Lululemon 2011 Annual Report Download - page 4

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 29, 2012, our branded apparel was
principally sold through 174 stores that are located in Canada, the United States, Australia and New Zealand. We believe our vertical retail
strategy allows us to interact more directly with, and gain feedback from, our customers, whom we call guests, 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 guest 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
1
ITEM 1.
BUSINESS
•
design and develop innovative athletic apparel that combines performance with style and incorporates real
-
time guest 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.