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Table of Contents
PART I
Special Note Regarding Forward-Looking Statements
This Annual Report on Form 10-K contains forward-looking statements within the meaning of Section 27A of
the Securities Act of 1933, as amended and Section 21E of the Securities Exchange Act of 1934, as amended. We use
words such as “anticipates,” “believes,” “estimates,” “may,” “intends,” “expects” and similar expressions to identify
forward-looking statements. Discussions containing forward-looking statements may be found in the material set
forth under “Business,” “Management’s Discussion and Analysis of Financial Condition and Results of Operation”
and in other sections of the report. All forward-looking statements are inherently uncertain as they are based on our
expectations and assumptions concerning future events. Any or all of our forward-looking statements in this report
may turn out to be inaccurate. We have based these forward-looking statements largely on our current expectations
and projections about future events and financial trends that we believe may affect our financial condition, results of
operations, business strategy and financial needs. They may be affected by inaccurate assumptions we might make or
by known or unknown risks and uncertainties, including the risks, uncertainties and assumptions described in the
section entitled Item 1A and elsewhere in this report. In light of these risks, uncertainties and assumptions, the
forward-looking events and circumstances discussed in this report may not occur as contemplated, and our actual
results could differ materially from those anticipated or implied by the forward-looking statements. All forward-
looking statements in this report are made as of the date hereof, based on information available to us as of the date
hereof, and we assume no obligation to update any forward-looking statement.
Overview
lululemon athletica inc. is a designer and retailer of technical athletic apparel operating primarily in
North America and Australia. Our yoga
-inspired apparel is marketed under the lululemon athletica brand name. We
believe consumers associate our brand with innovative, technical apparel products. Our products are designed to
offer performance, fit and comfort while incorporating both function and style. Our heritage of combining
performance and style distinctly positions us to address the needs of female athletes as well as a growing core of
consumers who desire everyday casual wear that is consistent with their active lifestyles. We also continue to
broaden our product range to increasingly appeal to male athletes and athletic female youth. We offer a
comprehensive line of apparel and accessories including fitness pants, shorts, tops and jackets designed for athletic
pursuits such as yoga, running and general fitness. As of January 30, 2011, our branded apparel was principally sold
through 137 stores that are located in Canada, the United States and Australia. We believe our vertical retail strategy
allows us to interact more directly with, and gain feedback from, our customers while providing us with greater
control of our brand.
We have developed a distinctive community-based strategy that we believe enhances our brand and reinforces
our customer loyalty. The key elements of our strategy are to:
We were founded in 1998 by Dennis “Chip” Wilson in Vancouver, British Columbia. Noting the increasing
number of women participating in sports, and specifically yoga, Mr. Wilson developed lululemon athletica to address
a void in the women’s athletic apparel market. The founding principles established by Mr. Wilson drive our
distinctive corporate culture with a mission of providing people with the components to live a longer, healthier and
1
ITEM 1.
BUSINESS
• design and develop innovative athletic apparel that combines performance with style and incorporates real-
time customer feedback;
• locate our stores in street locations, lifestyle centers and malls that position each lululemon athletica store as
an integral part of its community;
•
create an inviting and educational store environment that encourages product trial and repeat visits; and
• market on a grassroots level in each community, including through social media and influential fitness
practitioners who embrace and create excitement around our brand.