Lululemon 2010 Annual Report Download - page 14

Table of Contents
enhance the efficiency of our operations. We believe our distribution infrastructure will be sufficient to accommodate
our expected store growth and expanded product offerings over the next several years. Merchandise is typically
shipped to our stores through third-party delivery services multiple times per week, providing them with a steady
flow of new inventory.
Competition
Competition in the athletic apparel industry is principally on the basis of brand image and recognition as well as
product quality, innovation, style, distribution and price. We believe that we successfully compete on the basis of our
premium brand image, our focus on women and our technical product innovation. In addition, we believe our vertical
retail distribution strategy differentiates us from our competitors and allows us to more effectively control our brand
image.
The market for athletic apparel is highly competitive. It includes increasing competition from established
companies who are expanding their production and marketing of performance products, as well as from frequent new
entrants to the market. We are in direct competition with wholesalers and direct sellers of athletic apparel, such as
Nike, Inc., adidas AG, which includes the adidas and Reebok brands, and Under Armour, Inc. We also compete with
retailers specifically focused on women’s athletic apparel including The Gap, Inc. (including the Athleta collection),
Lucy Activewear Inc., and bebe stores, inc. (including the BEBE SPORT collection).
Our Employees
As of January 30, 2011, we had 4,572 employees, of which 2,321 were employed in Canada, 2,021 were
employed in the United States, and 230 were employed internationally. Of the 2,321 Canadian employees, 1,783
were employed in our corporate-owned stores, 59 were employed in distribution, 110 were employed in design,
merchandise and production, and the remaining 369 performed selling, general and administrative and other
functions. Of the 2,021 employees in the United States, 1,935 were employed in our corporate-owned stores and
showrooms, 44 were employed in distribution and 34 performed selling, general and administration functions. Of the
230 international employees, 183 were employed in our international retail locations, 13 were employed in
distribution, and 24 performed design, merchandise, production, and administrative functions. None of our
employees are currently covered by a collective bargaining agreement. We have had no labor-
related work stoppages
and we believe our relations with our employees are excellent.
Intellectual Property
We believe we own the material trademarks used in connection with the marketing, distribution and sale of all of
our products in Canada, the United States and in the other countries in which our products are currently or intended
to be either sold or manufactured. Our major trademarks include lululemon athletica & design, the logo design
(WAVE design) and lululemon as a word mark. In addition to the registrations in Canada and the United States,
lululemon’s design and word mark are registered in over 66 other jurisdictions which cover over 114 countries. We
own trademark registrations for names of several of our fabrics including Luon, Silverescent, VitaSea, Soyla, Boolux
and Luxtreme.
Securities and Exchange Commission Filings
Our website address is www.lululemon.com. We provide free access to various reports that we file with, or
furnish to, the United States Securities and Exchange Commission, or the SEC, through our website, as soon as
reasonably practicable after they have been filed or furnished. These reports include, but are not limited to, our
annual reports on Form 10-K, quarterly reports on Form 10-Q, current reports on Form 8-K, and any amendments to
those reports. Our SEC reports can also be accessed through the SEC’s website at www.sec.gov. Also available on
our website are printable versions of our Code of Business Conduct and Ethics and charters of the Audit,
Management Development and Compensation, and Nominating and Governance Committees of our Board of
Directors. Information on our website does not constitute part of this annual report on Form 10-K or any other report
we file or furnish with the SEC.
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