Lululemon Athletica Inc.

“lululemon athletica inc. is principally a designer, distributor, and retailer of technical athletic apparel, footwear, and accessories.”

“We operate in 30 countries around the world and organize our operations into four regional markets: Americas, China Mainland, Asia Pacific ("APAC"), and Europe and the Middle East ("EMEA").”

“We also serve our guests via our e-commerce website www.lululemon.com, our mobile app, our “Like New” re-commerce program, and through certain wholesale arrangements including fitness studios, athletic organizations, corporate sales, university campus retailers”

“During 2025, our women's, men's, and accessories and other categories represented 63%, 24%, and 13% of net revenue, respectively.”

“20252024 (In thousands) Net revenue$7,847,044 $7,928,156 Net revenue change(1.0)%3.9 %”

“A significant portion of our products are produced in South and South East Asia and increases in the costs of labor and other costs of doing business in the countries in this region could significantly increase our costs to produce our products”

“The fabrics used to make our products include synthetic fabrics whose raw materials include petroleum-based products. Our products also include silver and natural fibers, including cotton.”

“As a result of the fluctuation in exchange rates compared to the U.S. dollar our revenue was $27.6 million higher in 2025 in comparison to 2024.”

“During 2025, we worked with approximately 51 vendors to manufacture our products and 65 suppliers to provide the fabric for our products.”

“On September 10, 2024, we acquired the lululemon branded retail locations and operations in Mexico previously run by a third-party licensee.”

“We experienced lower conversion rates, store traffic, and average order value in the Americas, partially reflective of certain product categories, including core categories, experiencing lower demand.”

“Our action plan is structured around three strategic pillars: product creation, product activation, and enterprise efficiency.”

“Our business is subject to pressure on costs and pricing caused by many factors, including tariffs, intense competition, constrained sourcing capacity, inflationary pressure, the availability of qualified labor and wage inflation, pricing pressure from consumers, and changes in consumer demand.”

“We plan to continue to invest in China Mainland and expect the most company-operated store openings in 2026 to be in this market.”

“Our sales per square foot were $1,426 and $1,574 for 2025 and 2024, respectively.”

“we repurchased 5.0 million shares for $1.2 billion, and in December 2025, our board of directors approved a $1.0 billion increase to our stock repurchase authorization”

“the Company’s consolidated net inventories balance was $1,701 million inclusive of the inventory provision of $88.8 million.”

“we do not expect these actions to fully offset these incremental costs, and we believe tariffs and de minimis changes will continue to adversely affect gross margin and income from operations in 2026”

“because we hold limited patents and exclusive intellectual property rights in the technology, fabrics or processes underlying our products, our current and future competitors are able to manufacture and sell products with performance characteristics, fabrication techniques, and styling similar to ours”

“We have in the past experienced, and we expect to continue to experience, cyberattacks, including phishing, and other attempts to breach, or gain unauthorized access to, our systems.”

“The concentration of our primary offices, several of our distribution centers, and a number of our stores along the west coast of North America could amplify the impact of a natural disaster occurring in that area to our business.”