Lululemon Athletica Inc. (NASDAQ:LULU) Q4 2019 Earnings Conference Call - Final Transcript

Mar 26, 2020 • 04:30 pm ET


Lululemon Athletica Inc. (NASDAQ:LULU) Q4 2019 Earnings Conference Call - Final Transcript


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Thank you for standing by. This is the conference operator. Welcome to the Lululemon Athletica, Inc., Fourth Quarter and End Year 2019 Conference Call. [Operator Instructions]

I would now like to hand the conference over to Howard Tubin, Vice President, Investor Relations for Lululemon Athletica, Inc. Please go ahead.

Howard Tubin

Thank you, and good afternoon. Welcome to Lululemon's fourth quarter earnings conference call. Joining me today to talk about our results are Calvin McDonald, CEO; and PJ Guido, CFO.

Before we get started, I'd like to take this opportunity to remind you that our remarks today will include forward-looking statements, reflecting management's current forecast of certain aspects of Lululemon's future. These statements are based on current information, which we have assessed, but which by its nature is dynamic and subject to rapid and even abrupt changes. Actual results may differ materially from those contained or implied by these forward-looking statements, due to risks and uncertainties associated with our business, including those we have disclosed in our most recent filings with the SEC, including our annual report on Form 10-K and our quarterly reports on Form 10-Q. Any forward-looking statements that we make on this call are based on assumptions as of today, and we expressly disclaim any obligation or undertaking to update or revise any of these statements as a result of new information or future events.

During this call, we will present both GAAP and non-GAAP financial measures. A reconciliation of GAAP to non-GAAP measures is included in our annual report on Form 10-K and in today's earnings press release. Press release and accompanying annual report on Form 10-K, are available under the Investors section of our website, at

Before we begin the call, I'd like to remind our investors to visit our Investor site, where you'll find a summary of our key financial operating statistics for the fourth quarter as well as our quarterly infographic. We're planning to end today's call in under an hour, so please limit yourself to one question at a time to give others the opportunity to have their questions addressed.

And now, I'd like to turn the call over to Calvin.

Calvin McDonald

Thank you, Howard, and it's good to speak with all of you for our fourth quarter earnings call. We are very pleased with the strong performance of Lululemon, both in the fourth quarter and throughout 2019, as we delivered nearly $4 billion in revenue. We continue to grow our core businesses, while we strategically expand around the world and acquire new guests. The underlying health of our business is strong, and we entered 2020 with strong momentum. As you know, circumstances have changed dramatically in quarter one, given the spread of COVID-19. We're proud of the actions we've taken across our business to help protect our people and our guests, as we navigate this situation.

I'll begin my comments by discussing COVID-19, as it relates to our business and provide a brief overview of quarter four and 2019. PJ Guido, our Chief Financial