Lululemon 2013 Annual Report Download - page 7

Table of Contents
Growth Strategy
Key elements of our growth strategy are to:
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Deep Rooted Culture Centered on Training and Personal Growth.
We believe our core values and distinctive corporate culture allow
us to attract passionate and motivated employees who are driven to succeed and share our vision. We provide our employees with a
supportive, goal-oriented environment and encourage them to reach their full professional, health and personal potential. We offer
programs such as personal development workshops and goal coaching to assist our employees in realizing their long-term objectives.
We believe our relationship with our employees is exceptional and a key contributor to our success.
•
Experienced Management Team with Proven Ability to Execute.
Our Chief Executive Officer, Mr. Potdevin, who has more than two
decades of experience at premium, technical athletic apparel, and life-style centric retail companies, joined us in January 2014. Mr.
Potdevin works closely with a management team with a complementary mix of retail, design, operations, product sourcing, marketing
and information technology experience from leading apparel and retail companies. We believe our management team is well
positioned to execute the long-term growth strategy for our business.
• Grow our Store Base in North America. As of February 2, 2014 , our products were sold through 225 corporate-owned stores in
North America, including
171 in the United States and 54 in Canada. We expect that most of our near-
term store growth will occur in
the United States. We opened 36 net stores in the United States, including three ivivva branded stores, and three net stores in Canada
in fiscal 2013 , including one ivivva branded store, and we plan to open up to 39 new stores, including ten ivivva athletica branded
stores in North America in fiscal 2014 .
•
Expand Beyond North America.
As of February 2, 2014 , we operated 25 corporate-owned stores in Australia, four corporate-owned
stores New Zealand, and 17 showrooms outside of North America. We plan to open two new lululemon stores in fiscal 2014 in
Australia and two other new stores internationally in fiscal 2014
. Over the next two years we intend to open additional showrooms as
pre-seeding activities in the Asian and European markets.
•
Develop our Direct to Consumer Sales Channel
. We launched our retail website in the first quarter of fiscal 2009. The addition of e-
commerce to our direct to consumer sales channel expanded our customer base and supplemented our growing store base over the
past four years. We operate country and region specific websites in Australia, Europe and Asia, and brand specific websites in North
America. We plan to continue developing our e-
commerce website to provide a distinctive online shopping experience and extend our
reach.
•
Increase our Brand Awareness.
We plan to continue focusing on increasing brand awareness and customer loyalty through
amplification of our brand stories and our grassroots marketing efforts, social media activities and planned store expansion. We
believe that increased brand awareness will result in increased comparable store sales and store productivity over time.
•
Introduce New Product Technologies.
We remain focused on developing and offering products that incorporate technically advanced
fabrics and innovative functional features that we believe differentiate us in the market. Collaborating with leading fabric
manufacturers, we have jointly developed and trademarked names for innovative fabrics such as Luon and Silverescent. Among our
ongoing efforts, we are developing fabrics to provide advanced performance features such as UV protection and inherent reflectivity.
In addition, we plan to continue to develop differentiated manufacturing techniques that provide greater support, protection, and
comfort.
•
Broaden the Appeal of our Products.
We will selectively seek opportunities to expand the appeal of our brand to improve store
productivity and expand our market. To enhance our product appeal, we intend to:
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Expand our Product Categories.
We continue to expand our product offerings in complementary existing and new categories
such as swim, tennis and golf;
•
Increase the Range of Athletic Activities our Products Target.
We believe our guests purchase our products mainly for
activities such as yoga, running and general fitness. We will continue to expand our product categories and educate our guests
on the versatility of our products;
• Grow our Men's Business. We believe the premium quality and technical rigor of our products will continue to appeal to men
and that there is an opportunity to expand our men's business as a proportion of our total sales; and
•
Develop our Youth Brand.
We launched our youth focused brand, ivivva athletica, in fiscal 2009. We believe the premium
quality and technical rigor of our dance-inspired products designed for female youth serve an open market and provide us with
an opportunity for future growth.