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Share Name | Share Symbol | Market | Type |
---|---|---|---|
Lululemon Athletica Inc | NASDAQ:LULU | NASDAQ | Common Stock |
Price Change | % Change | Share Price | Bid Price | Offer Price | High Price | Low Price | Open Price | Shares Traded | Last Trade | |
---|---|---|---|---|---|---|---|---|---|---|
4.35 | 1.24% | 355.15 | 300.00 | 367.00 | 356.97 | 351.77 | 355.20 | 1,257,862 | 05:00:01 |
|
|
|
☑
|
QUARTERLY REPORT PURSUANT TO SECTION 13 OR 15(d) OF THE SECURITIES EXCHANGE ACT OF 1934
|
☐
|
TRANSITION REPORT PURSUANT TO SECTION 13 OR 15(d) OF THE SECURITIES EXCHANGE ACT OF 1934
|
|
|
Delaware
|
20-3842867
|
(State or other jurisdiction of incorporation or organization)
|
(I.R.S. Employer Identification No.)
|
|
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
|
Large Accelerated Filer
|
☑
|
Accelerated filer
|
☐
|
Non-accelerated filer
|
☐
|
Smaller reporting company
|
☐
|
Emerging growth company
|
☐
|
|
|
|
|
|
Page
|
|
|
|
Item 1.
|
||
|
||
|
||
|
||
|
||
|
||
Item 2.
|
||
Item 3.
|
||
Item 4.
|
||
|
|
|
|
|
|
Item 1.
|
||
Item 1A.
|
||
Item 2.
|
||
Item 6.
|
||
|
|
|
|
|
May 3,
2020 |
|
February 2,
2020 |
||||
ASSETS
|
||||||||
Current assets
|
|
|
|
|
||||
Cash and cash equivalents
|
|
$
|
823,006
|
|
|
$
|
1,093,505
|
|
Accounts receivable
|
|
48,684
|
|
|
40,219
|
|
||
Inventories
|
|
625,849
|
|
|
518,513
|
|
||
Prepaid and receivable income taxes
|
|
89,316
|
|
|
85,159
|
|
||
Other prepaid expenses and other current assets
|
|
107,690
|
|
|
70,542
|
|
||
|
|
1,694,545
|
|
|
1,807,938
|
|
||
Property and equipment, net
|
|
659,265
|
|
|
671,693
|
|
||
Right-of-use lease assets
|
|
731,883
|
|
|
689,664
|
|
||
Goodwill and intangible assets, net
|
|
24,044
|
|
|
24,423
|
|
||
Deferred income tax assets
|
|
31,190
|
|
|
31,435
|
|
||
Other non-current assets
|
|
60,859
|
|
|
56,201
|
|
||
|
|
$
|
3,201,786
|
|
|
$
|
3,281,354
|
|
LIABILITIES AND STOCKHOLDERS' EQUITY
|
|
|
|
|
||||
Current liabilities
|
|
|
|
|
||||
Accounts payable
|
|
$
|
78,940
|
|
|
$
|
79,997
|
|
Accrued inventory liabilities
|
|
9,860
|
|
|
6,344
|
|
||
Accrued compensation and related expenses
|
|
69,455
|
|
|
133,688
|
|
||
Current lease liabilities
|
|
144,646
|
|
|
128,497
|
|
||
Current income taxes payable
|
|
28,729
|
|
|
26,436
|
|
||
Unredeemed gift card liability
|
|
105,286
|
|
|
120,413
|
|
||
Other current liabilities
|
|
194,580
|
|
|
125,043
|
|
||
|
|
631,496
|
|
|
620,418
|
|
||
Non-current lease liabilities
|
|
639,242
|
|
|
611,464
|
|
||
Non-current income taxes payable
|
|
48,226
|
|
|
48,226
|
|
||
Deferred income tax liabilities
|
|
40,764
|
|
|
43,432
|
|
||
Other non-current liabilities
|
|
6,271
|
|
|
5,596
|
|
||
|
|
1,365,999
|
|
|
1,329,136
|
|
||
Commitments and contingencies
|
|
|
|
|
|
|
||
Stockholders' equity
|
|
|
|
|
||||
Undesignated preferred stock, $0.01 par value: 5,000 shares authorized; none issued and outstanding
|
|
—
|
|
|
—
|
|
||
Exchangeable stock, no par value: 60,000 shares authorized; 5,482 and 6,227 issued and outstanding
|
|
—
|
|
|
—
|
|
||
Special voting stock, $0.000005 par value: 60,000 shares authorized; 5,482 and 6,227 issued and outstanding
|
|
—
|
|
|
—
|
|
||
Common stock, $0.005 par value: 400,000 shares authorized; 124,717 and 124,122 issued and outstanding
|
|
624
|
|
|
621
|
|
||
Additional paid-in capital
|
|
334,201
|
|
|
355,541
|
|
||
Retained earnings
|
|
1,786,147
|
|
|
1,820,637
|
|
||
Accumulated other comprehensive loss
|
|
(285,185
|
)
|
|
(224,581
|
)
|
||
|
|
1,835,787
|
|
|
1,952,218
|
|
||
|
|
$
|
3,201,786
|
|
|
$
|
3,281,354
|
|
|
|
Quarter Ended
|
||||||
|
|
May 3, 2020
|
|
May 5, 2019
|
||||
Net revenue
|
|
$
|
651,962
|
|
|
$
|
782,315
|
|
Cost of goods sold
|
|
317,560
|
|
|
360,595
|
|
||
Gross profit
|
|
334,402
|
|
|
421,720
|
|
||
Selling, general and administrative expenses
|
|
301,651
|
|
|
292,908
|
|
||
Income from operations
|
|
32,751
|
|
|
128,812
|
|
||
Other income (expense), net
|
|
1,174
|
|
|
2,379
|
|
||
Income before income tax expense
|
|
33,925
|
|
|
131,191
|
|
||
Income tax expense
|
|
5,293
|
|
|
34,588
|
|
||
Net income
|
|
$
|
28,632
|
|
|
$
|
96,603
|
|
|
|
|
|
|
||||
Other comprehensive (loss) income:
|
|
|
|
|
||||
Foreign currency translation adjustment
|
|
(60,604
|
)
|
|
(15,723
|
)
|
||
Comprehensive (loss) income
|
|
$
|
(31,972
|
)
|
|
$
|
80,880
|
|
|
|
|
|
|
||||
Basic earnings per share
|
|
$
|
0.22
|
|
|
$
|
0.74
|
|
Diluted earnings per share
|
|
$
|
0.22
|
|
|
$
|
0.74
|
|
Basic weighted-average number of shares outstanding
|
|
130,251
|
|
|
130,694
|
|
||
Diluted weighted-average number of shares outstanding
|
|
130,803
|
|
|
131,337
|
|
|
|
Quarter Ended May 3, 2020
|
|||||||||||||||||||||||||||||||
|
|
Exchangeable Stock
|
|
Special Voting Stock
|
|
Common Stock
|
|
Additional Paid-in Capital
|
|
Retained Earnings
|
|
Accumulated Other Comprehensive Loss
|
|
Total
|
|||||||||||||||||||
|
|
Shares
|
|
Shares
|
|
Par Value
|
|
Shares
|
|
Par Value
|
|
|
|
|
|||||||||||||||||||
Balance at February 2, 2020
|
|
6,227
|
|
|
6,227
|
|
|
$
|
—
|
|
|
124,122
|
|
|
$
|
621
|
|
|
$
|
355,541
|
|
|
$
|
1,820,637
|
|
|
$
|
(224,581
|
)
|
|
$
|
1,952,218
|
|
Net income
|
|
|
|
|
|
|
|
|
|
|
|
|
|
28,632
|
|
|
|
|
28,632
|
|
|||||||||||||
Foreign currency translation adjustment
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
(60,604
|
)
|
|
(60,604
|
)
|
|||||||||||||
Common stock issued upon exchange of exchangeable shares
|
|
(745
|
)
|
|
(745
|
)
|
|
—
|
|
|
745
|
|
|
4
|
|
|
(4
|
)
|
|
|
|
|
|
—
|
|
||||||||
Stock-based compensation expense
|
|
|
|
|
|
|
|
|
|
|
|
6,128
|
|
|
|
|
|
|
6,128
|
|
|||||||||||||
Common stock issued upon settlement of stock-based compensation
|
|
|
|
|
|
|
|
371
|
|
|
2
|
|
|
3,133
|
|
|
|
|
|
|
3,135
|
|
|||||||||||
Shares withheld related to net share settlement of stock-based compensation
|
|
|
|
|
|
|
|
(152
|
)
|
|
(1
|
)
|
|
(30,058
|
)
|
|
|
|
|
|
(30,059
|
)
|
|||||||||||
Repurchase of common stock
|
|
|
|
|
|
|
|
(369
|
)
|
|
(2
|
)
|
|
(539
|
)
|
|
(63,122
|
)
|
|
|
|
(63,663
|
)
|
||||||||||
Balance at May 3, 2020
|
|
5,482
|
|
|
5,482
|
|
|
$
|
—
|
|
|
124,717
|
|
|
$
|
624
|
|
|
$
|
334,201
|
|
|
$
|
1,786,147
|
|
|
$
|
(285,185
|
)
|
|
$
|
1,835,787
|
|
|
|
Quarter Ended May 5, 2019
|
|||||||||||||||||||||||||||||||
|
|
Exchangeable Stock
|
|
Special Voting Stock
|
|
Common Stock
|
|
Additional Paid-in Capital
|
|
Retained Earnings
|
|
Accumulated Other Comprehensive Loss
|
|
Total
|
|||||||||||||||||||
|
|
Shares
|
|
Shares
|
|
Par Value
|
|
Shares
|
|
Par Value
|
|
|
|
|
|||||||||||||||||||
Balance at February 3, 2019
|
|
9,332
|
|
|
9,332
|
|
|
$
|
—
|
|
|
121,600
|
|
|
$
|
608
|
|
|
$
|
315,285
|
|
|
$
|
1,346,890
|
|
|
$
|
(216,808
|
)
|
|
$
|
1,445,975
|
|
Net income
|
|
|
|
|
|
|
|
|
|
|
|
|
|
96,603
|
|
|
|
|
96,603
|
|
|||||||||||||
Foreign currency translation adjustment
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
(15,723
|
)
|
|
(15,723
|
)
|
|||||||||||||
Common stock issued upon exchange of exchangeable shares
|
|
(1,951
|
)
|
|
(1,951
|
)
|
|
—
|
|
|
1,951
|
|
|
10
|
|
|
(10
|
)
|
|
|
|
|
|
—
|
|
||||||||
Stock-based compensation expense
|
|
|
|
|
|
|
|
|
|
|
|
10,157
|
|
|
|
|
|
|
10,157
|
|
|||||||||||||
Common stock issued upon settlement of stock-based compensation
|
|
|
|
|
|
|
|
464
|
|
|
2
|
|
|
12,175
|
|
|
|
|
|
|
12,177
|
|
|||||||||||
Shares withheld related to net share settlement of stock-based compensation
|
|
|
|
|
|
|
|
(115
|
)
|
|
(1
|
)
|
|
(18,938
|
)
|
|
|
|
|
|
(18,939
|
)
|
|||||||||||
Repurchase of common stock
|
|
|
|
|
|
|
|
(1,000
|
)
|
|
(4
|
)
|
|
(1,465
|
)
|
|
(162,061
|
)
|
|
|
|
(163,530
|
)
|
||||||||||
Balance at May 5, 2019
|
|
7,381
|
|
|
7,381
|
|
|
$
|
—
|
|
|
122,900
|
|
|
$
|
615
|
|
|
$
|
317,204
|
|
|
$
|
1,281,432
|
|
|
$
|
(232,531
|
)
|
|
$
|
1,366,720
|
|
|
|
Quarter Ended
|
||||||
|
|
May 3, 2020
|
|
May 5, 2019
|
||||
Cash flows from operating activities
|
|
|
|
|
||||
Net income
|
|
$
|
28,632
|
|
|
$
|
96,603
|
|
Adjustments to reconcile net income to net cash used in operating activities:
|
|
|
|
|
||||
Depreciation and amortization
|
|
43,532
|
|
|
32,823
|
|
||
Stock-based compensation expense
|
|
6,128
|
|
|
10,157
|
|
||
Settlement of derivatives not designated in a hedging relationship
|
|
(5,669
|
)
|
|
(4,983
|
)
|
||
Changes in operating assets and liabilities:
|
|
|
|
|
||||
Inventories
|
|
(122,810
|
)
|
|
(42,856
|
)
|
||
Prepaid and receivable income taxes
|
|
(4,157
|
)
|
|
(32,816
|
)
|
||
Other prepaid expenses and other current and non-current assets
|
|
(53,358
|
)
|
|
(16,164
|
)
|
||
Accounts payable
|
|
2,222
|
|
|
(5,420
|
)
|
||
Accrued inventory liabilities
|
|
4,016
|
|
|
(6,894
|
)
|
||
Accrued compensation and related expenses
|
|
(60,137
|
)
|
|
(32,498
|
)
|
||
Current and non-current income taxes payable
|
|
3,711
|
|
|
(60,533
|
)
|
||
Unredeemed gift card liability
|
|
(13,640
|
)
|
|
(13,641
|
)
|
||
Right-of-use lease assets and current and non-current lease liabilities
|
|
(16,868
|
)
|
|
8,185
|
|
||
Other current and non-current liabilities
|
|
67,155
|
|
|
5,234
|
|
||
Net cash used in operating activities
|
|
(121,243
|
)
|
|
(62,803
|
)
|
||
Cash flows from investing activities
|
|
|
|
|
||||
Purchase of property and equipment
|
|
(52,101
|
)
|
|
(68,434
|
)
|
||
Settlement of net investment hedges
|
|
6,475
|
|
|
4,657
|
|
||
Other investing activities
|
|
—
|
|
|
(131
|
)
|
||
Net cash used in investing activities
|
|
(45,626
|
)
|
|
(63,908
|
)
|
||
Cash flows from financing activities
|
|
|
|
|
||||
Proceeds from settlement of stock-based compensation
|
|
3,135
|
|
|
12,177
|
|
||
Taxes paid related to net share settlement of stock-based compensation
|
|
(30,059
|
)
|
|
(18,939
|
)
|
||
Repurchase of common stock
|
|
(63,663
|
)
|
|
(163,530
|
)
|
||
Net cash used in financing activities
|
|
(90,587
|
)
|
|
(170,292
|
)
|
||
Effect of exchange rate changes on cash and cash equivalents
|
|
(13,043
|
)
|
|
(8,076
|
)
|
||
Decrease in cash and cash equivalents
|
|
(270,499
|
)
|
|
(305,079
|
)
|
||
Cash and cash equivalents, beginning of period
|
|
$
|
1,093,505
|
|
|
$
|
881,320
|
|
Cash and cash equivalents, end of period
|
|
$
|
823,006
|
|
|
$
|
576,241
|
|
Note 1
|
||
Note 2
|
||
Note 3
|
||
Note 4
|
||
Note 5
|
||
Note 6
|
||
Note 7
|
||
Note 8
|
||
Note 9
|
||
Note 10
|
|
|
Stock Options
|
|
Performance-Based Restricted Stock Units
|
|
Restricted Shares
|
|
Restricted Stock Units
|
|
Restricted Stock Units
(Liability Accounting)
|
|||||||||||||||||||||||||
|
|
Number
|
|
Weighted-Average Exercise Price
|
|
Number
|
|
Weighted-Average Grant Date Fair Value
|
|
Number
|
|
Weighted-Average Grant Date Fair Value
|
|
Number
|
|
Weighted-Average Grant Date Fair Value
|
|
Number
|
|
Weighted-Average Fair Value
|
|||||||||||||||
|
|
(In thousands, except per share amounts)
|
|||||||||||||||||||||||||||||||||
Balance at February 2, 2020
|
|
776
|
|
|
$
|
113.41
|
|
|
238
|
|
|
$
|
103.52
|
|
|
7
|
|
|
$
|
175.82
|
|
|
333
|
|
|
$
|
108.44
|
|
|
29
|
|
|
$
|
239.39
|
|
Granted
|
|
214
|
|
|
188.84
|
|
|
137
|
|
|
115.58
|
|
|
—
|
|
|
—
|
|
|
112
|
|
|
189.30
|
|
|
—
|
|
|
—
|
|
|||||
Exercised/released
|
|
42
|
|
|
75.26
|
|
|
171
|
|
|
63.03
|
|
|
—
|
|
|
—
|
|
|
159
|
|
|
86.02
|
|
|
—
|
|
|
—
|
|
|||||
Forfeited/expired
|
|
—
|
|
|
—
|
|
|
—
|
|
|
—
|
|
|
—
|
|
|
—
|
|
|
1
|
|
|
137.74
|
|
|
—
|
|
|
—
|
|
|||||
Balance at May 3, 2020
|
|
948
|
|
|
$
|
132.05
|
|
|
204
|
|
|
$
|
145.55
|
|
|
7
|
|
|
$
|
175.82
|
|
|
285
|
|
|
$
|
152.27
|
|
|
29
|
|
|
$
|
218.69
|
|
Exercisable at May 3, 2020
|
|
270
|
|
|
$
|
96.67
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
Quarter Ended
May 3, 2020 |
|
Expected term
|
|
3.75 years
|
|
Expected volatility
|
|
39.62
|
%
|
Risk-free interest rate
|
|
0.34
|
%
|
Dividend yield
|
|
—
|
%
|
•
|
Level 1 - defined as observable inputs such as quoted prices in active markets;
|
•
|
Level 2 - defined as inputs other than quoted prices in active markets that are either directly or indirectly observable; and
|
•
|
Level 3 - defined as unobservable inputs in which little or no market data exists, therefore requiring an entity to develop its own assumptions.
|
|
|
May 3, 2020
|
|
Level 1
|
|
Level 2
|
|
Level 3
|
|
Balance Sheet Classification
|
||||||||
|
|
(In thousands)
|
|
|
||||||||||||||
Money market funds
|
|
$
|
476,607
|
|
|
$
|
476,607
|
|
|
$
|
—
|
|
|
$
|
—
|
|
|
Cash and cash equivalents
|
Term deposits
|
|
132,222
|
|
|
—
|
|
|
132,222
|
|
|
—
|
|
|
Cash and cash equivalents
|
||||
Forward currency contract assets
|
|
23,511
|
|
|
—
|
|
|
23,511
|
|
|
—
|
|
|
Other prepaid expenses and other current assets
|
||||
Forward currency contract liabilities
|
|
23,766
|
|
|
—
|
|
|
23,766
|
|
|
—
|
|
|
Other current liabilities
|
|
|
February 2, 2020
|
|
Level 1
|
|
Level 2
|
|
Level 3
|
|
Balance Sheet Classification
|
||||||||
|
|
(In thousands)
|
|
|
||||||||||||||
Money market funds
|
|
$
|
610,800
|
|
|
$
|
610,800
|
|
|
$
|
—
|
|
|
$
|
—
|
|
|
Cash and cash equivalents
|
Term deposits
|
|
203,360
|
|
|
—
|
|
|
203,360
|
|
|
—
|
|
|
Cash and cash equivalents
|
||||
Forward currency contract assets
|
|
1,735
|
|
|
—
|
|
|
1,735
|
|
|
—
|
|
|
Other prepaid expenses and other current assets
|
||||
Forward currency contract liabilities
|
|
1,920
|
|
|
—
|
|
|
1,920
|
|
|
—
|
|
|
Other current liabilities
|
|
|
May 3, 2020
|
|
February 2, 2020
|
||||||||||||||||||||
|
|
Gross Notional
|
|
Assets
|
|
Liabilities
|
|
Gross Notional
|
|
Assets
|
|
Liabilities
|
||||||||||||
|
|
(In thousands)
|
||||||||||||||||||||||
Derivatives designated as net investment hedges:
|
|
|
|
|
|
|
|
|
|
|
|
|
||||||||||||
Forward currency contracts
|
|
$
|
461,000
|
|
|
$
|
23,364
|
|
|
$
|
—
|
|
|
$
|
417,000
|
|
|
$
|
1,583
|
|
|
$
|
—
|
|
Derivatives not designated in a hedging relationship:
|
|
|
|
|
|
|
|
|
|
|
|
|
||||||||||||
Forward currency contracts
|
|
505,000
|
|
|
147
|
|
|
23,766
|
|
|
460,000
|
|
|
152
|
|
|
1,920
|
|
||||||
Net derivatives recognized on consolidated balance sheets:
|
|
|
|
|
|
|
|
|
|
|
|
|
||||||||||||
Forward currency contracts
|
|
|
|
$
|
23,511
|
|
|
$
|
23,766
|
|
|
|
|
$
|
1,735
|
|
|
$
|
1,920
|
|
|
|
Quarter Ended
|
||||||
|
|
May 3, 2020
|
|
May 5, 2019
|
||||
|
|
(In thousands)
|
||||||
Gains (losses) recognized in foreign currency translation adjustment:
|
|
|
|
|
||||
Derivatives designated as net investment hedges
|
|
$
|
28,256
|
|
|
$
|
6,764
|
|
|
|
Quarter Ended
|
||||||
|
|
May 3, 2020
|
|
May 5, 2019
|
||||
|
|
(In thousands)
|
||||||
Gains (losses) recognized in selling, general and administrative expenses:
|
|
|
|
|
||||
Foreign exchange gains
|
|
$
|
27,742
|
|
|
$
|
5,697
|
|
Derivatives not designated in a hedging relationship
|
|
(27,520
|
)
|
|
(6,631
|
)
|
||
Net foreign exchange and derivative gains (losses)
|
|
$
|
222
|
|
|
$
|
(934
|
)
|
|
|
Quarter Ended
|
||||||
|
|
May 3, 2020
|
|
May 5, 2019
|
||||
|
|
(In thousands, except per share amounts)
|
||||||
Net income
|
|
$
|
28,632
|
|
|
$
|
96,603
|
|
Basic weighted-average number of shares outstanding
|
|
130,251
|
|
|
130,694
|
|
||
Assumed conversion of dilutive stock options and awards
|
|
552
|
|
|
643
|
|
||
Diluted weighted-average number of shares outstanding
|
|
130,803
|
|
|
131,337
|
|
||
Basic earnings per share
|
|
$
|
0.22
|
|
|
$
|
0.74
|
|
Diluted earnings per share
|
|
$
|
0.22
|
|
|
$
|
0.74
|
|
|
|
May 3,
2020 |
|
February 2,
2020 |
||||
|
|
(In thousands)
|
||||||
Inventories:
|
|
|
|
|
||||
Finished goods
|
|
$
|
648,909
|
|
|
$
|
540,580
|
|
Provision to reduce inventories to net realizable value
|
|
(23,060
|
)
|
|
(22,067
|
)
|
||
|
|
$
|
625,849
|
|
|
$
|
518,513
|
|
|
|
May 3,
2020 |
|
February 2,
2020 |
||||
|
|
(In thousands)
|
||||||
Other prepaid expenses and other current assets:
|
|
|
|
|
||||
Other prepaid expenses
|
|
$
|
60,333
|
|
|
$
|
64,568
|
|
Forward currency contract assets
|
|
23,511
|
|
|
1,735
|
|
||
Government payroll subsidy receivables
|
|
13,442
|
|
|
—
|
|
||
Other current assets
|
|
10,404
|
|
|
4,239
|
|
||
|
|
$
|
107,690
|
|
|
$
|
70,542
|
|
Property and equipment, net:
|
|
|
|
|
||||
Land
|
|
$
|
67,545
|
|
|
$
|
71,829
|
|
Buildings
|
|
28,984
|
|
|
30,187
|
|
||
Leasehold improvements
|
|
490,010
|
|
|
489,202
|
|
||
Furniture and fixtures
|
|
108,786
|
|
|
109,533
|
|
||
Computer hardware
|
|
95,250
|
|
|
95,399
|
|
||
Computer software
|
|
339,827
|
|
|
336,768
|
|
||
Equipment and vehicles
|
|
19,302
|
|
|
19,521
|
|
||
Work in progress
|
|
51,445
|
|
|
40,930
|
|
||
Property and equipment, gross
|
|
1,201,149
|
|
|
1,193,369
|
|
||
Accumulated depreciation
|
|
(541,884
|
)
|
|
(521,676
|
)
|
||
|
|
$
|
659,265
|
|
|
$
|
671,693
|
|
Other non-current assets:
|
|
|
|
|
||||
Cloud computing arrangement implementation costs
|
|
$
|
31,929
|
|
|
$
|
24,648
|
|
Security deposits
|
|
19,949
|
|
|
19,901
|
|
||
Other
|
|
8,981
|
|
|
11,652
|
|
||
|
|
$
|
60,859
|
|
|
$
|
56,201
|
|
Other current liabilities:
|
|
|
|
|
||||
Accrued duty, freight, and other operating expenses
|
|
$
|
76,679
|
|
|
$
|
59,403
|
|
Sales return allowances
|
|
33,962
|
|
|
12,897
|
|
||
Deferred revenue
|
|
27,775
|
|
|
12,705
|
|
||
Forward currency contract liabilities
|
|
23,766
|
|
|
1,920
|
|
||
Accrued capital expenditures
|
|
10,747
|
|
|
5,457
|
|
||
Sales tax collected
|
|
9,485
|
|
|
17,370
|
|
||
Accrued rent
|
|
5,129
|
|
|
8,356
|
|
||
Other
|
|
7,037
|
|
|
6,935
|
|
||
|
|
$
|
194,580
|
|
|
$
|
125,043
|
|
|
|
Quarter Ended
|
||||||
|
|
May 3, 2020
|
|
May 5, 2019
|
||||
|
|
(In thousands)
|
||||||
Net revenue:
|
|
|
|
|
||||
Company-operated stores
|
|
$
|
259,970
|
|
|
$
|
506,422
|
|
Direct to consumer
|
|
352,039
|
|
|
209,844
|
|
||
Other
|
|
39,953
|
|
|
66,049
|
|
||
|
|
$
|
651,962
|
|
|
$
|
782,315
|
|
Segmented income (loss) from operations:
|
|
|
|
|
||||
Company-operated stores
|
|
$
|
(30,154
|
)
|
|
$
|
120,911
|
|
Direct to consumer
|
|
156,947
|
|
|
79,337
|
|
||
Other
|
|
(269
|
)
|
|
12,623
|
|
||
|
|
126,524
|
|
|
212,871
|
|
||
General corporate expense
|
|
93,773
|
|
|
84,059
|
|
||
Income from operations
|
|
32,751
|
|
|
128,812
|
|
||
Other income (expense), net
|
|
1,174
|
|
|
2,379
|
|
||
Income before income tax expense
|
|
$
|
33,925
|
|
|
$
|
131,191
|
|
|
|
|
|
|
||||
Capital expenditures:
|
|
|
|
|
||||
Company-operated stores
|
|
$
|
33,819
|
|
|
$
|
38,710
|
|
Direct to consumer
|
|
2,298
|
|
|
6,226
|
|
||
Corporate and other
|
|
15,984
|
|
|
23,498
|
|
||
|
|
$
|
52,101
|
|
|
$
|
68,434
|
|
Depreciation and amortization:
|
|
|
|
|
||||
Company-operated stores
|
|
$
|
25,628
|
|
|
$
|
21,060
|
|
Direct to consumer
|
|
2,684
|
|
|
2,462
|
|
||
Corporate and other
|
|
15,220
|
|
|
9,301
|
|
||
|
|
$
|
43,532
|
|
|
$
|
32,823
|
|
|
|
Quarter Ended
|
||||||
|
|
May 3, 2020
|
|
May 5, 2019
|
||||
|
|
(In thousands)
|
||||||
United States
|
|
$
|
459,352
|
|
|
$
|
553,647
|
|
Canada
|
|
99,497
|
|
|
123,645
|
|
||
Outside of North America
|
|
93,113
|
|
|
105,023
|
|
||
|
|
$
|
651,962
|
|
|
$
|
782,315
|
|
|
|
Quarter Ended
|
||||||
|
|
May 3, 2020
|
|
May 5, 2019
|
||||
|
|
(In thousands)
|
||||||
Women's product
|
|
$
|
480,313
|
|
|
$
|
562,983
|
|
Men's product
|
|
129,129
|
|
|
170,219
|
|
||
Other categories
|
|
42,520
|
|
|
49,113
|
|
||
|
|
$
|
651,962
|
|
|
$
|
782,315
|
|
•
|
Net revenue decreased 17% to $652.0 million. On a constant dollar basis, net revenue decreased 16%.
|
•
|
Direct to consumer net revenue increased 68%, or increased 70% on a constant dollar basis.
|
•
|
Gross profit decreased 21% to $334.4 million.
|
•
|
Gross margin decreased 260 basis points to 51.3%.
|
•
|
Income from operations decreased 75% to $32.8 million.
|
•
|
Operating margin decreased 1,150 basis points to 5.0%.
|
•
|
Income tax expense decreased 85% to $5.3 million. Our effective tax rate for the first quarter of fiscal 2020 was 15.6% compared to 26.4% for the first quarter of fiscal 2019.
|
•
|
Diluted earnings per share were $0.22 compared to $0.74 in the first quarter of fiscal 2019.
|
|
|
Quarter Ended
|
||||||||||||
|
|
May 3, 2020
|
|
May 5, 2019
|
|
May 3, 2020
|
|
May 5, 2019
|
||||||
|
|
(In thousands)
|
|
(Percentages)
|
||||||||||
Net revenue
|
|
$
|
651,962
|
|
|
$
|
782,315
|
|
|
100.0
|
%
|
|
100.0
|
%
|
Cost of goods sold
|
|
317,560
|
|
|
360,595
|
|
|
48.7
|
|
|
46.1
|
|
||
Gross profit
|
|
334,402
|
|
|
421,720
|
|
|
51.3
|
|
|
53.9
|
|
||
Selling, general and administrative expenses
|
|
301,651
|
|
|
292,908
|
|
|
46.3
|
|
|
37.4
|
|
||
Income from operations
|
|
32,751
|
|
|
128,812
|
|
|
5.0
|
|
|
16.5
|
|
||
Other income (expense), net
|
|
1,174
|
|
|
2,379
|
|
|
0.2
|
|
|
0.3
|
|
||
Income before income tax expense
|
|
33,925
|
|
|
131,191
|
|
|
5.2
|
|
|
16.8
|
|
||
Income tax expense
|
|
5,293
|
|
|
34,588
|
|
|
0.8
|
|
|
4.4
|
|
||
Net income
|
|
$
|
28,632
|
|
|
$
|
96,603
|
|
|
4.4
|
%
|
|
12.3
|
%
|
|
|
Quarter Ended
|
||||||||||||
|
|
May 3, 2020
|
|
May 5, 2019
|
|
May 3, 2020
|
|
May 5, 2019
|
||||||
|
|
(In thousands)
|
|
(Percentages)
|
||||||||||
Company-operated stores
|
|
$
|
259,970
|
|
|
$
|
506,422
|
|
|
39.9
|
%
|
|
64.7
|
%
|
Direct to consumer
|
|
352,039
|
|
|
209,844
|
|
|
54.0
|
|
|
26.8
|
|
||
Other
|
|
39,953
|
|
|
66,049
|
|
|
6.1
|
|
|
8.4
|
|
||
Net revenue
|
|
$
|
651,962
|
|
|
$
|
782,315
|
|
|
100.0
|
%
|
|
100.0
|
%
|
•
|
an increase in occupancy and depreciation costs as a percentage of revenue of 330 basis points, primarily due to lower net revenue;
|
•
|
an increase in costs as a percentage of revenue related to our distribution centers of 100 basis points primarily due to lower net revenue; and
|
•
|
an unfavorable impact of foreign exchange rates of 20 basis points.
|
•
|
an increase in head office costs of $7.6 million, comprised of:
|
–
|
an increase in other costs of $18.2 million primarily due to increases in depreciation, information technology costs, brand and community costs, and other head office costs; and
|
–
|
a decrease in employee costs of $10.6 million primarily due to decreased incentive and stock-based compensation expense; and
|
•
|
an increase in costs related to our operating channels of $16.6 million, comprised of:
|
–
|
an increase in variable costs of $10.4 million primarily due to an increase in distribution costs as a result of increased direct to consumer net revenue;
|
–
|
an increase in other costs of $11.6 million primarily due to increased digital marketing expenses;
|
–
|
a decrease in employee costs of $5.4 million primarily due to lower incentive compensation expenses due to temporary store closures as a result of COVID-19; and
|
|
|
Quarter Ended
|
||||||||||||
|
|
May 3, 2020
|
|
May 5, 2019
|
|
May 3, 2020
|
|
May 5, 2019
|
||||||
|
|
(In thousands)
|
|
(Percentage of segment revenue)
|
||||||||||
Segmented income (loss) from operations:
|
|
|
|
|
|
|
|
|
||||||
Company-operated stores
|
|
$
|
(30,154
|
)
|
|
$
|
120,911
|
|
|
(11.6
|
)%
|
|
23.9
|
%
|
Direct to consumer
|
|
156,947
|
|
|
79,337
|
|
|
44.6
|
|
|
37.8
|
|
||
Other
|
|
(269
|
)
|
|
12,623
|
|
|
(0.7
|
)
|
|
19.1
|
|
||
|
|
126,524
|
|
|
212,871
|
|
|
|
|
|
||||
General corporate expense
|
|
93,773
|
|
|
84,059
|
|
|
|
|
|
||||
Income from operations
|
|
$
|
32,751
|
|
|
$
|
128,812
|
|
|
|
|
|
|
|
Quarter Ended
May 3, 2020 |
||||||||
|
|
Net Revenue
|
|
Direct to Consumer Net Revenue
|
||||||
|
|
(In thousands)
|
|
(Percentages)
|
|
(Percentages)
|
||||
Change
|
|
$
|
(130,353
|
)
|
|
(17
|
)%
|
|
68
|
%
|
Adjustments due to foreign exchange rate changes
|
|
7,674
|
|
|
1
|
|
|
2
|
|
|
Change in constant dollars
|
|
$
|
(122,679
|
)
|
|
(16
|
)%
|
|
70
|
%
|
|
|
Quarter Ended
|
||||||
|
|
May 3, 2020
|
|
May 5, 2019
|
||||
|
|
(In thousands)
|
||||||
Total cash (used in) provided by:
|
|
|
|
|
||||
Operating activities
|
|
$
|
(121,243
|
)
|
|
$
|
(62,803
|
)
|
Investing activities
|
|
(45,626
|
)
|
|
(63,908
|
)
|
||
Financing activities
|
|
(90,587
|
)
|
|
(170,292
|
)
|
||
Effect of exchange rate changes on cash
|
|
(13,043
|
)
|
|
(8,076
|
)
|
||
Decrease in cash and cash equivalents
|
|
$
|
(270,499
|
)
|
|
$
|
(305,079
|
)
|
•
|
an increase of $6.0 million in non-cash expenses primarily related to an increase in depreciation, partially offset by a decrease in stock-based compensation expense; and
|
•
|
an increase of $3.5 million in changes in operating assets and liabilities, primarily due to the following:
|
–
|
an increase of $92.9 million related to income taxes, primarily due to the deferral of Canadian income tax payments to the third quarter of fiscal 2020 as well as payments for withholding taxes on repatriated foreign earnings in the first quarter of fiscal 2019;
|
–
|
an increase of $61.9 million related to other current and non-current liabilities primarily due to an increase in forward currency contract liabilities as a result of foreign exchange fluctuations, and an increase in the sales return allowance as a result of COVID-19 reducing in-period returns; and
|
–
|
an increase of $7.6 million related to accounts payable.
|
–
|
a decrease of $69.0 million related to inventories, primarily due to lower than expected net revenue as a result of the temporary store closures from COVID-19;
|
–
|
a decrease of $37.2 million related to other prepaid expenses and other current and non-current assets, primarily due to an increase in forward currency contract assets as a result of foreign exchange fluctuations;
|
–
|
a decrease of $27.6 million related to accrued compensation related expenses; and
|
–
|
a decrease of $25.1 million related to right-of-use lease assets and current and non-current lease liabilities.
|
|
|
May 3,
2020 |
|
February 2,
2020 |
||
United States
|
|
301
|
|
|
305
|
|
Canada
|
|
61
|
|
|
63
|
|
People's Republic of China(1)
|
|
41
|
|
|
38
|
|
Australia
|
|
31
|
|
|
31
|
|
United Kingdom
|
|
14
|
|
|
14
|
|
Japan
|
|
7
|
|
|
7
|
|
New Zealand
|
|
7
|
|
|
7
|
|
Germany
|
|
6
|
|
|
6
|
|
South Korea
|
|
6
|
|
|
5
|
|
Singapore
|
|
4
|
|
|
4
|
|
France
|
|
3
|
|
|
3
|
|
Malaysia
|
|
2
|
|
|
2
|
|
Sweden
|
|
2
|
|
|
2
|
|
Ireland
|
|
1
|
|
|
1
|
|
Netherlands
|
|
1
|
|
|
1
|
|
Norway
|
|
1
|
|
|
1
|
|
Switzerland
|
|
1
|
|
|
1
|
|
Total company-operated stores
|
|
489
|
|
|
491
|
|
(1)
|
Included within PRC as of May 3, 2020, were seven company-operated stores in the Hong Kong Special Administrative Region, two company-operated stores in the Macao Special Administration Region, and one company-operated store in Taiwan, PRC. As of February 2, 2020, there were six company-operated stores in the Hong Kong Special Administrative Region, two company-operated stores in the Macao Special Administration Region, and one company-operated store in Taiwan, PRC.
|
•
|
the following impacts to the consolidated statements of operations:
|
–
|
a decrease in our net revenue upon translation of the sales made by our Canadian operations into U.S. dollars for the purposes of consolidation;
|
–
|
a decrease in our selling, general and administrative expenses incurred by our Canadian operations upon translation into U.S. dollars for the purposes of consolidation;
|
–
|
foreign exchange revaluation gains by our Canadian subsidiaries on U.S. dollar denominated monetary assets and liabilities; and
|
–
|
derivative valuation losses on forward currency contracts not designated in a hedging relationship;
|
•
|
the following impacts to the consolidated balance sheets:
|
–
|
a decrease in the foreign currency translation adjustment which arises on the translation of our Canadian subsidiaries' balance sheets into U.S. dollars; and
|
–
|
an increase in the foreign currency translation adjustment from derivative valuation losses on forward currency contracts, entered into as net investment hedges of a Canadian subsidiary.
|
•
|
the impact of health conditions, including the current COVID-19 coronavirus pandemic, and related government and private sector responsive actions, and other changes in local economic conditions in countries where our manufacturers, suppliers, or guests are located;
|
•
|
political unrest, terrorism, labor disputes, and economic instability resulting in the disruption of trade from foreign countries in which our products are manufactured;
|
•
|
the imposition of new laws and regulations, including those relating to labor conditions, quality and safety standards, imports, duties, taxes and other charges on imports, as well as trade restrictions and restrictions on currency exchange or the transfer of funds;
|
•
|
reduced protection for intellectual property rights, including trademark protection, in some countries, particularly in the PRC; and
|
•
|
disruptions or delays in shipments whether due to port congestion, labor disputes, product regulations and/or inspections or other factors, natural disasters or health pandemics, or other transportation disruptions.
|
•
|
identify suitable store locations, the availability of which is outside of our control;
|
•
|
gain brand recognition and acceptance, particularly in markets that are new to us;
|
•
|
negotiate acceptable lease terms, including desired tenant improvement allowances;
|
•
|
hire, train and retain store personnel and field management;
|
•
|
immerse new store personnel and field management into our corporate culture;
|
•
|
source sufficient inventory levels; and
|
•
|
successfully integrate new stores into our existing operations and information technology systems.
|
•
|
the classification of our board of directors into three classes, with one class elected each year;
|
•
|
prohibiting cumulative voting in the election of directors;
|
•
|
the ability of our board of directors to issue preferred stock without stockholder approval;
|
•
|
the ability to remove a director only for cause and only with the vote of the holders of at least 66 2/3% of our voting stock;
|
•
|
a special meeting of stockholders may only be called by our chairman or Chief Executive Officer, or upon a resolution adopted by an affirmative vote of a majority of the board of directors, and not by our stockholders;
|
•
|
prohibiting stockholder action by written consent; and
|
•
|
our stockholders must comply with advance notice procedures in order to nominate candidates for election to our board of directors or to place stockholder proposals on the agenda for consideration at any meeting of our stockholders.
|
Period(1)
|
|
Total Number of Shares Purchased(2)
|
|
Average Price Paid per Share
|
|
Total Number of Shares Purchased as Part of Publicly Announced Plans or Programs(2)
|
|
Maximum Dollar Value of Shares that May Yet Be Purchased Under the Plans or Programs(2)
|
||||||
February 3, 2020 - March 1, 2020
|
|
—
|
|
|
$
|
—
|
|
|
—
|
|
|
$
|
327,302,004
|
|
March 2, 2020 - April 5, 2020
|
|
368,630
|
|
|
172.68
|
|
|
368,630
|
|
|
263,646,016
|
|
||
April 6, 2020 - May 3, 2020
|
|
—
|
|
|
—
|
|
|
—
|
|
|
263,646,016
|
|
||
Total
|
|
368,630
|
|
|
|
|
368,630
|
|
|
|
(1)
|
Monthly information is presented by reference to our fiscal periods during our first quarter of fiscal 2020.
|
(2)
|
On January 31, 2019, our board of directors approved a stock repurchase program of up to $500 million of our common shares on the open market or in privately negotiated transactions. Common shares repurchased on the open market are at prevailing market prices, including under plans complying with the provisions of Rule 10b5-1 and Rule 10b-18 of the Securities Exchange Act of 1934. The timing and actual number of common shares to be repurchased will depend upon market conditions, eligibility to trade, and other factors. As of March 31, 2020, we temporarily paused our share repurchase program.
|
Period(1)
|
|
Total Number of Shares Purchased(2)
|
|
Average Price Paid per Share
|
|
Total Number of Shares Purchased as Part of Publicly Announced Plans or Programs(2)
|
|
Maximum Number of Shares that May Yet Be Purchased Under the Plans or Programs(2)
|
|||||
February 3, 2020 - March 1, 2020
|
|
5,366
|
|
|
$
|
246.17
|
|
|
5,366
|
|
|
4,721,280
|
|
March 2, 2020 - April 5, 2020
|
|
10,444
|
|
|
191.46
|
|
|
10,444
|
|
|
4,710,836
|
|
|
April 6, 2020 - May 3, 2020
|
|
6,287
|
|
|
218.32
|
|
|
6,287
|
|
|
4,704,549
|
|
|
Total
|
|
22,097
|
|
|
|
|
22,097
|
|
|
|
(1)
|
Monthly information is presented by reference to our fiscal periods during our first quarter of fiscal 2020.
|
(2)
|
Our Employee Share Purchase Plan (ESPP) was approved by our board of directors and stockholders in September 2007. All shares purchased under the ESPP are purchased on the Nasdaq Global Select Market (or such other stock exchange as we may designate from time to time). Unless our board of directors terminates the ESPP earlier, the ESPP will continue until all shares authorized for purchase under the ESPP have been purchased. The maximum number of shares authorized to be purchased under the ESPP is 6,000,000.
|
|
|
|
|
|
|
Incorporated by Reference
|
||||||
Exhibit
No.
|
|
Exhibit Title
|
|
Filed
Herewith
|
|
Form
|
|
Exhibit
No.
|
|
File No.
|
|
Filing
Date
|
|
|
|
|
|
|
|
||||||
10.1*
|
|
|
X
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
31.1
|
|
|
X
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
31.2
|
|
|
X
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
32.1**
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
101
|
|
The following unaudited interim consolidated financial statements from the Company's Quarterly Report on Form 10-Q for the fiscal quarter ended May 3, 2020, formatted in iXBRL: (i) Consolidated Balance Sheets, (ii) Consolidated Statements of Operations and Comprehensive (Loss) Income, (iii) Consolidated Statements of Stockholders' Equity, (iv) Consolidated Statements of Cash Flows (v) Notes to the Unaudited Interim Consolidated Financial Statements
|
|
X
|
|
|
|
|
|
|
|
|
*
|
Denotes a compensatory plan, contract, or arrangement, in which our directors or executive officers may participate.
|
**
|
Furnished herewith.
|
|
|
lululemon athletica inc.
|
|
|
|
By:
|
|
/s/ CALVIN MCDONALD
|
|
|
Calvin McDonald
|
|
|
Chief Executive Officer and Director
|
|
|
(principal financial and accounting officer)
|
|
|
|
|
|
|
Incorporated by Reference
|
||||||
Exhibit
No.
|
|
Exhibit Title
|
|
Filed
Herewith
|
|
Form
|
|
Exhibit
No.
|
|
File No.
|
|
Filing
Date
|
|
|
|
|
|
|
|
|
|
|
|
|
|
10.1*
|
|
Form of Annual Cash Performance Bonus Award Agreement
|
|
X
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
31.1
|
|
Certification of principal executive officer Pursuant to Exchange Act Rule 13a-14(a)
|
|
X
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
||||||
31.2
|
|
Certification of principal financial and accounting officer Pursuant to Exchange Act Rule 13a-14(a)
|
|
X
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
32.1**
|
|
Certification of principal executive officer and principal financial and accounting officer Pursuant to 18 U.S.C. Section 1350 as Adopted Pursuant to Section 906 of the Sarbanes-Oxley Act of 2002
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
101
|
|
The following unaudited interim consolidated financial statements from the Company's Quarterly Report on Form 10-Q for the fiscal quarter ended May 3, 2020, formatted in iXBRL: (i) Consolidated Balance Sheets, (ii) Consolidated Statements of Operations and Comprehensive (Loss) Income, (iii) Consolidated Statements of Stockholders' Equity, (iv) Consolidated Statements of Cash Flows (v) Notes to the Unaudited Interim Consolidated Financial Statements
|
|
X
|
|
|
|
|
|
|
|
|
*
|
Denotes a compensatory plan, contract, or arrangement, in which our directors or executive officers may participate.
|
**
|
Furnished herewith.
|
1 Year Lululemon Athletica Chart |
1 Month Lululemon Athletica Chart |
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