We expect gross margin in Q3 to increase 50 to 100 basis points versus Q3 of 2019. Here you will find key information and financial reports, puttingtheperformance oflululemon athleticaincinto perspective for you. Calvin, I guess my question is with lead times that are generally six months plus, I'm wondering if you can give us some more details on the amount of exposure that you have maybe to Vietnam. These teams are the heart and soul of our brand, and they are responsible for the elevated experience our guests enjoy each and every time they engage with us. Hi, good afternoon. Our EPS guidance continues to assume modest dilution from MIRROR in the 3% to 5% range . Ike Boruchow -- Wells Fargo Securities -- Analyst. Macy's, Inc. to Report Fourth Quarter and Full-Year 2022 Results on March 2, 2023 View Release I am proud of our leaders and teams for enabling us to meet and exceed these goals. 6. And from that, some of the behaviors that we were able to observe was how it drove brand love, their connection to the community, both the brand as well as to each other, which is really important. %PDF-1.6 % And as you mentioned, with the revised guidance of -- we're looking to achieve between $6.2 billion, $6.3 billion this year, putting us two years ahead. And I am pleased to now hand it over to Celeste, who will share some additional details with you on our stores and e-commerce business. For the fourth quarter ended rather than I guess, I imagine it was a challenge to get reads on the tests given everything that's been going on in the last 18 months, but I mean do you still see an opportunity to have a loyalty program that exists outside of the MIRROR platform or what form might that take? And it has just continued to gain momentum through each quarter and then with Q2 being sort of back at that great growth where we're going to double our business at the end of this year, two years early from when we started at the beginning of 2019. And while we are navigating temporary headwinds in our supply chain, which are impacting both top line and gross margin, we are pleased with our momentum headed into the second half. Results of this caliber enable us to now develop our next five-year growth plan, and we'll come back to you next year with an updated view of what the future can hold for Lululemon. hTA0 nCms!B4 CG/=jL;;DAV So excited about what the future continues to hold for our international business. These learnings were integral to our decision to complete the MIRROR acquisition, and hold true today. The $5.6 billion sales year. So I think that embedded about 1,000 to 1,500 basis points of margin expansion in international. You understand that any messages or information you send to our websites may be read or intercepted by others. 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. lululemon athletica inc. $518.5 million Achieving strong sales results through the team and . Switching now to e-commerce. Obviously, the environment's really dynamic and fluid today. tax reform and taxes on the repatriation of foreign earnings during fiscal 2018. As I've mentioned before, Lululemon's unique approach to product innovation is driven by our Science of Feel innovation platform. 10. Square Feet at At . Gotcha. Celeste? I continue to be very encouraged with the usage numbers and engagement numbers that we're seeing with the MIRROR community. Tesla shares tumbled after Wednesday's investor day was scant on details about future vehicles. 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. Sustainable Product Innovation: Make 100 percent of our products with sustainable materials and end-of use solutions, toward a circular ecosystem by 2030. January 27, 2019 We're just ramping up synergies, like the 200 stores that play to our strength in the key leads in each of those locations. And the growth targets within that are what you should continue to look forward beyond 21, but we do plan to come back with our long-term thinking next year and share more with you at that point. 2. Toronto, Canada Area. Straight to your inbox. People Who Make Our Products Sub Navigation. To learn more, see our. And the second is the power of human connection through our educators through the strength of our community and the investments we make at grassroots through our people, through our ambassador community, and then the exciting addition of MIRROR into that community. Tapestry Investor Day 2022. World Health Organization There are obviously between bottoms and tops and shorts and outerwear and some of the accessories. Thank you for the detail and best of luck. And the program was embraced by men at a higher rate than we were expecting. For the full year of 2021, we now expect revenue to be in the range of $6.19 billion to $6.26 billion. Please note that our websites and communications may contain links to third-party websites that are not controlled or operated by lululemon. Q. lululemon athletica One, the membership test, we learned a lot. lululemon encourages and creates access to voter participation in the 2020 U.S. Election. We are committed to serving the best interests of our shareholders. So it is a very important driver of innovation for our business. VANCOUVER, British Columbia And then, secondly, for Meghan, on the second quarter comment, you called out an open-store productivity back at 2019 levels, how are you planning that for the back half? The increase versus 2020 reflects increased investment in our supply chain, digital capabilities, new store openings, and renovations, including MIRROR shop-in-shops, as well as other technology and general corporate infrastructure projects. Consider that in fiscal 1994, Nike sales declined 3.6% to $3.79 billion. January 27, 2019 Canada I am incredibly proud of how lululemon navigated the year. Inclusion, Diversity, Equity, and Action: Reflect the diversity of the communities we serve and operate in around the world by 2025. We share personal data with third parties when we have your consent to do so. , and in many other countries globally. For more information about our privacy practices, please refer to our privacy policy available in our stores or on our website at https://www.lululemon.co.uk/en-gb/legal/privacy.html for UK residents or https://www.eu.lululemon.com/en-lu/content/privacy.html for EU resident (Privacy Policy). on or about So for Q3, we are planning to be slightly above last year -- of 2019 level for the quarter. If you follow a link to any of these websites, please note that these websites have their own privacy policies and that lululemon does not accept any responsibility or liability for these policies.Please review these policies before you disclose any personal data when visiting such third-party websites. For 2022, our first full year as a public company, we delivered net revenue growth of over 20%. Welcome to our website shipping to Europe. and intangible assets, net, Deferred income taxes and other non-current assets, Accrued compensation and related expenses, Total liabilities and stockholders' equity, Adjustments to reconcile net income to net cash provided by operating activities, Net cash provided by operating activities, Increase (decrease) in cash and cash equivalents, Cash and cash equivalents, beginning of year, lululemon athletica Vendor Code of Ethics; Conducting Assessments & Remediation; Working With Our Suppliers to Create Meaningful Change; Programs to Build Better Our obsession with raw material and our investment in our product is what we do, is what we obsess about, and its really what drives why the guests feel different and continue to sort of be loyal to this product and brand. 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. If youre looking to ship to somewhere else, please choose your country. $404.8 million We respect your privacy and won't spam you. SG&A expenses were $541 million or 37.3% of net revenue, compared to 39.1% of net revenue in Q2 2020 and 36% of net revenue in Q2 2019. Lululemon Subscribe . But really pleased overall, I would say, with the operating flow-through of our business and remain on track to Power 3 growth plan as we've discussed. For more information about the disclosure of your personal data, please refer to our Privacy Policy. We may also disclose your personal data with applicable regulators or other authorities when we believe doing so is reasonably necessary to comply with applicable law or legal process (including requests from authorities), to respond to claims (including inquiries by you in connection with your purchases from lululemon), or to protect the rights, property or personal safety of lululemon, our users, employees or the public. For example, when your personal data is processed for email marketing purposes, you have the right to object to such processing at any time by clicking on the unsubscribe link at the bottom of such marketing communications. Very pleased with our international business, very pleased with growth across every market we are in.Now, different markets have been impacted differently from COVID.As you know, Australia, New Zealand in particular right now, is where the bulk of our global store closures are taking place but even with that, our online business is doing very well. lululemon hires its first-ever CBO to drive global brand and storytelling initiatives. And then we also have higher depreciation relative to 2019, just given our investments behind digital and the strength of that business. 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. Please go ahead. . Gross 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. We are committed to serving the best interests of our shareholders. Discover lightweight, comfortable bottoms designed for every environment. I will now turn it over to Meghan. Tapestry Acceleration Program Infographic. February 2, 2020 A few key metrics tell the story. Mark Altschwager -- Robert W. Baird -- Analyst. Sustainable Materials: Achieve at least 75 percent sustainable materials for our products by 2025. While this level of inventory can support our increased revenue guidance I'm going to walk through in a moment, it is lower than we had initially targeted due to supply chain challenges. After the presentation, there will be an opportunity to ask questions. 0001172661-23-001474.rtf. We will provide additional updates as the situation warrants. It's a powerful and distinctive companion to our hugely successful Align product line and we will further solidify our leadership position within the yoga category. Lululemon learned some things about what customers want in a shoe from its previous partnership to sell athletic footwear from the brand Athletic Propulsion Labs (APL). $1.4 billion tax reform and taxes on repatriation of foreign earnings. We're so excited to welcome lululemon to the Fertifa family. And as Calvin mentioned, we'll come back and update that plan as we move into next year. 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. We now expect our fiscal year 2021 adjusted diluted earnings per share to be in the range of $7.38 to $7.48. Our Impact Agenda is more than a set of commitments, said Calvin McDonald, Chief Executive Officer. I'll break it into two things. Before we begin the call, I'd like to remind our investors to visit our Investor site, where you'll find a summary of our key financial and operating statistics for the second quarter, as well as our quarterly infographic. Lululemon is starting to tap the $3 trillion global wellness market. One is general fitness, awareness to being well, living well, to the importance of functional apparel, which is critical, and again, plays to our strength. Berkshire's profit plummeted by 91 per cent. The adjustments relate to the amounts recognized in connection with [Operator instructions] And now, I'd like to turn the call over to Cal. 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. Combined, these give us a unique strength to keep growing MIRROR. lululemon (Non-GAAP), Tax on At the end of Q3, we expect inventory levels to increase approximately 15% to 20% relative to Q3 2020. Just wondering how you think that impacts the company's ability to continue to reach its goals? The membership test gave us access to thousands of guests that were behaving in this way in MIRROR, at the end of this year is going to give us access to hundreds of thousands. and available at www.sec.gov, including, without limitation, our most recent reports on Form 10-K and Form 10- Thank you so much. And that includes MIRROR consolidated in this year's numbers and not in 2019, as well as brand building, which would include both that MIRROR piece as well as our current Feel campaign. This helps us to provide you with a good experience when you browse our websites and allows us to improve our websites. In this Privacy Policy, "personal data" means any information about an individual whose identity is apparent or can be ascertained, directly or indirectly. And the impact of the Southern Vietnam closure is currently impacting approximately 20% of our second half inventory. Senior Private Client Manager is a client-centric Leader committed to developing and motivating a team of Private Client Sales Managers leading Stylists as Curators to create a culture of improvement and high performance. Sign Up. , Comparable Learn More. After many real and impactful conversations with their underrepresented employees and greater community, lululemon's Senior Leadership Team made the following commitments to stand up and fund Inclusion, Diversity, Equity, and Action within the organization to support meaningful, lasting change in . How we protected our teams reflects the unique culture and values of lululemon, We collect personal data from you in connection with your access to and use of our websites, your in-store or online purchases of our products or services, or if you provide us with personal data through other channels or media, such as social media or an event registration service.In particular, we collect personal data directly from you in connection with the following activities: Registering for an account or filling in forms on our websites or in our stores (this includes information you provide when you request additional information, in writing or verbally, about our products or services or sign up to receive our e-mail newsletters, marketing messages or coupons); Completing a profile or uploading goals to our websites; Interacting with us on social media, such as by tagging us and/or our products, or permitting us to follow your social media profile; Purchasing any product or service from us;Providing design or product feedback or making other submissions to us; Requesting information or assistance from us, including correspondence with our customer service team and through social media; Participating in or responding to surveys or requests for opinions, feedback and preferences regarding our products and services; Participating in or registering for events, consumer contests, sweepstakes and other promotions; Using other features of our websites that may be offered from time to time, which may require such information in order to utilise the feature. We will double our men's business this year, and our international business is ahead of the 4-time growth we put out to be completed by the end of '23. Hi, thank you. Looking at our store channel, total revenue increased 142% versus last year and 9% on a two-year CAGR basis. Boxville is a very unique collection of shipping containers designed as a space for the community to gather and local businesses to engage in commerce. Given this strategic opportunity, we will suspend our membership tests that have been underway and apply the learnings to how we build out the MIRROR platform for guests.