Lululemon 2014 Annual Report Download - page 6

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Table of Contents
addition, we believe consumer purchase decisions are driven by both an actual need for functional products and a desire to create a particular
lifestyle perception. As such, we believe the credibility and authenticity of our brand expands our potential market beyond just athletes to those
who desire to lead an active, healthy, and balanced life.
Our Segments
We primarily conduct our business through two channels: corporate-owned stores, and direct to consumer.
We also generate net revenue from our corporate-owned outlets and showrooms, through sales to wholesale accounts, from warehouse
sales, and from sales from temporary locations. The net revenue we generate from these sources is combined in our other segment.
As of February 1, 2015 , we operated 302 corporate-
owned stores located in the United States, Canada, Australia, New Zealand, the United
Kingdom, and Singapore. 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.
Our direct to consumer segment includes the net revenue which we generate from our lululemon and ivivva e-commerce websites,
www.lululemon.com and www.ivivva.com and other country and region specific websites.
Our Stores
As of February 1, 2015 , our retail footprint included 211 stores in the United States, 57 stores in Canada, 26 stores in Australia, five in
New Zealand,
two in the United Kingdom, and one in Singapore. While most of our corporate-owned stores are branded lululemon athletica, 22
of our corporate-owned stores are branded ivivva athletica and specialize in dance-
inspired apparel for female youth. Our retail stores are located
primarily on street locations, in lifestyle centers, and in malls.
Our corporate-owned stores by brand and by country as of February 1, 2015 and February 2, 2014 , are summarized in the table below:
We opened 48 net new corporate-owned stores in North America, Australia, Europe and Asia in fiscal 2014 . Over the next fiscal year, our
new store growth will be primarily focused on corporate-owned stores in the United States. Over the next few years we intend to expand our
presence outside of North America and Australia, as part of our long-term business strategy.
We believe that partnering with companies and individuals with significant experience and proven success in certain target countries is to
our advantage. On January 11, 2015, we entered into a license and supply agreement with a partner in the Middle East which grants it the right to
operate lululemon athletica branded retail locations in the United Arab Emirates, Kuwait, Qatar, Oman and Bahrain for an initial term of five
years. We retain the rights to sell lululemon products through our e
-commerce websites in these countries. Under this arrangement we will be
supplying the partner with lululemon products, training and other support. As of February 1, 2015 there were no franchised retail locations in
operation.
2
February 1,
2015
February 2,
2014
lululemon athletica
United States
200
168
Canada
46
45
Australia
26
25
New Zealand
5
4
United Kingdom
2
—
Singapore
1
—
280
242
ivivva athletica
United States
11
3
Canada
11
9
22
12
Total
302
254