Learn More. Investors have been high on the company's long-term growth prospects across growing digital and international sales, and the latest results showed continued momentum in these areas. And those scenarios played out. 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. For the reasons set forth in this Privacy Policy, the personal data that we collect may be transferred to and stored or otherwise processed by our holding company, corporate affiliates, subsidiaries, and service providers outside of Switzerland and the EEA, including (but not limited to) in the United States, Canada or Australia. 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. Here you will find key information and financial reports, puttingtheperformance oflululemon athleticaincinto perspective for you. lululemon athletica1818 Cornwall AveVancouver BCV6J 1C7, Working With Our Suppliers to Create Meaningful Change, lululemon athletica inc. inc. 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. tax reform and taxes on the repatriation of foreign earnings during fiscal 2018. 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." Our approach continues to be grounded and prudently managing our expenses while also continuing to strategically invest in our long-term growth opportunities. And with that, we'll be happy to take your questions. A reconciliation of GAAP to non-GAAP measures is included in our quarterly report on Form 10-Q and in today's earnings press release. are compared to the 52 weeks ended 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. U.S. A live webcast of the conference call will be available online at: http://investor.lululemon.com/events.cfm. Labor Department . His start-up, Properly, is revolutionizing the art of the real estate transactionand racking up millions in VC capital. We believe that disclosing these measures on a constant dollar basis is useful to investors because it enables them to understand the level of growth of our business. Our stores continue to rebound, generating a two-year revenue CAGR of 9%, which is ahead of our expectations. To learn more see our privacy policy. For the full year of 2021, we now expect revenue to be in the range of $6.19 billion to $6.26 billion. But everything we do around human connection, science of feel that's fueling that. Thank you very much. 2. , we temporarily closed all of our retail locations in Congrats on all the momentum. During this call, we will present both GAAP and non-GAAP financial measures. tax reform and taxes on repatriation of foreign earnings. So in terms of SG&A, we guided for Q3 the 300 to 350 basis points of deleverage relative to 2019. 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 now have MIRROR shop-in-shops in a 150 Lululemon store, and our plans call for 200 shops in time for the holiday season. Learn More, Lululemon Athletica(LULU 1.66%)Q22021 Earnings CallSep 08, 2021, 4:30 p.m. 5. Does it kind of push it out a little bit more? in cash and cash equivalents compared to 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. lululemon reserves the right to change this Privacy Policy from time to time. Our EPS guidance continues to assume modest dilution from MIRROR in the 3% to 5% range . works with yogis and athletes in local communities for continuous research and product feedback. Good afternoon and congratulations. There's a lot in that question, and I'll unpack a bit of it. For us to repurchase and cancel shares between January 17, 2022, and January 16, 2023, NCIB is in place. Overview Investor presentations and pitch decks by companies in Consumer Cyclical sector Filter. f. Consent. $518.5 million The company offers pants, shorts, tops, and jackets for healthy lifestyle and athletic activities, such as yoga, running, and training, as well as other sweaty pursuits. So it really supports the early earnings in growth across multiple levers. Inspired from all areas of design and pursing the highest quality of creative work. Investor Presentation. 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. Announces Third Quarter Fiscal 2022 Results, lululemon athletica inc. To opt-in for investor email alerts, please enter your email address in the field below and select at least one alert option. Hi, Lorraine. 36. Or maybe said differently, do you believe that TAM coming out of this crisis is larger, broadly multiyear for the Lulu brand or are you taking accelerated market share, or is it a combination of both? Additionally . , Get stock recommendations, portfolio guidance, and more from The Motley Fool's premium services. During the Bras remained an important expansion opportunity for us. We share personal data with third parties when we have your consent to do so. The next question comes from Erin Murphy with Piper Sandler, please go ahead. ~^C`llhH5vY]-#~0 b Our momentum continued in Q2 with our top and bottom-line results exceeding our expectations. Lululemon offers pants, shorts, tops, and jackets for both leisure and athletic activities such as yoga and running. 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. A right of rectification: You have the right to request that we correct or supplement inaccurate or incomplete personal data we process about you. That's right -- theythink these 10stocks are even better buys. 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. 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. I'll actually take that. Experienced and active freelance graphic designer with a strong reputation working in the creative industry in Vancouver and British Columbia. As with all our articles, The Motley Fool does not assume any responsibility for your use of this content, and we strongly encourage you to do your own research, including listening to the call yourself and reading the company's SEC filings. The Company ended the year with 491 stores. Investors expected lululemon athletica (LULU 1.66%) to deliver a large increase in revenue over the year-ago weakness, . Lorraine Hutchinson -- Bank of America Merrill Lynch -- Analyst. 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. 10% WELCOME OFFER: Fair Processing Notice. for further information on these adjustments. The right to file a complaint:You have the right to file a complaint regarding our data protection practices with a supervisory authority. Please go ahead. lululemon athletica, 9 Allee Scheffer, Luxembourg L-2520. Skip to main content. Please note that the adjusted financial metrics I will share include the operating results of MIRROR but exclude approximately $8.1 million of acquisition-related costs and our associated tax effect in Q2 2021 and $11.5 million of acquisition-related costs and their associated tax effects in Q2 2020. We want to be by 2030, 100% of our products made with sustainable materials, and that's what these partnerships are gearing and working toward for us. And can you remind us what is it about Lululemon that continues to allow you to be a leader when a lot of other companies are going to become a big resource -- they are going to be making investments in this category? For more information about the disclosure of your personal data, please refer to our Privacy Policy. Fellowships will provide early-career Black journalists with mentoring and training in a CBC News or Radio-Canada Info newsroom. It's made from a proprietary Ultralu fabric and expands our offering into the high-impact training category. For all other inquiries, please contact gec.emea@lululemon.com. Good afternoon, and let me add my congratulations. At the end of the quarter, we had 245 million of availability remaining on our current share repurchase authorization. I'll handle the first half and then handle the second part to your question on breakeven over to Meghan. And on a two-year CAGR basis, we are pleased to see an acceleration relative to our first quarter. Thank you for standing by, this is the conference operator. We are committed to serving the best interests of our shareholders. 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. June 2020 13 slides . 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. And the second is the power of human connection through our educators through the strength of our community and the investments we make at grassroots through our people, through our ambassador community, and then the exciting addition of MIRROR into that community. So China is definitely one of our key markets. Subject to certain limitations and exceptions, you have the following legal rights regarding our processing of your personal data: A right to obtain information:You have the right to request information about how we process your personal data. Is that the right way to think about this? While in another jurisdiction for processing, your personal data may be accessed by the courts, law enforcement, and national security authorities of that jurisdiction. Our EPS guidance continues to assume modest dilution from MIRROR in the 3% to 5% range, excluding acquisition and integration-related costs. Thanks for signing up, youll soon start getting the inside scoop on the latest gear, our favourite workouts, events and much more. Speaking of the outlook, Lululemon reinstated a detailed annual forecast for the first time since the pandemic started. Lululemon had a high guest retention rate of 92% among its top 20% of spenders. 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. U.S. We've established plans to improve the planet that we're committed to. . Actual results may differ materially from those contained in or implied by these forward-looking statements due to risks and uncertainties associated with our business, including those we have disclosed in our most recent filings with the SEC, including our annual report on Form 10-K, and our quarterly reports on Form 10-Q. Listen to Webcast. In Q2, we repurchased 506,000 shares at an average price of $338. or tax reform and taxes on repatriation of foreign earnings. Good afternoon. We have our eyes on the long game with MIRROR and the community we're building. The underlying demand for our brand is strong. Obviously, the environment's really dynamic and fluid today. For Q2, total net revenue increased 61% to $1.5 billion, above our expectations of $1.3 million to $1.33 billion. --(BUSINESS WIRE)-- 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. Skilled in technical programs, brand strategy, web design and collaborative leadership. Thank you, Howard, and I'd like to welcome everyone to our second-quarter earnings call. As a reminder, we reported EPS of $0.96 in Q3 of 2019. This helps us to provide you with a good experience when you browse our websites and allows us to improve our websites. Our Service Providers. Results of this caliber enable us to now develop our next five-year growth plan, and we'll come back to you next year with an updated view of what the future can hold for Lululemon. And in fact, those behaviors are what gave us the conviction and confidence to go ahead with the MIRROR acquisition because we saw a natural synergy between the two. 0001172661-23-001474.rtf. $404.8 million And that includes MIRROR consolidated in this year's numbers and not in 2019, as well as brand building, which would include both that MIRROR piece as well as our current Feel campaign. 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. Store Sales2, Change in 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. 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 this Privacy Policy, "personal data" means any information about an individual whose identity is apparent or can be ascertained, directly or indirectly. Quarter2, Total Gross 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. After all, the newsletter theyhave run for over a decade, Motley Fool Stock Advisor, has tripled the market.*. Straight to your inbox. London, England, United Kingdom . , The Black Lives Matter movement acted as a powerful catalyst within lululemon. EVP Celeste Burgoyne makes a pledge to offer leading mental wellbeing benefits to employees. So for Q3, we are planning to be slightly above last year -- of 2019 level for the quarter. Fourth quarter revenue up 20% to $1.4 billion. Company-operated Store Count and Square Footage1 *Average returns of all recommendations since inception. Shares of the yogawear maker climbed 1.5% to 369.07 in Thursday's stock market trading.Lululemon stock is working on a 383.64 cup . I'm excited about these three new partnerships and it's just the beginning of Lululemon's commitment to be a leader in the industry related to product, sustainability, and innovation. We may also wish to further use your personal data in promotional or marketing materials. The iconic yoga, run and party experience goes fully virtual for 2020 and introduces a new 10K distance. 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. During the London, England, United Kingdom. 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. 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. For more information, visit www.lululemon.com. Two quick ones, I guess, on gross margin sustainability. Earnings, U.S. For example, when your personal data is processed for email marketing purposes, you have the right to object to such processing at any time by clicking on the unsubscribe link at the bottom of such marketing communications. Lululemon Athletica Inc. was founded in 1998 and is based in Vancouver, Canada. Sumner, WA. Great results. People Who Make Our Products Sub Navigation. We're monitoring how macro factors currently impacting the cost of digital marketing are creating some pressure on customer acquisition costs at MIRROR. Announces First Quarter Fiscal 2022 Results, lululemon athletica inc. After many real and impactful conversations with their underrepresented employees and greater community, lululemon's Senior Leadership Team made the following commitments to stand up and fund Inclusion, Diversity, Equity, and Action within the organization to support meaningful, lasting change in . We're early, we're thinking long term, and that convergence was natural. 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. Feet Added And then we also have higher depreciation relative to 2019, just given our investments behind digital and the strength of that business. "Our Impact Agenda is more than a set of commitments," said Calvin McDonald . March 2020 , as our teams executed against our Power of Three growth plan. rather than The next question comes from John Kernan with Cowen. Very pleased with our international business, very pleased with growth across every market we are in.Now, different markets have been impacted differently from COVID.As you know, Australia, New Zealand in particular right now, is where the bulk of our global store closures are taking place but even with that, our online business is doing very well. Building on the Companys progress and learnings over the past two decades, lululemons Impact Agenda brings a new level of ambition that will guide the way the Company approaches and measures its work across all aspects of its business. You may have the option to link your social media account to our social media account (such as on Facebook). 08/13/20. Personal data may be disclosed or transferred as part of, or during negotiations of any purchase, sale, lease, merger, amalgamation or any other type of acquisition, disposal, securitisation or financing involving lululemon. Thank you. 09/09/22. inc. Those interested . This year, we will likely achieve the goal we set to double our men's business, and we remain on track to quadruple our international business by 2023, if not sooner. That's enough to turn a $10,000 investment into $400,000. Versatile bottoms designed for laid-back looks. It's Calvin. Our obsession with raw material and our investment in our product is what we do, is what we obsess about, and its really what drives why the guests feel different and continue to sort of be loyal to this product and brand. Just wondering how you think that impacts the company's ability to continue to reach its goals? And that has always driven our business. Check your inbox: your 10% off code is on its way. March 26, 2020 Joseph Teklits It also provides fitness-related accessories and footwear. We are working with the right partners to help in the manufacturing and the creation, and therefore, the commercialization of these goods. And really driving that deleverage would be the consolidation of MIRROR for the full year, as well as investments again behind our digital channel. February 2, 2020 And seeing what we saw within the physical and our relationship with the MIRROR team, gave us the confidence to proceed with that. 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. . I will now turn it over to Meghan. During the quarter, we opened 11 net new stores. We continue to monitor the situation and work closely with local authorities to prioritize the safety of our people and guests. FINANCIAL STRENGTH Free cash flow of $156M Fully undrawn $175 million revolving credit facility As of July 6, 2022, there was $160M in cash and equivalents. rather than Calvin or Meghan, I guess could you elaborate a little bit on the commentary you gave? View All; SEC Filings. The Company repurchased 1.1 million shares of its own common stock at an average cost of. Results are great. Q. The next question comes from Brooke Roach with Goldman Sachs. Switching now to e-commerce. Our annual range also assumes the factories we used to source products in Vietnam begin a phased reopening in mid-September. 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. And we're pleased, I would say, overall with that relative to 2020 performance. Our Unique Proposition. We will soon introduce MIRROR to guests in Canada, where Lululemon has an impressive level of recognition. at the End of 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 . Brunswick Group 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 52 weeks ended the Quarter, Number of Thank you so much for taking the question. Mirror was on track to surpass US$100 million in revenue, according to a Lululemon investor presentation.) 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're also excited about how MIRROR can be the vehicle through which we offer long-term benefits to our guests, such as membership programs and special experiences. This press release includes estimates, projections, statements relating to our business plans, objectives, and expected operating results that are "forward-looking statements" within the meaning of the Private Securities Litigation Reform Act of 1995, Section 27A of the Securities Act of 1933 and Section 21E of the Securities Exchange Act of 1934. , Chief Executive Officer, commented: "2019 was a strong year for SEC 9. John Ballard owns shares of Lululemon Athletica and Nike. Can you provide some additional insight about what's working really well in those geographies? In addition, the comparable sales and store productivity metrics given on today's call are in constant dollars. 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. This includes operating results for MIRROR that excludes acquisition and integration-related costs. Do you view this as transitory? Please go ahead. c. Corporate Transactions. In January 27, 2019 World Health Organization 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? , and in many other countries globally. Feb 9, 2023. 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. Invest better with The Motley Fool. Quarter. We're so excited to welcome lululemon to the Fertifa family. Embrace hands-free happiness with our edit of bags for workouts and hangouts. I am incredibly proud of how lululemon navigated the year. 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. 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. First, we grew total revenue 28% on a two-year CAGR basis to $1.5 billion. When looking at SG&A for the full year, we now expect deleverage of 10 to 30 basis points versus 2020. 10 stocks we like better thanLululemon AthleticaWhen our award-winning analyst team hasa stock tip, it can pay to listen. We achieved doubling our e-commerce business last year. We may 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 above. Handled customer-service . Ike Boruchow -- Wells Fargo Securities -- Analyst. This compares to adjusted net income and diluted EPS as adjusted of 18.6 million and $0.09 per share in Q4 2021, respectively. 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In Q3, we expect SG&A deleverage of approximately 300 to 350 basis points relative to 2019. , endstream endobj 1933 0 obj <>stream That's why we see such balanced growth across markets, channels, and product categories. But really pleased overall, I would say, with the operating flow-through of our business and remain on track to Power 3 growth plan as we've discussed. [Operator instructions] The first question comes from Adrienne Yih with Barclays. 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. When I graduated from the Ivey Business School in 2010, I did what all my peers were doing: I got a job at an . Internet Retail. 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. 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). Now let me take a moment to share with you a few highlights from several exciting community activations we recently hosted throughout the quarter. on or about If we make material changes to this Privacy Policy, we will provide you with additional notice (such as adding a statement to our websites homepages or sending you a notification). Profitability improved as this pipeline of releases more than offset . 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. It also excludes the impact of any future share repurchases. 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. That's helpful. I also want to give some context around these numbers and the quarter-after-the quarter performance we've been delivering. Our Purpose, Vision & Values . These results reflect the ongoing strength across all major areas of the business.
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