lululemon athletica inc. Announces First Quarter Fiscal 2017 Results and Plan to Restructure Its ivivva
Operations
lululemon athletica inc. (NASDAQ:LULU) today announced financial results for the first quarter ended April 30, 2017 and a
plan to restructure its ivivva operations.
The Company reported diluted earnings per share of $0.23 for the first quarter of fiscal 2017. Excluding the impact of the
ivivva restructuring, the Company reported adjusted diluted earnings per share of $0.32.
The Company plans to operate ivivva, its activewear brand for girls, as a primarily e-commerce focused business, with a select
number of stores in key communities across North America. It plans to close approximately 40 of its 55 ivivva branded stores and to
convert approximately half of the remaining stores to lululemon branded stores. The Company will also close all of its ivivva
branded showrooms and other temporary locations, and will streamline its corporate infrastructure.
It is anticipated that the closures and restructuring will be substantially complete by the end of the third quarter of fiscal
2017. In connection with this restructuring plan, the Company recognized pre-tax costs totaling $17.7 million in the first quarter
of fiscal 2017.
The summary below provides both GAAP and adjusted non-GAAP financial measures. The adjusted financial measures exclude the
impact of the ivivva restructuring plan and the related tax effects, and also exclude certain discrete tax items which were
recognized during the first quarter of fiscal 2016.
For the first quarter ended April 30, 2017:
- Net revenue was $520.3 million, an increase of 5% compared to the first quarter of fiscal 2016. On a
constant dollar basis, net revenue increased 5%.
- Total comparable sales decreased 1%, or decreased by 1% on a constant dollar basis.
- Comparable store sales decreased 2%, or decreased by 1% on a constant dollar basis.
- Direct to consumer net revenue was flat, and was flat on a constant dollar basis.
- Gross profit was $256.9 million, an increase of 7% compared to the first quarter of fiscal 2016.
Adjusted gross profit was $262.3 million, an increase of 10%.
- Gross margin was 49.4%, an increase of 110 basis points compared to the first quarter of fiscal 2016.
Adjusted gross margin was 50.4%, an increase of 210 basis points.
- Income from operations was $45.4 million, a decrease of 21% compared to the first quarter of fiscal
2016. Adjusted income from operations was $63.2 million, an increase of 10%.
- Operating margin was 8.7%, a decrease of 290 basis points compared to the first quarter of fiscal
2016. Adjusted operating margin was 12.1%, an increase of 50 basis points.
- Income tax expense was $15.1 million compared to $11.8 million in the first quarter of fiscal 2016
and the effective tax rate was 32.6% compared to 20.6%. The adjusted effective tax rate was 30.8% compared to 29.8% in the first
quarter of fiscal 2016.
- Diluted earnings per share were $0.23 compared to $0.33 in the first quarter of fiscal 2016. Adjusted
diluted earnings per share were $0.32 compared to $0.30 for the first quarter of fiscal 2016.
The Company ended the first quarter of fiscal 2017 with $698.3 million in cash and cash equivalents compared to $550.0 million
at the end of the first quarter of fiscal 2016. Inventories at the end of the first quarter of fiscal 2017 increased by 6% to
$303.9 million compared to $286.2 million at the end of the first quarter of fiscal 2016. The Company ended the quarter with 411
stores.
Laurent Potdevin, CEO, lululemon, commented: "I'm excited to see the positive trends that materialized late in Q1 continuing
into Q2. Our current outlook for the remainder of 2017 is strong, and I'm energized by the growth strategies taking shape. I'm also
confident in our plans to restructure ivivva and believe they are the best means to optimize this part of the business."
Mr. Potdevin added: "From our cadence of product innovation, to our enhanced digital experience, and first-ever global brand
campaign, we have never felt more deeply connected to our guest or better positioned to expand our collective. We remain laser
focused on owning our position as the global brand defining an active, mindful lifestyle."
Updated Outlook
In connection with the restructuring of the ivivva operations, we expect to recognize total pre-tax costs of between $50.0
million and $60.0 million in fiscal 2017, inclusive of $17.7 million recognized during the first quarter of fiscal 2017. This
primarily relates to long-lived asset impairment and lease termination costs.
For the second quarter of fiscal 2017, we expect net revenue to be in the range of $565 million to $570 million based on a total
comparable sales increase in the low-to-mid single digits on a constant dollar basis. Diluted earnings per share are expected to be
in the range of $0.13 to $0.15 for the quarter. Excluding the impact of the ivivva restructuring, we expect adjusted diluted
earnings per share to be in the range of $0.33 to $0.35 for the quarter. This guidance assumes 137.2 million diluted
weighted-average shares outstanding and a 36.6% tax rate, or 31.0% excluding the tax effect of the ivivva restructuring. The
guidance does not reflect potential future repurchases of the Company's shares.
For the full fiscal 2017, we now expect net revenue to be in the range of $2.530 billion to $2.580 billion based on a total
comparable sales increase in the low-single digits on a constant dollar basis. Diluted earnings per share are expected to be in the
range of $1.97 to $2.07 for the full year. Excluding the impact of the ivivva restructuring, we expect adjusted diluted earnings
per share to be in the range of $2.28 to $2.38 for the year. This guidance assumes 137.2 million diluted weighted-average shares
outstanding and a 31.6% tax rate, or 31.0% excluding the tax effect of the ivivva restructuring. The guidance does not reflect
potential future repurchases of the Company's shares.
The guidance and outlook forward-looking statements made in this press release are based on management's expectations as of the
date of this press release and the Company undertakes no duty to update or to continue to provide information with respect to any
forward-looking statements or risk factors, whether as a result of new information or future events or circumstances or otherwise.
Actual results and the timing of events could differ materially from those anticipated in these forward-looking statements as a
result of risks and uncertainties, including those stated below.
Conference Call Information
A conference call to discuss first quarter results is scheduled for today, June 1, 2017, at 4:30 p.m. Eastern time. 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. A live webcast of the conference call will be available online at:
http://investor.lululemon.com/events.cfm. A replay will be made available online approximately two hours
following the live call for a period of 30 days.
About lululemon athletica inc.
lululemon athletica inc. (NASDAQ:LULU) is a healthy lifestyle inspired athletic apparel company for yoga, running, training, and
most other sweaty pursuits, with products that create transformational experiences for people to live happy, healthy, fun
lives. Setting the bar in technical fabrics and functional designs, lululemon works with yogis and athletes in local
communities for continuous research and product feedback. For more information, visit www.lululemon.com.
Non-GAAP Financial Measures
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.
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. We provide constant dollar changes in net revenue, total comparable sales,
comparable store sales, and changes in 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. We believe that disclosing these measures on
a constant dollar basis is useful to investors because it enables them to better understand the level of growth of our
business.
Adjusted gross profit, gross margin, income from operations, operating margin, effective tax rates, and diluted earnings per
share exclude the costs recognized in connection with the plan to restructure the ivivva operations, its related tax effects, and
certain discrete items related to the Company's transfer pricing arrangements and taxes on repatriation of foreign earnings. We
believe these adjusted financial results and measures provide useful information because these items do not directly relate to our
ongoing business operations and therefore do not contribute to a meaningful evaluation of the Company's future operating
performance. Furthermore, we believe these adjusted financial results and metrics are useful to investors because of their
comparability to our historical information.
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. 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.
Forward-Looking Statements:
This press release contains "forward-looking statements" within the meaning of Section 27A of the Securities Act of 1933 and
Section 21E of the Securities Exchange Act of 1934 that involve risks, uncertainties and assumptions, such as statements
regarding our future financial condition or results of operations and our prospects and strategies for future growth. In many
cases, you can identify forward-looking statements by terms such as "may," "will," "should," "expects," "plans," "anticipates,"
"outlook," "believes," "intends," "estimates," "predicts," "potential" or the negative of these terms or other comparable
terminology. These forward-looking statements also include our guidance and outlook statements. These statements are based on
management's current expectations but they involve a number of risks and uncertainties. Actual results and the timing of events
could differ materially from those anticipated in the forward-looking statements as a result of risks and uncertainties, which
include, without limitation: our ability to maintain the value and reputation of our brand; the acceptability of our products to
our guests; our highly competitive market and increasing competition; our reliance on and limited control over third-party
suppliers to provide fabrics for and to produce our products; an economic downturn or economic uncertainty in our key markets;
increasing product costs and decreasing selling prices; our ability to anticipate consumer preferences and successfully develop and
introduce new, innovative and updated products; our ability to accurately forecast customer demand for our products; our ability to
safeguard against security breaches with respect to our information technology systems; any material disruption of our information
systems; our ability to have technology-based systems function effectively and grow our e-commerce business globally; the
fluctuating costs of raw materials; our ability to expand internationally in light of our limited operating experience and limited
brand recognition in new international markets; our ability to deliver our products to the market and to meet customer expectations
if we have problems with our distribution system; imitation by our competitors; higher than anticipated costs and our ability to
realize the benefits associated with the restructuring of our ivivva business; our ability to protect our intellectual property
rights; changes in tax laws or unanticipated tax liabilities, capital or financing needs in the United States, or our intentions
with respect to the reinvestment of foreign earnings; our ability to manage our growth and the increased complexity of our business
effectively; our ability to cancel store leases if an existing or new store is not profitable; increasing labor costs and other
factors associated with the production of our products in South and South East Asia; our ability to successfully open new store
locations in a timely manner; our ability to source our merchandise profitably or at all; our ability to comply with trade and
other regulations; the continued service of our senior management; seasonality; fluctuations in foreign currency exchange rates;
the operations of many of our suppliers are subject to international and other risks; our exposure to various types of litigation;
actions of activist stockholders; and other risks and uncertainties set out in filings made from time to time with the United
States Securities and Exchange Commission and available at www.sec.gov, including, without limitation, our most recent reports on Form 10-K and Form 10-Q. You are urged to
consider these factors carefully in evaluating the forward-looking statements contained herein and are cautioned not to place undue
reliance on such forward-looking statements, which are qualified in their entirety by these cautionary statements. The
forward-looking statements made herein speak only as of the date of this press release and we undertake no obligation to publicly
update such forward-looking statements to reflect subsequent events or circumstances, except as may be required by law.
| |
| lululemon athletica inc. |
| |
|
Condensed Consolidated Statements of Operations
|
|
Unaudited; Expressed in thousands, except per share amounts
|
| |
|
|
Quarter Ended |
|
|
April 30, 2017 |
|
May 1, 2016 |
| Net revenue |
|
$ |
520,307 |
|
|
$ |
495,516 |
|
| Costs of goods sold |
|
263,412 |
|
|
256,385 |
|
| Gross profit |
|
256,895 |
|
|
239,131 |
|
| As a percent of net revenue |
|
49.4 |
% |
|
48.3 |
% |
| Selling, general and administrative expenses |
|
199,141 |
|
|
181,542 |
|
| As a percent of net revenue |
|
38.3 |
% |
|
36.6 |
% |
| Asset impairments and restructuring costs |
|
12,331 |
|
|
— |
|
| As a percent of net revenue |
|
2.4 |
% |
|
— |
% |
| Income from operations |
|
45,423 |
|
|
57,589 |
|
| As a percent of net revenue |
|
8.7 |
% |
|
11.6 |
% |
| Other income (expense), net |
|
907 |
|
|
(486 |
) |
| Income before income tax expense |
|
46,330 |
|
|
57,103 |
|
| Income tax expense |
|
15,084 |
|
|
11,767 |
|
| Net income |
|
$ |
31,246 |
|
|
$ |
45,336 |
|
|
|
|
|
|
| Basic earnings per share |
|
$ |
0.23 |
|
|
$ |
0.33 |
|
| Diluted earnings per share |
|
$ |
0.23 |
|
|
$ |
0.33 |
|
| Basic weighted-average shares outstanding |
|
137,037 |
|
|
137,263 |
|
| Diluted weighted-average shares outstanding |
|
137,192 |
|
|
137,496 |
|
|
|
|
|
|
|
|
| |
| lululemon athletica inc. |
| |
|
Condensed Consolidated Balance Sheets
|
|
Unaudited; Expressed in thousands
|
| |
|
|
April 30,
2017
|
|
January 29,
2017
|
| ASSETS |
|
|
|
|
| Current assets |
|
|
|
|
| Cash and cash equivalents |
|
$ |
698,289 |
|
|
$ |
734,846 |
| Inventories |
|
303,950 |
|
|
298,432 |
| Prepaid and receivable income taxes |
|
76,231 |
|
|
81,190 |
| Other current assets |
|
54,211 |
|
|
48,269 |
| Total current assets |
|
1,132,681 |
|
|
1,162,737 |
| Property and equipment, net |
|
398,833 |
|
|
423,499 |
| Goodwill and intangible assets, net |
|
24,248 |
|
|
24,557 |
| Deferred income taxes and other non-current assets |
|
53,572 |
|
|
46,748 |
| Total assets |
|
$ |
1,609,334 |
|
|
$ |
1,657,541 |
|
|
|
|
|
|
|
|
| LIABILITIES AND STOCKHOLDERS' EQUITY |
|
|
|
|
| Current liabilities |
|
|
|
|
| Accounts payable |
|
$ |
8,533 |
|
|
$ |
24,846 |
| Accrued inventory liabilities |
|
20,610 |
|
|
8,601 |
| Accrued compensation and related expenses |
|
39,076 |
|
|
55,238 |
| Income taxes payable |
|
26,951 |
|
|
30,290 |
| Unredeemed gift card liability |
|
59,398 |
|
|
70,454 |
| Other accrued liabilities |
|
51,405 |
|
|
52,020 |
| Total current liabilities |
|
205,973 |
|
|
241,449 |
| Deferred income tax liability |
|
6,950 |
|
|
7,262 |
| Other non-current liabilities |
|
48,724 |
|
|
48,857 |
| Stockholders' equity |
|
1,347,687 |
|
|
1,359,973 |
| Total liabilities and stockholders' equity |
|
$ |
1,609,334 |
|
|
$ |
1,657,541 |
|
|
|
|
|
|
|
|
| |
| lululemon athletica inc. |
| |
|
Condensed Consolidated Statements of Cash Flows
|
|
Unaudited; Expressed in thousands
|
| |
|
|
Quarter Ended |
|
|
April 30, 2017
|
|
May 1, 2016
|
| Cash flows from operating activities |
|
|
|
|
| Net income |
|
$ |
31,246 |
|
|
$ |
45,336 |
|
| Items not affecting cash |
|
40,804 |
|
|
22,966 |
|
| Changes in operating assets and liabilities |
|
(52,650 |
) |
|
(28,275 |
) |
| Net cash provided by operating activities |
|
19,400 |
|
|
40,027 |
|
| Net cash used in investing activities |
|
(19,879 |
) |
|
(26,644 |
) |
| Net cash used in financing activities |
|
(14,487 |
) |
|
(13,622 |
) |
| Effect of exchange rate changes on cash |
|
(21,591 |
) |
|
48,803 |
|
| (Decrease) increase in cash and cash equivalents |
|
(36,557 |
) |
|
48,564 |
|
| Cash and cash equivalents, beginning of period |
|
734,846 |
|
|
501,482 |
|
| Cash and cash equivalents, end of period |
|
$ |
698,289 |
|
|
$ |
550,046 |
|
|
|
|
|
|
|
|
|
|
lululemon athletica inc.
Reconciliation of Non-GAAP Financial Measures
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
The below changes in net revenue, total comparable sales, comparable store sales, and direct to consumer net revenue show the
net change for the first quarter of fiscal 2017 compared to the first quarter of fiscal 2016.
|
|
|
|
|
|
|
|
|
|
|
Change in Net
Revenue
|
|
Change in
Total
Comparable
Sales 1,2
|
|
Change in
Comparable
Store Sales 2
|
|
Change in
Direct to
Consumer Net
Revenue
|
| Increase (decrease) |
|
5 |
% |
|
(1 |
)% |
|
(2 |
)%
|
|
— |
% |
| Adjustments due to foreign exchange rate changes |
|
— |
|
|
— |
|
|
1 |
|
|
— |
|
| Increase (decrease) in constant dollars |
|
5 |
% |
|
(1 |
)% |
|
(1 |
)% |
|
— |
% |
|
|
|
|
|
|
|
|
|
|
|
|
|
__________
1Total comparable sales includes comparable store sales and direct to consumer sales.
2Comparable store sales reflects net revenue from company-operated stores that have been open for at least 12 months,
or open for at least 12 months after being significantly expanded.
Adjusted financial measures
The following table reconciles adjusted financial measures with the most directly comparable measures calculated in accordance
with GAAP:
|
|
|
|
|
|
|
Quarter Ended
April 30, 2017
|
|
Quarter Ended
May 1, 2016
|
|
|
GAAP Results
|
|
Adjustments |
|
Adjusted
Results
(Non-GAAP)
|
|
GAAP Results
|
|
Adjustments |
|
Adjusted
Results
(Non-GAAP)
|
| Net revenue |
|
$ |
520,307 |
|
|
$ |
— |
|
|
$ |
520,307 |
|
|
$ |
495,516 |
|
|
$ |
— |
|
|
$ |
495,516 |
|
| Costs of goods sold1 |
|
263,412 |
|
|
(5,419 |
) |
|
257,993 |
|
|
256,385 |
|
|
— |
|
|
256,385 |
|
| Gross profit1 |
|
256,895 |
|
|
5,419 |
|
|
262,314 |
|
|
239,131 |
|
|
— |
|
|
239,131 |
|
| As a percent of net revenue 1 |
|
49.4 |
% |
|
1.0 |
% |
|
50.4 |
% |
|
48.3 |
% |
|
— |
% |
|
48.3 |
% |
| Selling, general and administrative expenses |
|
199,141 |
|
|
— |
|
|
199,141 |
|
|
181,542 |
|
|
— |
|
|
181,542 |
|
| As a percent of net revenue |
|
38.3 |
% |
|
— |
% |
|
38.3 |
% |
|
36.6 |
% |
|
— |
% |
|
36.6 |
% |
| Impairment and restructuring costs2 |
|
12,331 |
|
|
(12,331 |
) |
|
— |
|
|
— |
|
|
— |
|
|
— |
|
| As a percent of net revenue 2 |
|
2.4 |
% |
|
(2.4 |
)% |
|
— |
% |
|
— |
% |
|
— |
% |
|
— |
% |
| Income from operations1,2 |
|
45,423 |
|
|
17,750 |
|
|
63,173 |
|
|
57,589 |
|
|
— |
|
|
57,589 |
|
| As a percent of net revenue 1,2 |
|
8.7 |
% |
|
3.4 |
% |
|
12.1 |
% |
|
11.6 |
% |
|
— |
% |
|
11.6 |
% |
| Other income (expense), net3 |
|
907 |
|
|
— |
|
|
907 |
|
|
(486 |
) |
|
1,240 |
|
|
754 |
|
| Income before income tax expense1,2,3 |
|
46,330 |
|
|
17,750 |
|
|
64,080 |
|
|
57,103 |
|
|
1,240 |
|
|
58,343 |
|
| Income tax expense3,4 |
|
15,084 |
|
|
4,684 |
|
|
19,768 |
|
|
11,767 |
|
|
5,644 |
|
|
17,411 |
|
| Effective tax rate 3,4 |
|
32.6 |
% |
|
|
|
30.8 |
% |
|
20.6 |
% |
|
|
|
29.8 |
% |
| Net income1,2,3,4 |
|
$ |
31,246 |
|
|
$ |
13,066 |
|
|
$ |
44,312 |
|
|
$ |
45,336 |
|
|
$ |
(4,404 |
) |
|
$ |
40,932 |
|
|
|
|
|
|
|
|
|
|
|
|
|
|
| Diluted earnings per share1,2,3,4 |
|
$ |
0.23 |
|
|
$ |
0.09 |
|
|
$ |
0.32 |
|
|
$ |
0.33 |
|
|
$ |
(0.03 |
) |
|
$ |
0.30 |
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
__________
1 During the first quarter of fiscal 2017, we recognized costs totaling $5.4 million to reduce the carrying value of
certain ivivva branded inventories to their estimated net realizable value and to record the expected net loss on certain committed
inventory purchases.
2 During the first quarter of fiscal 2017, we recognized long-lived asset impairment charges of $11.6 million and
severance costs of $0.7 million related to our plan to restructure our ivivva operations.
3 The adjustments in the first quarter of fiscal 2016 relate to our transfer pricing arrangements and the associated
repatriation of foreign earnings.
4 The adjustment to income tax expense for the first quarter of fiscal 2017 represents the tax effect of the ivivva
related restructuring adjustments, calculated based on the expected annual tax rate of the applicable tax jurisdictions.
Please refer to Notes 7 and 9 to the unaudited interim consolidated financial statements included in Item 1 of Part I of our
Report on Form 10-Q to be filed with the SEC on or about June 1, 2017 for further explanation as to the nature of these
items.
Adjusted expected effective tax rate and diluted earnings per share
|
|
|
|
|
|
|
Quarter Ending
July 30, 2017
|
|
Fiscal Year Ending
January 28, 2018
|
| Expected effective tax rate |
|
36.6 |
% |
|
31.6 |
% |
| Non-GAAP adjustments1 |
|
(5.6 |
) |
|
(0.6 |
) |
| Adjusted expected effective tax rate |
|
31.0 |
% |
|
31.0 |
% |
|
|
|
|
|
|
|
|
|
Quarter Ending
July 30, 2017
|
|
Fiscal Year Ending
January 28, 2018
|
| Expected diluted earnings per share range |
|
$0.13 to $0.15 |
|
$1.97 to $2.07 |
| Non-GAAP adjustments1 |
|
0.20 |
|
0.31 |
| Adjusted expected diluted earnings per share range |
|
$0.33 to $0.35 |
|
$2.28 to $2.38 |
|
|
|
|
|
__________
1 These adjustments relate to our plan to restructure our ivivva operations. Please refer to Item 5 of Part II of our
Report on Form 10-Q to be filed with the SEC on or about June 1, 2017 for an explanation as to the nature of these items.
lululemon athletica inc.
Store Count and Square Footage 1
Square Footage Expressed in Thousands
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
Number of
Stores Open at
the
Beginning of
the Quarter
|
|
Number of
Stores Opened
During the
Quarter
|
|
Number of
Stores Closed
During the
Quarter 3
|
|
Number of
Stores Open
at the End of
the Quarter
|
| 2nd Quarter 2016 |
|
|
|
|
373 |
|
|
6 |
|
|
— |
|
|
379 |
| 3rd Quarter 2016 |
|
|
|
|
379 |
|
|
12 |
|
|
2 |
|
|
389 |
| 4th Quarter 2016 |
|
|
|
|
389 |
|
|
17 |
|
|
— |
|
|
406 |
| 1st Quarter 2017 |
|
|
|
|
406 |
|
|
5 |
|
|
— |
|
|
411 |
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
Total Gross
Square Feet at
the Beginning
of the Quarter
|
|
Gross Square
Feet Added
During the
Quarter 2
|
|
Gross Square
Feet Lost
During the
Quarter 2, 3
|
|
Total Gross
Square Feet at
the End of the
Quarter
|
| 2nd Quarter 2016 |
|
|
|
|
1,095 |
|
|
22 |
|
|
— |
|
|
1,117 |
| 3rd Quarter 2016 |
|
|
|
|
1,117 |
|
|
32 |
|
|
5 |
|
|
1,144 |
| 4th Quarter 2016 |
|
|
|
|
1,144 |
|
|
47 |
|
|
1 |
|
|
1,190 |
| 1st Quarter 2017 |
|
|
|
|
1,190 |
|
|
14 |
|
|
— |
|
|
1,204 |
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
__________
1Store count and square footage summary includes company-operated stores which are branded lululemon or ivivva.
Excludes retail locations operated by third parties under license and supply arrangements.
2Gross 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.
3As part of the plan to restructure its ivivva operations the Company plans on closing approximately 40 of the 55
ivivva branded company-operated stores which were in operation as at April 30, 2017, and plans on converting approximately half of
the remaining stores to lululemon branded company-operated stores.
ICR, Inc.
Investor:
Joseph Teklits/Caitlin Morahan
203-682-8200
or
Media:
Alecia Pulman
203-682-8224
View source version on businesswire.com: http://www.businesswire.com/news/home/20170601006508/en/