lululemon investor presentation 2020 lululemon investor presentation 2020

Welcome to Lululemon's second-quarter earnings conference call. World Health Organization John Ballard owns shares of Lululemon Athletica and Nike. , and in many other countries globally. Adding these lifestyle features should translate to further robust growth over time. February 2020 Those costs in the market are rising, which has an impact, ultimately, onto CAC. The cost of profitability therefrom MIRROR is very much within our control, and we're investing behind the strength and momentum of that -- in that business as well as our overall financial strength, and we'll share more as we move through the peak holiday season and into '22. Feet Lost These forward-looking statements also include our guidance and outlook statements. Seamlessly blending technical performance with beautiful design. Quarter. Yeah, no. . Thank you so much. 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. As I've mentioned before, Lululemon's unique approach to product innovation is driven by our Science of Feel innovation platform. Just any color around that would be really helpful. 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In this case, we will ask for your specific consent. Lululemon was reporting strong revenue growth before COVID-19 while also seeing improving margins and growing earnings. From a product standpoint, I'd like to take a moment to highlight two key launches, the AirSupport Bra, and our latest yoga franchise, Instill. 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. The iconic yoga, run and party experience goes fully virtual for 2020 and introduces a new 10K distance. At the end of Q3, we expect inventory levels to increase approximately 15% to 20% relative to Q3 2020. London, England, United Kingdom . We are working with the right partners to help in the manufacturing and the creation, and therefore, the commercialization of these goods. 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. Toronto, Canada Area. Our success was our people, and honouring commitments to our landlords and vendors. hTA0 nCms!B4 CG/=jL;;DAV August 4, 2020. For more information about the disclosure of your personal data, please refer to our Privacy Policy. Great. Consider that in fiscal 1994, Nike sales declined 3.6% to $3.79 billion. The two-year CAGR continued to accelerate. 3. Quarter, Number of Calvin McDonald -- Chief Executive Officer. The Company repurchased 1.1 million shares of its own common stock at an average cost of. . These include the rights to revoke your consent and to object to processing (for example, you have the right to revoke your consent to receive the newsletter at any time by clicking on the unsubscribe link at the bottom of our newsletter emails). , 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. Search Thousands of Presentations by World Leading Companies . 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. Specialty Retail. And for that, I'd like to say thank you. January 27, 2019 This included a 63% increase in North America and a 49% increase in our international business. For all other inquiries, please contact[emailprotected]. or Vancouver yoga-togs merchant Lululemon . 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. I wanted to focus on the men's business for a minute. We respect your privacy and won't spam you. Since our service providers 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. 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? 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. Additionally . Canada 1-604-732-6124 Exciting, thanks. b. Unsubscribe at anytime. Industry. In addition, I am thrilled that we're able to achieve productivity in our open stores equal to levels we saw in 2019 and happy to see these results sooner than we expected. *Average returns of all recommendations since inception. Please go ahead. Vendor Code of Ethics; Conducting Assessments & Remediation; Working With Our Suppliers to Create Meaningful Change; Programs to Build Better 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 "Our Impact Agenda is more than a set of commitments," said Calvin McDonald . In Q2, we repurchased 506,000 shares at an average price of $338. And as I mentioned, we're going to stay within the guidance we gave on dilution, and we're going to leverage the strengths of the synergy and learned a ton this holiday. Joseph Teklits Outside of a paid subscription, the opportunity around loyalty absolutely exists and is something that we will share later as we share our plans for the future. A replay will be made available online approximately two hours following the live call for a period of 30 days. If we make changes, we will notify you by revising the date at the top of this Privacy Policy. And, Meghan, maybe just a quick follow-up on the increased outlook for airfreight. Creating Powerpoint presentations to Institutional Investors for the world-renowned Chief Investment Strategist, and his team of Portfolio Managers . Welcome to the Lululemon Athletica second-quarter 2021 earnings conference call. Gross margin was 55.9%, an increase of 70 basis points compared to fiscal 2018. Thank you so much for taking the question. the Quarter, Number of Two experiential stores were opened last year in Chicago and the Mall of America near Minneapolis that provide locker rooms, healthy foods, and an enhanced shopping experience. 2020, February 3 Gross margin was 58.0%, an increase of 70 basis points compared to the fourth quarter of fiscal 2018. And then Calvin, on international, when we gathered to the analyst's day and you gave us the initial guidance of quadrupling revenues by 2023, I think the comment was that international is going to reach breakeven in 2018 and would be 10 to 15% of earnings by 2023. Sign Up. Ike Boruchow -- Wells Fargo Securities -- Analyst. Skilled in technical programs, brand strategy, web design and collaborative leadership. 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. 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. The new Navigation Stretch Down Collection is technically designed to keep you moving comfortably in winter conditions. , 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. | Learn more about Julia Vodarek's work experience, education, connections & more . The next question comes from Michael Binetti with Credit Suisse. 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. Announces Second Quarter Fiscal 2022 Results, lululemon athletica inc. In our digital channel, revenues increased 66% on a two-year CAGR basis, above our expectations of approximately 55% growth. Any impact on their spend. I would now like to speak to our supply chain about the issues facing the entire industry. 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 then in terms of open-store productivity, can you just remind me of the details of your question there? for further information on these adjustments. Sep 2019 - Sep 2020 1 year 1 month. 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. It operates in two segments, Company-Operated Stores and Direct to Consumer. After submitting your request, you will receive an activation email to the requested email address. Lululemon had a high guest retention rate of 92% among its top 20% of spenders. Feb 14, 2023: Made for pre-workout warmups, neighborhood strolls, and rest days this is the technical and versatile gear designed for all aspects of life. 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. Climate Change: Source 100% renewable electricity to power our own operations by 2021, and reduce carbon emissions across our global supply chain by 60 percent per unit of value added, meeting our Science-Based Targets by 2030. The company just reported solid results for the fiscal first quarter. Lululemon hosts sweat classes and other outdoor events designed to build a sense of community around the brand too. Water and Waste: Reduce freshwater use intensity by 50 percent to manufacture our products, and reduce single-use plastic packaging by 50 percent by 2025. tax reform and taxes on the repatriation of foreign earnings during fiscal 2018. Two quick ones, I guess, on gross margin sustainability. The next question comes from Erin Murphy with Piper Sandler, please go ahead. But those brands that have been acquired have been in the market, we've competed against them before and we've always liked our unique and differentiation within what has been a crowded marketplace and yet we continue to put up the results we've put up in the past number of years. 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. About 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? Lululemon Stock. Discover information about lululemon's quarterly results and find annual reports. We're enthusiastic about the opportunities that exist for the business. h|]k\7~AV}!EJbrMv(}Gg64fW9GH)'FGNL5NgJD &b-Tj TN%O( .PF$r LULU stock fell about 2% in after-hours action. So it really supports the early earnings in growth across multiple levers. Joining me today to talk about our results are Calvin McDonald, CEO; Meghan Frank, CFO; and Celeste Burgoyne, president, Americas and Global Guest Innovation. 1-415-671-7676, lululemon athletica1818 Cornwall AveVancouver BCV6J 1C7, Working With Our Suppliers to Create Meaningful Change, lululemon athletica inc. 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. 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. 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. That's why we see such balanced growth across markets, channels, and product categories. EVP Celeste Burgoyne makes a pledge to offer leading mental wellbeing benefits to employees. U.S. Our Impact Agenda is more than a set of commitments, said Calvin McDonald, Chief Executive Officer. 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). This includes approximately 35 to 40 stores in our international markets and represents a square footage percentage increase in the low-teens. 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." Youre reading a free article with opinions that may differ from The Motley Fools Premium Investing Services. If I could just ask one more question, switching gears for a second. 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. That's enough to turn a $10,000 investment into $400,000. North America Tapestry Acceleration Program Infographic. March 26, 2020 Lululemon offers pants, shorts, tops, and jackets for both leisure and athletic activities such as yoga and running. on or about Lululemon is starting to tap the $3 trillion global wellness market. The company also sells fitness accessories, such as bags, yoga mats, and equipment. We prioritized our people and kept our teams intact by offering pay production, sick pay, and other key people investments. A right of rectification: You have the right to request that we correct or supplement inaccurate or incomplete personal data we process about you. Square Feet at In 2020, the company reported total revenue of $4. Does it create an opportunity to take some pricing to offset cost increases, whether it's in labor or other areas? Excellent. We've recently announced that we will raise the minimum base pay for our store and guest education center roles in North America, taking our new base pay to $15 to $17 per hour, depending on the location and roll, plus all levels are eligible for a monthly bonus on top of base pay. With this strategy firmly in place, we've introduced fabrics and products that engineer specific on-body sensations. 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. The stock doesn't seem to slow down, and it is a . 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. the United States We continue to expect capital expenditures to be approximately $365 million to $375 million in 2021. 2. There are obviously between bottoms and tops and shorts and outerwear and some of the accessories. 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. Berkshire's profit plummeted by 91 per cent. rather than You understand that any messages or information you send to our websites may be read or intercepted by others. Please review these policies before you disclose any personal data when visiting such third-party websites. Thanks for squeezing me in. The next question comes from John Kernan with Cowen. 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. So we're excited heading into the holiday, But I did want to call it out because we're monitoring it. 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. the Quarter, Total Gross 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. 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. Europe If investors had decided that Nike stock was overvalued and sold their shares, they would have missed a 4,000% gain over the next 25 years. EVP Celeste Burgoyne makes a pledge to offer leading mental wellbeing benefits to employees. Early innings is a great thing. Stores Open For days in the city, or on the sofa. I mean, these are just really stellar results. Thank you so much. Canada-based Lululemon completed the acquisition July 7.