lululemon athletica inc. designs and retails technical athletic apparel in North America and Australia. The company’s yoga-inspired apparel is marketed under the lululemon athletica and ivivva athletica brand names. The company’s products are designed to offer performance, fit and comfort while incorporating both function and style. Its heritage of combining performance and style distinctly positions it to address the needs of female athletes, as well as a growing core of consumers who desire everyday casual wear that is consistent with their active lifestyles. The company also continues to broaden its product range to increasingly appeal to male athletes and athletic female youth. The company offers a line of apparel and accessories, including fitness pants, shorts, tops and jackets designed for athletic pursuits, such as yoga, running, general fitness and dance-inspired apparel for female youth. As of February 2, 2014, the company’s branded apparel was principally sold through 254 stores that are located in Canada, the United States, Australia and New Zealand. Strategy The key elements of the company’s strategy are to design and develop innovative athletic apparel that combines performance with style and incorporates real-time guest feedback; locate its stores in street locations, lifestyle centers and malls that position each lululemon athletica store as an integral part of its community; create an inviting and educational store environment that encourages product trial and repeat visits; and market on a grassroots level in each community, including through social media and influential fitness practitioners who embrace and create excitement around its brand. Markets The company’s primary target customer is an educated woman who understands the importance of an active, healthy lifestyle. Intellectual Property The company owns the material trademarks used in connection with the marketing, distribution and sale of all of its products in the United States, Canada and in the other countries in which its products are or intended to be either sold or manufactured. The company’s major trademarks include lululemon athletica & design, the logo design (WAVE design) and lululemon as a word mark. It owns trademark registrations for names of various fabrics and products, including Luon, Silverescent, VitaSea, Boolux, Luxtreme, Luxchange, Groove Pant, Light as Air, and Power Y. In addition to trademarks, it owns 29 industrial design registrations in Canada that protect its distinctive apparel and accessory designs, as well as various corresponding design patents in the United States and registered community designs in Europe. Competition The company is in direct competition with wholesalers and direct sellers of athletic apparel, such as Nike, Inc., adidas AG and Under Armour, Inc. It also competes with retailers specifically focused on women's athletic apparel including The Gap, Inc. (including the Athleta brand), Lucy Activewear Inc., and bebe stores, inc. (including the BEBE SPORT collection). Seasonality The company’s business is affected by the general seasonal trends common to the retail apparel industry. Its annual net sales are weighted more heavily toward its fourth fiscal quarter (year ended February 2, 2014). History lululemon athletica inc. was founded in 1998.
lululemon athletica inc
(33L:Berlin Stock Exchange)
1818 Cornwall Avenue
Vancouver, BC V6J 1C7
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