5. COMPETITIVE STRENGTHS
bibbity Premium Active Brand
bobbity Distinctive Retail Experience
boo Innovative Design Process
Culture of Training &
Personal Growth
Community-Based Marketing
Excellent Management
9. Our Numbers for Your Analysis
• LOW Avg. Inventory Turnover
• LOW Avg. Days Outstanding
• LOW PPE Turnover
• NO debt
• NO “Off-Balance Sheet” Financing
10. Some Risks…
» Cost of Materials – “silverescent line”
(includes silver threading)
» Ability to maintain inventory and distribution
channels
» Ability to meet technology needs of expanding
e-commerce and information systems
Thomson Reuters
12. The Future is Bright
2.5
2
$ dollars
1.5
Due to heavy capitalization
needed to fund growth
1 EPS
0.5
0
2009 2010 2011 2012 2013 2014
Source: Thomson Reuters
13. The Future is Bright
PROJECTED EPS
150%
130% NIKE
110%
90% UA
70%
% Growth
50% GAP
30%
10% ADIDAS
-10%
-30% Due to heavy capitalization LULU
needed to fund growth
-50%
‘09-10 ‘10-11 ‘11-12 ‘12-13 ‘13-14
Year
Source: Thomson Reuters
14. The Future is Bright
» Opening Additional 37 Corporate Stores
» Repurchased Franchisees
» Expanding to London, Australia & Southeast Asia
» Focus on E-Commerce Business
Revenue has doubled each year since 2009
Source: Thomson Reuters
Lululemon’s Competitive StrengthsPremium Active Brand(notes: Customers associate the lululemonathletica brand stands for apparel that incorporate technically advanced materials, innovative functional features, and style. Lulu has roots in yoga but products are increasingly being designed and used for general fitness) Distinctive Retail Experience(notes: Stores are positioned to be an integral part of the community, and sales associates are coached to develop personal connection with guests and receive in-house training. Innovative Design Process(notes: Apparel is high quality and designed for performance, comfort, functionality, and style. Vertical retail strategy can respond to customer feedback in as little as two months)Deep Rooted Culture Centered on Training and Personal Growth(notes: Lulu believes the relationship with their employees is exceptional and a key contributor to their success)Community-Based Marketing Approach (notes: Product differentiation achieved through innovative, community based approach using multifaceted grassroots marketing strategy)Experienced Management Team with Proven Ability to Execute(notes: CEO was at Starbucks for 20 years and most recently served at President of Asia Pacific Group of Starbucks International. Management team has background in retail, design, operations, product sourcing, marketing, and information technology)
Lululemon’s Competitive StrengthsPremium Active Brand(notes: Customers associate the lululemonathletica brand stands for apparel that incorporate technically advanced materials, innovative functional features, and style. Lulu has roots in yoga but products are increasingly being designed and used for general fitness) Distinctive Retail Experience(notes: Stores are positioned to be an integral part of the community, and sales associates are coached to develop personal connection with guests and receive in-house training. Innovative Design Process(notes: Apparel is high quality and designed for performance, comfort, functionality, and style. Vertical retail strategy can respond to customer feedback in as little as two months)Deep Rooted Culture Centered on Training and Personal Growth(notes: Lulu believes the relationship with their employees is exceptional and a key contributor to their success)Community-Based Marketing Approach (notes: Product differentiation achieved through innovative, community based approach using multifaceted grassroots marketing strategy)Experienced Management Team with Proven Ability to Execute(notes: CEO was at Starbucks for 20 years and most recently served at President of Asia Pacific Group of Starbucks International. Management team has background in retail, design, operations, product sourcing, marketing, and information technology)
EPS = Net Income less Dividends/Avg Outstanding SharesE-Commerce:2009(less than 1%), 2010(4%), 2011(8%), projected 15% growth next year… also opening discrete websites in U.K., Australia and AsiaOpening Showrooms in London & Hong KOng
Silverescent line is odor-inhibiting athletic products that are threaded with silver to deter the spread of odour-producing bacteria and fungi in human sweat into accessoriesTalk about “scarcity model” of having “just enough inventory” requiring customers to purchase at full price to obtain product
EPS = Net Income less Dividends/AvgOutstanding Shares
EPS = Net Income less Dividends/AvgOutstanding Shares
EPS = Net Income less Dividends/Avg Outstanding SharesWill be investing heavily in Information Technology opening 37 new stores($70-$75M capital investments)
EPS = Net Income less Dividends/Avg Outstanding SharesWill be investing heavily in Information Technology opening 37 new stores($70-$75M capital investments)
EPS = Net Income less Dividends/Avg Outstanding SharesE-Commerce:2009(less than 1%), 2010(4%), 2011(8%), projected 15% growth next year… also opening discrete websites in U.K., Australia and AsiaOpening Showrooms in London & Hong KOng
