Internal Analysis and Strategy Report - Lululemon

Kailey Schaneberg
BA 497.01
lululemon athletica inc.
Internal Case Analysis Report

MEMORANDUM
TO: Mr. Laurent Potdevin, Chief Executive Officer, lululemon athletica inc.
FROM: Ms. Kailey Schaneberg
DATE: 8 February 2016
RE: Internal Case Analysis
BACKGROUND: Lululemon athletica is a brand leader of customer loyalty in the athletic wear
industry. Currently operating in 211 corporate owned stores in the United States and 91 stores
globally, lululemon is expanding globally into high end regions such as United Arab Emirates and
Australia.1 Lululemon was ranked on Fortune's Fastest-Growing Companies list for three years in a
row next to companies such as Facebook and Netflix, yet saw a decline after a damaging product
recall and top leadership transitions.2 These events were flanked by self-reported $57-$67 million
revenue loss in damaged inventory and lost sales that has only been recovered through two years
of solid growth.3 Completely regaining customer confidence in its product line as new competition
is rapidly joining the industry will be difficult, but presents a clear focus for strategic decisions.
JUSTIFICATION: Lululemon’s high cost structure allows them to have significant revenues, but also
requires a higher standard of product quality and customer benefit. Lululemon’s history is full of
product recalls from the notorious sheer yoga pants to a recent hoodie string recall.4 While its
strength in is brand loyalty, lululemon needs to be constantly innovating to meet the needs of this
luxury market. The Luon fabric accounts for 30% of total fabric used in products and is sourced
from a third party manufacturer in Southeast Asia.5 Poor inventory and supply chain management
resulted in a 17.56% increase cost of goods sold last year.6 Additionally, men age 18-34 are the
largest purchasers of high end sportwear at 43%, but typically their desires lean towards
traditional sport specific gear such as basketball shorts, or soccer jerseys.7 While lululemon has
expanded its product line to increase wear for men, it may need to prioritize the market’s needs.
RECOMMENDATION: To further strengthen the customer loyalty and hold on to market share in
the midst of new competition, we recommend that lululemon create an exclusive multi-site fitness
membership to partner studios offering a wide variety of activities. Loyal lululemon customers will
find value in the opportunity to try diverse workouts while partner studios will benefit from brand
awareness and increased traffic. Lululemon should also make an acquisition of the factory and
company that manufacturer the luon fabric to improve quality control and lower costs associated
with using a third party manufacturer. Lululemon should take advantage of the increasing market
for men’s fitness wear by expanding its product line to include men’s traditional sports specific
wear such as baseball, basketball or soccer. To complement such a strategy, lululemon should also
expand its brand ambassador program to professional athletes in such sports or entire sports
teams to broaden its reach to a more general audience.
CLOSING: Further detail and analysis supporting these recommendations is attached for your
review. Thank you for your time and consideration. We hope these strategies are beneficial for you
and your company and look forward to discussing with you on Monday, February 29.
ATTACHMENT:

Executive Summary
Lululemon is often credited as the catalyst for the yoga wear movement, making it a leader
in high-end fitness wear for the conscious shopper.8 This report includes a comprehensive internal,
and financial analysis to reveal lululemon’s core competencies. These core competencies and
market opportunities were used to formulate strategic recommendations for how lululemon can
regain customer confidence and gain a sustainable competitive advantage over its increasing
competition. The internal analysis consists of a SWOT Analysis, Core Competence Map and Strategy,
VRIO, key Financial Ratios. Important information was gathered from key research databases such
as Passport, Mintel, LexisNexis and Hoover and magazines such as The New York Times, Business
Insider, and Fortune.
The Situational Analysis (SWOT) identifies critical strengths and weaknesses of lululemon
which include company culture, fabric innovation, store expansion, and employee training. Some
weaknesses include top management turmoil, high shipping and manufacturing costs, poor
inventory management, and product quality concerns. New opportunities in the industry include
ecommerce growth, global expansion, men’s fitness wear, and increased health club membership.
Some threats that lululemon may face are increasing competition, rise of obesity and cost of labor.
The VRIO chart analyzes company resources for core competencies and other effects on success.
The Core Competence Chart maps the system in which lululemon’s core competencies feed into to
create its end products.
Taking into account the aforementioned research, the strategic recommendations seek to
boost lululemon into a sustained competitive advantage and continue to build a trusted reputation.
These recommendations include creation of a multi-site gym membership for loyal customers, an
acquisition of Luon fabric manufacturing, expansion of men’s sports-specific apparel and use of
professional athlete brand ambassadors. Lululemon should exploit its current core competencies,
as well as grow in capabilities to distinguish itself as the leader of the fitness wear industry.

Table of Contents
Memorandum ………………………………………………………………………………………………………………
Executive Summary ………………………………………………………………………………………………………
Table of Contents …………………………………………………………………………………………………………..
Internal Analysis
SWOT ………………………………………………………………………………………………………………… 1
Core Competence Map ……………………………………………………………………………………….. 2
Core Competence Strategy ………………………………………………………………………………….. 3
VRIO Analysis …………………………………………………………………………………………………..... 4
Financial Ratios …………………………………………………………………………………………………. 5
Summary of Internal Analysis Charts …………..………………………………………………………8
Strategic Recommendations …………………………………………………………………………………...…… 10
Bibliography ………………………………………………………………………………………………………………. 16

Situation Analysis: SWOT
STRENGTHS WEAKNESSES
Strong company culture and brand (H, CC)
 Attracts committed employees and consumer
through slogan of, "elevating the world from
mediocrity to greatness"9
 Defined as a “transformational experience”10
Fabric Technology (H)
 Offers a wide variety of high quality yoga and fitness
related products tailored to customers11
 Innovates new fabrics using water-proof, high
performance, and high flexibility technology12
Store Expansion (H, CC)
 New Stores in Australia, New Zealand, Singapore,
Canada, and the U.K.13 Will be moving to the UAE,
Kuwait, Qatar, Oman and Bahrain in next 5 years14
Relationships with Suppliers (M)
 Developed long-standing relationships with few
suppliers, but no contracts15
 Vendor code of ethics ensures CSR 16
Employee Training and Culture (M, CC)
 Unique meditation, yoga and fitness activities are an
integral part of corporate life17
 Brand Ambassador Program connects employees on
a grassroots level18
Financial (H, CC)
 19% increase in 4th quarter revenue from 2014 to
201519
 Free cash flow of over 1.9 million opens opportunity
for expansion20
 No long-term debt and low total debt to equity ratio
of 0.1921
Top Leadership (H)
 Resignation of CEO, Christina Day22
 Resignation of Founder and Board Chairman in
201423
 Founder, Chip Wilson is known to be controlling
and unfocused24
Shipping Costs (M)
 To keep up with demand, air shipping costs hurt
profit margins25
 Resulted in a 17.56% increase cost of goods sold26
High Cost Structure (H)
 Self-proclaimed technical apparel is sold at a
premium27
 Excess Inventory forced markdowns and caused
low margins and bruised brand28
 Customers recently complain of 22% price hike in
most popular goods29
Product Concerns (H)
 2013 yoga pant recall for transparent fabric lost
US$67 million in sales and hurt brand30
 Lack of patents and intellectual property rights
could strengthen competitors advantage31
 Lacks management infrastructure for quality
control32
OPPORTUNITIES THREATS
Global Expansion (H)
 Population in Qatar and UAE have increased by 103%
and 101.2%, respectively33
Growth of Hispanic Population (L)
 Will comprise19% of total US population by 201934
 Hispanics purchase significantly more fitness apparel
than any other race35
E-commerce (M)
 Online sales are projected to increase 77% from 2014-
201936
Health Club Partnerships (M)
 Membership at health clubs is at an all-time high.37
Men’s Fitness Wear (H)
 The largest age and gender group to purchase specialty
fitness clothing is men, age 18-34, at 43% of those who
purchase activewear38
Consumer Demand (M)
 Women’s sports apparel market in the US grew by 8%
in 201439
 Growth of “athleisure” in young women40
 70% of 20-30 year old women engage in stress-
lowering activities, such as yoga 41
Competition (H)
 Seasoned competitors and new companies are
increasing activity in fitness wear42
Continued Rise of Obesity (M)
 Adults over 20 years old are increasingly
overweight and obese43
 These individuals are significantly less likely to
purchase activewear44
Security Concerns (L)
 Security breaches to customer and employee data
could hurt brand and revenues45
Cost of Labor (H)
 South and Southeast Asian labor costs are
increasing because of labor laws and trade
sanctions46
Foreign Currency Fluctuations (L)
 Increases costs because of Canadian and Australian
Dollar depreciation47
Wealth Effect (L)
 Forecast decrease in annual disposable income of
Americans over the next 10 years48

EXTENSION RECOMBINATION
1. Fitness Membership Program
 Provide an exclusive multi-site fitness
membership for lululemon customers to a
variety of fitness gyms.
 Membership fees go to lululemon with a
percentage returning to gyms such as
SoulCycle, Barre class, Pilates, etc.
2. Customer Loyalty Program
 Create a customer loyalty points systems for
purchases.
 Just as Starbucks, Bloomingdale’s and Sephora
use a point system, lululemon can incorporate
rewards for repeat shoppers.49
 Increases brand loyalty in a competitive
market.
 Lowers prices for faithful customers.
3. New Product Technology
 Create a fitness band that is specialized for
yoga and running crowd and branded by
lululemon.
 Utilize current “Fit-bit” type technology with
ascetic appeal.
1. Body Positive Campaign
 To combat negative press, lululemon should
launch its own body-positive, active-
lifestyle campaign.50
 Fight “Fat-talk”, promote health.
 Brand ambassadors could be a focus of the
campaign to start with current connections.
2. Annual Health/Fitness Magazine
 Publish an annual health/fitness magazine
compiled from articles and findings from
customers and employees throughout the
year
3. Buyout of Luon Fabric Manufacturing
 Luon fabric accounts for 30% of total fabric
used in products51.
 The fabric is sourced some a single supplier
in Southeast Asia, and should be bought-out
to increase quality control and reduce
costs.52
EFFICIENCY MARKET DEVELOPMENT
1. Corporate Social Responsibility
 Choose a local or international charity related
to health and fitness to donate 5% of proceeds
to.
 Market the campaign through social media and
local store channels.
 Launch a specific item that would be the
product piece for this campaign, donating 20%
of all profits from that item.
2. Product Quality
 Create a workforce department specifically
related to product quality testing and control.
 Apply Lean 6 Sigma quality control measures
to insure future success of products and
prevent further recalls.
3. Expansion of Men’s Product Lines
 Men are an increasingly larger target market,
but their needs are different than just yoga
pants.53
 Lululemon should expand its product line to
shoes, winter wear and sport specific gear (i.e.
soccer, baseball, etc).
1. Professional Athletics Market
 Expand brand ambassadors to professional
athletes in more intense sports.
 Examples include professional surfers,
Olympians, track athletes, basketball
players, etc.
 Promotes growth outside of yoga market.
2. Expand Customer-Brand Interaction
 Run a design competition for a new product.
 Choose 10 winners for customer to vote
online. #1 winner works with design team
to create the new product.
 Roll out new product as “Designed by You.”
 This would help lululemon stay relevant
with new customer demands and desires.
3. Low-cost/Mass-market Sister Brand
 Develop a related sister brand, like
lululemon’s current ivivva brand, with
limited product options, but cheaper prices.
 Low-cost implementation strategies would
capture low-income audience that usually
avoids shopping at lululemon.
Core Competency Strategies

VRIO Analysis
Resource/Capability Rare Valuable Costly to
Imitate
Exploits
Opportunity
Multiple
Markets?
Core
Competency
Economic
/competitive
implications
Strength/
Weakness
Company Culture Y Y Y Y Y Y SCA S
Corporate Owned Distribution Channels N Y Y Y Y Y TCA S
Customer Experience Y Y Y Y Y Y SCA S
Global Expansion N Y Y Y Y Y TCA S
In-depth Staff Training and Culture Y Y Y Y Y Y SCA S
Low Long-Term Liabilities Y Y Y Y Y Y SCA S
Globally Recognized Brand N Y Y Y N N TCA S
Targeting the Male Market N Y N Y Y N SCA S
Customer Loyalty Y Y Y Y N N SCA S
Brand Popularity N Y N Y Y N CP S
Product Innovation N Y N Y Y N CP S
Product Variety N Y N Y Y N CP S
Vendor Code of Ethics, CSR Y Y N N Y N CP S
High Price Structure Y Y N Y Y N TCA S
Lack of Valuable Patents N N N N Y N CD W
Weak Supplier Relationships N N N N Y N CD W
Poor Product Quality Y N N N Y N CD W
Top Leadership Dysfunction Y N N N Y N CD W
High Shipping Costs N N N N Y N CD W
Cost Structure’s Dependency on the
Economy
Y Y N N Y N CP W
Excess Inventory Causing Markdowns N N N N Y N CD W
2013 Product Recall Y N N N N N CD W
CD: Competitive Disadvantage
SCA: Sustained Competitive Advantage
CP: Competitive Parity
TCA: Temporary Competitive Advantage

Financial Ratios
All Financial Data based on February 1st, 2015 numbers in lululemon athletica inc. 10k Report
Profitability
1. Return on (Average) Assets: Net Income/Average Total Assets:
239,689,684/ ((1296213000+ 1249688000)/2)54
239033000/1272950500
18.78%
2. Return on (Average) Equity (ROE% - Net): Net Income/Average Total Equity:
239033000/((1089568000+1,096,682,000)/2)
21.94%
3. ROI % (Operating): Operating Income/(Total Debt + Total Equity):
376,033,000 /(206,645,000 + 1,096,682,000)
29.01%
4. EBITDA Margin=EBIT + Depreciation & Amortization/Revenue:
383,135,000 +58,364,000/ 1797213000
24.57%
5. Gross Profit Margin= Revenue - Cost of Revenue/Revenue =
1797213000 - 883033000 / 1797213000
50.87%
6. Net Profit Margin=Net Income/Revenue =
239033000/1797213000
13.3%
Liquidity Ratio
1. Quick Ratio= Cash & Equivalents + Receivables/Current Liabilities =
664,479,000 + 13,746,000/159881000
4.242
2. Current Ratio= Current Assets/Current Liabilities =
951012000/159881000
5.948
Debt Management
3. Long-term Debt to Equity= Long-Term Debt/Total Shareholders Equity =
0/1089568000
Not Relevant

4. Total Debt to Equity= Total Liabilities/Total Shareholder’s Equity =
206645000/1089568000
0.19
5. Times Interest Earned=EBIT/Interest Expense =
383,135,000/14,000
27366.79 (Not Relevant)
Asset Management
6. Total (Average) Asset Turnover= Revenue/Total Average Assets =
1797213000/((1296213000+ 1249688000)/2)
1.412
7. (Average) Accounts Receivables Turnover=Revenue/Average Accounts Receivable =
1797213000/((13746000+11903000)/2)
140.14
8. Average Collection Period= 365/Average Accounts Receivable Turnover =
365/ 140.14
2.6045
9. (Average) Inventory Turnover=Cost of Sales/Average Inventory =
883033000/((208116000+186090000)/2)
4.48
10. (Average) Accounts Payable Turnover= Purchases/Average Accounts Payable
(18879000+83303300-208116000) / ((9339000+12647000)/2)
78.57
Financial/Capital Market Ratios
1. Stock Price:
January 30th, 2015: 66.2455
October 30th, 2015: 49.17
2. Earnings per Share: Net Income/Average Number of Outstanding Shares =
239033000/((141945000+145297000)/2)
February 1st, 2015: 239,033,000 / 132,120,000 = 1.809
3. Price Earnings Ratio: Price/Earnings per Share =
Historical: 66.24/1.809
36.16

TTM: 49.17/1.48
33.22
4. Cash flow per share: Operating Income/Shares Outstanding =
376,033,000/141945000
2.649
5. Dividend Yield: Cash Dividend per Share/Price per Share = 0
lululemon athletica inc. does not pay out dividends56
6. Free Cash Flow: Operating Cash Flow - Capital Expenditures =
314,449,000-119,733,000
194,716,000
7. Market Cap for 1/22/2016: Shares Outstanding*Current Market Price of One Share =
February 5th, 2016: 141945000*60.75
8,623,158,000
8. Enterprise Value: Market Cap + Total Debt – Cash =
8623158000 + 206645000 – 664479000
8,165,324,000

Summary of Internal Analysis Charts
To develop this internal analysis a SWOT analysis, Core Competence analysis and chart, a
VRIO analysis and the most recent financial ratios were compiled and evaluated.
While lululemon athletica may have had a bumpy recent history after a decade of award-
winning successes, its sustainable culture and financial acumen has steadied the course. Gross
profits margins are consistently higher than competitors at 50.87% compared to GAP and Nike with
38.3% and 45.97%, respectively.57 This consistency is a result of the intentional culture-building
within the corporate owned retail stores and communities. The grassroots efforts of brand
ambassadors and social media have kept the lululemon brand recognition strong. It attracted initial
audience through slogans such as, "elevating the world from mediocrity to greatness," but with the
changing times it may need to adapt to a more welcoming and all-inclusive marketing strategy.58
Lululemon has kept pace with new apparel technology with its Anti-stink Gear and Engineered
Sensation line.59 Financially, it consistently performs well in the fourth quarter, with 19% increases
revenues this year.60 Its 1.9 billion dollars in free cash flow and absence of long-term debt give it
leverage and leeway to further invest.61
Even though lululemon’s high cost structure may increase revenues, its power proves to be
waning with the influx of cheaper competition. Brands like Athleta, Nike, Under Armour and
Reebok sell similar style yoga pants for $30-$50 cheaper.62 High shipping costs that result from
poor inventory management and third party manufacturing hurt profits.63 Multiple product recalls
that occurred within the last three years have damaged customer trust and image as a luxury
brand.64 There is a lack of management and structural support to insure product quality and supply
chain efficiency. With the rapid growth of the company through its first 10 years, built-in
technology and structure is insufficient for a company of its current size.65 Some of these issues
stem from top management conflict and changes that occurred when Chip Wilson, the founder, and

the Board Chairman resigned, as well as CEO, Christina Day.66 Lululemon has begun efforts to clean
up its management and product line, but more strategies should be enacted to expedite this
process.
Current market trends reveal an increase in spending from the male 18-34 age range for
specialty activewear.67 This presents an opportunity to expand product line further into male
markets, beyond the current cycling, running and yoga. Health club membership is at an all-time
high, with new types of fitness gyms starting on a regular basis.68 These locations all fall into
mission-alignment with lululemon’s active manifesto. With this surplus of new unique workouts,
lululemon has an opportunity to strengthen its partnerships with such fitness studios, while
increasing its market recognition and offering a unique service to its customers. Consumer demand
for “athleisure” is consistently growing, and more brands are joining in on this market
opportunity.69
Cost of labor in regions of Southeast Asia and other parts of Asia is increasing, which will
lead to increased cost of goods sold.70 In order to account for this increase in costs, lululemon
should acquire its own manufacturing to reduce third party fees and difficulties. The continued rise
of obesity poses a threat towards activewear retailers, like lululemon, because these individuals are
significantly less likely to purchase any type of fitness wear, especially a specialty brand.71 The
wealth effect for the future of retail in the United States should also be a concern, as disposable
income is expected to decrease consistently over the next ten years.72 Lululemon needs to continue
to create value for its loyal customers as their income decreases and reach new markets as
competition increases.

Strategic Recommendations
Lululemon should implement an extension strategy through the creation of multi-site
fitness club membership for loyal customers to mission-aligned studios in their communities. This
type of unique service is new to the industry of health and fitness clubs. Traditionally, a user will
commit to one individual gym, but with the influx of new fitness techniques such as cycling, pilates,
Barre, Zumba and Crossfit, there are more options and diversification within the market.73 This
strategy would appeal to lululemon’s current target market of active young adults and fitness gurus.
It would also expand into greater partnerships with local studios who may begin to sell lululemon
products. Gymfinite and Class Pass are two options currently available to fitness club users that
offer this “multi-site” membership, but their brand recognition is weak, especially in regions
outside of Colorado.74 Lululemon would differentiate itself by leveraging customer loyalty and
company culture to create partnerships with local studios and provide savings for its customers.
12% of consumers are currently use a similar service, and an additional 30% would be interested in
joining.75 The additional costs incurred as a result of this strategy implementation would be low,
considering there is not a physical product being sold. Additional staff would be hired to manage
studio relationships and some additional technology would be required to advertise, and explain
these services. Lululemon should offer this premium service to its loyal customer of providing a
membership to a variety of studios in the area, while allocating a percentage of the cost to studios
and retaining the rest as a new source of income.
Lululemon should acquire the manufacturing plant of its Luon fabric in Southeast Asia as
part of a recombination strategy. Lululemon’s patented “Full on Luon” is a specific blend of 81%
nylon and 19% Lycra.76 This fabric accounts for 30% of all of lululemon’s products and a key part of
the cost of goods sold.77 As reported in its 10k report, the supply chain from Southeast Asia
presents growing concerns of increased labor costs and third party fees, which could cause
disruption in the supply of products.78 Most competitors such as Nike, Gap and Under Armour do

not own their own manufacturing plants, but more conscious brands such as Patagonia, and
Columbia Sportswear do.79 Lululemon would differentiate itself by a higher commitment to social
responsibility and more control of its quality control. Lululemon currently has strong relationships
with its current manufacturers, but has no long-term contracts.80 Using these relationships
lululemon would present a strategy of buyout to one of its main manufacturers, to make it a sole
manufacturer of the Luon fabric. Using lululemon’s lack of long-term debt and surplus of free cash
flow, this acquisition would be a feasible and economic move in the long-term for decreasing costs
and increasing product quality.81
Lululemon should enact an efficiency strategy by expanding its men’s product lines to
include sports-specific gear. While lululemon has already made incredible leaps in the men’s
apparel, its market share is much lower than competitors such as Nike and Under Armour. One
reason is due to lululemon’s lack of sport specific clothing for men.82 Sports-inspired apparel is
expected to rise in value for the next 5 years as the popularity of technical apparel convinces
consumer to purchase more.83 This expansion will target the mass male market, rather than simply
the yoga/fitness male market that lululemon is currently reaching into. Lululemon would utilize its
current product innovation team and even leverage its current CEO’s background in snowboarding
to reach this new audience.84 Lululemon’s unique customer experience stems from its engaged and
motivated staff that spends time to meet each customer’s needs.85 Customization is important in the
athletic industry and lululemon staff offers free tailoring for any pants and advice beyond what
color to purchase. It would be beneficial for lululemon to roll out each product line separately to
give each sport the marketing attention required for success. Men are more likely than women to
purchase fitness or sports related clothing, especially specialty sports related gear.86 This market,
though heavily sought after by many brands, offers a sustainable arena for market growth for
lululemon.

Lululemon should expand its Ambassador program to specifically target professional
athletes as part of a market development strategy. This strategy employs one of lululemon’s
greatest core competencies, its grassroots brand awareness, combined with expansion into a new
arena of mainstream athletics. This market development strategy goes hand in hand with the
efficiency strategy of expanding the men’s product lines. While most professional athletes are used
to being brand ambassadors for sports-specific clothing, lululemon offers casual fitness wear as
well for individuals to advertise. Successful advertising in the sportswear industry appeals to a
“young, active demographic, inviting them to engage in a range of sports and equate their own goals
with those of top athletes.”87 A key differentiator for lululemon will be the use of social media
within this strategy, because 35% of all lululemon customers visited a social media site before
purchasing and 33% purchased a product while they were visiting a social media site.88 Most
importantly, 37% of all male customers use social media before purchasing.89 Lululemon has the
ability to leverage its own 1.2 million Instagram followers and 1.4 million likes on Facebook to add
new famous faces to its brand. Acquiring celebrity endorsement from professional soccer players,
basketball players and even tennis players will extend brand awareness into those sectors and
prove that lululemon is more than just a yoga brand.

1
"lululemon athletica inc. 2015 10k Report," Mergent Online, February 2014, Accessed January 2016.
2 Beth Kowitt, and Colleen Leahey, "LULULEMON: In an Uncomfortable Position," Fortune Magazine (via
EbscoHost), September 2013, Accessed February 2016.
3 Stephanie Clifford, "Recall is Expensive Setback for Maker of Yoga Pants, " The New York Times, March 2013,
Accessed February 2016, http://www.nytimes.com/2013/03/22/business/
lululemon-says-yoga-pants-mishap-will-be-costly.html?_r=0.
4 Hiroko Tabuchi, "Business Briefing; Lululemon Recalls Drawstrings in 318,000 Hoodies and Tops," The New
York Times (via LexisNexis), June 2015, Accessed February 2016.
5 Phalguni Soni, "Lululemon Attempts To Reinvigorate Its Interrupted Growth Model," Market Realist,
December 2014, Accessed January 2016, http://marketrealist.com/2014/12/lululemon-attempts-
reinvigorate-interrupted-growth-model/.
6 "lululemon athletica inc. 2015 10k Report," op. cit., pg. 21
7 "Market Driver - Fitness Clothing," Mintel, October 2014, Accessed January 2016.
8 "Lululemon sets pace in women's activewear," The Star Phoenix (via LexisNexis), January 2011, Accessed
February 2016.
9
"lululemon athletica inc. 2015 10k Report," Mergent Online, February 2015, Accessed January 2016.
10
Ibid.
11
"SWOT Analysis," GlobalData Ltd. (via LexisNexis Academic), January 2016, Accessed January 2016.
12
lululemon athletica inc., "what's new for women," http://shop.lululemon.com/?, Accessed February 2016.
13
Ibid.
14
"lululemon athletica inc. 2015 10k Report," op. cit. pg. 2
15
Ibid.
16
Ibid.
17
Beth Kowitt, and Colleen Leahey, "LULULEMON: In an Uncomfortable Position," Fortune Magazine (via
18
Phalguni Soni, "Lululemon Attempts To Reinvigorate Its Interrupted Growth Model," Market Realist, December
2014, Accessed January 2016, http://marketrealist.com/2014/12/lululemon-attempts-reinvigorate-
interrupted-growth-model/.
19
Joseph Teklits, and Caitlin Morahan, "lululemon athletica inc. Updates Guidance for Fourth Quarter of Fiscal
2015 Ahead of Presentation at the ICR Conference," Business Wire, January 2016, Accessed February
2016, http://www.businesswire.com/news/home/20160111006491/en/.
20
"lululemon athletica inc. 2015 10k Report," op. cit.
21
Ibid.
22
"In-depth Records, 2016, Lululemon Athletica Canada Inc.," Hoover's Company Records (via LexisNexis
Academic), January 2016, Accessed January 2016.
23
Ibid.
24
Beth Kowitt, op. cit.
25
Marina Strauss, "Lululemon Athletica cuts full-year outlook," The Globe and Mail (via LexisNexis Academic),
December 2015, Accessed January 2016.
26
27
28
Marina Strauss, op. cit.
29
Emily Potts, "Lululemon Revamps Product Range and Pricing," Passport, October 2015, Accessed January 2016.
30
Ibid.
31
32
Beth Kowitt, op. cit.
33
"Special Report: The Challenges and Prospects of a Seven Billion Global Population," Passport, November 2011,
Accessed February 2016.
34
"Market Driver - Fitness Clothing,"Mintel, October 2014, Accessed January 2016.
35
Ibid.

36
“Market Drivers – Fitness Clothing,” op. cit. pg. 7
37
“Market Drivers – Fitness Clothing,” op. cit. pg. 9
38
Ibid.
39
"Young Women's Health: Global Attitude towards Health, Fitness and Wellbeing among the under 30s and
Market Impact," Passport, September 2015, pg. 7, Accessed January 2016.
40
Ibid. pg. 77
41
Ibid. pg. 24
42
"SWOT Analysis," op. cit.
43
“Market Drivers – Fitness Clothing” op. cit. pg. 6
44
Ibid.
45
46
Ibid. pg. 9
47
Phalguni Soni, op. cit.
48
"INCOME AND EXPENDITURE: USA," Passport, March 2015, Accessed February 2016.
49
Connor J. Laughlin, "7 of the Best Customer Loyalty Programs and How You Can Use Them," Brad's Deals, July
2015, Accessed February 2016, http://www.bradsdeals.com/blog/get-rewarded-for-your-loyalty-the-best-
customer-loyalty-programs-their-benefits.
50
Rebecca Adams, "How 'Fat Talk' Became A Social Epidemic -- And How You Can Stop It," Huffington Post, May
2014, Accessed February 2016, http://www.huffingtonpost.com/2014/05/27/fat-talk-
women_n_5331507.html.
51
52
Ibid.
53
"Market Driver - Fitness Clothing," Mintel, October 2014, Accessed January 2016.
54
"lululemon athletica inc. 2015 10k Report," Mergent Online,. February 2015, Accessed January 2016.
55
"Lululemon Athletica Inc. Historical Prices," Yahoo Finance, January 2015, Accessed January 2016,
http://finance.yahoo.com/q/hp?s=LULU&a=00&b=15&c=2015&d=00&e=29&f=2016&g=d&z=66&y=198.
56
57 Phalguni Soni, "Analyzing Lululemon Athletica’s Market-Moving Fiscal 2015 Results," Market Realist, April
2015, Accessed February 2016, http://marketrealist.com/2015/04/analyzing-lululemon-athleticas-
market-moving-fiscal-2015-results/.
58 "lululemon athletica inc. 2015 10k Report," Mergent Online,. February 2015, Accessed January 2016.
59
lululemon athletica inc., "anti-stink gear," http://shop.lululemon.com/products/category/women-anti-
stink?mnid=mn;USwomen;features;womensantistink, Accessed February 2016.
60
Joseph Teklits, and Caitlin Morahan, "lululemon athletica inc. Updates Guidance for Fourth Quarter of Fiscal
2015 Ahead of Presentation at the ICR Conference," Business Wire, January 2016, Accessed February
2016, http://www.businesswire.com/news/home/20160111006491/en/.
61
62 Hayley Peterson, "Lululemon's Pants Aren't Worth That Much More Than Competition," Business Insider.
September 2014, Accessed January 2016, http://www.businessinsider.com/why-lululemons-pants-
are-so-expensive-2014-9.
63
Marina Strauss, "Lululemon Athletica cuts full-year outlook," The Globe and Mail (via LexisNexis Academic),
December 2015, Accessed January 2016.
64
Hayley Peterson, op. cit.
65 Beth Kowitt, and Colleen Leahey, "LULULEMON: In an Uncomfortable Position," Fortune Magazine (via
66 "In-depth Records, 2016, Lululemon Athletica Canada Inc.," Hoover's Company Records (via LexisNexis
Academic), January 2016, Accessed January 2016.
67
"Market Driver - Fitness Clothing," Mintel, October 2014, Accessed January 2016.

68
Ibid. pg. 9
69
"Young Women's Health: Global Attitude towards Health, Fitness and Wellbeing among the under 30s and
Market Impact," Passport, September 2015, pg. 7, Accessed January 2016.
70
71
“Market Drivers – Fitness Clothing” op. cit. pg. 6
72
"INCOME AND EXPENDITURE: USA," Passport, March 2015, Accessed February 2016.
73
"Health and Fitness Clubs – US," Mintel, June 2013, Accessed February 2016.
74 Gymfinite, "Our Story," https://gymfinite.com/about, Accessed February 2016.
75 "Fitness and Health Club Memberships - US," Mintel, November 2015, Accessed February 2016.
76
Hayley Peterson, op. cit.
77
78
79
Nick English, "The 14 Athletic Wear Companies That Are Actually Good for the World," Greatist. December 2013,
Accessed February 2016, http://greatist.com/fitness/athletic-wear-companies-social-good.
80
81
Ibid.
82
"Sportswear in the US," Passport, May 2015, Accessed February 2016.
83
Ibid.
84 lululemon athletica inc., "management & board of directors,"
http://investor.lululemon.com/management.cfm, Accessed February 2016.
85 Jonathan Stoller, "Engaged staff deliver high ROI for Lululemon," The Globe and Mail (via LexisNexis),
November 2012, Accessed February 2016.
86
"Sportswear in the US," op. cit.
87 "Fitness Clothing - US - Marketing Strategies,"Mintel, October 2014, Accessed February 2016.
88 "Fitness Clothing - US - Appendix - Social Media," Mintel, October 2014. Accessed February 2016.
89
Ibid.

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