Lululemon Athletica Inc. is a designer, distributor, and retailer of technical athletic apparel, footwear, and accessories. The company's core business model revolves around creating transformative products and experiences that build meaningful connections with its customers, whom they refer to as guests. Lululemon's primary revenue streams come from its branded retail locations, e-commerce platforms, and other channels such as outlets, wholesale arrangements, and license and supply agreements. The company's market position is built on its premium brand image and technical product innovation. Lululemon operates in over 25 countries, with a significant presence in the Americas, China Mainland, Asia Pacific, and Europe and the Middle East. The competitive landscape includes established athletic apparel companies, as well as retailers expanding into athletic wear.

• Employees: Approximately 38,000 (as of January 28, 2024)
• Geographic Footprint: Operates in over 25 countries
• Headquarters: Vancouver, British Columbia, Canada
• Founded: 1998
• Number of locations/facilities: 711 company-operated stores (as of January 28, 2024), plus 39 retail locations operated by third parties
• Revenue: $9.6 billion (FY2023)
• Key Subsidiaries/Brands: lululemon Studio

• CEO: Calvin McDonald
• CFO: Meghan Frank
• Board Chair: Martha A.M. Morfitt
• Other Key Executives: Teri List (Director), Michael Casey (Director), Shane Grant (Director), Kathryn Henry (Director), Alison Loehnis (Director), Isabel Mahe (Director), Jon McNeill (Director), David M. Mussafer (Director), Emily White (Director)

Key leaders have extensive experience in retail, finance, and various industries.

• Annual Revenue: $9.6 billion (FY2023)
• Net Income: $1.6 billion (FY2023)
• Total Assets: $7.1 billion (as of January 28, 2024)
• Number of Employees: Approximately 38,000 (as of January 28, 2024)
• Key Financial Highlights: Net revenue increased by 19% year-over-year, diluted earnings per share were $12.20, and operating margin was 22.2% (FY2023).

Lululemon offers a comprehensive line of performance apparel, footwear, and accessories.

• Apparel: Includes pants, shorts, tops, and jackets designed for various athletic activities such as yoga, running, and training, as well as apparel designed for being on the move and fitness-inspired accessories.
• Footwear: Includes styles for both men and women, with new styles introduced in 2024.
• Accessories: Includes a range of fitness-inspired accessories.

Lululemon reports its operations through three segments based on regional markets:

• Americas: Represents 79% of net revenue in 2023.
• China Mainland: Represents 10% of net revenue in 2023.
• Rest of World: Comprises the APAC and EMEA regions, representing 11% of net revenue in 2023.

The company has shifted from reporting based on selling channel to regional markets.

Lululemon's current strategic priorities include:

• Growing brand awareness and introducing new guests to the brand, particularly in international markets and with male guests.
• Expanding product offerings through innovation and new product categories.
• Enhancing its omni-channel retail model by integrating digital and physical channels.
• Investing in technologies to support its omni-channel retailing model.
• Focusing on community-based, grass-roots engagement, and larger scale brand activations.

Lululemon aims to continue to grow its net revenue and expand its operations in international markets, particularly in China Mainland. The company also focuses on innovation and sustainability, including a textile-to-textile recycling partnership.

Lululemon operates in the highly competitive athletic apparel industry. Key market trends affecting the business include increasing competition from established companies and new entrants, changing consumer preferences, and shifts in distribution channels. Major competitors include Nike, Adidas, PUMA, and Under Armour, as well as retailers expanding into athletic apparel such as The Gap (Athleta brand), Victoria's Secret, and Urban Outfitters. Lululemon competes on the basis of brand image, product quality, innovation, style, distribution, and price. The company believes its vertical retail strategy and community-based marketing differentiate it from competitors.

• Brand Reputation: Failure to maintain brand value and reputation, including through negative publicity or product recalls.
• Consumer Preferences: Changes in consumer shopping preferences and shifts in distribution channels could impact results.
• Product Defects: Manufacturing or design defects could harm the business.
• Competition: Intense competition may result in pricing pressures and reduced profitability.
• Supply Chain: Disruptions in the supply chain, reliance on international suppliers, and compliance with the Vendor Code of Ethics.