lululemon athletica inc. engages in the design, distribution, and retail of technical athletic apparel. Products The company’s healthy lifestyle inspired athletic apparel is marketed under the lululemon athletica and ivivva athletica brand names. It offers a line of apparel and accessories for women, men and female youth. The company’s apparel assortment includes items, such as pants, shorts, tops and jackets designed for healthy lifestyle activities; and athletic pursuits, such as yoga, running, other sweaty pursuits, and athletic wear for female youth. The company’s fitness-related accessories include an array of items, such as bags, socks, underwear, yoga mats and water bottles. Segments The company primarily conducts its business through two channels, corporate-owned stores and direct to consumer. As of January 31, 2016, it operated 363 company-operated stores located in the United States, Canada, Australia, New Zealand, the United Kingdom, Singapore, Hong Kong, Germany, and Puerto Rico. While majority of its company-operated stores are branded lululemon athletica, 43 of its company-operated stores are branded ivivva athletica and specialize in athletic wear for female youth. The company’s retail stores are located primarily on street locations, in lifestyle centers, and in malls. Its direct to consumer segment includes its lululemon and ivivva e-commerce Websites, www.lululemon.com and www.ivivva.com, and other country and region specific Websites. The company also generates revenue from its outlets, showrooms, sales to wholesale accounts, warehouse sales, sales from temporary locations, and license and supply arrangements. 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 trademark registrations for names of various of its brands, slogans, fabrics, and products, including ivivva, ivivva logo (kite design), Luon, Silverescent, Pace Breaker, Rulu, Scuba, Wunder Under, VitaSea, Boolux, Luxtreme, Groove Pant, Stuff Your Bra, Set-My-Ponytail-Free, Define Jacket, Light as Air, Booby Bracer, Ta Ta Tamer, and Power Y. In addition to trademarks, it owns 45 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. Seasonality The company’s business is affected by the general seasonal trends common to the retail apparel industry. The company’s annual net revenue is weighted more heavily toward its fourth quarter (year ending January 2016), reflecting its historical strength in sales during the holiday season, while its operating expenses are more equally distributed throughout the year. As a result, a substantial portion of its operating profits are generated in the fourth quarter of its year. 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. The company also competes with retailers specifically focused on women's athletic apparel including The Gap, Inc. (including the Athleta brand); VF Corporation (including the lucy brand); and bebe stores, inc. (including the BEBE SPORT collection). History lululemon athletica inc. was founded in 1998.
lululemon athletica inc
(LULU:Consolidated Issue Listed on NASDAQ Global Select )
1818 Cornwall Avenue
Vancouver, BC V6J 1C7
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