lululemon athletica

A Look into 2012

Meet LULU

• http://bloom.bg/vZ0k4P#ooid=gyb2g1NDpH5XHXwELNDM92chibNaEj46

Why LULU?

» History of growth» Outperforming our competition» Outperforming performance standards» Potential for growth» Who’s in already

GROWTH: Historical Heights$

Thou

sand

s

2008 2009 2010 2011 20120

200000

400000

600000

800000

1000000

30842 39363 58281121847

184063

272713353488

452898

711704

1000839

Net Income Net Revenue

bibbity

bobbity

boo

COMPETITIVE STRENGTHS

Premium Active Brand

Distinctive Retail Experience

Innovative Design Process

Culture of Training & Personal Growth

Community-Based Marketing

Excellent Management

Outperforming the Competition

LULU Adidas Gap Nike UA0

10

20

30

40

50

60

Market CapDebt to EquityROIC

Outperforming the Competition

LULU Adidas Gap Nike UA0

1

2

3

4

5

6

7

8

9

10

RNOANOPMNOAT

LULU v. S&P 500 Performance

NASDAQ Index

27-Jul-07 3-Feb-08 1-Feb-09 31-Jan-10 30-Jan-11

lululemon athletica inc $100.00 $124.64 $24.29 $100.86 $245.04S&P 500 Index $100.00 $ 95.65 $56.61 $ 73.61 $ 87.48S&P Retail Index $100.00 $ 87.67 $53.70 $ 82.13 $103.04

Our Numbers for Your Analysis

• LOW Avg. Inventory Turnover• LOW Avg. Days Outstanding• LOW PPE Turnover• NO debt• NO “Off-Balance Sheet” Financing

Some Risks…

Thomson Reuters

» Cost of Materials – “silverescent line”(includes silver threading)

» Ability to maintain inventory and distribution channels

» Ability to meet technology needs of expandinge-commerce and information systems

The Future is Bright

The Future is Bright

2009 2010 2011 2012 2013 20140

0.5

1

1.5

2

2.5

EPSDue to heavy capitalization needed to fund growth

Source: Thomson Reuters

$ do

llars

The Future is Bright

-50%

-30%

-10%

10%

30%

50%

70%

90%

110%

130%

150%

NIKE

UA

GAP

ADIDAS

LULU

Year

Due to heavy capitalization needed to fund growth

‘09-10 ‘10-11 ‘11-12 ‘12-13 ‘13-14

Source: Thomson Reuters

% G

row

th

PROJECTED EPS

The Future is Bright

Source: Thomson Reuters

» Opening Additional 37 Corporate Stores » Repurchased Franchisees» Expanding to London, Australia & Southeast Asia» Focus on E-Commerce Business

Revenue has doubled each year since 2009

Who’s Already In?

• ARE WE STILL DOING THIS?

CHA-CHINGGG

77.06 + 1.76