our retail locations in Mainland China. For the year, the anticipated margin expansion now includes 150 to 200 basis points of negative impact from additional airfreight costs but still in excess of Power 3 growth plan, which assumes modest gross margin expansion annually. ET. And that really is rooted in a number of very unique attributes to our brand. The strategy is organized into three interconnected areas of focusBe Human, Be Well, and Be Planetwith 12 goals to drive progress. . 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. The Power 3 initiatives focusing on product, guest experience, and market expansion are still the key areas of focus that we will drive our innovation through. or Vancouver yoga-togs merchant Lululemon . 1-415-671-7676, lululemon athletica1818 Cornwall AveVancouver BCV6J 1C7, Working With Our Suppliers to Create Meaningful Change, 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. Store Sales2, Change in A paid membership program focused on sweat. $404.8 million This included a 63% increase in North America and a 49% increase in our international business. 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. Two quick ones, I guess, on gross margin sustainability. And seeing what we saw within the physical and our relationship with the MIRROR team, gave us the confidence to proceed with that. inc. 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. Unfortunately, the transmission of information via the internet is not completely secure or private. 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. 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. Embrace hands-free happiness with our edit of bags for workouts and hangouts. This includes approximately 35 to 40 stores in our international markets and represents a square footage percentage increase in the low-teens. People Who Make Our Products Sub Navigation. Company-operated store count and square footage summary excludes retail locations operated by third parties under license and supply arrangements. And you want that in these types of membership programs to drive that loyalty. Gotcha. Please go ahead. , lululemon Additionally . Our annual range also assumes the factories we used to source products in Vietnam begin a phased reopening in mid-September. 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. 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. The next question comes from Erin Murphy with Piper Sandler, please go ahead. During the For more information about our privacy practices in another jurisdiction, please refer to the privacy policy available in our stores, or posted on our website, for that jurisdiction. At the end of Q3, we expect inventory levels to increase approximately 15% to 20% relative to Q3 2020. 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. Feb. 18, 2021 | 7:00 AM US/Central. The new Navigation Stretch Down Collection is technically designed to keep you moving comfortably in winter conditions. And when I look at the growth, it is balanced across all the categories, which is very healthy. 10% WELCOME OFFER: Fair Processing Notice. And we're excited about the ability to scale it. February 2 Yeah, there are some large public companies that have bought leisure brands over the past couple of months. 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 . Comparable In Q3, we expect SG&A deleverage of approximately 300 to 350 basis points relative to 2019. We need to collect personal data, such as your name and e-mail address, in order to process your Promotion. Quarter, Number of We will provide additional updates as the situation warrants. 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. For more information, visit www.lululemon.com. Quarter. 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. 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? We have always supported and invested in our people. Currently, the category represents mid-single-digit penetration, and we see an opportunity to grow this category into the low to mid-teens in the coming years. Can you just talk about the idea of changes and how it's impacted MIRROR? But I think it's fair to say that our business would have been even stronger without these challenges facing the industry. Right. 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? The data we automatically collect includes your IP address, browser type, access times, pages viewed, the frequency of your visits to our websites, the routes by which you access our websites, and your use of any hyperlinks available on our websites. 2. 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. Excellent results. Since our holding company, subsidiaries and affiliates are located around the world, please note that these disclosures involve cross-border transfers of your personal data as described in the Data Transfers section BELOW. Blog. Comparable Labor Department . The next question comes from Matthew Boss with J.P. Morgan. 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. Guests took three back-to-back classes, and Lululemon matched all ticket sales, which were then donated to the Black Women's Health Imperative. Fourth quarter revenue up 20% to This includes operating results for MIRROR that excludes acquisition and integration-related costs. And we're pleased, I would say, overall with that relative to 2020 performance. Switching now to International, our sales trends continue to be robust with all major regions generating strong double-digit sales growth on a two-year CAGR basis. h|]k\7~AV}!EJbrMv(}Gg64fW9GH)'FGNL5NgJD &b-Tj TN%O( .PF$r And that has always driven our business. Adding these lifestyle features should translate to further robust growth over time. lululemon athletica Introducing new pant fabrics and styles that deliver athletic innovation for everyday life. 10. 0001172661-23-001474.pdf. , 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. SEC Events & Presentations: Quarterly Reports: Annual Reports: SEC Filings: End of Day Stock Quote: Unsubscribe . Eleanor French Youre reading a free article with opinions that may differ from The Motley Fools Premium Investing Services. Please go ahead. This performance not only speaks to the success of our kick-starting, our store's initiatives and the strength of our merchandise assortment but it also speaks to our educators and store teams who bring our brand to life every day for our guests. The iconic yoga, run and party experience goes fully virtual for 2020 and introduces a new 10K distance. John Kernan -- Cowen and Company -- Analyst. And we continue to see the members, you said MIRROR, number of sweats, number of members per households sweating increase and hold very high numbers. Our stores continue to rebound, generating a two-year revenue CAGR of 9%, which is ahead of our expectations. 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. That continues to differentiate the brand and its unique position as premium but through quality innovation. So for Q3, we are planning to be slightly above last year -- of 2019 level for the quarter. 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. `F9HKb>*DpV Bva}d_uY)so6.~J6@&,xg+[ 0 The iconic yoga, run and party experience goes fully virtual for 2020 and introduces a new 10K distance. We look for opportunities both where we could price up to and/or price down to be positioned in the marketplace based on assortment in range work. %PDF-1.6 % 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 E-commerce growth accelerated from 41% during the fiscal fourth quarter to 70% last quarter on a constant-currency basis. The company just reported solid results for the fiscal first quarter. Drivers of the deleverage versus 2019 include consolidation of MIRROR's results this year but not in 2019, increased investments in brand-building for our growth initiatives and higher depreciation due to accelerating investment to support our e-commerce business in 2020 and 2021. 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. Scale Access: Invest US $75 million to advance equity in wellbeing in our global and local communities by 2025. This quarter, we launched the AirSupport Bra, our most tested bra to date, which was developed following five years of advanced research and development. Mark Altschwager -- Robert W. Baird -- Analyst. 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. How should we think about this in terms of recovery? I was just curious. $1.1 billion Skilled in technical programs, brand strategy, web design and collaborative leadership. During the 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. Just last week, we continued to build out our yoga offering through the introduction of the Instill franchise. Lululemon Athletica. Flying on the latest positive earnings results, Lululemon Athletica ( NASDAQ: LULU ) reached an impressive US$50b market cap in the last week. And for that, I'd like to say thank you. 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