Annual Report | 2023
,To our shareholders
In 2023, we celebrated our 25th anniversary and our teams continued to deliver strong We also accelerated our efforts to increase consideration for lululemon through global
and balanced results. As our product innovations, guest experiences, and market brand campaigns and activations. For example, in Los Angeles, we hosted a Dupe Swap
expansions connected us with our guests and communities, we saw growth across event, where about 50% of the guests who traded in product dupes were new to our
each of our categories, channels, and regions, and ended the year with $9.6 billion in brand. And in China Mainland, our World Mental Health Day activations brought
net revenue, representing a year-over-year increase of 19%. in over 9,000 participants across six cities.
I am grateful to our teams around the world for driving our performance and our goals to We believe our community-building approach resonates across geographies,
advance the wellbeing of people and the planet through our Impact Agenda. Community generations, and cultures, and led to gains in brand awareness throughout key growth
has been at the core of lululemon since day one, and we believe the deep, genuine markets around the world over the past year – the US increased from 25% to 31%, and
connections across our global collective are a true differentiator for our brand. China Mainland increased from 9% to 14%. Relative to peers, our brand awareness
globally represents an opportunity for lululemon. We believe our runway for growth is
substantial, and I am optimistic about the future as we continue to expand our business.
Our Growth Pillars
We remain committed to our Power of Three ×2 growth plan, which is grounded in our
goals to double our men’s business, double our digital business, and quadruple our
Our Impact
international business – to ultimately double our revenue from 2021 levels to $12.5 billion We are committed to advancing our Impact Agenda goals and multi-year strategies for
by 2026. In 2023, we advanced our plan with progress across each of our three growth the wellbeing of people and the planet. This work supports our growth strategy as a
pillars, and I am proud of all that we achieved as we continued to navigate a dynamic critical business function, as our company continues to grow and serve more guests and
consumer and macro environment. communities around the world.
Within product innovation, we continued to put product at the center of everything For our people, we are committed to our goals of supporting physical, mental, and social
we do, leveraging the latest research, technologies, and materials to solve for the unmet wellbeing for all, and creating environments that are equitable, inclusive, and welcoming
needs of our guests. We grew our men’s business by 15%, our women’s business by 17%, for every person within our global collective. We continued to advance our Inclusion,
and net revenue from our other categories increased 36%. Diversity, Equity, and Action (IDEA) commitments across our business and invest in the
wellbeing of the people who make our products.
We believe one of our competitive advantages is our ability to consistently bring newness
and innovation into our assortment, and that our proprietary fabrics, innovative designs, We also released lululemon’s third annual Global Wellbeing Report uncovering the state of
and functional technology set us apart. With our focus on feel, functionality, fit, and wellbeing around the world, and announced the formation of our Mental Wellbeing Global
versatility, people of all ages and backgrounds can see themselves in lululemon. Advisory Board to help deepen the impact of wellbeing initiatives across our industry. And,
through our lululemon Centre for Social Impact, we expanded our partnerships with global
Our core and new product launches continued to resonate with guests. We saw strength
and community-led wellbeing organizations to accelerate their work, investing a total of
in many of our key franchises including Align, Scuba, and ABC, and leveraged the
$44.8 million to date.1
versatility of our core assortment to expand our offerings within our Play categories
including golf and tennis. We also engineered new sensations within collections such as For our planet, we are on a journey to contribute to a climate-stable future through our
Wundermost bodywear for women, expanded our casual offerings for men with Steady products and actions. We believe sustainable innovation will play a critical role, and we
State and Soft Jersey loungewear, and launched updated and enhanced versions of our continue to advance our material innovation through strategic industry partnerships, as we
Blissfeel and Chargefeel footwear styles. know collaboration is essential to achieving a circular ecosystem and helping to address
global challenges. Looking to the future, we remain focused on driving innovations across
Looking to 2024, I am excited by our impressive pipeline of product innovation, from our
our business that contribute to supporting the health of our planet.
first-ever men’s footwear collection to innovations created with and inspired by world-
class athletes from Team Canada and our FURTHER women’s ultramarathon.
Within guest experience, our omni-operating model continued to serve our guests both
In Closing
in-store and online. We saw strength across both channels, with company-operated On behalf of myself and the entire leadership team, I want to express our sincere gratitude
store net revenue increasing 21% and e-commerce net revenue increasing 17%, as well to the people across lululemon who champion our brand every day and made our strong
as our single biggest day of traffic and revenue in company history on Black Friday. results possible.
We continued to leverage our successful grassroots approach to cultivating To our shareholders, thank you for your continued support. As we drive the business
relationships with our guests at the local level. By creating connection points across forward, we will remain agile and continue to adapt to all that is around us. My confidence
both the physical and digital, we engage with guests in ways that go beyond a in our leadership and our people remains high, as we have consistently demonstrated the
transaction, creating an ecosystem of connection that helps build our brand strength and resilience of our brand.
awareness and drive loyalty.
We are pleased with our momentum and know that we remain in the early innings of our
In-store and online, our Educators supported guests in learning about our products and growth story. We recognize the significant opportunity in front of us to elevate lululemon
innovations. In our communities, our teams created unforgettable experiences at the to the next level around the world in 2024 and beyond, and I remain excited and energized
local and global level, from store events to larger-scale community activations such as for what lies ahead for our brand.
10K runs. Through our membership program, which has grown to more than 17 million
members in the first year, we gained deeper knowledge on what aspects of our brand
are most meaningful to them. And we announced a multi-year strategic partnership
between lululemon and Peloton, expanding our reach and awareness.
Within market expansion, our business remained strong across our global regions
with 12% growth in the Americas, 67% in China Mainland, and 43% in Rest of World. We Calvin McDonald
entered new markets in EMEA and APAC, including our first store in Bangkok, Thailand. Chief Executive Officer
In China Mainland, we were proud to celebrate our 10-year anniversary and end the year
approaching $1 billion in revenue. In total, we opened 56 net new company-operated
stores across the globe contributing to 15% square footage growth, ending 2023 with
711 company-operated stores worldwide.
1
Included within our Impact Agenda is a goal to invest a total of $75.0 million USD to advance equity in wellbeing by 2025. As of January 28, 2024, we have contributed
$44.8 million to lululemon’s Centre for Social Impact, $32.4 million of which has been contributed directly to social impact organizations. The remaining $12.4 million
AR | 2023
primarily consists of contributions toward a donor-advised fund for future grant making.
, UNITED STATES SECURITIES AND EXCHANGE COMMISSION
Washington, D.C. 20549
_______________________________________
Form 10-K
_______________________________________
☑ ANNUAL REPORT PURSUANT TO SECTION 13 OR 15(d) OF THE SECURITIES EXCHANGE ACT OF 1934
For the fiscal year ended January 28, 2024
OR
☐ TRANSITION REPORT PURSUANT TO SECTION 13 OR 15(d) OF THE SECURITIES EXCHANGE ACT OF 1934
For the transition period from to
Commission file number 001-33608
_______________________________________
lululemon athletica inc.
(Exact name of registrant as specified in its charter)
_______________________________________
Delaware 20-3842867
(State or other jurisdiction of (I.R.S. Employer
incorporation or organization) Identification Number)
1818 Cornwall Avenue, Vancouver, British Columbia V6J 1C7
(Address of principal executive offices)
Registrant's telephone number, including area code: (604) 732-6124
Securities registered pursuant to Section 12(b) of the Act:
Title of each class Trading symbol(s) Name of each exchange on which registered
Common Stock, par value $0.005 per share LULU Nasdaq Global Select Market
_______________________________________
Indicate by check mark if the registrant is a well-known seasoned issuer, as defined in Rule 405 of the Securities Act. Yes ☑ No ☐
Indicate by check mark if the registrant is not required to file reports pursuant to Section 13 or Section 15(d) of the Act. Yes ☐ No ☑
Indicate by check mark whether the registrant (1) has filed all reports required to be filed by Section 13 or 15(d) of the Securities Exchange Act of 1934 during the preceding
12 months (or for such shorter period that the registrant was required to file such reports), and (2) has been subject to such filing requirements for the past
90 days. Yes ☑ No ☐
Indicate by check mark whether the registrant has submitted electronically every Interactive Data File required to be submitted pursuant to Rule 405 of Regulation S-T during the
preceding 12 months (or for such shorter period that the registrant was required to submit such files). Yes ☑ No ☐
Indicate by check mark whether the registrant is a large accelerated filer, an accelerated filer, a non-accelerated filer, a smaller reporting company, or an emerging growth
company. See the definitions of "large accelerated filer," "accelerated filer," "smaller reporting company," and "emerging growth company" in Rule 12b-2 of the Exchange Act.
Large Accelerated Filer ☑ Accelerated filer ☐
Non-accelerated filer ☐ Smaller reporting company ☐
Emerging growth company ☐
If an emerging growth company, indicate by check mark if the registrant has elected not to use the extended transition period for complying with any new or revised financial
accounting standards provided pursuant to Section 13(a) of the Exchange Act. ☐
Indicate by check mark whether the registrant has filed a report on and attestation to its management's assessment of the effectiveness of its internal control over financial
reporting under Section 404(b) of the Sarbanes-Oxley Act (15 U.S.C.7262(b)) by the registered public accounting firm that prepared or issued its audit report. ☑
If securities are registered pursuant to Section 12(b) of the Act, indicate by check mark whether the financial statements of the registrant included in the filing reflect the
correction of an error to previously issued financial statements. ☐
Indicate by check mark whether any of those error corrections are restatements that required a recovery analysis of incentive-based compensation received by any of the
registrant’s executive officers during the relevant recovery period pursuant to §240.10D-1(b). ☐
Indicate by check mark whether the registrant is a shell company (as defined in rule 12b-2 of the Act). Yes ☐ No ☑
The aggregate market value of the voting stock held by non-affiliates of the registrant on July 28, 2023 was approximately $40,905,000,000. Such aggregate market value was
computed by reference to the closing price of the common stock as reported on the Nasdaq Global Select Market on July 28, 2023. For purposes of determining this amount
only, the registrant has defined affiliates as including the executive officers, directors, and owners of 10% or more of the outstanding voting stock of the registrant on July 28,
2023.
Common Stock: At March 15, 2024 there were 120,892,132 shares of the registrant's common stock, par value $0.005 per share, outstanding.
Exchangeable and Special Voting Shares: At March 15, 2024, there were outstanding 5,115,961 exchangeable shares of Lulu Canadian Holding, Inc., a wholly-owned subsidiary of
the registrant. Exchangeable shares are exchangeable for an equal number of shares of the registrant's common stock.
In addition, at March 15, 2024, the registrant had outstanding 5,115,961 shares of special voting stock, through which the holders of exchangeable shares of Lulu Canadian
Holding, Inc. may exercise their voting rights with respect to the registrant. The special voting stock and the registrant's common stock generally vote together as a single class
on all matters on which the common stock is entitled to vote.
_______________________________________
DOCUMENTS INCORPORATED BY REFERENCE
Portions of the Proxy Statement for the 2024 Annual Meeting of Stockholders have been incorporated by reference into Part III of this Annual Report on Form 10-K.
,
,To our shareholders
In 2023, we celebrated our 25th anniversary and our teams continued to deliver strong We also accelerated our efforts to increase consideration for lululemon through global
and balanced results. As our product innovations, guest experiences, and market brand campaigns and activations. For example, in Los Angeles, we hosted a Dupe Swap
expansions connected us with our guests and communities, we saw growth across event, where about 50% of the guests who traded in product dupes were new to our
each of our categories, channels, and regions, and ended the year with $9.6 billion in brand. And in China Mainland, our World Mental Health Day activations brought
net revenue, representing a year-over-year increase of 19%. in over 9,000 participants across six cities.
I am grateful to our teams around the world for driving our performance and our goals to We believe our community-building approach resonates across geographies,
advance the wellbeing of people and the planet through our Impact Agenda. Community generations, and cultures, and led to gains in brand awareness throughout key growth
has been at the core of lululemon since day one, and we believe the deep, genuine markets around the world over the past year – the US increased from 25% to 31%, and
connections across our global collective are a true differentiator for our brand. China Mainland increased from 9% to 14%. Relative to peers, our brand awareness
globally represents an opportunity for lululemon. We believe our runway for growth is
substantial, and I am optimistic about the future as we continue to expand our business.
Our Growth Pillars
We remain committed to our Power of Three ×2 growth plan, which is grounded in our
goals to double our men’s business, double our digital business, and quadruple our
Our Impact
international business – to ultimately double our revenue from 2021 levels to $12.5 billion We are committed to advancing our Impact Agenda goals and multi-year strategies for
by 2026. In 2023, we advanced our plan with progress across each of our three growth the wellbeing of people and the planet. This work supports our growth strategy as a
pillars, and I am proud of all that we achieved as we continued to navigate a dynamic critical business function, as our company continues to grow and serve more guests and
consumer and macro environment. communities around the world.
Within product innovation, we continued to put product at the center of everything For our people, we are committed to our goals of supporting physical, mental, and social
we do, leveraging the latest research, technologies, and materials to solve for the unmet wellbeing for all, and creating environments that are equitable, inclusive, and welcoming
needs of our guests. We grew our men’s business by 15%, our women’s business by 17%, for every person within our global collective. We continued to advance our Inclusion,
and net revenue from our other categories increased 36%. Diversity, Equity, and Action (IDEA) commitments across our business and invest in the
wellbeing of the people who make our products.
We believe one of our competitive advantages is our ability to consistently bring newness
and innovation into our assortment, and that our proprietary fabrics, innovative designs, We also released lululemon’s third annual Global Wellbeing Report uncovering the state of
and functional technology set us apart. With our focus on feel, functionality, fit, and wellbeing around the world, and announced the formation of our Mental Wellbeing Global
versatility, people of all ages and backgrounds can see themselves in lululemon. Advisory Board to help deepen the impact of wellbeing initiatives across our industry. And,
through our lululemon Centre for Social Impact, we expanded our partnerships with global
Our core and new product launches continued to resonate with guests. We saw strength
and community-led wellbeing organizations to accelerate their work, investing a total of
in many of our key franchises including Align, Scuba, and ABC, and leveraged the
$44.8 million to date.1
versatility of our core assortment to expand our offerings within our Play categories
including golf and tennis. We also engineered new sensations within collections such as For our planet, we are on a journey to contribute to a climate-stable future through our
Wundermost bodywear for women, expanded our casual offerings for men with Steady products and actions. We believe sustainable innovation will play a critical role, and we
State and Soft Jersey loungewear, and launched updated and enhanced versions of our continue to advance our material innovation through strategic industry partnerships, as we
Blissfeel and Chargefeel footwear styles. know collaboration is essential to achieving a circular ecosystem and helping to address
global challenges. Looking to the future, we remain focused on driving innovations across
Looking to 2024, I am excited by our impressive pipeline of product innovation, from our
our business that contribute to supporting the health of our planet.
first-ever men’s footwear collection to innovations created with and inspired by world-
class athletes from Team Canada and our FURTHER women’s ultramarathon.
Within guest experience, our omni-operating model continued to serve our guests both
In Closing
in-store and online. We saw strength across both channels, with company-operated On behalf of myself and the entire leadership team, I want to express our sincere gratitude
store net revenue increasing 21% and e-commerce net revenue increasing 17%, as well to the people across lululemon who champion our brand every day and made our strong
as our single biggest day of traffic and revenue in company history on Black Friday. results possible.
We continued to leverage our successful grassroots approach to cultivating To our shareholders, thank you for your continued support. As we drive the business
relationships with our guests at the local level. By creating connection points across forward, we will remain agile and continue to adapt to all that is around us. My confidence
both the physical and digital, we engage with guests in ways that go beyond a in our leadership and our people remains high, as we have consistently demonstrated the
transaction, creating an ecosystem of connection that helps build our brand strength and resilience of our brand.
awareness and drive loyalty.
We are pleased with our momentum and know that we remain in the early innings of our
In-store and online, our Educators supported guests in learning about our products and growth story. We recognize the significant opportunity in front of us to elevate lululemon
innovations. In our communities, our teams created unforgettable experiences at the to the next level around the world in 2024 and beyond, and I remain excited and energized
local and global level, from store events to larger-scale community activations such as for what lies ahead for our brand.
10K runs. Through our membership program, which has grown to more than 17 million
members in the first year, we gained deeper knowledge on what aspects of our brand
are most meaningful to them. And we announced a multi-year strategic partnership
between lululemon and Peloton, expanding our reach and awareness.
Within market expansion, our business remained strong across our global regions
with 12% growth in the Americas, 67% in China Mainland, and 43% in Rest of World. We Calvin McDonald
entered new markets in EMEA and APAC, including our first store in Bangkok, Thailand. Chief Executive Officer
In China Mainland, we were proud to celebrate our 10-year anniversary and end the year
approaching $1 billion in revenue. In total, we opened 56 net new company-operated
stores across the globe contributing to 15% square footage growth, ending 2023 with
711 company-operated stores worldwide.
1
Included within our Impact Agenda is a goal to invest a total of $75.0 million USD to advance equity in wellbeing by 2025. As of January 28, 2024, we have contributed
$44.8 million to lululemon’s Centre for Social Impact, $32.4 million of which has been contributed directly to social impact organizations. The remaining $12.4 million
AR | 2023
primarily consists of contributions toward a donor-advised fund for future grant making.
, UNITED STATES SECURITIES AND EXCHANGE COMMISSION
Washington, D.C. 20549
_______________________________________
Form 10-K
_______________________________________
☑ ANNUAL REPORT PURSUANT TO SECTION 13 OR 15(d) OF THE SECURITIES EXCHANGE ACT OF 1934
For the fiscal year ended January 28, 2024
OR
☐ TRANSITION REPORT PURSUANT TO SECTION 13 OR 15(d) OF THE SECURITIES EXCHANGE ACT OF 1934
For the transition period from to
Commission file number 001-33608
_______________________________________
lululemon athletica inc.
(Exact name of registrant as specified in its charter)
_______________________________________
Delaware 20-3842867
(State or other jurisdiction of (I.R.S. Employer
incorporation or organization) Identification Number)
1818 Cornwall Avenue, Vancouver, British Columbia V6J 1C7
(Address of principal executive offices)
Registrant's telephone number, including area code: (604) 732-6124
Securities registered pursuant to Section 12(b) of the Act:
Title of each class Trading symbol(s) Name of each exchange on which registered
Common Stock, par value $0.005 per share LULU Nasdaq Global Select Market
_______________________________________
Indicate by check mark if the registrant is a well-known seasoned issuer, as defined in Rule 405 of the Securities Act. Yes ☑ No ☐
Indicate by check mark if the registrant is not required to file reports pursuant to Section 13 or Section 15(d) of the Act. Yes ☐ No ☑
Indicate by check mark whether the registrant (1) has filed all reports required to be filed by Section 13 or 15(d) of the Securities Exchange Act of 1934 during the preceding
12 months (or for such shorter period that the registrant was required to file such reports), and (2) has been subject to such filing requirements for the past
90 days. Yes ☑ No ☐
Indicate by check mark whether the registrant has submitted electronically every Interactive Data File required to be submitted pursuant to Rule 405 of Regulation S-T during the
preceding 12 months (or for such shorter period that the registrant was required to submit such files). Yes ☑ No ☐
Indicate by check mark whether the registrant is a large accelerated filer, an accelerated filer, a non-accelerated filer, a smaller reporting company, or an emerging growth
company. See the definitions of "large accelerated filer," "accelerated filer," "smaller reporting company," and "emerging growth company" in Rule 12b-2 of the Exchange Act.
Large Accelerated Filer ☑ Accelerated filer ☐
Non-accelerated filer ☐ Smaller reporting company ☐
Emerging growth company ☐
If an emerging growth company, indicate by check mark if the registrant has elected not to use the extended transition period for complying with any new or revised financial
accounting standards provided pursuant to Section 13(a) of the Exchange Act. ☐
Indicate by check mark whether the registrant has filed a report on and attestation to its management's assessment of the effectiveness of its internal control over financial
reporting under Section 404(b) of the Sarbanes-Oxley Act (15 U.S.C.7262(b)) by the registered public accounting firm that prepared or issued its audit report. ☑
If securities are registered pursuant to Section 12(b) of the Act, indicate by check mark whether the financial statements of the registrant included in the filing reflect the
correction of an error to previously issued financial statements. ☐
Indicate by check mark whether any of those error corrections are restatements that required a recovery analysis of incentive-based compensation received by any of the
registrant’s executive officers during the relevant recovery period pursuant to §240.10D-1(b). ☐
Indicate by check mark whether the registrant is a shell company (as defined in rule 12b-2 of the Act). Yes ☐ No ☑
The aggregate market value of the voting stock held by non-affiliates of the registrant on July 28, 2023 was approximately $40,905,000,000. Such aggregate market value was
computed by reference to the closing price of the common stock as reported on the Nasdaq Global Select Market on July 28, 2023. For purposes of determining this amount
only, the registrant has defined affiliates as including the executive officers, directors, and owners of 10% or more of the outstanding voting stock of the registrant on July 28,
2023.
Common Stock: At March 15, 2024 there were 120,892,132 shares of the registrant's common stock, par value $0.005 per share, outstanding.
Exchangeable and Special Voting Shares: At March 15, 2024, there were outstanding 5,115,961 exchangeable shares of Lulu Canadian Holding, Inc., a wholly-owned subsidiary of
the registrant. Exchangeable shares are exchangeable for an equal number of shares of the registrant's common stock.
In addition, at March 15, 2024, the registrant had outstanding 5,115,961 shares of special voting stock, through which the holders of exchangeable shares of Lulu Canadian
Holding, Inc. may exercise their voting rights with respect to the registrant. The special voting stock and the registrant's common stock generally vote together as a single class
on all matters on which the common stock is entitled to vote.
_______________________________________
DOCUMENTS INCORPORATED BY REFERENCE
Portions of the Proxy Statement for the 2024 Annual Meeting of Stockholders have been incorporated by reference into Part III of this Annual Report on Form 10-K.
,
