lululemon athletica inc. engages in the design and retail of technical athletic apparel. Products The company’s 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, general fitness, and dance-inspired apparel 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 February 1, 2015, the company operated 302 Corporate-owned stores located in the United States, Canada, Australia, New Zealand, the United Kingdom, and Singapore. The Direct to consumer segment includes the net revenue which the company generates from its lululemon and ivivva e-commerce Websites, www.lululemon.com and www.ivivva.com and other country and region specific Websites. While most of its Corporate-owned stores are branded lululemon athletica, 22 of its Corporate-owned stores are branded ivivva athletica and specialize in dance-inspired apparel for female youth. The company’s retail stores are located primarily on street locations, in lifestyle centers, and in malls. Distribution Facilities The company operates and distributes finished products from its owned or leased distribution facilities in Vancouver, British Columbia, Sumner, Washington, Columbus, Ohio, and Melbourne, Victoria. During 2013, the company purchased the distribution center in Columbus with approximately 307,000 square feet that the company opened in 2014. The distribution facilities in Vancouver, Sumner and Melbourne are leased and are approximately 120,000, 167,000 and 54,000 square feet, respectively. Markets The company’s primary target customer is an educated woman who understands the importance of an active, healthy lifestyle. Strategy The company pursues a multi-faceted strategy which leverages its local ambassadors, social media, in-store community boards and a variety of grassroots initiatives. 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, 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. Intellectual Property The company’s major trademarks include lululemon athletica & design, the logo design (WAVE design) and lululemon as a word mark. The company owns trademark registrations for names of several of its fabrics and products, including Luon, Silverescent, Pacebreaker, Rulu, Scuba, Wunder Under, VitaSea, Boolux, Luxtreme, Groove Pant, Light as Air, Booby Bracer, Ta Ta Tamer and Power Y. In addition to trademarks, the company owns 32 industrial design registrations in Canada that protect its distinctive apparel and accessory designs, as well as 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. The company 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). History lululemon athletica inc. was founded in 1998.
lululemon athletica inc (LULU:NASDAQ GS)
1818 Cornwall Avenue
Vancouver, BC V6J 1C7
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