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lululemon athletica A Look into 2012

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Page 1: Lulu mba8025

lululemon athletica

A Look into 2012

Page 2: Lulu mba8025

Meet LULU

• http://bloom.bg/vZ0k4P#ooid=gyb2g1NDpH5XHXwELNDM92chibNaEj46

Page 3: Lulu mba8025

Why LULU?

» History of growth» Outperforming our competition» Outperforming performance standards» Potential for growth» Who’s in already

Page 4: Lulu mba8025

GROWTH: Historical Heights$

Thou

sand

s

2008 2009 2010 2011 20120

200000

400000

600000

800000

1000000

30842 39363 58281121847

184063

272713353488

452898

711704

1000839

Net Income Net Revenue

Page 5: Lulu mba8025

bibbity

bobbity

boo

COMPETITIVE STRENGTHS

Premium Active Brand

Distinctive Retail Experience

Innovative Design Process

Culture of Training & Personal Growth

Community-Based Marketing

Excellent Management

Page 6: Lulu mba8025

Outperforming the Competition

LULU Adidas Gap Nike UA0

10

20

30

40

50

60

Market CapDebt to EquityROIC

Page 7: Lulu mba8025

Outperforming the Competition

LULU Adidas Gap Nike UA0

1

2

3

4

5

6

7

8

9

10

RNOANOPMNOAT

Page 8: Lulu mba8025

LULU v. S&P 500 Performance

NASDAQ Index

27-Jul-07 3-Feb-08 1-Feb-09 31-Jan-10 30-Jan-11

lululemon athletica inc $100.00 $124.64 $24.29 $100.86 $245.04S&P 500 Index $100.00 $ 95.65 $56.61 $ 73.61 $ 87.48S&P Retail Index $100.00 $ 87.67 $53.70 $ 82.13 $103.04

Page 9: Lulu mba8025

Our Numbers for Your Analysis

• LOW Avg. Inventory Turnover• LOW Avg. Days Outstanding• LOW PPE Turnover• NO debt• NO “Off-Balance Sheet” Financing

Page 10: Lulu mba8025

Some Risks…

Thomson Reuters

» Cost of Materials – “silverescent line”(includes silver threading)

» Ability to maintain inventory and distribution channels

» Ability to meet technology needs of expandinge-commerce and information systems

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The Future is Bright

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The Future is Bright

2009 2010 2011 2012 2013 20140

0.5

1

1.5

2

2.5

EPSDue to heavy capitalization needed to fund growth

Source: Thomson Reuters

$ do

llars

Page 13: Lulu mba8025

The Future is Bright

-50%

-30%

-10%

10%

30%

50%

70%

90%

110%

130%

150%

NIKE

UA

GAP

ADIDAS

LULU

Year

Due to heavy capitalization needed to fund growth

‘09-10 ‘10-11 ‘11-12 ‘12-13 ‘13-14

Source: Thomson Reuters

% G

row

th

PROJECTED EPS

Page 14: Lulu mba8025

The Future is Bright

Source: Thomson Reuters

» Opening Additional 37 Corporate Stores » Repurchased Franchisees» Expanding to London, Australia & Southeast Asia» Focus on E-Commerce Business

Revenue has doubled each year since 2009

Page 15: Lulu mba8025

Who’s Already In?

• ARE WE STILL DOING THIS?

Page 16: Lulu mba8025

CHA-CHINGGG

Page 17: Lulu mba8025

77.06 + 1.76