lululemon investor presentation 2020

Before we get started, I'd like to take this opportunity to remind you that our remarks today will include forward-looking statements reflecting management's current forecast of certain aspects of Lululemon future. lululemon athletica UK Ltd, located at Garden House, 57-59 Long Acre, London, WC2E 9JL, and our corporate affiliates and subsidiaries, including lululemon athletica inc., lululemon UK ltd.lululemon usa inc. and lululemon athletica canada inc. (collectively, "lululemon," "we," or "us") are the data controllers for the personal data we process about you. Lululemon hosts sweat classes and other outdoor events designed to build a sense of community around the brand too. Driven out of the innovation of the product, we're well aware of the inputs of inflation and costs and have that in our guidance that Meghan has provided. Copies of the Standard Contractual Clauses we use to facilitate this transfer of data are available HERE and HERE. Please review these policies before you disclose any personal data when visiting such third-party websites. If you are a consumer in the European Economic Area ("EEA") or Switzerland, this privacy policy ("Privacy Policy") explains how we process your personal data when you shop in our stores, access or use our websites, register for and attend events, engage with us on social media or otherwise interact with us. 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. How's the margin profile of the sustainable product look versus the current assortment? 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. Making the world smarter, happier, and richer. 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. A transcript of the meeting will be available here. Login. Internet Retail. I just wanted to follow up on that last answer. We retain personal data only for as long as necessary to achieve the purpose for which such personal data was collected, unless a different retention period is required under applicable law. But the number of guests that are converting when they see those ads and ultimately convert to buy, once they work their way down through the funnel, are all at or above where we've been trending and very healthy. Theyjust revealed what they believe are thetenbest stocksfor investors to buy right now and Lululemon Athleticawasn't one of them! Get stock recommendations, portfolio guidance, and more from The Motley Fool's premium services. 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. Looking at the second quarter, our results reflected broad-based strength across our channels, regions, and product categories. 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. February 2, 2020 Lululemon boosted its holiday-quarter forecasts on December 11, just hours after it posted Street-beating earnings of $1.16 per share on a 22% gain in revenues to $1.12 billion. To the extent possible, the team is looking to multi-source and leverage other countries, as well as prioritize fall holiday key styles to the best of their ability, and airfreight is a muscle that as a growth company, we often leverage and we continue to do so as we navigate the supply chain challenges in the second half. Our freshest gear. . 2. : The Company ended fiscal 2019 with The next question comes from Ike Boruchow with Wells Fargo. On Thursday, reporting its third-quarter earnings results, Lululemon slashed its outlook for . 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. To learn more see our privacy policy. Lululemon Stock. But taking profits now could be a very costly mistake. Now let me take a moment to share with you a few highlights from several exciting community activations we recently hosted throughout the quarter. Athletic apparel retailer Lululemon Athletica Inc. on July 7 completed its $500 million acquisition of Curiouser Products Inc., according to a regulatory filing.. Curiouser Products, which does business as Mirror, is an at-home fitness company that offers weekly live classes, on-demand workouts and one-on-one personal training. These learnings were integral to our decision to complete the MIRROR acquisition, and hold true today. February 3, 2019 Fourth quarter revenue up 20% to Can you provide some additional insight about what's working really well in those geographies? On June 29, 2020, Lululemon announced its intention not to be left behind. So it's pretty fluid, Matt, and we're comfortable -- sorry, Jay, very fluid and we're comfortable with sort of how we're positioned today in addressing it, but all and any pricing changes would be in Meghan's guidance and there's nothing of significant plan or that you should expect. rather than [Operator instructions] And now, I'd like to turn the call over to Cal. The Black Lives Matter movement acted as a powerful catalyst within lululemon. We expect to launch our first products using Mylo next year. And then we also have higher depreciation relative to 2019, just given our investments behind digital and the strength of that business. Announces Fourth Quarter and Full Year Fiscal 2019 Results, https://www.businesswire.com/news/home/20200326005653/en/. So great to hear you're on track to pass the 2023 revenue target sooner than anticipated. The direct-to-consumer channel, including e-commerce and mobile sales, made up 54% of total revenue. . It's definitely a combination of both. Bras remained an important expansion opportunity for us. Tapestry Investor Day 2022. Direct to consumer net revenue increased 41%. Drivers of the deleverage continue to include our investment in MIRROR brand-building. for further information on these adjustments. frP09,VPA kXshv-3S xg{'rz eP_lbIQ*bgK|5dbpdtO8kjQ*@+j*ffMuw/edeO:-^Iu{?9?cv!_(WMQ7U _7rl32!y=!_A|7c&86 hbb OFaFpoUzUz$}qWezu1wXc91 We retain personal data only for as long as necessary to achieve the purpose for which such personal data was collected, unless a different retention period is required under applicable law. 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. Analysts had been looking for Lululemon to . lululemon 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. Revenue, Adjustments due to foreign exchange rate changes. 09/09/22. Thanks and congrats on another great quarter. We are seeing good growth, we are investing in the country, supporting the teams, and overall, the international business, like our business in North America and some of our category opportunities, very early, and growth across all channels in the markets and product categories. 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 next question comes from Brooke Roach with Goldman Sachs. This was an incredible shift that reflects Lululemon's loyal customer base and a strong response to its latest products. Hi, Lorraine. Feb. 18, 2021 | 7:00 AM US/Central. , we temporarily closed all of our retail locations in 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. Vendor Code of Ethics; Conducting Assessments & Remediation; Working With Our Suppliers to Create Meaningful Change; Programs to Build Better 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. We will double our men's business this year, and our international business is ahead of the 4-time growth we put out to be completed by the end of '23. 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. 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. And that really is rooted in a number of very unique attributes to our brand. We respect your privacy and won't spam you. Welcome to the Lululemon Athletica second-quarter 2021 earnings conference call. WACC . In We are working with the right partners to help in the manufacturing and the creation, and therefore, the commercialization of these goods. Absolutely, Mark, and thanks for the question. Great. 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 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? Results are great. To order presentation-ready copies of Toronto Star content for . United States Securities and Exchange Commission Description. lululemon athletica Thank you, Brooke. Please read this Notice before entering the Promotion to make sure you understand how we process your personal data in connection with the Promotion. Discover lightweight, comfortable bottoms designed for every environment. We have always supported and invested in our people. Luxury Goods. is just kind of what you thought? , McDonald continued: "I want to thank our people around the globe for the results they delivered in 2019, and for their perseverance and commitment to our brand each and every day.". Thank you, Howard, and I'd like to welcome everyone to our second-quarter earnings call. We will provide additional updates as the situation warrants. We take pricing, obviously, seriously in that we're constantly monitoring and testing. On a two-year CAGR basis, total revenue increased 28% with North America up 26% and International increasing 43%. 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. Best of luck to the holidays. So overall, what's very exciting is the balance of growth across all international markets, meaning they are all contributing significant growth and into our goal of quadrupling our international business by '23. Invest better with The Motley Fool. 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. We are so grateful for everyone's hard work and dedication. As you alluded, we're very happy with the overall growth in our men's business two-year CAGR of 31%. This included a 63% increase in North America and a 49% increase in our international business. Our ABC and Commission styles bring you elevated everydaythe lululemon way. Are the opt-in rates a little bit lower than what you expected? We share personal data with third parties when we have your consent to do so. E-commerce growth accelerated from 41% during the fiscal fourth quarter to 70% last quarter on a constant-currency basis. We may also disclose your personal data with applicable regulators or other authorities when we believe doing so is reasonably necessary to comply with applicable law or legal process (including requests from authorities), to respond to claims (including inquiries by you in connection with your purchases from lululemon), or to protect the rights, property or personal safety of lululemon, our users, employees or the public. Looking at our store channel, total revenue increased 142% versus last year and 9% on a two-year CAGR basis. 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. 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. 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. 11. Thank you, Calvin. 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? 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. I'll share some of the specific impacts of these issues with you as I take you through our Q2 financials and our guidance. We achieved doubling our e-commerce business last year. Let me now share with you the details of our Q2 performance. Our Unique Proposition; News & Events. The stock doesn't seem to slow down, and it is a . John Kernan -- Cowen and Company -- Analyst. And based upon this revised forecast, I am pleased to share that we will surpass our 2023 revenue target by the end of this year, two years ahead of schedule. 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). In our store channel, sales increased 9% on a two-year CAGR basis, above our expectations of approximately flat. Hi. Thank you so much for taking the question. lululemon athletica1818 Cornwall AveVancouver BCV6J 1C7, Working With Our Suppliers to Create Meaningful Change, lululemon athletica inc. Fellowships will provide early-career Black journalists with mentoring and training in a CBC News or Radio-Canada Info newsroom. Does it create an opportunity to take some pricing to offset cost increases, whether it's in labor or other areas? We will soon introduce MIRROR to guests in Canada, where Lululemon has an impressive level of recognition. I'm a digital strategist and intrapreneur with over 13 years of experience leading digital transformation for mature, enterprise brand manufacturers. And now, back to Calvin for some closing remarks. 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. "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. 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. 10 stocks we like better thanLululemon AthleticaWhen our award-winning analyst team hasa stock tip, it can pay to listen. 10% WELCOME OFFER: Fair Processing Notice. And we've established multi-year targets. The highlight was standout performance from the direct-to-consumer channel where robust growth in e-commerce helped Lululemon report a small profit even with stores closed. These statements are based on management's current expectations but they involve a number of risks and uncertainties. It has 2,000 ambassadors around the world and a team of guest educators helping gather feedback from customers and cultivating a global community around the brand using digital marketing and social media. January 27, 2019 See active subscriptions. Dec 10, 2020. The company also sells fitness accessories, such as bags, yoga mats, and equipment. Calvin, can you talk about the investments in renewable materials and the stance on sustainability that you're taking? Achieving strong sales results through the team and . You understand that any messages or information you send to our websites may be read or intercepted by others. 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. Square footage increased 8% versus last year, driven by the addition of 28 net new stores since Q2 of 2020. 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. 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. 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. Thank you so much. I've successfully built an accretive . 36. It's Calvin. 1. lululemon. You can do so by contacting your countrys supervisory authority. 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. Lululemon, known for its 128 yoga leggings, is facing mockery on social media for promoting an event about "decolonising gender" and how to "resist capitalism". After submitting your request, you will receive an activation email to the requested email address. 1-415-671-7676, lululemon athletica1818 Cornwall AveVancouver BCV6J 1C7, Working With Our Suppliers to Create Meaningful Change, lululemon athletica inc. 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. And I have a quick follow-up for Meghan. 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. If you are a member of the press and seeking more information on these stories and others, please contact media@lululemon.com. 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. Cost basis and return based on previous market day close. The outbreak of the COVID-19 coronavirus has been declared a pandemic by the 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. At . Founded in 1993 by brothers Tom and David Gardner, The Motley Fool helps millions of people attain financial freedom through our website, podcasts, books, newspaper column, radio show, and premium investing services. Key Takeaways. Subscribe New All new decks. I also want to give some context around these numbers and the quarter-after-the quarter performance we've been delivering. February 3, 2019 The next question comes from Erin Murphy with Piper Sandler, please go ahead. Inventory grew 17% versus last year and was $790 million at the end of Q2. So it is a very important driver of innovation for our business. 7. lululemon.org: Establish a lululemon centre of excellence for social impact to support wellbeing by 2021. Lululemon Subscribe . February 2, 2020 July 1, 2022; trane outdoor temp sensor resistance chart . Our success was our people, and honouring commitments to our landlords and vendors. Do you view this as transitory? For days in the city, or on the sofa. I mean, so much is going on, right, so many puts and takes. 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. Calvin McDonald -- Chief Executive Officer. I think everybody is saying I think it's now 150 to 200 basis points of negative impact for the year. It also excludes the impact of any future share repurchases. tax reform and taxes on the repatriation of foreign earnings during fiscal 2018. It's really driven throughout the performance on top-line and leverage on occupancy and depreciation and then we do, at this point in time, we're maintaining our Power 3 growth plan which caused calls for modest expansion in gross margin as you lookout. 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. For example, if you decide to participate in certain interactive areas or features of our websites, such as creating a public profile and posting your goals, you consent to the disclosure of this information to other users of our websites. lululemon expands its Selfcare product line with Super Fine Face Mist made to hydrate and protect post-workout skin. ; our ability to successfully open new store locations in a timely manner; our ability to comply with trade and other regulations; the service of our senior management; seasonality; fluctuations in foreign currency exchange rates; conflicting trademarks and the prevention of sale of certain products; our exposure to various types of litigation; actions of activist stockholders; anti-takeover provisions in our certificate of incorporation and bylaws; and other risks and uncertainties set out in filings made from time to time with the For more information, visit www.lululemon.com. Quarterly Infographic PDF. Q2 2023 Tapestry, Inc. Infographic. Thank you for the detail and best of luck. I was just curious. And as Calvin mentioned, we'll come back and update that plan as we move into next year. View source version on businesswire.com: https://www.businesswire.com/news/home/20200326005653/en/, Investors: We now expect our fiscal year 2021 adjusted diluted earnings per share to be in the range of $7.38 to $7.48. Thanks for squeezing me in. The next question comes from Lorraine Hutchinson with Bank of America. inc. lululemon athletica As I mentioned, we anticipate it will be with us for the balance of the year, and we'll update on 2022. Yeah, there are some large public companies that have bought leisure brands over the past couple of months. Wellbeing for All: Provide access to wellbeing tools for more than 10 million people by 2025. Thank you. We continue to expect to open 45 to 55 net new company-operated stores in 2021. Fourth quarter revenue up 20% to $1.4 billion. The Company repurchased 1.1 million shares of its own common stock at an average cost of. 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. In general, we use your personal data to respond your requests, conduct your requested transactions, maintain and customize your account and our interactions with you and provide, maintain and improve our products and services. Announces First Quarter Fiscal 2022 Earnings Conference Call. Tesla shares tumbled after Wednesday's investor day was scant on details about future vehicles. For detailed information on the cookies we use and the purposes for which we use them, see our Cookie Policy. Gross profit for the second quarter were $843 million or 58.1% of net revenue, compared to 54.2% of net revenue in Q2 2020, and 55% of net revenue in Q2 2019. These forward-looking statements also include our guidance and outlook statements. 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. Our approach continues to be grounded and prudently managing our expenses while also continuing to strategically invest in our long-term growth opportunities. The appointments accelerate the companys continued focus on growth, global innovation, and diversity and inclusion. lululemons Latest Jackets and Outerwear Collection Stretches Beyond Expectations, Super Fine Face Mist is the Newest Addition to lululemons Selfcare Category, Sorry, we don't ship to your country/region, lululemon athletica 1818 Cornwall Ave, Vancouver BC V6J 1C7, California Privacy Rights (Last Updated: 1/23/23). Working with lululemon has felt particularly important to us. If we receive data about you in this manner, we combine that data with the personal data we collect directly from you. Feb 9, 2023. I will now turn it over to Meghan. 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. Our business was particularly strong in quarter 2, and our guidance calls for momentum to continue in the back half of the year. lululemon encourages and creates access to voter participation in the 2020 U.S. Election. The following tables reconcile adjusted financial measures with the most directly comparable measures calculated in accordance with GAAP. Q2 2023 Tapestry, Inc. Investor Presentation. U.S. Sep 2019 - Sep 2020 1 year 1 month. Canada , and we temporarily closed our distribution center in Its a holistic approach that reflects who we are, guided by our purpose to elevate the world by realizing the full potential within every one of us. 4. When you access and use our websites, we also automatically collect data, including personal data, using cookies, pixels and local storage. Thanks, Ike. Caitlin Churchill And I'll start there because I think those to me are the most important and signal the health and the engagement of the community both with each other as well as near the product. And really, we always saw a convergence between these two strategies. 1-203-682-8200, Media: or Please see our Terms and Conditions for additional details, including our Obligatory Capitalized Disclaimers of Liability. Skilled in technical programs, brand strategy, web design and collaborative leadership. In 2020, the company reported total revenue of $4. We are now navigating an extraordinary environment, which is currently impacting our business. Those interested in participating in the call are invited to dial 1-800-319-4610 or 1-604-638-5340, if calling internationally, approximately 10 minutes prior to the start of the call. The US$500-million acquisition of Mirror was an "an important step in our strategy," said CEO McDonald. Please go ahead. Best Growth Stock to Buy: Nike Stock vs. Lululemon Stock, This Hot Growth Stock Is Still a Buy After Enormous Gains, Buy the Dip in 2023 on These Potentially Explosive Stocks, 2 Reasons to Avoid a Roth 401(k) for Your Retirement Savings, Want $1 Million in Retirement?