Form 10-Q - Quarterly report [Sections 13 or 15(d)]

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UNITED STATES SECURITIES AND EXCHANGE COMMISSION

Washington, D.C. 20549

Form 10-Q

(Mark One)


☑			QUARTERLY REPORT PURSUANT TO SECTION 13 OR 15(d) OF THE SECURITIES EXCHANGE ACT OF 1934

For the quarterly period ended April 28, 2024


☐			TRANSITION REPORT PURSUANT TO SECTION 13 OR 15(d) OF THE SECURITIES EXCHANGE ACT OF 1934

For the transition period from to

Commission file number 001-33608

lululemon athletica inc.

(Exact name of registrant as specified in its charter)


Delaware			20-3842867
(State or other jurisdiction of incorporation or organization)			(I.R.S. Employer Identification No.)

1818 Cornwall Avenue, Vancouver, British Columbia V6J 1C7

(Address of principal executive offices)

Registrant's telephone number, including area code:

604-732-6124

Former name, former address and former fiscal year, if changed since last report:

N/A

Securities registered pursuant to Section 12(b) of the Act:

Title of each class

Trading symbol(s)

Name of each exchange on which registered

Common Stock, par value $0.005 per share

LULU

Nasdaq Global Select Market

Indicate by check mark whether the registrant: (1) has filed all reports required to be filed by Section 13 or 15(d) of the Securities Exchange Act of 1934 during the preceding 12 months (or for such shorter period that the registrant was required to file such reports), and (2) has been subject to such filing requirements for the past 90 days. Yes ☑ No ☐

Indicate by check mark whether the registrant has submitted electronically every Interactive Data File required to be submitted pursuant to Rule 405 of Regulation S-T during the preceding 12 months (or for such shorter period that the registrant was required to submit such files). Yes ☑ No ☐

Indicate by check mark whether the registrant is a large accelerated filer, an accelerated filer, a non-accelerated filer, a smaller reporting company, or an emerging growth company. See the definitions of "large accelerated filer," "accelerated filer," "smaller reporting company," and "emerging growth company" in Rule 12b-2 of the Exchange Act. (Check one):


Large Accelerated Filer	☑	Accelerated filer	☐
Non-accelerated filer	☐	Smaller reporting company	☐
Emerging growth company	☐

If an emerging growth company, indicate by check mark if the registrant has elected not to use the extended transition period for complying with any new or revised financial accounting standards provided pursuant to Section 13(a) of the Exchange Act. ☐

Indicate by check mark whether the registrant is a shell company (as defined in Rule 12b-2 of the Exchange Act). Yes ☐ No ☑

As of May 30, 2024, there were 119,886,401 shares of the registrant's common stock, par value $0.005 per share, outstanding.

Exchangeable and Special Voting Shares:

As of May 30, 2024, there were outstanding 5,115,961 exchangeable shares of Lulu Canadian Holding, Inc., a wholly-owned subsidiary of the registrant. Exchangeable shares are exchangeable for an equal number of shares of the registrant's common stock.

In addition, as of May 30, 2024, the registrant had outstanding 5,115,961 shares of special voting stock, through which the holders of exchangeable shares of Lulu Canadian Holding, Inc. may exercise their voting rights with respect to the registrant. The special voting stock and the registrant's common stock generally vote together as a single class on all matters on which the common stock is entitled to vote.

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		Page
PART I. FINANCIAL INFORMATION

Item 1.	Financial Statements (Unaudited):	3
	Consolidated Balance Sheets	3
	Consolidated Statements of Operations and Comprehensive Income	4
	Consolidated Statements of Stockholders' Equity	5
	Consolidated Statements of Cash Flows	6
	Index for Notes to the Unaudited Interim Consolidated Financial Statements	7
Item 2.	Management's Discussion and Analysis of Financial Condition and Results of Operations	19
Item 3.	Quantitative and Qualitative Disclosures About Market Risk	29
Item 4.	Controls and Procedures	30

PART II. OTHER INFORMATION

Item 1.	Legal Proceedings	31
Item 1A.	Risk Factors	31
Item 2.	Unregistered Sales of Equity Securities and Use of Proceeds	44
Item 5.	Other Information	44
Item 6.	Exhibits	45

Signatures		46

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PART I

FINANCIAL INFORMATION

ITEM 1. FINANCIAL STATEMENTS (UNAUDITED)

lululemon athletica inc.

CONSOLIDATED BALANCE SHEETS

(Unaudited; Amounts in thousands, except per share amounts)


	April 28, 2024		January 28, 2024
ASSETS
Current assets
Cash and cash equivalents	$	1,900,672	$	2,243,971
Accounts receivable, net	126,349		124,769
Inventories	1,345,267		1,323,602
Prepaid and receivable income taxes	192,955		183,733
Prepaid expenses and other current assets	202,844		184,502
	3,768,087		4,060,577
Property and equipment, net	1,561,185		1,545,811
Right-of-use lease assets	1,263,749		1,265,610
Goodwill	23,992		24,083

Deferred income tax assets	9,099		9,176
Other non-current assets	202,383		186,684
	$	6,828,495	$	7,091,941
LIABILITIES AND STOCKHOLDERS' EQUITY
Current liabilities
Accounts payable	$	261,605	$	348,441
Accrued liabilities and other	374,446		348,555
Accrued compensation and related expenses	132,911		326,110
Current lease liabilities	254,443		249,270
Current income taxes payable	53,087		12,098
Unredeemed gift card liability	268,296		306,479
Other current liabilities	38,783		40,308
	1,383,571		1,631,261
Non-current lease liabilities	1,147,631		1,154,012
Non-current income taxes payable	15,864		15,864
Deferred income tax liabilities	29,150		29,522
Other non-current liabilities	32,471		29,201
	2,608,687		2,859,860
Commitments and contingencies
Stockholders' equity
Undesignated preferred stock, $0.01 par value: 5,000 shares authorized; none issued and outstanding	—		—
Exchangeable stock, no par value: 60,000 shares authorized; 5,116 and 5,116 issued and outstanding	—		—
Special voting stock, $0.000005 par value: 60,000 shares authorized; 5,116 and 5,116 issued and outstanding	—		—
Common stock, $0.005 par value: 400,000 shares authorized; 120,470 and 121,106 issued and outstanding	602		606
Additional paid-in capital	570,286		575,369
Retained earnings	3,944,000		3,920,362
Accumulated other comprehensive loss	(295,080)		(264,256)
	4,219,808		4,232,081
	$	6,828,495	$	7,091,941

See accompanying notes to the unaudited interim consolidated financial statements

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lululemon athletica inc.

CONSOLIDATED STATEMENTS OF OPERATIONS AND COMPREHENSIVE INCOME

(Unaudited; Amounts in thousands, except per share amounts)


	Quarter Ended
	April 28, 2024		April 30, 2023
Net revenue	$	2,208,891	$	2,000,792
Cost of goods sold	933,823		849,987
Gross profit	1,275,068		1,150,805
Selling, general and administrative expenses	842,426		747,513

Amortization of intangible assets	—		1,878

Income from operations	432,642		401,414
Other income (expense), net	23,283		8,025
Income before income tax expense	455,925		409,439
Income tax expense	134,504		119,034
Net income	$	321,421	$	290,405

Other comprehensive income (loss), net of tax:
Foreign currency translation adjustment	$	(44,305)	$	(42,750)
Net investment hedge gains	13,481		17,720
Other comprehensive income (loss), net of tax	$	(30,824)	$	(25,030)
Comprehensive income	$	290,597	$	265,375

Basic earnings per share	$	2.55	$	2.28
Diluted earnings per share	$	2.54	$	2.28
Basic weighted-average number of shares outstanding	125,989		127,246
Diluted weighted-average number of shares outstanding	126,336		127,621

See accompanying notes to the unaudited interim consolidated financial statements

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lululemon athletica inc.

CONSOLIDATED STATEMENTS OF STOCKHOLDERS' EQUITY

(Unaudited; Amounts in thousands)


	Quarter Ended April 28, 2024
	Exchangeable Stock	Special Voting Stock			Common Stock			Additional Paid-in Capital		Retained Earnings		Accumulated Other Comprehensive Loss		Total Stockholders' Equity
	Shares	Shares	Par Value		Shares	Par Value
Balance as of January 28, 2024	5,116	5,116	$	—	121,106	$	606	$	575,369	$	3,920,362	$	(264,256)	$	4,232,081
Net income										321,421				321,421
Other comprehensive income (loss), net of tax												(30,824)		(30,824)

Stock-based compensation expense								25,758						25,758
Common stock issued upon settlement of stock-based compensation					200	—		3,393						3,393
Shares withheld related to net share settlement of stock-based compensation					(85)	—		(32,542)						(32,542)
Repurchase of common stock, including excise tax					(751)	(4)		(1,692)		(297,783)				(299,479)
Balance as of April 28, 2024	5,116	5,116	$	—	120,470	$	602	$	570,286	$	3,944,000	$	(295,080)	$	4,219,808


	Quarter Ended April 30, 2023
	Exchangeable Stock	Special Voting Stock			Common Stock			Additional Paid-in Capital		Retained Earnings		Accumulated Other Comprehensive Loss		Total Stockholders' Equity
	Shares	Shares	Par Value		Shares	Par Value
Balance as of January 29, 2023	5,116	5,116	$	—	122,205	$	611	$	474,645	$	2,926,127	$	(252,584)	$	3,148,799
Net income										290,405				290,405
Other comprehensive income (loss), net of tax												(25,030)		(25,030)

Stock-based compensation expense								21,301						21,301
Common stock issued upon settlement of stock-based compensation					274	—		11,873						11,873
Shares withheld related to net share settlement of stock-based compensation					(88)	—		(28,793)						(28,793)
Repurchase of common stock, including excise tax					(292)	(1)		(530)		(97,948)				(98,479)
Balance as of April 30, 2023	5,116	5,116	$	—	122,099	$	610	$	478,496	$	3,118,584	$	(277,614)	$	3,320,076

See accompanying notes to the unaudited interim consolidated financial statements

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lululemon athletica inc.

CONSOLIDATED STATEMENTS OF CASH FLOWS

(Unaudited; Amounts in thousands)


	Quarter Ended
	April 28, 2024		April 30, 2023
Cash flows from operating activities
Net income	$	321,421	$	290,405
Adjustments to reconcile net income to net cash provided by (used in) operating activities:
Depreciation and amortization	95,759		84,116




Stock-based compensation expense	25,758		21,301
Settlement of derivatives not designated in a hedging relationship	(316)		(721)
Changes in operating assets and liabilities:
Inventories	(36,425)		(155,174)
Prepaid and receivable income taxes	(10,104)		3,249
Prepaid expenses and other current assets	(22,532)		27,511
Other non-current assets	(17,969)		(7,222)
Accounts payable	(82,366)		116,935
Accrued liabilities and other	37,534		(53,685)
Accrued compensation and related expenses	(190,513)		(120,699)
Current and non-current income taxes payable	41,116		(141,237)
Unredeemed gift card liability	(37,172)		(26,506)
Right-of-use lease assets and current and non-current lease liabilities	1,097		5,255
Other current and non-current liabilities	2,236		1,975
Net cash provided by operating activities	127,524		45,503
Cash flows from investing activities
Purchase of property and equipment	(130,681)		(136,942)
Settlement of net investment hedges	(856)		(1,277)

Net cash used in investing activities	(131,537)		(138,219)
Cash flows from financing activities
Proceeds from settlement of stock-based compensation	3,393		11,873
Shares withheld related to net share settlement of stock-based compensation	(32,542)		(28,793)
Repurchase of common stock	(299,479)		(98,479)


Net cash used in financing activities	(328,628)		(115,399)
Effect of foreign currency exchange rate changes on cash and cash equivalents	(10,658)		3,855
Decrease in cash and cash equivalents	(343,299)		(204,260)
Cash and cash equivalents, beginning of period	$	2,243,971	$	1,154,867
Cash and cash equivalents, end of period	$	1,900,672	$	950,607

See accompanying notes to the unaudited interim consolidated financial statements

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lululemon athletica inc.

INDEX FOR NOTES TO THE UNAUDITED INTERIM CONSOLIDATED FINANCIAL

STATEMENTS


Note 1	Nature of Operations and Basis of Presentation	8
Note 2	Recent Accounting Pronouncements	8

Note 3	Revolving Credit Facilities	9
Note 4	Supply Chain Financing Program	9
Note 5	Stock-Based Compensation and Benefit Plans	10
Note 6	Fair Value Measurement	11
Note 7	Derivative Financial Instruments	12
Note 8	Earnings Per Share	14
Note 9	Supplementary Financial Information	15
Note 10	Segmented Information	16
Note 11	Disaggregated Net Revenue	18
Note 12	Legal Proceedings and Other Contingencies	18
Note 13	Subsequent Events	18

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lululemon athletica inc.

NOTES TO THE UNAUDITED INTERIM CONSOLIDATED FINANCIAL

STATEMENTS

Note 1. Nature of Operations and Basis of Presentation

Nature of operations

lululemon athletica inc., a Delaware corporation, ("lululemon" and, together with its subsidiaries unless the context otherwise requires, the "Company") is engaged in the design, distribution, and retail of technical athletic apparel, footwear, and accessories. The Company organizes its operations into four regional markets: Americas, China Mainland, Asia Pacific ("APAC"), and Europe and the Middle East ("EMEA"). It conducts its business through a number of different channels in each market, including company-operated stores, e-commerce, temporary locations, wholesale, outlets, a re-commerce program, and license and supply arrangements. There were 711 and 711 company-operated stores as of April 28, 2024 and January 28, 2024, respectively.

Basis of presentation

The unaudited interim consolidated financial statements, including the financial position as of April 28, 2024 and the results of operations and cash flows for the periods disclosed, are presented in U.S. dollars and have been prepared by the Company under the rules and regulations of the Securities and Exchange Commission ("SEC"). The financial information is presented in accordance with United States generally accepted accounting principles ("GAAP") for interim financial information and, accordingly, does not include all of the information and footnotes required by GAAP for complete financial statements. The financial information as of January 28, 2024 is derived from the Company's audited consolidated financial statements and related notes for the fiscal year ended January 28, 2024, which are included in Item 8 in the Company's fiscal 2023 Annual Report on Form 10-K filed with the SEC on March 21, 2024. These unaudited interim consolidated financial statements reflect all adjustments which are, in the opinion of management, necessary to a fair statement of the results for the interim periods presented. These unaudited interim consolidated financial statements should be read in conjunction with the Company's consolidated financial statements and related notes included in Item 8 in the Company's fiscal 2023 Annual Report on Form 10-K. Note 2. Recent Accounting Pronouncements sets out the impact of recent accounting pronouncements.

The Company's fiscal year ends on the Sunday closest to January 31 of the following year, typically resulting in a 52-week year, but occasionally giving rise to an additional week, resulting in a 53-week year. Fiscal 2024 will end on February 2, 2025 and will be a 53-week year. Fiscal 2023 was a 52-week year and ended on January 28, 2024. Fiscal 2024 and fiscal 2023 are referred to as "2024," and "2023," respectively. The first quarter of 2024 and 2023 ended on April 28, 2024 and April 30, 2023, respectively.

The Company's business is affected by the pattern of seasonality common to most retail apparel businesses. Historically, the Company has recognized a significant portion of its operating profit in the fourth fiscal quarter of each year as a result of increased net revenue during the holiday season.

Use of estimates

The preparation of financial statements in conformity with GAAP in the United States requires management to make estimates and assumptions that affect the reported amounts of assets and liabilities and the disclosure of contingent assets and liabilities at the date of the financial statements as well as the reported amounts of net revenue and expenses during the reporting period. Actual results could differ from those estimates.

Note 2. Recent Accounting Pronouncements

The Company considers the applicability and impact of all Accounting Standard Updates ("ASUs"). ASUs recently issued not listed below were assessed and determined to be either not applicable or are expected to have minimal impact on the Company's consolidated financial position or results of operations.

Recently issued accounting pronouncements

In November 2023, the FASB issued ASU 2023-07, Segment Reporting (Topic 280): Improvements to Reportable Segment Disclosures. Entities will be required to provide disclosures of significant segmented expenses and other categories used by the Chief Operating Decision Maker ("CODM") in order to enhance disclosure at the segment level. This amendment is effective for annual periods beginning after December 15, 2023, and interim periods beginning after December 15, 2024,

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and is applied retrospectively for periods presented in the financial statements. The Company is currently evaluating the impact that this new guidance may have on its financial statement disclosures.

In December 2023, the FASB issued ASU 2023-09, Income Taxes (Topic 740): Improvements to Income Tax Disclosures. This disclosure requires expanded disclosure within the rate reconciliation as well as disaggregation of annual taxes paid. This amendment is effective for annual periods beginning after December 15, 2023, and is applied prospectively. The Company is currently evaluating the impact that this new guidance may have on its financial statement disclosures.

Note 3. Revolving Credit Facilities

Americas revolving credit facility

On December 14, 2021, the Company entered into an amended and restated credit agreement extending its existing credit facility, which provides for $400.0 million in commitments under an unsecured five-year revolving credit facility. The credit facility has a maturity date of December 14, 2026, subject to extension under certain circumstances. Borrowings under the credit facility may be prepaid and commitments may be reduced or terminated without premium or penalty (other than customary breakage costs).

As of April 28, 2024, aside from letters of credit of $6.3 million, the Company had no other borrowings outstanding under this credit facility.

Borrowings made under the credit facility bear interest at a rate per annum equal to, at the Company's option, either (a) a rate based on the Secured Overnight Financing Rate as administered by the Federal Reserve Bank of New York ("SOFR"), or (b) an alternate base rate, plus, in each case, an applicable margin. The applicable margin is determined by reference to a pricing grid, based on the ratio of indebtedness to earnings before interest, tax, depreciation, amortization, and rent ("EBITDAR") and ranges between 1.000%-1.375% for SOFR loans and 0.000%-0.375% for alternate base rate or Canadian prime rate loans. Additionally, a commitment fee of between 0.100%-0.200%, also determined by reference to the pricing grid, is payable on the average daily unused amounts under the credit facility.

The applicable interest rates and commitment fees are subject to adjustment based on certain sustainability key performance indicators ("KPIs"). The two KPIs are based on greenhouse gas emissions intensity reduction and gender pay equity, and the Company's performance against certain targets measured on an annual basis could result in positive or negative sustainability rate adjustments of 2.50 basis points to its drawn pricing and positive or negative sustainability fee adjustments of 0.50 basis points to its undrawn pricing.

The credit agreement contains negative covenants that, among other things and subject to certain exceptions, limit the ability of the Company's subsidiaries to incur indebtedness, incur liens, undergo fundamental changes, make dispositions of all or substantially all of their assets, alter their businesses and enter into agreements limiting subsidiary dividends and distributions.

The Company's financial covenants include maintaining an operating lease adjusted leverage ratio of not greater than 3.25:1.00 and the ratio of consolidated EBITDAR to consolidated interest charges (plus rent) of not less than 2.00:1.00. The credit agreement also contains certain customary representations, warranties, affirmative covenants, and events of default (including, among others, an event of default upon the occurrence of a change of control). If an event of default occurs, the credit agreement may be terminated, and the maturity of any outstanding amounts may be accelerated. As of April 28, 2024, the Company was in compliance with the covenants of the credit facility.

China Mainland revolving credit facility

The Company has an uncommitted and unsecured 240.0 million Chinese Yuan ($33.1 million) revolving credit facility with terms that are reviewed on an annual basis. It is comprised of a revolving loan of up to 200.0 million Chinese Yuan ($27.6 million) and a financial guarantee facility of up to 40.0 million Chinese Yuan ($5.5 million), or its equivalent in another currency. Loans are available for a period not to exceed 12 months, at an interest rate equal to the loan prime rate plus a spread of 0.5175%. The Company is required to follow certain covenants. As of April 28, 2024, the Company was in compliance with the covenants and, aside from letters of credit of 33.2 million Chinese Yuan ($4.6 million), there were no other borrowings or guarantees outstanding under this credit facility.

Note 4. Supply Chain Financing Program

The Company facilitates a voluntary supply chain financing ("SCF") program that allows its suppliers to elect to sell the receivables owed to them by the Company to a third party financial institution. Participating suppliers negotiate arrangements

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directly with the financial institution. If a supplier chooses to participate in the SCF program it may request an invoice be paid earlier than it would by the Company, and the financial institution at its sole and absolute discretion, may elect to make an early payment to the supplier at a discount. The Company’s obligations to its suppliers, including amounts due and scheduled payment terms, are not impacted by a supplier's participation in the arrangement and the Company provides no guarantees to any third parties under the SCF program.

As of April 28, 2024 and January 28, 2024, $37.9 million and $42.1 million, respectively, were outstanding under the SCF program and presented within accounts payable.

Note 5. Stock-Based Compensation and Benefit Plans

Stock-based compensation plans

The Company's eligible employees participate in various stock-based compensation plans, provided directly by the Company.

Stock-based compensation expense charged to income for the plans was $25.4 million and $21.0 million for the first quarter of 2024 and 2023, respectively. Total unrecognized compensation cost for all stock-based compensation plans was $224.3 million as of April 28, 2024, which is expected to be recognized over a weighted-average period of 2.5 years.

A summary of the balances of the Company's stock-based compensation plans as of April 28, 2024, and changes during the first quarter then ended, is presented below:


	Stock Options			Performance-Based Restricted Stock Units			Restricted Shares			Restricted Stock Units
	Number	Weighted-Average Exercise Price		Number	Weighted-Average Grant Date Fair Value		Number	Weighted-Average Grant Date Fair Value		Number	Weighted-Average Grant Date Fair Value
	(In thousands, except per share amounts)
Balance as of January 28, 2024	783	$	285.69	175	$	349.84	4	$	370.85	223	$	359.12
Granted	216	388.90		120	356.47		—	388.90		115	388.90
Exercised/released	20	184.81		98	309.89		—	—		84	348.08
Forfeited/expired	4	366.87		—	362.00		—	—		3	373.94
Balance as of April 28, 2024	975	$	310.26	197	$	373.82	4	$	371.33	251	$	376.27
Exercisable as of April 28, 2024	475	$	247.34

The Company's performance-based restricted stock units are awarded to eligible employees and entitle the grantee to receive a maximum of two shares of common stock per performance-based restricted stock unit if the Company achieves specified performance goals and the grantee remains employed during the vesting period. The fair value of performance-based restricted stock units is based on the closing price of the Company's common stock on the grant date. Expense for performance-based restricted stock units is recognized when it is probable that the performance goal will be achieved.

The grant date fair value of the restricted shares and restricted stock units is based on the closing price of the Company's common stock on the grant date.

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The grant date fair value of each stock option granted is estimated on the date of grant using the Black-Scholes model. The closing price of the Company's common stock on the grant date is used in the model. The assumptions used to calculate the fair value of the options granted are evaluated and revised, as necessary, to reflect market conditions and the Company's historical experience. The expected term of the options is based upon the historical experience of similar awards, giving consideration to expectations of future employee exercise behavior. Expected volatility is based upon the historical volatility of the Company's common stock for the period corresponding with the expected term of the options. The risk-free interest rate is based on the U.S. Treasury yield curve for the period corresponding with the expected term of the options. The following are weighted averages of the assumptions that were used in calculating the fair value of stock options granted during the first quarter of 2024:


	First Quarter
	2024
Expected term	3.75 years
Expected volatility	37.39	%
Risk-free interest rate	4.30	%
Dividend yield	—	%

Employee share purchase plan

The Company has an Employee Share Purchase Plan ("ESPP"). Contributions are made by eligible employees, subject to certain limits defined in the ESPP, and the Company matches one-third of the contribution. The maximum number of shares authorized to be purchased under the ESPP is 6.0 million shares. All shares purchased under the ESPP are purchased in the open market. During the first quarter of 2024, there were 28.0 thousand shares purchased. As of April 28, 2024, 4.4 million shares remain authorized to be purchased under the ESPP.

Defined contribution pension plans

The Company offers defined contribution pension plans to its eligible employees. Participating employees may elect to defer and contribute a portion of their eligible compensation to a plan up to limits stated in the plan documents, not to exceed the dollar amounts set by applicable laws. The Company matches 50% to 75% of the contribution depending on the participant's length of service, and the contribution is subject to a two year vesting period. The Company's net expense for the defined contribution plans was $5.8 million and $4.8 million in the first quarter of 2024 and 2023, respectively.

Note 6. Fair Value Measurement

Fair value is defined as the price that would be received to sell an asset or paid to transfer a liability in an orderly transaction between market participants at the measurement date. Fair value measurements are made using a three-tier fair value hierarchy, which prioritizes the inputs used in measuring fair value:

•Level 1 - defined as observable inputs such as quoted prices in active markets;

•Level 2 - defined as inputs other than quoted prices in active markets that are either directly or indirectly observable; and

•Level 3 - defined as unobservable inputs in which little or no market data exists, therefore requiring an entity to develop its own assumptions.

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Assets and liabilities measured at fair value on a recurring basis

The fair value measurement is categorized in its entirety by reference to its lowest level of significant input. As of April 28, 2024 and January 28, 2024, the Company held certain assets and liabilities that are required to be measured at fair value on a recurring basis:


	April 28, 2024		Level 1		Level 2		Level 3		Balance Sheet Classification
	(In thousands)
Money market funds	$	690,071	$	690,071	$	—	$	—	Cash and cash equivalents

Term deposits	8		—		8		—		Cash and cash equivalents
Forward currency contract assets	21,620		—		21,620		—		Prepaid expenses and other current assets
Forward currency contract liabilities	18,873		—		18,873		—		Other current liabilities


	January 28, 2024		Level 1		Level 2		Level 3		Balance Sheet Classification
	(In thousands)
Money market funds	$	1,102,119	$	1,102,119	$	—	$	—	Cash and cash equivalents

Term deposits	8		—		8		—		Cash and cash equivalents
Forward currency contract assets	647		—		647		—		Prepaid expenses and other current assets
Forward currency contract liabilities	2,872		—		2,872		—		Other current liabilities

The Company records cash, accounts receivable, accounts payable, and accrued liabilities at cost. The carrying values of these instruments approximate their fair value due to their short-term maturities.

The Company has short-term, highly liquid investments classified as cash equivalents, which are invested in money market funds and short-term deposits with original maturities of three months or less. The Company records cash equivalents at their original purchase prices plus interest that has accrued at the stated rate.

The fair values of the forward currency contract assets and liabilities are determined using observable Level 2 inputs, including foreign currency spot exchange rates, forward pricing curves, and interest rates. The fair values consider the credit risk of the Company and its counterparties. The Company's Master International Swap Dealers Association, Inc., Agreements and other similar arrangements allow net settlements under certain conditions. However, the Company records all derivatives on its consolidated balance sheets at fair value and does not offset derivative assets and liabilities.

Note 7. Derivative Financial Instruments

Foreign currency exchange risk

The Company is exposed to risks associated with changes in foreign currency exchange rates and uses derivative financial instruments to manage its exposure to certain of these foreign currency exchange rate risks. The Company does not enter into derivative contracts for speculative or trading purposes.

The Company currently hedges against changes in the Canadian dollar and Chinese Yuan to the U.S. dollar exchange rate and changes in the Euro and Australian dollar to the Canadian dollar exchange rate using forward currency contracts.

Net investment hedges

The Company is exposed to foreign currency exchange gains and losses which arise on translation of its international subsidiaries' balance sheets into U.S. dollars. These gains and losses are recorded as other comprehensive income (loss), net of tax in accumulated other comprehensive income or loss within stockholders' equity.

The Company holds a significant portion of its assets in Canada and enters into forward currency contracts designed to hedge a portion of the foreign currency exposure that arises on translation of a Canadian subsidiary into U.S. dollars. These forward currency contracts are designated as net investment hedges. The Company assesses hedge effectiveness based on

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changes in forward rates. The Company recorded no ineffectiveness from net investment hedges during the first quarter of 2024.

The Company classifies the cash flows at settlement of its net investment hedges within investing activities in the consolidated statements of cash flows.

Derivatives not designated as hedging instruments

The Company is exposed to gains and losses arising from changes in foreign currency exchange rates associated with transactions which are undertaken by its subsidiaries in currencies other than their functional currency. Such transactions include intercompany transactions and inventory purchases. These transactions result in the recognition of certain foreign currency denominated monetary assets and liabilities which are remeasured to the quarter-end or settlement date foreign currency exchange rate. The resulting foreign currency gains and losses are recorded in selling, general and administrative expenses.

During the first quarter of 2024, the Company entered into certain forward currency contracts designed to economically hedge the foreign currency exchange revaluation gains and losses that are recognized by its Canadian and Chinese subsidiaries on specific monetary assets and liabilities denominated in currencies other than the functional currency of the entity. The Company has not applied hedge accounting to these instruments and the change in fair value of these derivatives is recorded within selling, general and administrative expenses.

The Company classifies the cash flows at settlement of its forward currency contracts which are not designated in hedging relationships within operating activities in the consolidated statements of cash flows.

Quantitative disclosures about derivative financial instruments

The Company presents its derivative assets and derivative liabilities at their gross fair values within prepaid expenses and other current assets and other current liabilities on the consolidated balance sheets. However, the Company's Master International Swap Dealers Association, Inc., Agreements and other similar arrangements allow net settlements under certain conditions. As of April 28, 2024, there were derivative assets of $21.6 million and derivative liabilities of $18.9 million subject to enforceable netting arrangements.

The notional amounts and fair values of forward currency contracts were as follows:


	April 28, 2024						January 28, 2024
	Gross Notional		Assets		Liabilities		Gross Notional		Assets		Liabilities
	(In thousands)
Derivatives designated as net investment hedges:
Forward currency contracts	$	1,029,000	$	18,735	$	—	$	1,242,000	$	—	$	258
Derivatives not designated in a hedging relationship:
Forward currency contracts	1,368,789		2,885		18,873		1,543,351		647		2,614
Net derivatives recognized on consolidated balance sheets:
Forward currency contracts			$	21,620	$	18,873			$	647	$	2,872

The forward currency contracts designated as net investment hedges outstanding as of April 28, 2024 mature on different dates between May 2024 and September 2024.

The forward currency contracts not designated in a hedging relationship outstanding as of April 28, 2024 mature on different dates between May 2024 and October 2024.

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The pre-tax gains and losses on foreign currency exchange forward contracts recorded in accumulated other comprehensive income or loss were as follows:


	First Quarter
		2024		2023
		(In thousands)
Gains (losses) recognized in net investment hedge gains (losses):
Derivatives designated as net investment hedges		$	18,137	$	24,127

No gains or losses have been reclassified from accumulated other comprehensive income or loss into net income for derivative financial instruments in a net investment hedging relationship, as the Company has not sold or liquidated (or substantially liquidated) its hedged subsidiary.

The pre-tax net foreign currency exchange and derivative gains and losses recorded in the consolidated statement of operations were as follows:


	First Quarter
		2024		2023
		(In thousands)
Gains (losses) recognized in selling, general and administrative expenses:
Foreign currency exchange gains (losses)		$	14,935	$	8,328
Derivatives not designated in a hedging relationship		(14,327)		(9,707)
Net foreign currency exchange and derivative gains (losses)		$	608	$	(1,379)

Credit risk

The Company is exposed to credit-related losses in the event of nonperformance by the counterparties to the forward currency contracts. The credit risk amount is the Company's unrealized gains on its derivative instruments, based on foreign currency rates at the time of nonperformance.

The Company's forward currency contracts are generally entered into with what the Company believes are investment grade credit worthy and reputable financial institutions that are monitored by the Company for counterparty risk.

The Company's derivative contracts contain certain credit risk-related contingent features. Under certain circumstances, including an event of default, bankruptcy, termination, and cross default under the Company's revolving credit facility, the Company may be required to make immediate payment for outstanding liabilities under its derivative contracts.

Note 8. Earnings Per Share

The details of the computation of basic and diluted earnings per share are as follows:


	First Quarter
	2024		2023
	(In thousands, except per share amounts)
Net income	$	321,421	$	290,405
Basic weighted-average number of shares outstanding	125,989		127,246
Assumed conversion of dilutive stock options and awards	347		375
Diluted weighted-average number of shares outstanding	126,336		127,621
Basic earnings per share	$	2.55	$	2.28
Diluted earnings per share	$	2.54	$	2.28

The Company's calculation of weighted-average shares includes the common stock of the Company as well as the exchangeable shares. Exchangeable shares are the economic equivalent of common shares in all material respects. All classes of stock have, in effect, the same economic rights and share equally in undistributed net income. For the first quarter of 2024 and 2023, 0.1 million and 0.1 million stock options and awards, respectively, were anti-dilutive to earnings per share and therefore have been excluded from the computation of diluted earnings per share.

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On March 23, 2022, the Company's board of directors approved a stock repurchase program for up to $1.0 billion of the Company's common shares on the open market or in privately negotiated transactions. During the first quarter of 2024, the Company completed the remaining stock repurchases under this program.

On November 29, 2023, the Company's board of directors approved an additional stock repurchase program for up to $1.0 billion of the Company's common shares on the open market or in privately negotiated transactions. The repurchase plan has no time limit and does not require the repurchase of a minimum number of shares. Common shares repurchased on the open market are at prevailing market prices, including under plans complying with the provisions of Rule 10b5-1 and Rule 10b-18 of the Securities Exchange Act of 1934. The timing and actual number of common shares to be repurchased will depend upon market conditions, eligibility to trade, and other factors, in accordance with Securities and Exchange Commission requirements. The authorized value of shares available to be repurchased under this program excludes the cost of commissions and excise taxes and as of April 28, 2024, the remaining authorized value was $892.3 million.

During the first quarter of 2024 and 2023, 0.8 million and 0.3 million shares, respectively, were repurchased at a total cost including commissions and excise taxes of $299.5 million and $98.5 million, respectively.

Subsequent to April 28, 2024, and up to May 30, 2024, 0.6 million shares were repurchased at a total cost including commissions and excise taxes of $201.1 million.

Note 9. Supplementary Financial Information

A summary of certain consolidated balance sheet accounts is as follows:


	April 28, 2024		January 28, 2024
	(In thousands)
Inventories:
Inventories, at cost	$	1,435,492	$	1,465,076
Provision to reduce inventories to net realizable value	(90,225)		(141,474)
	$	1,345,267	$	1,323,602
Prepaid expenses and other current assets:
Prepaid expenses	$	146,651	$	137,203
Forward currency contract assets	21,620		647
Other current assets	34,573		46,652
	$	202,844	$	184,502
Property and equipment, net:
Land	$	79,062	$	79,498
Buildings	28,739		29,032
Leasehold improvements	1,096,822		1,006,926
Furniture and fixtures	160,041		156,656
Computer hardware	184,630		176,597
Computer software	1,100,899		1,032,567
Equipment and vehicles	46,058		34,017
Work in progress	148,026		247,943
Property and equipment, gross	2,844,277		2,763,236
Accumulated depreciation	(1,283,092)		(1,217,425)
	$	1,561,185	$	1,545,811
Other non-current assets:
Cloud computing arrangement implementation costs	$	144,070	$	133,597
Security deposits	34,557		31,825
Other	23,756		21,262
	$	202,383	$	186,684

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	April 28, 2024		January 28, 2024
	(In thousands)
Accrued liabilities and other:
Accrued operating expenses	$	163,726	$	147,215
Sales return allowances	54,622		61,634
Accrued freight	41,226		41,241
Accrued capital expenditures	22,689		31,936
Accrued duty	27,163		25,817
Accrued rent	16,579		12,522
Accrued inventory liabilities	3,410		4,783
Sales tax collected	8,885		3,088
Forward currency contract liabilities	18,873		2,872
Other	17,273		17,447
	$	374,446	$	348,555

Note 10. Segmented Information

The Company's operating segments are based on the financial information the CODM, who is the Chief Executive Officer, uses to evaluate performance and allocate resources.

During the fourth quarter of 2023, the financial information the CODM regularly uses to evaluate performance and allocate resources was revised. As the Company has further executed on its omni-channel retail strategy, and with the continued expansion of its international operations, the CODM has shifted resource allocation decisions to be focused by regional market, rather than by selling channel. This resulted in a change in the Company's operating segments.

As of January 28, 2024, the Company reports three segments: Americas, China Mainland, and Rest of World, which is APAC and EMEA on a combined basis. The Company does not report capital expenditures and assets by segment as that information is not reviewed by the CODM.

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Previously, the Company's operating segments were comprised of company-operated stores, direct to consumer (or "e-commerce"), and other. The Company has recast the prior period information to reflect its new operating segments.


	First Quarter
	2024		2023
	(In thousands)
Net revenue:
Americas	$	1,622,264	$	1,567,738
China Mainland	303,786		210,068
Rest of World	282,841		222,986
	$	2,208,891	$	2,000,792
Segmented income from operations:
Americas	$	564,840	$	581,222
China Mainland	119,778		73,885
Rest of World	66,681		43,794
	751,299		698,901
General corporate expense	318,657		295,609


Amortization of intangible assets	—		1,878

Income from operations	432,642		401,414
Other income (expense), net	23,283		8,025
Income before income tax expense	$	455,925	$	409,439

Depreciation and amortization:
Americas	$	44,326	$	35,136
China Mainland	8,025		5,965
Rest of World	6,506		5,298
Corporate	36,902		37,717
	$	95,759	$	84,116

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Note 11. Disaggregated Net Revenue

In addition to the disaggregation of net revenue by reportable segment in Note 10. Segmented Information, the following table disaggregates the Company's net revenue by geographic area.


	First Quarter
	2024		2023
	(In thousands)
United States	$	1,340,400	$	1,314,391
Canada	281,864		253,347

China Mainland	303,786		210,068
Hong Kong SAR, Taiwan, and Macau SAR	42,264		39,617
People's Republic of China	346,050		249,685

Other geographic areas	240,577		183,369
	$	2,208,891	$	2,000,792

The following table disaggregates the Company's net revenue by category. Other categories is primarily composed of accessories, footwear, and lululemon Studio.


	First Quarter
	2024		2023
	(In thousands)
Women's product	$	1,435,241	$	1,308,828
Men's product	505,698		438,165
Other categories	267,952		253,799
	$	2,208,891	$	2,000,792

The following table disaggregates the Company's net revenue by channel.


	First Quarter
	2024		2023
	(In thousands)
Company-operated stores	$	1,070,525	$	958,087
E-commerce	905,787		834,942
Other channels	232,579		207,763
	$	2,208,891	$	2,000,792

Note 12. Legal Proceedings and Other Contingencies

The Company is, from time to time, involved in routine legal matters, and audits and inspections by governmental agencies and other third parties which are incidental to the conduct of its business. This includes legal matters such as initiation and defense of proceedings to protect intellectual property rights, employment claims, product liability claims, personal injury claims, and similar matters. The Company believes the ultimate resolution of any such legal proceedings, audits, and inspections will not have a material adverse effect on its consolidated balance sheets, results of operations or cash flows. The Company has recognized immaterial provisions related to the expected outcome of legal proceedings.

Note 13. Subsequent Events

Subsequent to April 28, 2024, the Company entered into an agreement to acquire the operations and lululemon branded retail locations being run by a third party under a license and supply arrangement in Mexico for approximately $160.0 million in cash. The Company had previously granted this third party the right to operate lululemon branded retail locations and to sell lululemon products in Mexico. The transaction is subject to customary closing conditions and regulatory approval.

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ITEM 2. MANAGEMENT'S DISCUSSION AND ANALYSIS OF FINANCIAL CONDITION AND RESULTS OF OPERATIONS

Some of the statements contained in this Form 10-Q and any documents incorporated herein by reference constitute forward-looking statements within the meaning of the Private Securities Litigation Reform Act of 1995, Section 27A of the Securities Act of 1933 and Section 21E of the Securities Exchange Act of 1934. All statements, other than statements of historical facts, included or incorporated in this Form 10-Q are forward-looking statements, particularly statements which relate to expectations, beliefs, projections, future plans and strategies, anticipated events or trends and similar expressions concerning matters that are not historical facts, such as statements regarding our future financial condition or results of operations, our prospects and strategies for future growth, the development and introduction of new products, and the implementation of our marketing and branding strategies. In many cases, you can identify forward-looking statements by terms such as "may," "will," "should," "expects," "plans," "anticipates," "believes," "estimates," "intends," "predicts," "potential" or the negative of these terms or other comparable terminology.

The forward-looking statements contained in this Form 10-Q and any documents incorporated herein by reference reflect our current views about future events and are subject to risks, uncertainties, assumptions, and changes in circumstances that may cause events or our actual activities or results to differ significantly from those expressed in any forward-looking statement. Although we believe that the expectations reflected in the forward-looking statements are reasonable, we cannot guarantee future events, results, actions, levels of activity, performance, or achievements. Readers are cautioned not to place undue reliance on these forward-looking statements. A number of important factors could cause actual results to differ materially from those indicated by the forward-looking statements, including, but not limited to, those factors described in "Risk Factors" and elsewhere in this report.

The forward-looking statements contained in this Form 10-Q reflect our views and assumptions only as of the date of this Form 10-Q and are expressly qualified in their entirety by the cautionary statements included in this Form 10-Q. Except as required by applicable securities law, we undertake no obligation to update any forward-looking statement to reflect events or circumstances after the date on which the statement is made or to reflect the occurrence of unanticipated events.

This information should be read in conjunction with the unaudited interim consolidated financial statements and the notes included in Item 1 of Part I of this Quarterly Report on Form 10-Q and the audited consolidated financial statements and notes, and Management's Discussion and Analysis of Financial Condition and Results of Operations, contained in our fiscal 2023 Annual Report on Form 10-K filed with the SEC on March 21, 2024.

Our fiscal year ends on the Sunday closest to January 31 of the following year, typically resulting in a 52-week year, but occasionally giving rise to an additional week, resulting in a 53-week year. Fiscal 2024 will end on February 2, 2025 and will be a 53-week year. Fiscal 2023 was a 52-week year and ended on January 28, 2024. Fiscal 2024 and fiscal 2023 are referred to as "2024," and "2023," respectively. The first quarter of 2024 and 2023 ended on April 28, 2024 and April 30, 2023, respectively.

Components of management's discussion and analysis of financial condition and results of operations include:

•Overview

•Financial Highlights and Market Conditions and Trends

•Quarter-to-Date Results of Operations

•Comparable Sales

•Non-GAAP Financial Measures

•Seasonality

•Liquidity and Capital Resources

•Critical Accounting Policies and Estimates

•Operating Locations

We use comparable sales as a metric to evaluate the performance of our business. Refer to the Comparable Sales section of this management's discussion and analysis of financial condition and results of operations for further information.

We provide constant dollar changes, which is a non-GAAP financial measure, as supplemental information to help investors understand the underlying growth rate of net revenue excluding the impact of changes in foreign currency exchange rates. Refer to the Non-GAAP Financial Measures section of this management's discussion and analysis of financial condition and results of operations for reconciliations between the non-GAAP financial measures and the most directly comparable measures calculated in accordance with GAAP.

We disclose material non-public information through one or more of the following channels: our investor relations website (http://corporate.lululemon.com/investors), the social media channels identified on our investor relations website, press releases, SEC filings, public conference calls, and webcasts. Information contained on or accessible through our websites

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is not incorporated into, and does not form a part of, this Quarterly Report or any other report or document we file with the SEC, and any references to our websites are intended to be inactive textual references only.

As reported in the fiscal 2023 Annual Report on Form 10-K filed with the SEC on March 21, 2024, we changed our operating segments during the fourth quarter of fiscal 2023. We report three segments: Americas, China Mainland, and Rest of World, which is Asia Pacific (“APAC”) and Europe and the Middle East (“EMEA”) on a combined basis. Previously, our segments were based on selling channel. We have recast our previously reported amounts for segmented net revenue and segmented income from operations to reflect the current presentation.

Overview

lululemon athletica inc. is principally a designer, distributor, and retailer of technical athletic apparel, footwear, and accessories. We have a vision to create transformative products and experiences that build meaningful connections, unlocking greater possibility and wellbeing for all. Since our inception, we have fostered a distinctive corporate culture; we promote a set of core values in our business which include taking personal responsibility, acting with courage, valuing connection and inclusion, and choosing to have fun. These core values attract passionate and motivated employees who are driven to achieve personal and professional goals, and share our purpose "to elevate human potential by helping people feel their best."

We offer a comprehensive line of technical athletic apparel, footwear, and accessories marketed under the lululemon brand. Our apparel assortment includes items such as pants, shorts, tops, and jackets designed for a healthy lifestyle including athletic activities such as yoga, running, training, and most other activities. We also offer apparel designed for being on the move and fitness-inspired accessories. We expect to continue to broaden our merchandise offerings through expansion across these product areas.

Financial Highlights

The summary below compares the first quarter of 2024 to the first quarter of 2023:

•Net revenue increased 10% to $2.2 billion. On a constant dollar basis, net revenue increased 11%.

•Comparable sales increased 6%, or 7% on a constant dollar basis.

–Americas comparable sales were flat compared to the first quarter of 2023.

–China Mainland comparable sales increased 26%, or 33% on a constant dollar basis.

–Rest of World comparable sales increased 23%, or 26% on a constant dollar basis.

•Gross profit increased 11% to $1.3 billion.

•Gross margin increased 20 basis points to 57.7%.

•Income from operations increased 8% to $432.6 million.

•Operating margin decreased 50 basis points to 19.6%.

•Income tax expense increased 13% to $134.5 million. Our effective tax rate for the first quarter of 2024 was 29.5% compared to 29.1% for the first quarter of 2023.

•Diluted earnings per share were $2.54 compared to $2.28 in the first quarter of 2023.

Market Conditions and Trends

Macroeconomic conditions, including foreign currency fluctuations and consumer purchasing behaviors, impact our business and operating costs. Such factors are expected to continue to impact our business throughout 2024, with the impact varying by market.

Consumer purchasing behaviors and their propensity to spend in our sector have been impacted by uncertain economic conditions including inflation, higher interest rates, and other factors. While we experienced traffic and net revenue growth in the first quarter of 2024 in all markets, we saw continued moderation in our quarterly net revenue growth in the Americas,

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particularly in the United States. We continue to monitor macroeconomic conditions and the trends in consumer demand for our products.

Foreign currency fluctuations have impacted our financial results. Foreign currency fluctuations reduced the growth of our net revenue by $21.8 million when comparing the first quarter of 2024 to 2023, primarily due to the overall appreciation of the US dollar. We expect future exchange rate volatility to impact our results.

Quarter-to-Date Results of Operations: First Quarter Results

The following table summarizes key components of our results of operations for the periods indicated:


	First Quarter
	2024		2023		2024		2023
	(In thousands)				(Percentage of net revenue)
Net revenue	$	2,208,891	$	2,000,792	100.0	%	100.0	%
Cost of goods sold	933,823		849,987		42.3		42.5
Gross profit	1,275,068		1,150,805		57.7		57.5
Selling, general and administrative expenses	842,426		747,513		38.1		37.4

Amortization of intangible assets	—		1,878		—		0.1
Income from operations	432,642		401,414		19.6		20.1
Other income (expense), net	23,283		8,025		1.1		0.4
Income before income tax expense	455,925		409,439		20.6		20.5
Income tax expense	134,504		119,034		6.1		5.9
Net income	$	321,421	$	290,405	14.6	%	14.5	%

Net Revenue

Net revenue increased $208.1 million, or 10%, to $2.2 billion for the first quarter of 2024 from $2.0 billion for the first quarter of 2023. On a constant dollar basis, net revenue increased 11%. Comparable sales increased 6%, or 7% on a constant dollar basis. The increase in net revenue was primarily due to increased China Mainland net revenue. Rest of World and Americas net revenue also increased.

Net revenue for the first quarter of 2024 and 2023 is summarized below:


	First Quarter
	2024		2023		2024		2023		Year over year change
	(In thousands)				(Percentage of net revenue)				(In thousands)		(Percentage)		(Constant dollar change)
Americas	$	1,622,264	$	1,567,738	73.4	%	78.4	%	$	54,526	3.5	%	4.0	%
China Mainland	303,786		210,068		13.8		10.5		93,718		44.6		52.0
Rest of World	282,841		222,986		12.8		11.1		59,855		26.8		30.0
Net revenue	$	2,208,891	$	2,000,792	100.0	%	100.0	%	$	208,099	10.4	%	11.0	%

Americas. The increase in Americas net revenue was primarily due to a $50.9 million increase from new or expanded company-operated stores and our other channels. We have opened 14 net new stores in the Americas since the first quarter of 2023. Americas comparable sales were flat compared to the first quarter of 2023. This was primarily a result of increased traffic, offset by a decrease in conversion rates.

China Mainland. The increase in China Mainland net revenue was primarily due to an increase in comparable sales, which increased 26%, or 33% on a constant dollar basis. The increase in comparable sales was primarily a result of increased traffic, partially offset by a lower dollar value per transaction. The increase in China Mainland net revenue was also driven by a $41.7 million increase in net revenue from new or expanded company-operated stores and our other channels. We have opened 26 net new stores in China Mainland since the first quarter of 2023.

Rest of World. The increase in Rest of World net revenue was primarily due to an increase in comparable sales, which increased 23%, or 26% on a constant dollar basis. The increase in comparable sales was primarily a result of increased traffic and a higher dollar value per transaction, partially offset by a decrease in conversion rates. The increase in Rest of World net

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revenue was also driven by a $19.9 million increase in net revenue from new or expanded company-operated stores and our other channels. We have opened nine net new stores in Rest of World since the first quarter of 2023.

Gross Profit


	First Quarter
	2024			2023			Year over year change
	(In thousands)						(In thousands)		(Percentage)
Gross profit	$	1,275,068		$	1,150,805		$	124,263	10.8	%

Gross margin	57.7		%	57.5		%	20 basis points

The increase in gross margin was primarily the result of:

•a net increase in product margin of 120 basis points, primarily due to lower product costs including lower freight costs, as well as lower inventory provisions. This was partially offset by higher markdowns in the current year; and

•a decrease in costs related to our product departments as a percentage of net revenue of 50 basis points.

The increase in gross margin was partially offset by an increase in occupancy costs as a percentage of net revenue of 70 basis points, an increase in distribution center costs as a percentage of net revenue of 50 basis points, and an unfavorable impact of foreign currency exchange rates of 30 basis points.

Selling, General and Administrative Expenses


	First Quarter
	2024			2023			Year over year change
	(In thousands)						(In thousands)		(Percentage)
Selling, general and administrative expenses	$	842,426		$	747,513		$	94,913	12.7	%

Selling, general and administrative expenses as a percentage of net revenue	38.1		%	37.4		%	70 basis points

The increase in selling, general and administrative expenses was primarily due to:

•an increase in costs related to our operating channels of $49.6 million, comprised of:

–an increase in variable costs of $17.6 million primarily due to increased distribution costs, packaging costs, and credit card fees, primarily as a result of increased net revenue;

–an increase in other operating costs of $15.4 million primarily due to increased depreciation, technology costs, and repairs and maintenance costs;

–an increase in employee costs of $14.1 million primarily due to increased salaries and wages expense, and benefit costs for retail employees, partially offset by decreased incentive compensation; and

–an increase in brand and community costs of $2.5 million primarily due to increased digital marketing expenses and events.

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•an increase in head office costs of $47.3 million, comprised of:

–an increase in brand and community costs of $21.1 million primarily due to increased marketing expenses and brand campaigns;

–an increase in other head office costs of $14.7 million, primarily due to increased advisory and professional fees;

–an increase in employee costs of $5.5 million primarily due to increased salaries and wages expense as well as increased stock-based compensation and benefit costs, partially offset by decreased other incentive compensation;

–an increase in technology costs, including cloud computing amortization, of $4.9 million; and

–an increase in depreciation of $1.1 million.

The increase in selling, general and administrative expenses was partially offset by a decrease in net foreign currency exchange and derivative revaluation losses of $2.0 million.

Amortization of Intangible Assets


	First Quarter
	2024		2023		Year over year change
	(In thousands)				(In thousands)		(Percentage)
Amortization of intangible assets	$	—	$	1,878	$	(1,878)	(100.0)	%

The amortization of intangible assets was primarily the result of the amortization of intangible assets recognized upon the acquisition of MIRROR, which we rebranded as lululemon Studio.

Income from Operations

On a segment basis, we determine income from operations without taking into account our general corporate expenses and certain other expenses. General corporate expenses include centrally managed support functions and other head office costs, including product design teams and brand costs which support all regions. Segmented income from operations is summarized below.


	First Quarter
	2024			2023			2024		2023		Year over year change
	(In thousands)						(Percentage of net revenue of respective operating segment)				(In thousands)		(Percentage)
Segmented income from operations:
Americas	$	564,840		$	581,222		34.8	%	37.1	%	$	(16,382)	(2.8)	%
China Mainland	119,778			73,885			39.4		35.2		45,893		62.1
Rest of World	66,681			43,794			23.6		19.6		22,887		52.3
	$	751,299		$	698,901						$	52,398	7.5	%
General corporate expense	318,657			295,609							23,048		7.8


Amortization of intangible assets	—			1,878							(1,878)		(100.0)

Income from operations	$	432,642		$	401,414						$	31,228	7.8	%

Operating margin	19.6		%	20.1		%					(50) basis points

Americas. The decrease in Americas income from operations was primarily the result of increased selling, general and administrative expenses. The increase in selling, general and administrative expenses was primarily due to increased marketing expenses, increased distribution costs and packaging costs driven by higher net revenue, and increased depreciation, technology costs, and repairs and maintenance costs. The increase in selling, general and administrative expenses was partially offset by increased gross profit of $23.7 million, which was driven by increased net revenue, partially offset by lower gross margin. The decrease in gross margin was primarily due to deleverage in distribution center and occupancy costs, partially offset by leverage on costs from our product teams and higher product margin. Income from operations as a percentage of Americas net revenue decreased due to deleverage on selling, general and administrative expenses and lower gross margin.

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China Mainland. The increase in China Mainland income from operations was primarily the result of increased gross profit of $61.3 million, driven by increased net revenue and higher gross margin. The increase in gross margin was primarily due to higher product margin as well as leverage on occupancy and other costs, partially offset by unfavorable foreign currency exchange rates. The increase in gross profit was partially offset by an increase in selling, general and administrative expenses, primarily due to higher employee costs, increased packaging costs driven by higher net revenue, and increased marketing expenses. Income from operations as a percentage of China Mainland net revenue increased due to leverage on selling, general and administrative expenses and higher gross margin.

Rest of World. The increase in Rest of World income from operations was primarily the result of increased gross profit of $40.2 million, driven by increased net revenue and higher gross margin. The increase in gross margin was primarily due to higher product margin as well as leverage on occupancy costs, partially offset by unfavorable foreign currency exchange rates. The increase in gross profit was partially offset by an increase in selling, general and administrative expenses primarily due to higher employee costs and increased marketing expenses, as well as increased credit card fees and distribution costs driven by higher net revenue. Income from operations as a percentage of Rest of World net revenue increased due to higher gross margin and leverage on selling, general and administrative expenses.

General Corporate Expense. The increase in general corporate expense was primarily due to increased advisory and professional fees, employee costs, technology costs, and depreciation. The increase in general corporate expense was partially offset by a decrease in net foreign currency exchange and derivative revaluation losses of $2.0 million.

Other Income (Expense), Net


	First Quarter
	2024		2023		Year over year change
	(In thousands)				(In thousands)		(Percentage)
Other income (expense), net	$	23,283	$	8,025	$	15,258	190.1	%

The increase in other income, net was primarily due to an increase in interest income as a result of higher cash balances and higher interest rates.

Income Tax Expense


	First Quarter
	2024			2023			Year over year change
	(In thousands)						(In thousands)		(Percentage)
Income tax expense	$	134,504		$	119,034		$	15,470	13.0	%

Effective tax rate	29.5		%	29.1		%	40 basis points

The increase in the effective tax rate was primarily due to a decrease in tax benefits related to stock-based compensation and an increase in non-deductible expenses in international jurisdictions.

Net Income


	First Quarter
	2024		2023		Year over year change
	(In thousands)				(In thousands)		(Percentage)
Net income	$	321,421	$	290,405	$	31,016	10.7	%

The increase in net income was primarily due to an increase in gross profit of $124.3 million and an increase in other income (expense), net of $15.3 million, partially offset by an increase in selling, general and administrative expenses of $94.9 million, and an increase in income tax expense of $15.5 million.

Comparable Sales

We use comparable sales to evaluate the performance of our company-operated store and e-commerce businesses from an omni-channel perspective. It allows us to monitor the performance of our business without the impact of recently opened or expanded stores. We believe investors would similarly find these metrics useful in assessing the performance of our business.

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Comparable sales includes comparable company-operated store and all e-commerce net revenue. E-commerce net revenue includes buy online pick-up in store, back-back room, and ship from store net revenue in addition to our websites, other region-specific websites, digital marketplaces, and mobile apps. Our back-back room capability allows our store educators to access inventory located at our other locations and have product shipped directly to a guest's address or a store. Comparable company-operated stores have been open, or open after being significantly expanded, for at least 12 full fiscal months. Net revenue from a company-operated store is included in comparable sales beginning with the first fiscal month for which the store has a full fiscal month of sales in the prior year. Comparable sales excludes sales from new stores that have not been open for at least 12 full fiscal months, from stores which have not been in their significantly expanded space for at least 12 full fiscal months, from stores which have been temporarily relocated for renovations or temporarily closed, and sales from company-operated stores that have closed. Comparable sales also excludes sales from our selling channels other than company-operated stores and e-commerce. The comparable sales measures we report may not be equivalent to similarly titled measures reported by other companies.

In fiscal years with 53 weeks, the 53rd week of net revenue is excluded from the calculation of comparable sales. In the year following a 53-week year, the prior year period is shifted by one week to compare similar calendar weeks.

Non-GAAP Financial Measures

Constant dollar changes are non-GAAP financial measures.

A constant dollar basis assumes the average foreign currency exchange rates for the period remained constant with the average foreign currency exchange rates for the same period of the prior year. We provide constant dollar changes in our results to help investors understand the underlying growth rate of net revenue excluding the impact of changes in foreign currency exchange rates.

The presentation of this financial information is not intended to be considered in isolation or as a substitute for, or with greater prominence to, the financial information prepared and presented in accordance with GAAP. A reconciliation of the non-GAAP financial measures follows, which includes more detail on the GAAP financial measure that is most directly comparable to each non-GAAP financial measure, and the related reconciliations between these financial measures. Our non-GAAP financial measures may be calculated differently from, and therefore may not be directly comparable to, similarly titled measures reported by other companies.

Constant Dollar Changes

The below changes in net revenue and comparable sales show the change compared to the corresponding period in the prior year.


	First Quarter 2024 Compared to First Quarter 2023
	Change		Foreign exchange changes		Change in constant dollars

Net Revenue
Americas	3	%	1	%	4	%
China Mainland	45		7		52
Rest of World	27		3		30
Total net revenue	10	%	1	%	11	%

Comparable sales(1)
Americas	—	%	—	%	—	%
China Mainland	26		7		33
Rest of World	23		3		26
Total comparable sales	6	%	1	%	7	%

__________

(1)Comparable sales includes comparable company-operated store and e-commerce net revenue.

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Seasonality

Our business is affected by the general seasonal trends common to the retail apparel industry. Our annual net revenue is typically weighted more heavily toward our fourth fiscal quarter, reflecting our historical strength in sales during the holiday season in the Americas, while our operating expenses are generally more equally distributed throughout the year. As a result, a substantial portion of our operating profits are typically generated in the fourth quarter of our fiscal year. For example, we generated approximately 43% of our full year operating profit during the fourth quarter of 2023.

Liquidity and Capital Resources

Our primary sources of liquidity are our current balances of cash and cash equivalents, cash flows from operations, and capacity under our committed revolving credit facility, including to fund short-term working capital requirements. Our primary cash needs are capital expenditures for opening new stores and remodeling or relocating existing stores, investing in our distribution centers, investing in technology and making system enhancements, funding working capital requirements, and making other strategic capital investments. We may also use cash to repurchase shares of our common stock. Cash and cash equivalents in excess of our needs are held in interest bearing accounts with financial institutions, as well as in money market funds and term deposits.

The following table summarizes our net cash flows provided by and used in operating, investing, and financing activities for the periods indicated:


	First Quarter
	2024		2023		Year over year change
	(In thousands)
Total cash provided by (used in):
Operating activities	$	127,524	$	45,503	$	82,021
Investing activities	(131,537)		(138,219)		6,682
Financing activities	(328,628)		(115,399)		(213,229)
Effect of foreign currency exchange rate changes on cash and cash equivalents	(10,658)		3,855		(14,513)
Increase (decrease) in cash and cash equivalents	$	(343,299)	$	(204,260)	$	(139,039)

Operating Activities

The increase in cash provided by operating activities was primarily as a result of:

•an increase in cash flows from the changes in operating assets and liabilities of $34.5 million, primarily driven by changes in income taxes, inventories, and accrued liabilities, partially offset by changes in accounts payable, accrued compensation, and prepaid expenses and other current assets;

•increased net income of $31.0 million; and

•changes in adjusting items of $16.5 million, primarily driven by increased depreciation and stock-based compensation expense.

Investing Activities

The decrease in cash used in investing activities was primarily due to decreased capital expenditures. The decrease in capital expenditures was primarily due to a decrease in corporate capital expenditures and decreased investment in our distribution centers as well as other technology infrastructure and system initiatives, partially offset by an increase in company-operated store expenditures.

Financing Activities

The increase in cash used in financing activities was primarily the result of an increase in our stock repurchases. During the first quarter of 2024, 0.8 million shares were repurchased at a total cost including commissions and excise taxes of $299.5 million. During the first quarter of 2023, 0.3 million shares were repurchased at a total cost including commissions and excise taxes of $98.5 million. The common stock was repurchased in the open market at prevailing market prices, including under plans complying with the provisions of Rule 10b5-1 and Rule 10b-18 of the Securities Exchange Act of 1934, with the timing and actual number of shares repurchased depending upon market conditions, eligibility to trade, and other factors.

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Liquidity Outlook

We believe that our cash and cash equivalent balances, cash generated from operations, and borrowings available to us under our committed revolving credit facility will be adequate to meet our liquidity needs and capital expenditure requirements for at least the next 12 months. Our cash from operations may be negatively impacted by a decrease in demand for our products, as well as the other factors described in "Item 1A. Risk Factors". In addition, we may make discretionary capital improvements with respect to our stores, distribution facilities, headquarters, or systems, or we may repurchase shares under an approved stock repurchase program, which we would expect to fund through the use of cash, issuance of debt or equity securities or other external financing sources to the extent we were unable to fund such expenditures out of our cash and cash equivalents and cash generated from operations.

The following table includes certain measures of our liquidity:


	April 28, 2024
	(In thousands)
Cash and cash equivalents	$	1,900,672
Working capital excluding cash and cash equivalents(1)	483,844
Capacity under committed revolving credit facility	393,750

_________

(1)Working capital is calculated as current assets of $3.8 billion less current liabilities of $1.4 billion.

We enter into standby letters of credit and guarantee to secure certain of our obligations, including leases, taxes, and duties. As of April 28, 2024, letters of credit and guarantee totaling $10.1 million had been issued, including $6.3 million under our committed revolving credit facility.

Our existing Americas credit facility provides for $400.0 million in commitments under an unsecured five-year revolving credit facility. The credit facility has a maturity date of December 14, 2026, subject to extension under certain circumstances. As of April 28, 2024, aside from letters of credit and guarantee of $6.3 million, we had no other borrowings outstanding under this credit facility. Further information regarding our credit facilities and associated covenants is outlined in Note 3. Revolving Credit Facilities included in Item 1 of Part I of this report.

The timing and cost of our inventory purchases will vary depending on a variety of factors such as revenue growth, assortment and purchasing decisions, product costs including freight and duty, and the availability of production capacity and speed. Our inventory balance as of April 28, 2024 was $1.3 billion, a decrease of 15% from April 30, 2023.

Critical Accounting Policies and Estimates

The preparation of financial statements in conformity with U.S. generally accepted accounting principles requires management to make estimates and assumptions. Predicting future events is inherently an imprecise activity and, as such, requires the use of significant judgment. Actual results may vary from our estimates in amounts that may be material to the financial statements. An accounting policy is deemed to be critical if it requires an accounting estimate to be made based on assumptions about matters that are highly uncertain at the time the estimate is made, and if different estimates that reasonably could have been used or changes in the accounting estimates that are reasonably likely to occur periodically, could materially impact our consolidated financial statements.

Our critical accounting policies, estimates, and judgements are discussed within "Item 7. Management's Discussion and Analysis of Financial Condition and Results of Operations" of our 2023 Annual Report on Form 10-K filed with the SEC on March 21, 2024.

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Operating Locations

Our company-operated stores by market as of April 28, 2024 and January 28, 2024 are summarized in the table below.


Number of company-operated stores by market	April 28, 2024	January 28, 2024
United States	369	367
Canada	71	71
Americas	440	438

China Mainland	127	127

Australia	32	33
South Korea	19	19
Hong Kong SAR	9	9
Japan	8	8
New Zealand	8	8
Taiwan	8	8
Singapore	7	7
Malaysia	3	3
Macau SAR	2	2
Thailand	1	1
APAC	97	98

United Kingdom	19	20
Germany	9	9
France	6	6
Ireland	4	4
Spain	3	3
Netherlands	2	2
Sweden	2	2
Norway	1	1
Switzerland	1	1
EMEA	47	48

Total company-operated stores	711	711

Our retail locations operated by third parties by market as of April 28, 2024 and January 28, 2024 are summarized in the table below.


Number of retail locations operated by third parties by market	April 28, 2024	January 28, 2024
Mexico	15	15
United Arab Emirates	9	8
Saudi Arabia	7	6
Israel	3	3
Kuwait	3	3
Qatar	3	3
Bahrain	1	1
Total locations operated by third parties under license and supply arrangements	41	39

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ITEM 3. QUANTITATIVE AND QUALITATIVE DISCLOSURES ABOUT MARKET RISK

Foreign Currency Exchange Risk

Translation Risk. The functional currency of our international subsidiaries is generally the applicable local currency. Our consolidated financial statements are presented in U.S. dollars. Therefore, the net revenue, expenses, assets, and liabilities of our international subsidiaries are translated from their functional currencies into U.S. dollars. Fluctuations in the value of the U.S. dollar affect the reported amounts of net revenue, expenses, assets, and liabilities. As a result of the fluctuation in exchange rates compared to the U.S. dollar our revenue was $21.8 million lower in the first quarter of 2024 in comparison to the first quarter of 2023.

Foreign currency exchange differences which arise on translation of our international subsidiaries' balance sheets into U.S. dollars are recorded as other comprehensive income (loss), net of tax in accumulated other comprehensive income or loss within stockholders' equity. A significant portion of our net assets are held by our Canadian dollar subsidiary. We enter into forward currency contracts in order to hedge a portion of the foreign currency exposure associated with the translation of our net investment in our Canadian subsidiary. The impact to other comprehensive loss of translation of our Canadian subsidiaries was an increase in the loss of $22.8 million, inclusive of net investment hedge gains.

Transaction Risk. We also have exposure to changes in foreign currency exchange rates associated with transactions which are undertaken by our subsidiaries in currencies other than their functional currency. Such transactions include intercompany transactions and inventory purchases denominated in currencies other than the functional currency of the purchasing entity. We also hold cash and cash equivalents and other monetary assets in currencies that are different to the functional currency of our subsidiaries. As of April 28, 2024, we had certain forward currency contracts outstanding in order to economically hedge the foreign currency revaluation gains and losses recognized by our foreign subsidiaries, including our Canadian and Chinese subsidiaries, on their monetary assets and liabilities denominated in currencies other than their functional currency.

We perform a sensitivity analysis to determine the market risk exposure associated with the fair values of our forward currency contracts. The net fair value of outstanding derivatives as of April 28, 2024 was an asset of $2.7 million. As of April 28, 2024, a 10% depreciation in the U.S. dollar against the hedged currencies would have resulted in the net fair value of outstanding derivatives depreciating by $29.8 million. The hypothetical change in the fair value of the forward currency contracts would have been substantially offset by a corresponding but directionally opposite change in the underlying hedged items.

In the future, in an effort to reduce foreign currency exchange risks, we may enter into further derivative financial instruments including hedging additional currency pairs. We do not, and do not intend to, engage in the practice of trading derivative securities for profit.

Please refer to Note 7. Derivative Financial Instruments included in Item 1 of Part I of this report for further details on the nature of our financial instruments.

Interest Rate Risk

Our committed revolving credit facility provides us with available borrowings in an amount up to $400.0 million. Because our revolving credit facilities bear interest at a variable rate, we will be exposed to market risks relating to changes in interest rates, if we have a meaningful outstanding balance. As of April 28, 2024, aside from letters of credit of $6.3 million, there were no borrowings outstanding under these credit facilities. We currently do not engage in any interest rate hedging activity and currently have no intention to do so. However, in the future, if we have a meaningful outstanding balance under our revolving facility, in an effort to mitigate losses associated with these risks, we may at times enter into derivative financial instruments, although we have not historically done so. These may take the form of forward contracts, option contracts, or interest rate swaps. We do not, and do not intend to, engage in the practice of trading derivative securities for profit.

Our cash and cash equivalent balances are held in the form of cash on hand, bank balances, and short-term deposits with original maturities of three months or less, and in money market funds. As of April 28, 2024, we held cash and cash equivalents of $1.9 billion. Interest generated on cash balances is subject to variability as interest rates increase or decrease.

Credit Risk. We have cash on deposit with various large, reputable financial institutions and have invested in AAA-rated money market funds. The amount of cash and cash equivalents held with certain financial institutions exceeds government-insured limits. We are also exposed to credit-related losses in the event of nonperformance by the financial institutions that are counterparties to our forward currency contracts. The credit risk amount is our unrealized gains on our derivative instruments, based on foreign currency rates at the time of nonperformance. We have not experienced any losses related to

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these items, and we believe credit risk to be minimal. We seek to minimize our credit risk by entering into transactions with investment grade credit worthy and reputable financial institutions and by monitoring the credit standing of the financial institutions with whom we transact. We seek to limit the amount of exposure with any one counterparty.

Inflation

Inflationary factors such as increases in the cost of our product, as well as overhead costs and capital expenditures may adversely affect our operating results.

Sustained increases in transportation costs, wages, and raw material costs, or other inflationary pressures in the future may have an adverse effect on our ability to maintain current levels of operating margin if the selling prices of our products do not increase with these increased costs, or we cannot identify cost efficiencies.

ITEM 4. CONTROLS AND PROCEDURES

We maintain disclosure controls and procedures that are designed to ensure that information required to be disclosed by us in the reports we file or submit under the Securities Exchange Act of 1934, is recorded, processed, summarized and reported within the time periods specified in the SEC's rules and forms, and that such information is accumulated and communicated to our management, including our principal executive officer and principal financial and accounting officer, to allow timely decisions to be made regarding required disclosure. We have established a Disclosure Committee, consisting of certain members of management, to assist in this evaluation. The Disclosure Committee meets on a quarterly basis, and as needed.

Our management, including our principal executive officer and principal financial and accounting officer, evaluated the effectiveness of our disclosure controls and procedures (as defined in Rules 13a-15(e) and 15d-15(e) promulgated under the Exchange Act) as of April 28, 2024. Based on that evaluation, our principal executive officer and principal financial and accounting officer concluded that, as of April 28, 2024, our disclosure controls and procedures were effective.

There were no changes in our internal control over financial reporting during the quarter ended April 28, 2024 that have materially affected, or are reasonably likely to materially affect, our internal control over financial reporting.

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PART II

OTHER INFORMATION

ITEM 1. LEGAL PROCEEDINGS

In addition to the legal matters described in Note 12. Legal Proceedings and Other Contingencies included in Item 1 of Part I of this report and in our 2023 Annual Report on Form 10-K, we are, from time to time, involved in routine legal matters incidental to the conduct of our business, including legal matters such as initiation and defense of proceedings to protect intellectual property rights, employment claims, product liability claims, personal injury claims, and similar matters. We believe the ultimate resolution of any such current proceeding will not have a material adverse effect on our financial position, results of operations or cash flows.

ITEM 1A. RISK FACTORS

In addition to the other information contained in this Form 10-Q and in our 2023 Annual Report on Form 10-K, the following risk factors should be considered in evaluating our business. Our business, financial condition, or results of operations could be materially adversely affected as a result of any of these risks.

Risks related to our business and industry

Our success depends on our ability to maintain the value and reputation of our brand.

The lululemon name is integral to our business as well as to the implementation of our expansion strategies. Maintaining, promoting, and positioning our brand will depend largely on the success of our marketing and merchandising efforts and our ability to provide a consistent, high quality product, and guest experience. We rely on social media, as one of our marketing strategies, to have a positive impact on both our brand value and reputation. Our brand and reputation could be adversely affected if we fail to achieve these objectives, if our public image was to be tarnished by negative publicity, which could be amplified by social media, if we fail to deliver innovative and high quality products acceptable to our guests, or if we face or mishandle a product recall. Our reputation could also be impacted by adverse publicity, whether or not valid, regarding allegations that we, or persons associated with us or formerly associated with us, have violated applicable laws or regulations, including but not limited to those related to safety, employment, discrimination, harassment, whistle-blowing, privacy, corporate citizenship, improper business practices, or cybersecurity. Certain activities on the part of stakeholders, including nongovernmental organizations and governmental institutions, could cause reputational damage, distract senior management, and disrupt our business. Additionally, while we devote considerable effort and resources to protecting our intellectual property, if these efforts are not successful the value of our brand may be harmed. Any harm to our brand and reputation could have a material adverse effect on our financial condition.

Changes in consumer shopping preferences, and shifts in distribution channels could materially impact our results of operations.

We operate an omni-channel retail model and aim to efficiently and effectively serve our guests in the ways most convenient to them. We operate a combination of physical retail locations and e-commerce services via our websites, other region-specific websites, digital marketplaces, and mobile apps. Our physical retail locations remain a key part of our growth strategy and we view them as a valuable tool in helping us build our brand and product line as well as enabling our omni-channel capabilities. We plan to continue to expand square footage and open new company-operated stores to support our growth objectives. The diversion of sales from our company-operated stores could adversely impact our return on investment and could lead to impairment charges and store closures, including lease exit costs. We could have difficulty in recreating the in-store experience through direct channels. Our failure to successfully integrate our digital and physical channels and respond to these risks might adversely impact our business and results of operations, as well as damage our reputation and brand.

If any of our products have manufacturing or design defects or are otherwise unacceptable to us or our guests, our business could be harmed.

We have occasionally received, and may in the future receive, shipments of products that fail to comply with our technical specifications or that fail to conform to our quality control standards. We have also received, and may in the future receive, products that are otherwise unacceptable to us or our guests. Under these circumstances, unless we are able to obtain replacement products in a timely manner, we risk the loss of net revenue resulting from the inability to sell those products and related increased administrative and shipping costs. Additionally, if the unacceptability of our products is not

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discovered until after such products are sold, our guests could lose confidence in our products or we could face a product recall and our results of operations could suffer and our business, reputation, and brand could be harmed.

Our lululemon Studio subsidiary offers complex hardware and software products and services that can be affected by design and manufacturing defects. Sophisticated operating system software and applications, such as those offered by lululemon Studio, often have issues that can unexpectedly interfere with the intended operation of hardware or software products. Defects may also exist in components and products that we source from third parties. Any defects could make our products and services unsafe and create a risk of environmental or property damage or personal injury and we may become subject to the hazards and uncertainties of product liability claims and related litigation. The occurrence of real or perceived defects in any of our products, now or in the future, could result in additional negative publicity, regulatory investigations, or lawsuits filed against us, particularly if guests or others who use or purchase our lululemon Studio products are injured. Even if injuries are not the result of any defects, if they are perceived to be, we may incur expenses to defend or settle any claims and our brand and reputation may be harmed.

We operate in a highly competitive market and our competitors may compete more effectively than we can, resulting in a loss of our market share and a decrease in our net revenue and profitability.

The market for technical athletic apparel is highly competitive. Competition may result in pricing pressures, reduced profit margins or lost market share, or a failure to grow or maintain our market share, any of which could substantially harm our business and results of operations. We compete directly against wholesalers and direct retailers of athletic apparel, including large, diversified apparel companies with substantial market share, and established companies expanding their production and marketing of technical athletic apparel, as well as against retailers specifically focused on women's athletic apparel. We also face competition from wholesalers and direct retailers of traditional commodity athletic apparel, such as cotton T-shirts and sweatshirts. Many of our competitors are large apparel and sporting goods companies with strong worldwide brand recognition. Because of the fragmented nature of the industry, we also compete with other apparel sellers, including those specializing in yoga apparel and other activewear. Many of our competitors have significant competitive advantages, including longer operating histories, larger and broader customer bases, more established relationships with a broader set of suppliers, greater brand recognition and greater financial, research and development, store development, marketing, distribution, and other resources than we do. Our competitors may be able to achieve and maintain brand awareness and market share more quickly and effectively than we can.

We may fail to acknowledge or react appropriately to the entry or growth of a viable competitor or disruptive force, and could struggle to continue to innovate, differentiate, and sustain the growth of our brand. The increasing dominance and presence of our brand may also drive guests towards alternative emerging competitors.

In addition, 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 our products.

Our sales and profitability may decline as a result of increasing costs and decreasing selling prices.

Our business is subject to significant pressure on costs and pricing caused by many factors, including intense competition, constrained sourcing capacity and related inflationary pressure, the availability of qualified labor and wage inflation, pressure from consumers to reduce the prices we charge for our products, and changes in consumer demand. These and other factors have, and may in the future, cause us to experience increased costs, reduce our prices to consumers or experience reduced sales in response to increased prices, any of which could cause our operating margin to decline if we are unable to offset these factors with reductions in operating costs and could have a material adverse effect on our financial condition, operating results, and cash flows. Unionization efforts or other employee organizing activities could lead to higher people costs or reduce our flexibility to manage our employees which may negatively disrupt our operations.

If we are unable to anticipate consumer preferences and successfully develop and introduce new, innovative, and differentiated products, we may not be able to maintain or increase our sales and profitability.

Our success depends on our ability to identify and originate product trends as well as to anticipate and react to changing consumer demands in a timely manner. All of our products are subject to changing consumer preferences that cannot be predicted with certainty. If we are unable to introduce new products or novel technologies in a timely manner or our new products or technologies are not accepted by our guests, our competitors may introduce similar products in a more timely fashion, which could hurt our goal to be viewed as a leader in technical athletic apparel innovation. Our new products may not receive consumer acceptance as consumer preferences could shift rapidly to different types of athletic apparel or away from these types of products altogether, and our future success depends in part on our ability to anticipate and respond to these changes. Our failure to anticipate and respond in a timely manner to changing consumer preferences could lead to,

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among other things, lower sales and excess inventory levels. We may not have relevant data to effectively understand and react to consumer preferences and expectations. Even if we are successful in anticipating consumer preferences, our ability to adequately react to and address those preferences will in part depend upon our continued ability to develop and introduce innovative, high-quality products. Our failure to effectively introduce new products that are accepted by consumers could result in a decrease in net revenue and excess inventory levels, which could have a material adverse effect on our financial condition.

Our results of operations could be materially harmed if we are unable to accurately forecast guest demand for our products.

To ensure adequate inventory supply, we must forecast inventory needs and place orders with our manufacturers based on our estimates of future demand for particular products. Our ability to accurately forecast demand for our products could be affected by many factors, including an increase or decrease in guest demand for our products or for products of our competitors, our failure to accurately forecast guest acceptance of new products, product introductions by competitors, unanticipated changes in general market conditions (for example, because of global economic concerns such as inflation, an economic downturn, or delays and disruptions resulting from local and international shipping delays and labor shortages), and weakening of economic conditions or consumer confidence in future economic conditions (for example, because of inflationary pressures, or because of sanctions, restrictions, and other responses related to geopolitical events). If we fail to accurately forecast guest demand, we may experience excess inventory levels or a shortage of products available for sale in our stores or for delivery to guests.

Inventory levels in excess of guest demand may result in inventory write-downs or write-offs and the sale of excess inventory at discounted prices, which would cause our gross margin to suffer and could impair the strength and exclusivity of our brand. Conversely, if we underestimate guest demand for our products, our manufacturers may not be able to deliver products to meet our requirements, and this could result in damage to our reputation and guest relationships.

Our limited operating experience and limited brand recognition in new international markets and new product categories may limit our expansion and cause our business and growth to suffer.

Our future growth depends in part on our expansion efforts outside of the Americas. We have limited experience with regulatory environments and market practices internationally, and we may not be able to penetrate or successfully operate in any new market. In connection with our expansion efforts we may encounter obstacles we did not face in the Americas, including cultural and linguistic differences, differences in regulatory environments, labor practices and market practices, difficulties in keeping abreast of market, business and technical developments, and international guests' tastes and preferences. We may also encounter difficulty expanding into new international markets because of limited brand recognition leading to delayed acceptance of our technical athletic apparel by guests in these new international markets. Our failure to develop our business in new international markets or disappointing growth outside of existing markets could harm our business and results of operations.

In addition, our continued growth depends in part on our ability to expand our product categories and introduce new product lines. We may not be able to successfully manage integration of new product categories or the new product lines with our existing products. Selling new product categories and lines will require our management to test and develop different strategies in order to be successful. We may be unsuccessful in entering new product categories and developing or launching new product lines, which requires management of new suppliers, potential new customers, and new business models. Our management may not have the experience of selling in these new product categories and we may not be able to grow our business as planned. For example, in July 2020, we acquired MIRROR, an in-home fitness company with an interactive workout platform that features live and on-demand classes. If we are unable to effectively and successfully further develop these and future new product categories and lines, we may not be able to increase or maintain our sales and our operating margins may be adversely affected. This may also divert the attention of management and cause additional expenses.

We may, from time to time, evaluate and pursue other strategic investments or acquisitions. These involve various inherent risks and the benefits sought may not be realized.

If we continue to grow at a rapid pace, we may not be able to effectively manage our growth and the increased complexity of our business and as a result our brand image and financial performance may suffer.

If our operations continue to grow at a rapid pace, we may experience difficulties in obtaining sufficient raw materials and manufacturing capacity to produce our products, as well as delays in production and shipments, as our products are subject to risks associated with overseas sourcing and manufacturing. We could be required to continue to expand our sales and marketing, product development and distribution functions, to upgrade our management information systems and other

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processes and technology, and to obtain more space for our expanding workforce. This expansion could increase the strain on our resources, and we could experience operating difficulties, including difficulties in hiring, training, and managing an increasing number of employees. These difficulties could result in the erosion of our brand image which could have a material adverse effect on our financial condition.

We are subject to risks associated with leasing retail and distribution space subject to long-term and non-cancelable leases.

We lease the majority of our stores under operating leases and our inability to secure appropriate real estate or lease terms could impact our ability to grow. Our leases generally have initial terms of between two and 15 years, and generally can be extended in increments between two and five years, if at all. We generally cannot cancel these leases at our option. If an existing or new store is not profitable, and we decide to close it, as we have done in the past and may do in the future, we may nonetheless be committed to perform our obligations under the applicable lease including, among other things, paying the base rent for the balance of the lease term. Similarly, we may be committed to perform our obligations under the applicable leases even if current locations of our stores become unattractive as demographic patterns change. In addition, as each of our leases expire, we may fail to negotiate renewals, either on commercially acceptable terms or at all, which could require us to close stores in desirable locations.

We also lease the majority of our distribution centers and our inability to secure appropriate real estate or lease terms could impact our ability to deliver our products to the market.

Our future success is substantially dependent on the service of our senior management and our ability to maintain our culture and to attract, manage, and retain highly qualified individuals.

The performance of our senior management team and other key employees may not meet our needs and expectations. Also, the loss of services of any of these key employees, or any negative public perception with respect to these individuals, may be disruptive to, or cause uncertainty in, our business and could have a negative impact on our ability to manage and grow our business effectively. Such disruption could have a material adverse impact on our financial performance, financial condition, and the market price of our stock.

If we are unable to successfully maintain and evolve our unique culture, offer competitive compensation and benefits, and a desirable work model, we may be unable to attract and retain highly qualified individuals to support our business and continued growth. Our work model may not meet the needs and expectations of our employees and may not be perceived as favorable compared to other companies. We also face risks related to employee engagement and productivity which could result in increased headcount and lead to increased labor costs.

Our business is affected by seasonality, which could result in fluctuations in our operating results.

Our business is affected by the general seasonal trends common to the retail apparel industry. Our annual net revenue is typically weighted more heavily toward our fourth fiscal quarter, reflecting our historical strength in sales during the holiday season, while our operating expenses are more equally distributed throughout the year. This seasonality, along with other factors that are beyond our control, including weather conditions and the effects of climate change, could adversely affect our business and cause our results of operations to fluctuate.

Risks related to our supply chain

Disruptions of our supply chain could have a material adverse effect on our operating and financial results.

Disruption of our supply chain capabilities due to trade restrictions, political instability, severe weather, natural disasters, public health crises, war, terrorism, product recalls, labor supply shortages or stoppages, the financial or operational instability of key suppliers and carriers, changes in diplomatic or trade relationships (including any sanctions, restrictions, and other responses such as those related to current geopolitical events), or other reasons could impair our ability to distribute our products. To the extent we are unable to mitigate the likelihood or potential impact of such events, there could be a material adverse effect on our operating and financial results.

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We rely on international suppliers and any significant disruption to our supply chain could impair our ability to procure or distribute our products.

We do not manufacture our products or raw materials and rely on suppliers and manufacturers located predominantly in APAC and China Mainland. We also source other materials used in our products, including items such as content labels, elastics, buttons, clasps, and drawcords, from suppliers located primarily in this region. Based on cost, during 2023:

•Approximately 42% of our products were manufactured in Vietnam, 16% in Cambodia, 11% in Sri Lanka, 10% in Indonesia, and 8% in Bangladesh, and the remainder in other regions.

•Approximately 40% of the fabric used in our products originated from Taiwan, 26% from China Mainland, 12% from Sri Lanka, and the remainder from other regions.

The entire apparel industry, including our company, could face supply chain challenges as a result of the impacts of global public health crises, political instability, inflationary pressures, macroeconomic conditions, and other factors, including reduced freight availability and increased costs, port disruption, manufacturing facility closures, and related labor shortages and other supply chain disruptions.

Our supply chain capabilities may be disrupted due to these or other factors, such as severe weather, natural disasters, war or other military conflicts, terrorism, labor supply shortages or stoppages, the financial or operational instability of key suppliers or the countries in which they operate, or changes in diplomatic or trade relationships (including any sanctions, restrictions, and other responses to geopolitical events). Any significant disruption in our supply chain capabilities could impair our ability to procure or distribute our products, which would adversely affect our business and results of operations.

A relatively small number of vendors supply and manufacture a significant portion of our products, and losing one or more of these vendors could adversely affect our business and results of operations.

Many of the specialty fabrics used in our products are technically advanced textile products developed and manufactured by third parties and may be available, in the short-term, from only one or a limited number of sources. We have no long-term contracts with any of our suppliers or manufacturers for the production and supply of our raw materials and products, and we compete with other companies for fabrics, other raw materials, and production. During 2023, we worked with approximately 49 vendors to manufacture our products and 67 suppliers to provide the fabric for our products. Based on cost, during 2023:

•Approximately 55% of our products were manufactured by our top five vendors, the largest of which produced approximately 17% of our products; and

•Approximately 52% of our fabrics were produced by our top five fabric suppliers, the largest of which produced approximately 19% of fabric used.

We have experienced, and may in the future experience, a significant disruption in the supply of fabrics or raw materials and may be unable to locate alternative suppliers of comparable quality at an acceptable price, or at all. In addition, if we experience significant increased demand, or if we need to replace an existing supplier or manufacturer, we may be unable to locate additional supplies of fabrics or raw materials or additional manufacturing capacity on terms that are acceptable to us, or at all, or we may be unable to locate any supplier or manufacturer with sufficient capacity to meet our requirements or fill our orders in a timely manner. Identifying a suitable supplier is an involved process that requires us to become satisfied with its quality control, responsiveness and service, financial stability, and labor and other ethical practices. Even if we are able to expand existing or find new manufacturing or fabric sources, we may encounter delays in production and added costs as a result of the time it takes to train our suppliers and manufacturers in our methods, products, and quality control standards.

Our supply of fabric or manufacture of our products could be disrupted or delayed by economic or political or global health conditions, and the related government and private sector responsive actions such as closures, restrictions on product shipments, and travel restrictions. Delays related to supplier changes could also arise due to an increase in shipping times if new suppliers are located farther away from our markets or from other participants in our supply chain. In addition, freight capacity issues continue to persist worldwide as there is much greater demand for shipping and reduced capacity and equipment. Any delays, interruption, or increased costs in the supply of fabric or manufacture of our products could have an adverse effect on our ability to meet guest demand for our products and result in lower net revenue and income from operations both in the short and long term.

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Our business could be harmed if our suppliers and manufacturers do not comply with our Vendor Code of Ethics or applicable laws.

While we require our suppliers and manufacturers to comply with our Vendor Code of Ethics, which includes labor, health and safety, and environment standards, we do not control their operations. If suppliers or contractors do not comply with these standards or applicable laws or there is negative publicity regarding the production methods of any of our suppliers or manufacturers, even if unfounded or not specific to our supply chain, our reputation and sales could be adversely affected, we could be subject to legal liability, or could cause us to contract with alternative suppliers or manufacturing sources.

The fluctuating cost of raw materials could increase our cost of goods sold.

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. Our costs for raw materials are affected by, among other things, weather, consumer demand, speculation on the commodities market, the relative valuations and fluctuations of the currencies of producer versus consumer countries, and other factors that are generally unpredictable and beyond our control. Any and all of these factors may be exacerbated by global climate change. In addition, political instability, trade relations, sanctions, inflationary pressure, or other geopolitical or economic conditions could cause raw material costs to increase and have an adverse effect on our future margins. Increases in the cost of raw materials, including petroleum or the prices we pay for silver and our cotton yarn and cotton-based textiles, could have a material adverse effect on our cost of goods sold, results of operations, financial condition, and cash flows.

If we encounter problems with our distribution system, our ability to deliver our products to the market and to meet guest expectations could be harmed.

We rely on our distribution facilities for substantially all of our product distribution. Our distribution facilities include computer controlled and automated equipment, which means their operations may be subject to a number of risks related to security or computer viruses, the proper operation of software and hardware, electronic or power interruptions, or other system failures. In addition, our operations could also be interrupted by labor difficulties, pandemics, the impacts of climate change, extreme or severe weather conditions or by floods, fires, or other natural disasters near our distribution centers. If we encounter problems with our distribution system, our ability to meet guest expectations, manage inventory, complete sales, and achieve objectives for operating efficiencies could be harmed.

Increasing labor costs and other factors associated with the production of our products in South Asia and South East Asia could increase the costs to produce our products.

A significant portion of our products are produced in South Asia and South East Asia and increases in the costs of labor and other costs of doing business in the countries in this area could significantly increase our costs to produce our products and could have a negative impact on our operations and earnings. Factors that could negatively affect our business include labor shortages and increases in labor costs, labor disputes, pandemics, the impacts of climate change, difficulties and additional costs in transporting products manufactured from these countries to our distribution centers and significant revaluation of the currencies used in these countries, which may result in an increase in the cost of producing products. Also, the imposition of trade sanctions or other regulations against products imported by us from, or the loss of "normal trade relations" status with any country in which our products are manufactured, could significantly increase our cost of products and harm our business.

Risks related to information security and technology

We may be unable to safeguard against security breaches which could damage our customer relationships and result in significant legal and financial exposure.

As part of our normal operations, we receive confidential, proprietary, and personally identifiable information, including credit card information, and information about our customers, our employees, job applicants, and other third parties. Our business employs systems and websites that allow for the storage and transmission of this information. However, despite our safeguards and security processes and protections, security breaches could expose us to a risk of theft or misuse of this information, and could result in litigation and potential liability.

The retail industry, in particular, has been the target of many recent cyber-attacks. We may not have the resources or technical sophistication to be able to anticipate or prevent rapidly evolving types of cyber-attacks. Attacks may be targeted at us, our vendors or customers, or others who have entrusted us with information. In addition, despite taking measures to safeguard our information security and privacy environment from security breaches, our customers and our business could

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still be exposed to risk. Actual or anticipated attacks may cause us to incur increasing costs including costs to deploy additional personnel and protection technologies, train employees and engage third party experts and consultants. Advances in computer capabilities, new technological discoveries or other developments may result in the technology used by us to protect transaction or other data being breached or compromised. Measures we implement to protect against cyber-attacks may also have the potential to impact our customers' shopping experience or decrease activity on our websites by making them more difficult to use.

Data and security breaches can also occur as a result of non-technical issues including intentional or inadvertent breach by employees or persons with whom we have commercial relationships that result in the unauthorized release of personal or confidential information. Any compromise or breach of our security could result in a violation of applicable privacy and other laws, significant legal and financial exposure, and damage to our brand and reputation or other harm to our business.

In addition, the increased use of employee-owned devices for communications as well as work-from-home arrangements present additional operational risks to our technology systems, including increased risks of cyber-attacks. Further, like other companies in the retail industry, we have in the past experienced, and we expect to continue to experience, cyber-attacks, including phishing, and other attempts to breach, or gain unauthorized access to, our systems. To date, these attacks have not had a material impact on our operations, but they may have a material impact in the future.

Privacy and data protection laws increase our compliance burden.

We are subject to a variety of privacy and data protection laws and regulations that change frequently and have requirements that vary from jurisdiction to jurisdiction. For example, we are subject to significant compliance obligations under privacy laws such as the General Data Privacy Regulation ("GDPR") in the European Union, the Personal Information Protection and Electronic Documents Act (“PIPEDA”) in Canada, the California Consumer Privacy Act ("CCPA") modified by the California Privacy Rights Act (“CPRA”), and the Personal Information Protection Law (“PIPL”) in the People's Republic of China ("PRC")(1). Some privacy laws prohibit the transfer of personal information to certain other jurisdictions. We are subject to privacy and data protection audits or investigations by various government agencies. Our failure to comply with these laws subjects us to potential regulatory enforcement activity, fines, private litigation including class actions, and other costs. Our efforts to comply with privacy laws may complicate our operations and add to our compliance costs. A significant privacy breach or failure or perceived failure by us or our third-party service providers to comply with privacy or data protection laws, regulations, policies or regulatory guidance might have a materially adverse impact on our reputation, business operations and our financial condition or results of operations.

Disruption of our technology systems or unexpected network interruption could disrupt our business.

We are increasingly dependent on technology systems and third-parties to operate our e-commerce websites, process transactions, respond to guest inquiries, manage inventory, purchase, sell and ship goods on a timely basis, and maintain cost-efficient operations. The failure of our technology systems to operate properly or effectively, problems with transitioning to upgraded or replacement systems, or difficulty in integrating new systems, could adversely affect our business. In addition, we have e-commerce websites in the United States, Canada, and internationally. Our technology systems, websites, and operations of third parties on whom we rely, may encounter damage or disruption or slowdown caused by a failure to successfully upgrade systems, system failures, viruses, computer "hackers", natural disasters, or other causes. These could cause information, including data related to guest orders, to be lost or delayed which could, especially if the disruption or slowdown occurred during the holiday season, result in delays in the delivery of products to our stores and guests or lost sales, which could reduce demand for our products and cause our sales to decline. 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, including to our technology systems. In addition, if changes in technology cause our information systems to become obsolete, or if our information systems are inadequate to handle our growth, we could lose guests. We have limited back-up systems and redundancies, and our technology systems and websites have experienced system failures and electrical outages in the past which have disrupted our operations. Any significant disruption in our technology systems or websites could harm our reputation and credibility, and could have a material adverse effect on our business, financial condition, and results of operations.

Our technology-based systems that give our customers the ability to shop with us online may not function effectively.

Many of our customers shop with us through our e-commerce websites and mobile apps. Increasingly, customers are using tablets and smart phones to shop online with us and with our competitors and to do comparison shopping. We are increasingly using social media and proprietary mobile apps to interact with our customers and as a means to enhance their shopping experience. Any failure on our part to provide attractive, effective, reliable, user-friendly e-commerce platforms that

(1) PRC includes China Mainland, Hong Kong SAR, Taiwan, and Macau SAR.

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offer a wide assortment of merchandise with rapid delivery options and that continually meet the changing expectations of online shoppers could place us at a competitive disadvantage, result in the loss of e-commerce and other sales, harm our reputation with customers, have a material adverse impact on the growth of our e-commerce business globally and could have a material adverse impact on our business and results of operations.

Risks related to environmental, social, and governance issues

Climate change, and related legislative and regulatory responses to climate change, may adversely impact our business.

There is increasing concern that a gradual rise in global average temperatures due to increased concentration of carbon dioxide and other greenhouse gases in the atmosphere will cause significant changes in weather patterns around the globe, an increase in the frequency, severity, and duration of extreme weather conditions and natural disasters, and water scarcity and poor water quality. These events could adversely impact the cultivation of cotton, which is a key resource in the production of our products, disrupt the operation of our supply chain and the productivity of our contract manufacturers, increase our production costs, impose capacity restraints and impact the types of apparel products that consumers purchase. These events could also compound adverse economic conditions and impact consumer confidence and discretionary spending. As a result, the effects of climate change could have a long-term adverse impact on our business and results of operations. In many countries, governmental bodies are enacting new or additional legislation and regulations to reduce or mitigate the potential impacts of climate change. If we, our suppliers, or our contract manufacturers are required to comply with these laws and regulations, or if we choose to take voluntary steps to reduce or mitigate our impact on climate change, we may experience increased costs for energy, production, transportation, and raw materials, increased capital expenditures, or increased insurance premiums and deductibles, which could adversely impact our operations. Inconsistency of legislation and regulations among jurisdictions may also affect the costs of compliance with such laws and regulations. Any assessment of the potential impact of future climate change legislation, regulations or industry standards, as well as any international treaties and accords, is uncertain given the wide scope of potential regulatory change in the countries in which we operate.

Increased scrutiny from investors and others regarding our environmental, social, governance, or sustainability, responsibilities could result in additional costs or risks and adversely impact our reputation, employee retention, and willingness of customers and suppliers to do business with us.

Investor and political advocacy groups, certain institutional investors, investment funds, other market participants, stockholders, and customers have focused increasingly on the environmental, social and governance ("ESG") practices of companies, including those associated with climate change and social responsibility. These parties have placed increased importance on the implications of the social cost of their investments. If our ESG practices do not meet customer, investor, employee, or other stakeholder expectations or do not align with their opinions or values, our brand, reputation, employee retention, and business may be negatively impacted. Any sustainability report that we publish or other ESG disclosures we make may include our policies and practices on a variety of social and ethical matters, including corporate governance, environmental compliance, employee health and safety practices, human capital management, product quality, supply chain management, and workforce inclusion and diversity. It is possible that stakeholders may not be satisfied with our ESG policies or practices, including how we describe and report our ESG goals, efforts, and practices, and this could reduce demand for our products or lead to regulatory enforcement that could restrict our ability to market and sell our products. We could also incur additional costs and require additional resources to monitor, report, and comply with various ESG practices. Also, our failure, or perceived failure, to meet the standards included in any sustainability disclosure could negatively impact our reputation, employee retention, and the willingness of our customers and suppliers to do business with us.

Risks related to global economic, political, and regulatory conditions

An economic recession, depression, downturn, periods of inflation, or economic uncertainty in our key markets may adversely affect consumer discretionary spending and demand for our products.

Many of our products may be considered discretionary items for consumers. Some of the factors that may influence consumer spending on discretionary items include general economic conditions, high levels of unemployment, pandemics, higher consumer debt levels, reductions in net worth based on market declines and uncertainty, home foreclosures and reductions in home values, fluctuating interest and foreign currency exchange rates and credit availability, government austerity measures, fluctuating fuel and other energy costs, fluctuating commodity prices, inflationary pressure, tax rates and general uncertainty regarding the overall future economic environment. Global economic conditions are uncertain and volatile, due in part to the potential impacts of increasing inflation, the potential impacts of geopolitical uncertainties, and any potential sanctions, restrictions or responses to those conditions. For example, the PRC market presents a number of risks, including changes in laws and regulations, currency fluctuations, increased competition, and changes in economic conditions, including the risk of an economic downturn or recession, trade embargoes, restrictions or other barriers, as well as other

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conditions that may adversely impact consumer spending, any of which could cause us to fail to achieve anticipated growth. As global economic conditions continue to be volatile or economic uncertainty remains, trends in consumer discretionary spending also remain unpredictable and subject to reductions due to credit constraints and uncertainties about the future. Unfavorable economic conditions may lead consumers to delay or reduce purchases of our products. Consumer demand for our products may not reach our targets, or may decline, when there is an economic downturn or economic uncertainty in our key markets. Our sensitivity to economic cycles and any related fluctuation in consumer demand may have a material adverse effect on our financial condition.

Our financial condition could be adversely affected by global or regional health events such as the COVID-19 pandemic and related government, private sector, and individual consumer responsive actions.

The COVID-19 pandemic negatively impacted the global economy, disrupted consumer spending and global supply chains, and created significant volatility and disruption of financial markets. The COVID-19 pandemic and related government, private sector, and individual consumer responsive actions negatively impacted our business operations, store traffic, employee availability, supply chain, financial condition, liquidity, and cash flows.

The occurrence or resurgence of global or regional health events such as the COVID-19 pandemic, and the related governmental, private sector and individual consumer responses, could contribute to a recession, depression, or global economic downturn, reduce store traffic and consumer spending, result in temporary or permanent closures of retail locations, offices, and factories, and could negatively impact the flow of goods. Such events could cause health officials to impose restrictions and recommend precautions to mitigate the health crisis such as the temporary closure of our stores, limitations on the number of guests allowed in our stores at any single time, minimum physical distancing requirements, and limited operating hours. A health event such as the COVID-19 pandemic could also negatively impact our employees, guests, and brand by reducing consumer willingness to visit stores, malls, and lifestyle centers, and employee willingness to staff our stores. A global or regional health event may also cause long-term changes to consumer shopping behavior, preferences and demand for our products that may have a material adverse effect on our business.

A global or regional health event such as the COVID-19 pandemic could significantly and adversely impact our supply chain if the factories that manufacture our products, the distribution centers where we manage our inventory, or the operations of our logistics and other service providers are disrupted, temporarily closed, or experience worker shortages.

Global economic and political conditions could adversely impact our results of operations.

Uncertain or challenging global economic and political conditions could impact our performance, including our ability to successfully expand internationally. Global economic conditions could impact levels of consumer spending in the markets in which we operate, which could impact our sales and profitability. Political unrest, such as the turmoil related to current geopolitical events and the related sanctions, restrictions, or other responses, could negatively impact our guests and employees, reduce consumer spending, and adversely impact our business and results of operations.

We may be unable to source and sell our merchandise profitably or at all if new trade restrictions are imposed or existing restrictions become more burdensome.

The United States and the countries in which our products are produced or sold have imposed and may impose additional quotas, duties, tariffs, or other restrictions or regulations, or may adversely adjust prevailing quota, duty, or tariff levels. The results of any audits or related disputes regarding these restrictions or regulations could have an adverse effect on our financial statements for the period or periods for which the applicable final determinations are made. Countries impose, modify, and remove tariffs and other trade restrictions in response to a diverse array of factors, including global and national economic and political conditions, which make it impossible for us to predict future developments regarding tariffs and other trade restrictions. Trade restrictions, including tariffs, quotas, embargoes, safeguards, and customs restrictions, could increase the cost or reduce the supply of products available to us, could increase shipping times, or may require us to modify our supply chain organization or other current business practices, any of which could harm our business, financial condition, and results of operations.

We are dependent on international trade agreements and regulations. The countries in which we produce and sell our products could impose or increase tariffs, duties, or other similar charges that could negatively affect our results of operations, financial position, or cash flows.

Adverse changes in, or withdrawal from, trade agreements or political relationships between the United States and the PRC, Canada, or other countries where we sell or source our products, could negatively impact our results of operations or cash flows. General geopolitical instability and the responses to it, such as the possibility of sanctions, trade restrictions, and changes in tariffs, including sanctions against the PRC, tariffs imposed by the United States and the PRC, and the possibility of

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additional tariffs or other trade restrictions, could adversely impact our business. It is possible that further tariffs may be introduced, or increased. Such changes could adversely impact our business and could increase the costs of sourcing our products from the PRC as well as other countries, or could require us to source our products from different countries. The Uyghur Forced Labor Prevention Act and other similar legislation may lead to greater supply chain compliance costs and delays to us and to our vendors.

Changes in tax laws or unanticipated tax liabilities could adversely affect our effective income tax rate and profitability.

We are subject to the income tax laws of the United States, Canada, and several other international jurisdictions. Our effective income tax rates could be unfavorably impacted by a number of factors, including changes in the mix of earnings amongst countries with differing statutory tax rates, changes in the valuation of deferred tax assets and liabilities, changes in tax laws, new tax interpretations and guidance, the outcome of income tax audits in various jurisdictions around the world, and any repatriation of unremitted earnings for which we have not previously accrued applicable U.S. income taxes and international withholding taxes.

Repatriations from our Canadian subsidiaries are not subject to Canadian withholding taxes if such distributions are made as a return of capital. The extent to which the accumulated earnings of our Canadian subsidiaries can be repatriated as a return of capital is dependent on, among other things, the amount of paid-up-capital in our Canadian subsidiaries and transactions undertaken by our exchangeable shareholders.

Prior to 2022, we had not accrued for Canadian withholding taxes because the accumulated earnings of, or 'net investment' in, our Canadian subsidiaries was either indefinitely reinvested or could be repatriated as a return of capital without the payment of withholding taxes.

Since 2022, the net investment in our Canadian subsidiaries, which was not indefinitely reinvested, exceeded the paid-up capital and therefore we recognized Canadian withholding taxes on the portion of our net investment which we are unable to repatriate free of withholding tax.

In 2024, assuming there are no exchange transactions by our exchangeable shareholders, we will continue to recognize Canadian withholding taxes on the accumulated earnings of our Canadian subsidiaries which are not indefinitely reinvested.

We engage in a number of intercompany transactions across multiple tax jurisdictions. Although we believe that these transactions reflect the accurate economic allocation of profit and that proper transfer pricing documentation is in place, the profit allocation and transfer pricing terms and conditions may be scrutinized by local tax authorities during an audit and any resulting changes may impact our mix of earnings in countries with differing statutory tax rates. At the end of 2020, our Advance Pricing Arrangement ("APA") with the Internal Revenue Service and the Canada Revenue Agency expired. This APA stipulated the allocation of certain profits between the U.S. and Canada. We are currently in the process of negotiating the renewal of this arrangement and the final agreed upon terms and conditions thereof could impact our effective tax rate.

Current economic and political conditions make tax rules in any jurisdiction, including the United States and Canada, subject to significant change. Changes in applicable U.S., Canadian, or other international tax laws and regulations, or their interpretation and application, including the possibility of retroactive effect, could affect our income tax expense and profitability, as they did in fiscal 2017 and fiscal 2018 upon passage of the U.S. Tax Cuts and Jobs Act, and in 2020 with the passage of the Coronavirus Aid, Relief, and Economic Security Act. Certain provisions of the Inflation Reduction Act passed in 2022, including a 15% corporate alternative minimum tax, as well as the similar 15% global minimum tax under the Organization for Economic Cooperation and Development's Pillar Two Global Anti-Base Erosion Rules, may impact our income tax expense, profitability, and capital allocation decisions.

Our failure to comply with trade and other regulations could lead to investigations or actions by government regulators and negative publicity.

The labeling, distribution, importation, marketing, and sale of our products, as well as components of our products, including chemicals, are subject to extensive regulation by various regulatory bodies. These include federal agencies such as the Federal Trade Commission, Consumer Product Safety Commission and state attorneys general in the United States, the Competition Bureau and Health Canada in Canada, the State Administration for Market Regulation of the PRC, General Administration of Customs of the PRC, as well as other federal, state, provincial, local, and international regulatory authorities in the countries in which our products are distributed or sold. If we fail to comply with any of these regulations, we could become subject to enforcement actions or the imposition of significant penalties or claims, which could harm our results of operations or our ability to conduct our business. In addition, any audits and inspections by governmental agencies related to these matters could result in significant settlement amounts, damages, fines, or other penalties, divert financial and management resources, and result in significant legal fees. An unfavorable outcome of any particular proceeding could have

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an adverse impact on our business, financial condition, and results of operations. In addition, the adoption of new regulations or changes in the interpretation of existing regulations, or changes in consumer perceptions of the components of our products, may result in significant compliance costs or discontinuation of product sales and could impair the marketing of our products, resulting in significant loss of net revenue.

Our international operations are also subject to compliance with the U.S. Foreign Corrupt Practices Act ("FCPA") and other anti-bribery laws applicable to our operations. In many countries, particularly in those with developing economies, it may be a local custom that businesses operating in such countries engage in business practices that are prohibited by the FCPA or other U.S. and international laws and regulations applicable to us. As we expand our operations across multiple jurisdictions, we could be subject to conflicting laws, or differing consumer sentiment on application of laws, that could lead to non-compliance which could have an adverse effect on our operations. Although we have implemented procedures designed to ensure compliance with the FCPA and similar laws, some of our employees, agents, or other partners, as well as those companies to which we outsource certain of our business operations, could take actions in violation of our policies. Any such violation could have a material and adverse effect on our business.

As we expand internationally, we are subject to complex employee regulations, and if we fail to comply with these regulations, we could be subject to enforcement actions or negative employee relations which could harm our results of operations.

Because a significant portion of our net revenue and expenses are generated in countries other than the United States, fluctuations in foreign currency exchange rates have affected our results of operations and may continue to do so in the future.

The functional currency of our international subsidiaries is generally the applicable local currency. Our consolidated financial statements are presented in U.S. dollars. Therefore, the net revenue, expenses, assets, and liabilities of our international subsidiaries are translated from their functional currencies into U.S. dollars. Fluctuations in the value of the U.S. dollar affect the reported amounts of net revenue, expenses, assets, and liabilities. Foreign currency exchange differences which arise on translation of our international subsidiaries' balance sheets into U.S. dollars are recorded as other comprehensive income (loss), net of tax in accumulated other comprehensive income or loss within stockholders' equity.

We also have exposure to changes in foreign currency exchange rates associated with transactions which are undertaken by our subsidiaries in currencies other than their functional currency. Such transactions include intercompany transactions and inventory purchases denominated in currencies other than the functional currency of the purchasing entity. As a result, we have been impacted by changes in foreign currency exchange rates and may be impacted for the foreseeable future. The potential impact of currency fluctuation increases as our international expansion increases.

Although we use financial instruments to hedge certain foreign currency risks, these measures may not succeed in fully offsetting the negative impact of foreign currency rate movements.

We are exposed to credit-related losses in the event of nonperformance by the counterparties to forward currency contracts used in our hedging strategies.

Risks related to intellectual property

Our fabrics and manufacturing technology generally are not patented and can be imitated by our competitors. If our competitors sell products similar to ours at lower prices, our net revenue and profitability could suffer.

The intellectual property rights in the technology, fabrics, and processes used to manufacture our products generally are owned or controlled by our suppliers and are generally not unique to us. Our ability to obtain intellectual property protection for our products is therefore limited. We hold limited patents and exclusive intellectual property rights in the technology, fabrics or processes underlying our products. As a result, our current and future competitors are able to manufacture and sell products with performance characteristics, fabrics and styling similar to our products. Because many of our competitors have significantly greater financial, distribution, marketing, and other resources than we do, they may be able to manufacture and sell products based on our fabrics and manufacturing technology at lower prices than we can. If our competitors sell products similar to ours at lower prices, our net revenue and profitability could suffer.

Our failure or inability to protect our intellectual property rights could diminish the value of our brand and weaken our competitive position.

We currently rely on a combination of patent, copyright, trademark, trade dress, trade secret, and unfair competition laws, as well as confidentiality procedures and licensing arrangements, to establish and protect our intellectual property

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rights. The steps we take to protect our intellectual property rights may not be adequate to prevent infringement of these rights by others, including imitation of our products and misappropriation of our brand. In addition, any of our intellectual property rights may be challenged, which could result in them being narrowed in scope or declared invalid or unenforceable, or our intellectual property protection may be unavailable or limited in some international countries where laws or law enforcement practices may not protect our intellectual property rights as fully as in the United States or Canada, and it may be more difficult for us to successfully challenge the use of our intellectual property rights by other parties in these countries. If we fail to protect and maintain our intellectual property rights, the value of our brand could be diminished, and our competitive position may suffer.

Our trademarks, patents, and other proprietary rights could potentially conflict with the rights of others and we may be prevented from selling some of our products.

Our success depends in large part on our brand image. We believe that our trademarks, patents, and other proprietary rights have significant value and are important to identifying and differentiating our products from those of our competitors and creating and sustaining demand for our products. We have applied for and obtained some United States, Canada, and international trademark registrations and patents, and will continue to evaluate additional trademarks and patents as appropriate. However, some or all of these pending trademark or patent applications may not be approved by the applicable governmental authorities. Moreover, even if the applications are approved, third parties may seek to oppose or otherwise challenge these applications or registrations. Additionally, we may face obstacles as we expand our product line and the geographic scope of our sales and marketing. Third parties may assert intellectual property claims against us, particularly as we expand our business and the number of products we offer. Our defense of any claim, regardless of its merit, could be expensive and time consuming and could divert management resources. Successful infringement claims against us could result in significant monetary liability or prevent us from selling some of our products. In addition, resolution of claims may require us to redesign our products, license rights from third parties, or cease using those rights altogether. Any of these events could harm our business and cause our results of operations, liquidity, and financial condition to suffer.

We have been, and in the future may be, sued by third parties for alleged infringement of their proprietary rights.

There is considerable patent and other intellectual property development activity in our market, and litigation, based on allegations of infringement or other violations of intellectual property, is frequent in the fitness and technology industries. Furthermore, it is common for individuals and groups to purchase patents and other intellectual property assets for the purpose of making claims of infringement to extract settlements from companies like ours. Our use of third-party content, including music content, software, and other intellectual property rights may be subject to claims of infringement or misappropriation. We cannot guarantee that our internally developed or acquired technologies and content do not or will not infringe the intellectual property rights of others. From time to time, our competitors or other third parties may claim that we are infringing upon or misappropriating their intellectual property rights, and we may be found to be infringing upon such rights. Any claims or litigation could cause us to incur significant expenses and, if successfully asserted against us, could require that we pay substantial damages or ongoing royalty payments, prevent us from offering our platform or services or using certain technologies, force us to implement expensive work-arounds, or impose other unfavorable terms. We expect that the occurrence of infringement claims is likely to grow as the market for fitness products and services grows and as we introduce new and updated products and offerings. Accordingly, our exposure to damages resulting from infringement claims could increase and this could further exhaust our financial and management resources. Any of the foregoing could prevent us from competing effectively and could have an adverse effect on our business, financial condition, and operating results.

Risks related to legal and governance matters

We are subject to periodic claims and litigation that could result in unexpected expenses and could ultimately be resolved against us.

From time to time, we are involved in litigation and other proceedings, including matters related to product liability claims, stockholder class action and derivative claims, commercial disputes and intellectual property, as well as trade, regulatory, employment, and other claims related to our business. Any of these proceedings could result in significant settlement amounts, damages, fines, or other penalties, divert financial and management resources, and result in significant legal fees. An unfavorable outcome of any particular proceeding could exceed the limits of our insurance policies or the carriers may decline to fund such final settlements and/or judgments and could have an adverse impact on our business, financial condition, and results of operations. In addition, any proceeding could negatively impact our reputation among our guests and our brand image.

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Our business could be negatively affected as a result of actions of activist stockholders or others.

We may be subject to actions or proposals from stockholders or others that may not align with our business strategies or the interests of our other stockholders. Responding to such actions can be costly and time-consuming, disrupt our business and operations, and divert the attention of our board of directors, management, and employees from the pursuit of our business strategies. Such activities could interfere with our ability to execute our strategic plan. Activist stockholders or others may create perceived uncertainties as to the future direction of our business or strategy which may be exploited by our competitors and may make it more difficult to attract and retain qualified personnel and potential guests, and may affect our relationships with current guests, vendors, investors, and other third parties. In addition, a proxy contest for the election of directors at our annual meeting would require us to incur significant legal fees and proxy solicitation expenses and require significant time and attention by management and our board of directors. The perceived uncertainties as to our future direction also could affect the market price and volatility of our securities.

Anti-takeover provisions of Delaware law and our certificate of incorporation and bylaws could delay and discourage takeover attempts that stockholders may consider to be favorable.

Certain provisions of our certificate of incorporation and bylaws and applicable provisions of the Delaware General Corporation Law may make it more difficult or impossible for a third-party to acquire control of us or effect a change in our board of directors and management. These provisions include:

•the classification of our board of directors into three classes, with one class elected each year;

•prohibiting cumulative voting in the election of directors;

•the ability of our board of directors to issue preferred stock without stockholder approval;

•the ability to remove a director only for cause and only with the vote of the holders of at least 66 2/3% of our voting stock;

•a special meeting of stockholders may only be called by our chairman or Chief Executive Officer, or upon a resolution adopted by an affirmative vote of a majority of the board of directors, and not by our stockholders;

•prohibiting stockholder action by written consent; and

•our stockholders must comply with advance notice procedures in order to nominate candidates for election to our board of directors or to place stockholder proposals on the agenda for consideration at any meeting of our stockholders.

In addition, we are governed by Section 203 of the Delaware General Corporation Law which, subject to some specified exceptions, prohibits "business combinations" between a Delaware corporation and an "interested stockholder," which is generally defined as a stockholder who becomes a beneficial owner of 15% or more of a Delaware corporation's voting stock, for a three-year period following the date that the stockholder became an interested stockholder. Section 203 could have the effect of delaying, deferring, or preventing a change in control that our stockholders might consider to be in their best interests.

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ITEM 2. UNREGISTERED SALES OF EQUITY SECURITIES AND USE OF PROCEEDS

The following table provides information regarding our purchases of shares of our common stock during the first quarter of 2024 related to our stock repurchase program:


Period(1)	Total Number of Shares Purchased(2)	Average Price Paid per Share		Total Number of Shares Purchased as Part of Publicly Announced Plans or Programs(2)	Maximum Dollar Value of Shares that May Yet Be Purchased Under the Plans or Programs(2)
January 29, 2024 – February 25, 2024	116,858	$	459.59	116,858	$	1,135,511,207
February 26, 2024 – March 31, 2024	186,147	441.25		186,147	1,053,373,463
April 1, 2024 – April 28, 2024	448,222	359.42		448,222	892,273,539
Total	751,227			751,227

__________

(1)Monthly information is presented by reference to our fiscal periods during our first quarter of 2024.

(2)On March 23, 2022, our board of directors approved a stock repurchase program for up to $1.0 billion of our common shares on the open market or in privately negotiated transactions. During the first quarter of 2024, we completed the remaining stock repurchases under this program.

On November 29, 2023, our board of directors approved a stock repurchase program for up to $1.0 billion of our common shares on the open market or in privately negotiated transactions. The repurchase plan has no time limit and does not require the repurchase of a minimum number of shares. Common shares repurchased on the open market are at prevailing market prices, including under plans complying with the provisions of Rule 10b5-1 and Rule 10b-18 of the Securities Exchange Act of 1934. The timing and actual number of common shares to be repurchased will depend upon market conditions, eligibility to trade, and other factors. The authorized value of shares available to be repurchased under this program excludes the cost of commissions and excise taxes.

The following table provides information regarding our purchases of shares of our common stock during the first quarter of 2024 related to our Employee Share Purchase Plan:


Period(1)	Total Number of Shares Purchased(2)	Average Price Paid per Share		Total Number of Shares Purchased as Part of Publicly Announced Plans or Programs(2)	Maximum Number of Shares that May Yet Be Purchased Under the Plans or Programs(2)
January 29, 2024 – February 25, 2024	7,241	$	456.20	7,241	4,395,457
February 26, 2024 – March 31, 2024	12,077	430.20		12,077	4,383,380
April 1, 2024 – April 28, 2024	8,702	350.97		8,702	4,374,678
Total	28,020			28,020

_________

(1)Monthly information is presented by reference to our fiscal periods during our first quarter of 2024.

(2)All shares purchased under the ESPP are purchased on the Nasdaq Global Select Market (or such other stock exchange as we may designate). Unless our board terminates the ESPP earlier, it will continue until all shares authorized for purchase have been purchased. The maximum number of shares authorized to be purchased under the ESPP is 6,000,000.

Excluded from this disclosure are shares withheld to settle statutory employee tax withholding related to the vesting of stock-based compensation awards.

ITEM 5. OTHER INFORMATION

Trading Arrangements

During the first quarter of 2024, no director or officer of lululemon (as defined in Rule 16a-1(f) under the Exchange Act) adopted or terminated a Rule 10b5-1 trading arrangement or non-Rule 10b5-1 trading arrangement (in each case, as defined in Item 408(a) of Regulation S-K).

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ITEM 6. EXHIBITS

Incorporated by Reference

Exhibit
No.

Exhibit Title

Filed
Herewith

Form

Exhibit
No.

File No.

Filing
Date

10.1*

lululemon athletica inc. Employee Share Purchase Plan

31.1

Certification of principal executive officer Pursuant to Exchange Act Rule 13a-14(a)

31.2

Certification of principal financial and accounting officer Pursuant to Exchange Act Rule 13a-14(a)

32.1**

Certification of principal executive officer and principal financial and accounting officer Pursuant to 18 U.S.C. Section 1350 as Adopted Pursuant to Section 906 of the Sarbanes-Oxley Act of 2002

101

The following unaudited interim consolidated financial statements from the Company's Quarterly Report on Form 10-Q for the fiscal quarter ended April 28, 2024, formatted in iXBRL: (i) Consolidated Balance Sheets, (ii) Consolidated Statements of Operations and Comprehensive Income, (iii) Consolidated Statements of Stockholders' Equity, (iv) Consolidated Statements of Cash Flows (v) Notes to the Unaudited Interim Consolidated Financial Statements

104

Cover Page Interactive Data File (formatted in iXBRL and contained in Exhibit 101)


*			Denotes a compensatory plan, contract, or arrangement, in which our directors or executive officers may participate.
**			Furnished herewith.

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SIGNATURES

Pursuant to the requirements of the Securities Exchange Act of 1934, the registrant has duly caused this report to be signed on its behalf by the undersigned, thereunto duly authorized.


						lululemon athletica inc.

By:						/s/ MEGHAN FRANK
						Meghan Frank
						Chief Financial Officer
						(principal financial and accounting officer)

Dated: June 5, 2024

Exhibit 10.1

lululemon athletica inc.

EMPLOYEE SHARE PURCHASE PLAN

lululemon athletica inc.

EMPLOYEE SHARE PURCHASE PLAN

Article 1 — Definitions

1.1 Definitions

In this Plan, unless the context otherwise requires:

Administration Agreement

means the administration, trust, administrative services, plan services or other agreement entered into by lululemon with the Administrator pursuant to section 9.1 or 9.2 then in effect, as the same may be amended pursuant to section 9.3.

Administrator

means the party appointed as Administrator and service provider in connection with the administration of this Plan pursuant to section 9.1 or 9.2 then acting as such.

Applicable Tax Legislation

means the Income Tax Act (Canada) and the regulations made thereunder and applicable provincial income tax legislation and regulations made thereunder or, as applicable, the Internal Revenue Code of 1986, as amended.

Board of Directors

means the board of directors of lululemon.

Canadian Employee

means an Employee who is resident in Canada within the meaning of that expression as used in the Income Tax Act (Canada) and is employed by a Canadian Employer.

Canadian Employer

means an Employer that is organized under the laws of Canada or a province thereof which carries on business in Canada and deals at non-arm’s length with lululemon.

Committee

means the People, Culture and Compensation Committee of the Board of Directors and shall include (i) any successor to such committee, and (ii) any committee of the Board of Directors which may, subsequent to the implementation of this Plan, be established by the Board of Directors and to which the Board of Directors has delegated responsibility for administration of this Plan (any successor or other committee being herein referred to as a “Successor Committee”), provided that if the Compensation Committee of the Board of Directors shall cease to exist without any Successor Committee coming into existence “Committee” shall mean the Board of Directors.

Common Shares

means common shares, par value U.S. $0.005 per share, in the capital of lululemon.

Declaration of Trust

in respect of any Member, means the separate application and declaration of trust (including any addenda in respect of “locked-in funds”) entered into by the Trustee and such Member pursuant to the Sponsor Agreement in the form approved by the Trustee, as amended by the Trustee from time to time, which creates, governs and sets out the terms of the registered retirement savings plan or the tax free savings account under the Applicable Tax Legislation under which such Member is the annuitant within the meaning of Applicable Tax Legislation.

Earnings

means, with respect to any Member, the total base earnings of such Member from such Member’s Employer, but excluding overtime pay, commissions, bonus payments, on-call pay, gratuities and other special compensation.

Employee

means a person who is an employee of an Employer.

Employer

means:

(a)lululemon; or

(b)a Participating Subsidiary.

Excluded Employee

means a person who is an officer of lululemon, a member of the Board of Directors or any other person whose transactions in Common Shares are subject to Section 16 of the United States Securities Exchange Act of 1934, as amended.

Full-Time Employee

means:

(a)an Employee who is in a full-time year round position and works 24 or more hours per week; or

(b)an Employee or class of Employees whose participation in the Plan is approved in writing by the Chief Executive Officer of lululemon.

lululemon

means lululemon athletica inc., a Delaware corporation.

Market Value

on any date, means the average of the closing prices per share of at least a board lot of Common Shares on the NASDAQ Stock Market for the five trading days immediately preceding such date on which at least a board lot of Common Shares traded.

Member

means a Full-Time Employee who is enrolled in this Plan pursuant to the provisions hereof.

Non-Registered ESPP

means a Non-Registered ESPP Account established and maintained by the Administrator with respect to a Member under this Plan that is not a Registered ESPP.

Non-Registered ESPP Account

means, with respect to any Member, an account of such Member established and maintained by the Administrator pursuant to section 10.1.

Participating Subsidiary

means any Subsidiary of lululemon that has been designated by the Board of Directors, the Committee or the Chief Executive Officer of lululemon as participating in this Plan unless such designation has been revoked by the Board of Directors, the Committee or the Chief Executive Officer as the case may be.

Plan

means this Employee Share Purchase Plan (“ESPP”) which will consist of the Non-Registered ESPPs and the Registered ESPPs.

Registered ESPP

means a Registered ESPP Account established and maintained by the Trustee with respect to a Member under this Plan pursuant to a Declaration of Trust that is a “registered retirement savings plan” or a “tax free savings account” under the Applicable Tax Legislation.

Registered ESPP Account

means with respect to any Member, an account of such Member established and maintained by the Trustee pursuant to section 10.2.

Sponsor Agreement

means the RSP Sponsor Agreement entered into by lululemon with the Trustee pursuant to section 9.4 or 9.5 then in effect, as the same may be amended pursuant to section 9.6.

Subsidiary

means a “subsidiary” as that term is defined in the Securities Act (British Columbia).

Trustee

means (i) in respect of Non-Registered ESPPs, the Administrator, and (ii) in respect of Registered ESPPs, the party appointed as Trustee under this Plan pursuant to section 9.4 or 9.5 then acting as such.

Year

means a year ending December 31.

Article 2 — Eligibility

2.1 Eligibility

Each Full-Time Employee who is not an Excluded Employee is eligible to enrol and participate in this Plan at any time after the commencement of the first calendar month following the end of the Employee’s three-month initial probation period. Excluded Employees may not enrol or participate in this Plan at any time.

2.2 Re-enrolment

If the employment of a Member is terminated as described in section 7.2 and the Employee thereafter becomes a Full-Time Employee, for the purposes of this Plan, the Employee will be considered to be a new Employee.

2.3 No Right to Employment

Participation in this Plan is entirely voluntary and any decision by a Full-Time Employee not to participate will not affect such Employee’s employment with such Employee’s Employer. Nothing contained in this Plan gives any Full-Time Employee who participates in this Plan the right to be employed or to continue to be employed by an Employer. Participation in this Plan shall not create any employment relationship between an Employee and lululemon.

Article 3 — Enrolment

3.1 Enrolment by Canadian Employees

A Full-Time Employee who is a Canadian Employee who wishes to participate in a Non-Registered ESPP or a Registered ESPP must:

(a)submit an online enrolment form to the Administrator authorizing the Employee’s Employer to deduct from the Earnings of such Employee such contributions to this Plan as such Employee may designate in such enrolment form (subject to changes which the Employee may thereafter make pursuant to section 4.1);

(b)if the Employee wishes to enrol and participate in a Registered ESPP, complete and submit to the Administrator an online application form;

(c)if the Employee wishes to enrol and participate in a Non-Registered ESPP and/or a Registered ESPP, designate a percentage of the Member’s contributions to this Plan that the Employee wishes to contribute to (i) the Non-Registered ESPP; and (ii) the Registered ESPP;

(d)submit to the Administrator an online beneficiary designation form; and

(e)express the agreement of such Employee to be bound by the terms and conditions of this Plan; in each case in the form and manner from time to time required by lululemon, the Administrator or the Trustee.

3.2 Employee Solely Responsible re Contribution Limits to Registered ESPP

For greater certainty, the Employers and Administrator and Trustee assume no responsibility in relation to whether any Employee is or continues to be eligible under applicable laws to participate in a Registered ESPP or contribution limits applicable to any Employee to any Registered ESPP, which matters shall be the sole responsibility of the Employee.

3.3 Enrolment by Non-Canadian Employees

A Full-Time Employee who is not a Canadian Employee who wishes to participate in the Plan may participate through a Non-Registered ESPP and such Employee must:

(a)submit to lululemon or the Administrator an enrolment form authorizing the Employee’s Employer to deduct from the Earnings of such Employee such contributions to this Plan as such Employee may designate in such enrolment form (subject to changes which the Employee may thereafter make pursuant to section 4.1);

(b)open an account with the Administrator (and, in connection therewith, if required by the Administrator or lululemon, submit to the Administrator or lululemon a Substitute Form W-9 or other form that the Administrator or lululemon may require); and

(c)express the agreement of such Employee to be bound by the terms and conditions of this Plan; in each case in the form and manner from time to time required by lululemon and the Administrator.

Article 4 — Contributions

4.1 Member Contributions and Allocation

A Member may, no less frequently than monthly, contribute an amount to this Plan equal to what ever portion of his or her Earnings equates, after deduction of applicable taxes, to either 3%, 6% or 9% of such Member’s Earnings for such period, as designated by such Member from time to time in the form and manner contemplated pursuant to sections 3.1 or 3.3 or in a written or electronic form notice given pursuant to this section. The contributions to this Plan made by a Member who is a Canadian Employee who is participating in a Non-Registered ESPP and/or a Registered ESPP shall be allocated between a Non-Registered ESPP and Registered ESPP as designated by such Member from time to time in the form and manner contemplated pursuant to sections 3.1 (d) or 4.2(b) or in a written or electronic form notice given pursuant to this section. A Member may change any designation or allocation referred to in this section to be applicable to future regularly scheduled payroll payments by giving notice of such change to the Administrator and the Trustee (and, if the Administrator or lululemon so advises the Member, to lululemon and the Member’s Employer), in the form and manner and subject to such restrictions or conditions (which may include conditions regarding when changes will become effective subsequent to notice being given or limitations on the number of times a Member may make changes in a specified time period) from time to time required by lululemon and the Administrator. Subject to the mandatory change of allocation contemplated pursuant to section 4.2, any such designation will remain in effect until changed by the Member.

4.2 Change of Status of Canadian Employee

If a Member participating in a Registered ESPP ceases to be a Canadian Employee:

(a)the Member must, not less than 10 days prior to the date on which the status of the Member changes, give notice of such change to the Administrator and the Member’s Employer specifying the date on which the Member will cease to be a Canadian Employee, in the form and manner required by lululemon and the Administrator or Trustee; and

(b)effective upon the date that the Member so ceases to be a Canadian Employee, all contributions made after such time to this Plan by the Member shall be allocated to the Member’s Non-Registered ESPP unless and until the Member again becomes a Canadian Employee, in which event the Member may give a notice pursuant to this section designating an allocation of such Member’s contributions between such Member’s Non-Registered ESPP and Registered ESPP in the form and manner required by lululemon and the Administrator or Trustee.

4.3 Deduction of Contributions – Registered ESPP

Contributions to this Plan made by a Member who is a Canadian Employee participating in a Registered ESPP which are, pursuant to section 4.1, allocated to the Member’s Registered ESPP will be deducted and withheld by the Member’s Employer by payroll deductions from such Member’s Earnings which will be made no more frequently than the regularly scheduled payroll payments as may be designated by the Member’s Employer from time to time and all such amounts so deducted or withheld will promptly (and, in any event, within ten days after the deduction or withholding thereof) be deposited by the Employer with the Trustee (or with the Administrator, as agent for the Trustee).

4.4 Deduction of Contributions – Non-Registered ESPP

Contributions made by a Member to this Plan which are not, pursuant to section 4.1, allocated to a Member’s Registered ESPP will be deducted and withheld by the Member’s Employer by payroll deductions from such Member’s Earnings which will be made no more frequently than the regularly scheduled payroll payments as may be designated by the Member’s Employer from time to time and will be allocated to the Member’s Non-Registered ESPP and all such amounts so deducted or withheld will promptly (and in any event, within ten days after the deduction or withholding thereof) be deposited by the Employer with the Administrator.

4.5 Employer Contributions – Registered ESPP

Subject to section 4.9, the Employer, on behalf of each Member who is a Canadian Employee who is participating in a Registered ESPP will make a contribution to the Member’s Registered ESPP on behalf of the Member equal to one-third of the amount contributed by such Member to the Member’s Registered ESPP. The contribution of lululemon will be deposited by lululemon with the Trustee (or with the Administrator, as agent for the Trustee) at the time of or promptly (and in any event, within ten days) after the end of each month in which contributions to this Plan made by such Member are deducted and withheld by the Member’s Employer. The Employer’s contributions will be additional compensation to the Member and the Employer will be entitled to make such withholdings as may be required by Applicable Tax Legislation form cash remuneration payable to the Member.

4.6 Employer Contributions – Non-Registered ESPP

Subject to section 4.9, the Employer, on behalf of each Member who is participating in a Non-Registered ESPP, will make a contribution to the Member’s Non-Registered ESPP on behalf of the Member equal to one-third of the amount contributed by such Member to the Member’s Non-Registered ESPP. The contribution by lululemon will be deposited by lululemon with the Administrator at the time of or promptly (and in any event, within ten days) after the end of each month in which contributions to this Plan made by such Member are deducted and withheld by the Member’s Employer. The Employer’s contributions will be additional compensation to the Member and the Employer will be entitled to make such withholdings as may be required by Applicable Tax Legislation from cash remuneration payable to the Member.

4.7 Contributions Credited to Accounts

The Trustee (or the Administrator as agent for the Trustee) will, on receipt of any contribution to a Registered ESPP by or on behalf of a Member, credit such contribution to such Member’s Registered ESPP Account. The Administrator will, on receipt of any contribution to a Non-Registered ESPP by or on behalf of a Member, credit such contribution to such Member’s Non-Registered ESPP Account. All contributions by lululemon on behalf of a Member will vest irrevocably in such Member as and when they are received by the Trustee or Administrator.

4.8 Holding of Amounts Pending Investment

The Trustee will hold all cash amounts credited to each Member’s Registered ESPP Account from time to time, pending the application thereof to the purchase of Common Shares pursuant to section 5.1, in a non-interest bearing account of the Trustee or the Administrator or of any Canadian chartered bank, including, without limitation, any bank expressly permitted in the Sponsor Agreement, or any trust corporation existing under the

laws of Canada or any province thereof, and will credit all cash dividends or other earnings arising therefrom to such Member’s Registered ESPP Account. The Administrator will hold all cash amounts credited to each Member’s Non-Registered ESPP Account from time to time, pending the application thereof to the purchase of Common Shares pursuant to section 5.4, in a non interest bearing account of the Administrator or of any Canadian chartered bank, including, without limitation, any bank expressly permitted in the Administration Agreement, or any trust corporation existing under the laws of Canada or any province thereof, and will credit all cash dividends or other earnings arising therefrom to such Member’s Non-Registered ESPP Account.

4.9 Insolvency

Notwithstanding anything to the contrary herein, the Employer will not make any contribution to this Plan pursuant to section 4.5 or 4.6 in circumstances where the Employer is insolvent or such contribution would render the Employer insolvent.

Article 5 — Purchase of Common Shares

5.1 Purchase by Trustee of Common Shares – Registered ESPPs

The contributions by or on behalf of each Member to a Member’s Registered ESPP, together with all cash dividends, interest and other earnings credited to such Member’s Registered ESPP Account, will be applied by the Trustee (or the Administrator as agent for the Trustee) to the purchase of whole and fractional Common Shares to be held in trust for the benefit of such Member. Such purchases will be made by the Trustee (or the Administrator as agent for the Trustee) on or before the 15th day of the month following the month in which contributions by or on behalf of a Member are made, through the facilities of the NASDAQ Stock Market (or such other stock exchange as lululemon may designate from time to time) and at the prevailing market price of our Common Stock on the NASDAQ Stock Market (or such other stock exchange as lululemon may designate from time to time) on the date of purchase.

5.2 Holding of Common Shares – Registered ESPPs

All Common Shares purchased by the Trustee (or the Administrator as agent for the Trustee) pursuant to section 5.1 on behalf of a Member will be held by the Trustee in trust for the benefit of such Member, and the Trustee (or the Administrator as agent for the Trustee) will record in such Member’s Registered ESPP Account the number of Common Shares (including any fraction thereof) so held by the Trustee for the benefit of such Member. The certificates representing such Common Shares will, prior to the withdrawal of such Common Shares from the Member’s Registered ESPP, be registered in the name of the Trustee or its nominee.

5.3 Dividends in Registered ESPPs

The Trustee will, on receipt of any dividends paid on any Common Shares held by the Trustee in trust for the benefit of a Member pursuant to section 5.2, credit such dividends to such Member’s Registered ESPP Account.

5.4 Purchase by Administrator of Common Shares – Non-Registered ESPPs

The contributions by or on behalf of each Member to a Member’s Non-Registered ESPP, together with all cash dividends, interest and other earnings credited to such Member’s Non-Registered ESPP Account, will be applied by the Administrator to the purchase of whole and fractional Common Shares on behalf of such Member. Such purchases will be made by the Administrator on or before the 15th day of the month following the month in which contributions by or on behalf of a Member are made, through the facilities of the NASDAQ Stock Market (or such other stock exchange as lululemon may designate from time to time) and at the prevailing market price of our Common Stock on the NASDAQ Stock Market (or such other stock exchange as lululemon may designate from time to time) on the date of purchase.

5.5 Holding of Common Shares – Non-Registered ESPPs

All Common Shares purchased by the Administrator pursuant to section 5.4 on behalf of a Member will be held by the Administrator for the benefit of such Member, and the Administrator will record in such Member’s Non-Registered ESPP the number of Common Shares (including any fraction thereof) so held by the Administrator for the benefit of such Member. The certificates representing such Common Shares will, prior to the withdrawal of such Common Shares from this Plan, be registered in the name of the Administrator or its nominee.

5.6 Dividends in Non-Registered ESPPs

The Administrator will, on receipt of any dividends paid on any Common Shares held by the Administrator for the benefit of a Member pursuant to this Plan, credit such dividends to such Member’s Non-Registered ESPP Account.

Article 6 — Transfers to Registered ESPP

6.1 Transfer to Registered ESPP

A Member who is a Canadian Employee participating in a Registered ESPP may transfer all or some of the Common Shares, money or other property held in such Member’s Non-Registered ESPP Account to such Member’s Registered ESPP Account, subject to such restrictions and limitations and conditions as may be imposed from time to time by lululemon or the Trustee or Administrator. If the Canadian Employee Member is not already participating in a Registered ESPP the Member will be required to first enrol in a Registered ESPP pursuant to section 3.1(c) prior to effecting any transfer referred to in this section. A Member wishing to effect such a transfer must execute and submit to the Administrator an ESPP Transfer form in the form and manner required by lululemon and the Administrator. Such a transfer will not constitute a withdrawal from the Member’s Non-Registered ESPP for the purpose of Article 7.

6.2 Transfer Process

In the event of a transfer pursuant to section 6.1, the Administrator will transfer the Common Shares, money or other property held for the benefit of the Member in the transferring Member’s Non-Registered Account to the Trustee, on behalf of the Member, as directed by the Member, to be held by the Trustee in trust for the benefit of the Member. The Trustee (or the Administrator as agent for the Trustee) will record in such Member’s Registered ESPP Account the number of Common Shares (including any fraction thereof) so held by the Trustee for the benefit of such Member. The certificate representing any Common Shares so transferred will, prior to the withdrawal of such Common Shares from the Member’s Registered ESPP Account, be registered in the name of the Trustee or its nominee. The Member will provide the Administrator or Trustee with such information, and comply with such requirements as the Administrator or Trustee may require in relation to any capital gains which may be realized by the Member as a result of any such transfer. The Member effecting such transfer will have sole liability for determining and discharging any tax liability of the Member in respect of or arising as a result of such transfer.

Article 7 — Withdrawals

7.1 Right to Withdrawal

A Member may withdraw all or some of the Common Shares, money or other property held in such Member’s Non-Registered ESPP Account or Registered ESPP Account, or, if the Member has a Non-Registered ESPP Account and/or Registered ESPP Account, may separately withdraw all or some of the Common Shares, money or other property held in such Non-Registered ESPP Account and Registered ESPP Account, without in any way affecting the right of such Member to continue to participate in this Plan. If a Member wishes to withdraw some or all of the Common Shares, money or other property held in such Member’s Non-Registered ESPP Account or Registered ESPP Account, the Member must complete and submit to the Administrator a withdrawal form in the form and manner from time to time required by lululemon and the Administrator.

7.2 Withdrawal Following Termination of Employment

In the event of the termination of the employment of a Member with an Employer for any reason whatsoever (including death or disability), the Member will cease to be entitled to participate in this Plan as of the last day of active employment for the Member (without regard for any period of inactive employment or period of pay in lieu of notice of termination under statute, contract, common law, or otherwise) and all of the Common Shares, money and other property held in such Member’s Non-Registered ESPP Account and Registered ESPP Account, as applicable, will be deemed to have been withdrawn by the Member within 60 days after the date on which such Member’s employment is so terminated.

7.3 Withdrawal Following Change of Employment

In the event any Member participating in this Plan ceases to be a Full-Time Employee for any reason whatsoever (including disability), the Member will cease to be entitled to participate in this Plan and all of the Common Shares, money and other property held in such Member’s Non-Registered ESPP Account and Registered ESPP Account, as applicable, will be deemed to have been withdrawn by the Member within 60 days after the date on which such Member ceases to be a Full-Time Employee.

7.4 Withdrawal Following Termination of Plan

In the event of the termination of this Plan, all of the Common Shares, money and other property held in each Member’s Non-Registered ESPP Account and Registered ESPP Account, as applicable, will be deemed to have been withdrawn by the Member within 60 days after the date on which this Plan is terminated.

7.5 Fractional Share Interest on Withdrawal

All rights of a Member to a fraction of a Common Share upon any withdrawal of Common Shares from a Member’s Registered ESPP will be satisfied by a cash payment in an amount equal to the value thereof as determined by the Trustee on the basis of the Market Value on the day on which such withdrawal is made. All rights of a Member to a fraction of a Common Share upon any withdrawal of Common Shares from a Member’s Non-Registered ESPP will be satisfied by a cash payment in an amount equal to the value thereof as determined by the Administrator on the basis of the Market Value on the day on which such withdrawal is made.

7.6 Distribution Following Withdrawal – Non-Registered ESPP

Upon any withdrawal of Common Shares, money and other property by any Member from such Member’s Non-Registered ESPP, the Member (or the Member’s legal representatives) will be entitled to instruct the Administrator, in the manner required by the Administrator, to (i) sell any Common Shares so withdrawn in the open market, through the facilities of the NASDAQ Stock Market (or such other stock exchange as lululemon may designate from time to time) and remit the proceeds from such sale, net of related transaction expenses, to such Member; (ii) transfer any Common Shares so withdrawn to a self-directed investment account of the Member designated by the Member; or (iii) cause a direct registration and issuance of Direct Registration Statement (DRS) in the name of such Member (or the Member’s legal representatives) representing any such Common Shares so withdrawn to be sent to the Member. If the Member (or the Member’s legal representatives) does not provide instructions to the Administrator within 60 days after the withdrawal, the Administrator will continue to hold the shares in such Member’s Registered ESPP, however, lululemon will no longer be responsible for any fees and expenses for this account. All fees and expenses will be deducted from such Member’s Registered ESPP annually by the Administrator through sale of sufficient Common Shares.

7.7 Distribution Following Withdrawal – Registered ESPP

Upon any withdrawal of Common Shares, money and other property by any Member from such Member’s Registered ESPP, the Member (or the Member’s legal representatives) will be entitled to instruct the Trustee (or the Administrator, as agent for the Trustee), in the manner required by the Trustee or the Administrator, to (i) sell

any Common Shares so withdrawn in the open market, through the facilities of the NASDAQ Stock Market (or such other stock exchange as lululemon may designate from time to time) and remit the proceeds from such sale, net of related transaction expenses and withholding taxes (if applicable), to such Member, or (ii) transfer any Common Shares so withdrawn to a self-directed investment account or registered retirement savings plan of the Member designated by the Member. If the Member (or the Member’s legal representatives) does not provide instructions to the Trustee (or the Administrator as agent for the Trustee) within 60 days after the withdrawal, the Trustee will continue to hold the shares in such Member’s Registered ESPP, however, lululemon will no longer be responsible for any fees and expenses for this account. All fees and expenses will be deducted from such Member’s Registered ESPP annually by the Administrator through sale of sufficient Common Shares.

7.8 Compliance with Laws

lululemon shall from time to time take such steps and require such documentation from Members that in its opinion are necessary or desirable to ensure compliance with all applicable laws, including (i) the applicable securities laws and regulations of Canada (including the provinces and territories thereof) and of the United States, and any political subdivision of either, and the bylaws, rules and regulations of any stock exchange or other organized market on which the Common Shares may from time to time be listed or traded and (ii) the withholding provisions of Applicable Tax Legislation. lululemon shall also from time to time take such steps that in its opinion are necessary or desirable to restrict the transferability of any Common Shares withdrawn from this Plan in order to ensure such compliance.

Notwithstanding the foregoing, the Member shall at all times remain solely responsible for complying with annual contribution limits and shall at all times remain solely responsible for all income tax liability, including any penalties, arising pursuant to Applicable Tax Legislation and relating to participation in the Plan.

7.9 Tax Withholding

The Trustee shall have the right to:

(a)withhold and deduct from any payment to be made by the Trustee under this Plan any federal, provincial, local or other taxes and other amounts required by law to be withheld in respect of such payments; and

(b)sell any Common Shares held on behalf of any Member and use the proceeds from such sale to pay any federal, provincial, local or other taxes and other amounts required by law to be withheld in respect of any distribution to such Member under this Plan.

Article 8 — Temporary Suspension and Termination

8.1 Temporary Suspension

A Member may elect to suspend making contributions to this Plan effective as of the commencement of any month and for a period of not less than 3 months and not more than 12 months by giving written notice of such election to the Member’s Employer not less than 10 days prior to the commencement of such month in the manner from time to time required by lululemon.

8.2 Restriction

No Member may elect to suspend making contributions to this Plan pursuant to section 8.1 more than once in any Year.

8.3 Short Term Leaves

A Member who ceases to perform the duties of the Member’s position by virtue of being absent pursuant to a medical disability (short term disability, long term disability or Worker’s Compensation leave), maternity or parental leave or pursuant to such other leave of absence as may be approved by the Member’s Employer or required by law, may elect to suspend making contributions to this Plan effective as of the commencement of any

month during such absence by giving written notice of such election to the Member’s Employer not less than 10 days prior to the commencement of such month in the manner required by lululemon. In such case, the Member must begin contributing to this Plan as soon as the Member returns to active employment following a leave of absence referred to in this section, except as otherwise permitted by this Plan.

8.4 Termination of Participation

A Member may elect to terminate the Member’s participation in this Plan effective as of the commencement of any month by giving written notice of such election to the Member’s Employer not less than 10 days prior to the commencement of such month in the manner from time to time required by lululemon. If a Member makes such election, the Member will cease to be entitled to participate in this Plan, or make contributions to this Plan, effective from and after the commencement of the month indicated in the notice, unless such Employee, if the Employee continues to be a Full-Time Employee eligible to do so, thereafter, subject to section 8.5, again enrols in this Plan pursuant to section 3.1 or section 3.3.

8.5 Effect of Termination of Participation

In the event any Member ceases to participate in this Plan as provided in section 8.4, all of the Common Shares, money and other property held in such Member’s Non-Registered ESPP Account and, if applicable, Registered ESPP Account, will be deemed to have been withdrawn by the Member within 60 days after the date such Member ceases to participate. In addition, in such event, the Employee will not be entitled to re-enrol or recommence participating in this Plan prior to the first anniversary of the first day of the month following the month in which such Member ceased to be entitled to participate in this Plan.

8.6 Required Form

If a Member wishes to temporarily suspend making contributions to this Plan as contemplated in section 8.1 or 8.3 or to terminate the Member’s participation in this Plan as contemplated by section 8.4, the Member must complete and submit to lululemon a suspension/termination form in the form and manner from time to time required by lululemon.

8.7 No Contributions

For greater certainty,

(a)so long as a Member’s contributions to this Plan are suspended, or

(b)from and after the time a Member ceases to participate in this Plan, contributions on behalf of such Member pursuant to sections 4.5 and 4.6 will also be suspended.

Article 9 — Administrator and Trustee

9.1 Administrator

Each of the Chief Financial Officer and the Chief People & Culture Officer of lululemon shall have the authority to appoint an Administrator and service provider in connection with the administration of this Plan pursuant to the terms of an administration, trust, administrative services, plan services or other agreement in form and on terms and conditions approved by either the Chief Financial Officer or the Chief People & Culture Officer.

9.2 Successor Administrator

lululemon will have the right at any time and from time to time to appoint any trust company or life insurance company authorized to carry on trust or deposit business or insurance business within British Columbia as a replacement Administrator and service provider in connection with the administration of this Plan pursuant to the terms of an administration, trust, administrative services, plan services or other agreement between lululemon and such trust company or insurance company in form and on terms and conditions approved by either the Chief Financial Officer or the Chief People & Culture Officer of lululemon.

9.3 Amendment of Administration Agreement

lululemon will have the right at any time and from time to time to agree to any modification or amendment to the administration, trust, administrative services, plan services or other agreement referred to in sections 9.1 or 9.2 which is approved by either the Chief Financial Officer or the Chief People & Culture Officer of lululemon.

9.4 Trustee

Each of the Chief Financial Officer and the Chief People & Culture Officer of lululemon shall have the authority to appoint a Trustee, pursuant to the terms of a Sponsor Agreement between lululemon and the Trustee, in form and on terms and conditions approved by either the Chief Financial Officer or the Chief People & Culture Officer.

9.5 Successor Trustee

lululemon will have the right at any time and from time to time to appoint any trust company authorized to carry on a trust business within the Province of British Columbia as a replacement Trustee to serve as trustee under this Plan in respect of the Registered ESPPs pursuant to the terms of an agreement between lululemon and such trust company in form and on terms and conditions approved by either the Chief Financial Officer or the Chief People & Culture Officer of lululemon.

9.6 Amendment of Sponsor Agreement

lululemon will have the right at any time and from time to time to agree to any modification or amendment to the Sponsor Agreement or a trust agreement referred to in section 9.5 which is approved by either the Chief Financial Officer or the Chief People & Culture Officer of lululemon.

Article 10 — Accounts and Records

10.1 Non-Registered ESPP Accounts

The Administrator will establish and maintain a separate account for each Member who is participating in a Non-Registered ESPP in which the Administrator will record:

(a)contributions made by such Member pursuant to section 4.1 allocated to the Member’s Non-Registered ESPP;

(b)To contributions to such Member’s Non-Registered ESPP made on behalf of such Member pursuant to section 4.6;

(c)interest or other earnings credited to such account

(d)Common Shares purchased by the Administrator on behalf of such Member pursuant to section 5.4;

(e)dividends paid on any Common Shares held by the Administrator for the benefit of such Member;

(f)Common Shares, money or other property transferred from such account pursuant to Article 6; and

(g)Common Shares, money and other property withdrawn from such account pursuant to Article 7.

10.2 Registered ESPP Accounts

The Trustee will establish and maintain a separate account for each Member who is a Canadian Employee who is participating in a Registered ESPP in which the Trustee will record:

(a)contributions made by such Member pursuant to section 4.1 which are allocated to the Member’s Registered ESPP;

(b)contributions to such Member’s Registered ESPP made on behalf of such Member pursuant to section 4.5;

(c)interest or other earnings credited to such account;

(d)Common Shares purchased by the Trustee in trust for the benefit of such Member pursuant to section 5.1;

(e)dividends paid on any Common Shares held by the Trustee in trust for the benefit of such Member;

(f)Common Shares, money and other property transferred to such account pursuant to Article 6; and

(g)Common Shares, money and other property withdrawn from such account pursuant to Article 7.

10.3 Reporting – Non-Registered ESPP Accounts

Promptly after December 31 in each Year the Administrator will deliver to each Member who is participating in a Non-Registered ESPP an electronic statement, delivered to the Member’s online account with the Administrator, of the Common Shares, money and other property recorded in such Member’s Non-Registered ESPP Account as of the last day of the immediately preceding month and such information concerning dividends, interest or other earnings credited to such Member’s Non-Registered ESPP Account, Common Shares purchased by the Administrator on behalf of such Member pursuant to section 5.4, Common Shares transferred from such account pursuant to Article 6 and Common Shares withdrawn from such account pursuant to Article 7 (including proceeds from the sale of any Common Shares pursuant to section 7.6 and cash payments made in lieu of a fraction of a Common Share pursuant to section 7.5) and other matters as may be necessary to enable such Member to file returns in respect of such Year under Applicable Tax Legislation. The Administrator will complete any information slips or similar reporting as may be required under Applicable Tax Legislation.

10.4 Reporting – Registered ESPP Accounts

Promptly after December 31 in each Year the Trustee (or the Administrator as agent for the Trustee) will deliver to each Member who is a Canadian Employee who is participating in a Registered ESPP an electronic statement, delivered to the Member’s online account with the Administrator, of the Common Shares, money and other property recorded in such Member’s Registered ESPP Account as of the last day of the immediately preceding month and such information concerning dividends, interest or other earnings credited to such Member’s Registered ESPP Account, Common Shares purchased by the Trustee in trust for the benefit of such Member pursuant to section 5.1, Common Shares transferred to such account pursuant to Article 6 and Common Shares withdrawn pursuant to Article 7 (including proceeds from the sale of any Common Shares pursuant to section 7.7 and cash payments made in lieu of a fraction of a Common Share pursuant to section 7.5) and other matters as may be necessary to enable such Member to file returns in respect of such Year under Applicable Tax Legislation. The Trustee (or the Administrator as agent for the Trustee) will complete any information slips or similar reporting as may be required under Applicable Tax Legislation.

Article 11 — Common Shares Subject to the Plan

11.1 Authorized Shares

The aggregate number of Common Shares available for purchase under the Plan will be 6,000,000, subject to adjustment pursuant to this Article 11.

11.2 Adjustments

The number of Common Shares available for purchase under the Plan will be automatically and proportionately adjusted for share dividends, share splits, share combinations, reorganizations and other similar events or transactions in a manner that reflects equitably the effects of such events or transactions.

Article 12 — Shareholder Materials

12.1 Shareholder Meeting Materials and Voting

So long as the Administrator or Trustee is holding Common Shares on behalf of a Member, the Administrator and Trustee (or the Administrator as agent for the Trustee) will cause the Member to be provided with a copy of the notice, information circular and proxy for each meeting of the shareholders of lululemon received by the Administrator and Trustee (or their nominees) as the registered holder of Common Shares together with an

appropriate form on which the Member may indicate voting instructions to the Administrator or Trustee. Provided that the Member provides clear and timely instructions to the Administrator, or Trustee, as applicable, the Common Shares held by the Administrator and Trustee on behalf of a Member pursuant to this Plan will be voted by the Administrator and Trustee at each meeting of the shareholders of lululemon in accordance with such instructions of such Member.

12.2 Take-Over Bids, etc.

The Administrator and Trustee (or the Administrator as agent for the Trustee) will promptly advise all Members of take-over bids, issuer bids, rights offerings and other events notice of which is delivered to the Administrator and Trustee or their nominee as the registered holder of Common Shares and cause all Members to be provided with copies of all materials delivered by the offeror or lululemon to the Administrator or Trustee or their nominee in connection therewith.

Article 13 — Amendments and Termination

13.1 Amendments, Suspensions and Terminations of Plan

lululemon may at any time and from time to time amend, suspend or terminate this Plan in whole or in part as approved by resolution of the Board of Directors, provided that no such amendment, suspension or termination shall deprive any Member of any benefits that have accrued on or prior to the date thereof without the consent of the affected Member.

13.2 Delegation of Authority

The Board of Directors may delegate its authorities, including, without limitation, the authority to amend, suspend, or terminate the Plan pursuant to section 13.1, to the Committee. If the authorities of the Board of Directors are delegated to the Committee, the Committee shall have the powers theretofore possessed by the Board of Directors, including, to the extent permitted by applicable laws, the power to delegate to a sub-committee any of the administrative powers the Committee is authorized to exercise (and references in this Plan to the Board of Directors shall hereafter also encompass the Committee or subcommittee, as applicable). The Board of Directors may abolish the Committee’s delegation at any time and the Board of Directors shall at all times also retain the authority it has delegated to the Committee. The Committee shall comply with rules and regulations applicable to it, including under the rules of any exchange on which the Common Shares are traded, and shall have the authority and be responsible for such functions as have been assigned to it.

Article 14 — General

14.1 Agents

lululemon may from time to time appoint or engage accountants, lawyers and such other personnel as it deems necessary or advisable for the proper administration of this Plan.

14.2 Administrative Rules

lululemon may make administrative rules for the proper functioning of this Plan.

14.3 Interpretation

Save as expressly provided herein, the rights and obligations of a Member with respect to Common Shares, money and other property held by the Trustee pursuant to such Member’s Registered ESPP will be as provided in the Declaration of Trust in respect of such Member. All questions arising as to the interpretation of this Plan (including any disputes or disagreements which may arise under, as a result of or in any way related to the application of this Plan) will be determined by the Chief Executive Officer or Chief Financial Officer of lululemon or such other officer

of lululemon as the Chief Executive Officer may designate in writing to the Administrator and Trustee from time to time, and any such determination will be final, binding and conclusive for all purposes.

14.4 Governing Law

This Plan and the rights of the parties hereto will be construed and governed according to the laws of British Columbia.

14.5 Expenses

Except as otherwise provided herein, lululemon will pay all administrative expenses of this Plan, including fees of the Administrator and the Trustee and brokerage fees and commissions in respect of the purchase of Common Shares purchased by the Trustee or Administrator under this Plan. Members will be responsible for (i) brokerage fees and commissions and other transaction fees and expenses payable upon a sale by the Administrator or Trustee of Common Shares held under this Plan; (ii) transaction fees (including fees charged by the Administrator) payable upon a transfer of Common Shares held under this Plan to a self-directed investment account of a Member; and (iii) share certificate fees (including fees charged by the Administrator) payable in respect of share certificates delivered to a Member.

Exhibit 31.1

I, Calvin McDonald, certify that:

1. I have reviewed this quarterly report on Form 10-Q of lululemon athletica inc.;

2. Based on my knowledge, this report does not contain any untrue statement of a material fact or omit to state a material fact necessary to make the statements made, in light of the circumstances under which such statements were made, not misleading with respect to the period covered by this report;

3. Based on my knowledge, the financial statements, and other financial information included in this report, fairly present in all material respects the financial condition, results of operations and cash flows of the registrant as of, and for, the periods presented in this report;

4. The registrant’s other certifying officer and I are responsible for establishing and maintaining disclosure controls and procedures (as defined in Exchange Act Rules 13a-15(e) and 15d-15(e)) and internal control over financial reporting (as defined in Exchange Act Rules 13a-15(f) and 15d-15(f)) for the registrant and have:

(a) Designed such disclosure controls and procedures, or caused such disclosure controls and procedures to be designed under our supervision, to ensure that material information relating to the registrant, including its consolidated subsidiaries, is made known to us by others within those entities, particularly during the period in which this report is being prepared;

(b) Designed such internal control over financial reporting, or caused such internal control over financial reporting to be designed under our supervision, to provide reasonable assurance regarding the reliability of financial reporting and the preparation of financial statements for external purposes in accordance with generally accepted accounting principles;

(c) Evaluated the effectiveness of the registrant’s disclosure controls and procedures and presented in this report our conclusions about the effectiveness of the disclosure controls and procedures, as of the end of the period covered by this report based on such evaluation; and

(d) Disclosed in this report any change in the registrant’s internal control over financial reporting that occurred during the registrant’s most recent fiscal quarter (the registrant’s fourth fiscal quarter in the case of an annual report) that has materially affected, or is reasonably likely to materially affect, the registrant’s internal control over financial reporting; and

5. The registrant’s other certifying officer and I have disclosed, based on our most recent evaluation of internal control over financial reporting, to the registrant’s auditors and the audit committee of the registrant’s board of directors (or persons performing the equivalent functions):

(a) All significant deficiencies and material weaknesses in the design or operation of internal control over financial reporting which are reasonably likely to adversely affect the registrant’s ability to record, process, summarize and report financial information; and

(b) Any fraud, whether or not material, that involves management or other employees who have a significant role in the registrant’s internal control over financial reporting.


			By:						/s/ CALVIN MCDONALD
									Calvin McDonald
									Chief Executive Officer and Director
									(principal executive officer)

Date: June 5, 2024

Exhibit 31.2

I, Meghan Frank, certify that:

1. I have reviewed this quarterly report on Form 10-Q of lululemon athletica inc.;

(b) Any fraud, whether or not material, that involves management or other employees who have a significant role in the registrant’s internal control over financial reporting.


			By:						/s/ MEGHAN FRANK
									Meghan Frank
									Chief Financial Officer
									(principal financial and accounting officer)

Date: June 5, 2024

Exhibit 32.1

CERTIFICATION PURSUANT TO 18 U.S.C. SECTION 1350,

AS ADOPTED PURSUANT TO SECTION 906 OF

THE SARBANES-OXLEY ACT OF 2002

In connection with the Quarterly Report of lululemon athletica inc. (the “Company”) on Form 10-Q for the first quarter of fiscal 2024, as filed with the Securities and Exchange Commission on the date hereof (the “Report”), each of the undersigned officers of the Company certifies, pursuant to 18 U.S.C. § 1350, as adopted pursuant to § 906 of the Sarbanes-Oxley Act of 2002, that, to such officer’s knowledge:

(1) The Report fully complies with the requirements of Section 13(a) or 15(d) of the Securities Exchange Act of 1934; and

(2) The information contained in the Report fairly presents, in all material respects, the financial condition and results of operations of the Company.


			By:						/s/ CALVIN MCDONALD
									Calvin McDonald
									Chief Executive Officer and Director
									(principal executive officer)

Date: June 5, 2024


			By:						/s/ MEGHAN FRANK
									Meghan Frank
									Chief Financial Officer
									(principal financial and accounting officer)

Date: June 5, 2024

The foregoing certification is being furnished solely pursuant to 18 U.S.C. § 1350 and is not being filed as part of the Report or as a separate disclosure document.

Cover - shares	3 Months Ended
Cover - shares	Apr. 28, 2024	May 30, 2024
Cover [Abstract]
Document Type	10-Q
Document Quarterly Report	true
Document Period End Date	Apr. 28, 2024
Document Transition Report	false
Entity File Number	001-33608
Entity Registrant Name	lululemon athletica inc.
Entity Incorporation, State or Country Code	DE
Entity Tax Identification Number	20-3842867
Entity Address, Address Line One	1818 Cornwall Avenue
Entity Address, City or Town	Vancouver
Entity Address, State or Province	BC
Entity Address, Postal Zip Code	V6J 1C7
City Area Code	604
Local Phone Number	732-6124
Title of 12(b) Security	Common Stock, par value $0.005 per share
Trading Symbol	LULU
Security Exchange Name	NASDAQ
Entity Current Reporting Status	Yes
Entity Interactive Data Current	Yes
Entity Filer Category	Large Accelerated Filer
Entity Small Business	false
Entity Emerging Growth Company	false
Entity Shell Company	false
Entity Common Stock, Shares Outstanding		119,886,401
Amendment Flag	false
Document Fiscal Year Focus	2024
Document Fiscal Period Focus	Q1
Entity Central Index Key	0001397187
Current Fiscal Year End Date	--02-02

CONSOLIDATED BALANCE SHEETS - USD ($) $ in Thousands	Apr. 28, 2024	Jan. 28, 2024
Current assets
Cash and cash equivalents	$ 1,900,672	$ 2,243,971
Accounts receivable, net	126,349	124,769
Inventories	1,345,267	1,323,602
Prepaid and receivable income taxes	192,955	183,733
Prepaid expenses and other current assets	202,844	184,502
Total current assets	3,768,087	4,060,577
Property and equipment, net	1,561,185	1,545,811
Right-of-use lease assets	1,263,749	1,265,610
Goodwill	23,992	24,083
Deferred income tax assets	9,099	9,176
Other non-current assets	202,383	186,684
Total assets	6,828,495	7,091,941
Current liabilities
Accounts payable	261,605	348,441
Accrued liabilities and other	374,446	348,555
Accrued compensation and related expenses	132,911	326,110
Current lease liabilities	254,443	249,270
Current income taxes payable	53,087	12,098
Unredeemed gift card liability	268,296	306,479
Other current liabilities	38,783	40,308
Total current liabilities	1,383,571	1,631,261
Non-current lease liabilities	1,147,631	1,154,012
Non-current income taxes payable	15,864	15,864
Deferred income tax liabilities	29,150	29,522
Other non-current liabilities	32,471	29,201
Total liabilities	2,608,687	2,859,860
Commitments and contingencies
Stockholders' equity
Undesignated preferred stock, $0.01 par value: 5,000 shares authorized; none issued and outstanding	0	0
Exchangeable stock, no par value: 60,000 shares authorized; 5,116 and 5,116 issued and outstanding	0	0
Special voting stock, $0.000005 par value: 60,000 shares authorized; 5,116 and 5,116 issued and outstanding	0	0
Common stock, $0.005 par value: 400,000 shares authorized; 120,470 and 121,106 issued and outstanding	602	606
Additional paid-in capital	570,286	575,369
Retained earnings	3,944,000	3,920,362
Accumulated other comprehensive loss	(295,080)	(264,256)
Total stockholders' equity	4,219,808	4,232,081
Total liabilities and stockholders' equity	$ 6,828,495	$ 7,091,941

CONSOLIDATED BALANCE SHEETS (Parenthetical) - $ / shares	Apr. 28, 2024	Jan. 28, 2024
Statement of Financial Position [Abstract]
Undesignated preferred stock, par value (in dollars per share)	$ 0.01	$ 0.01
Undesignated preferred stock, shares authorized (in shares)	5,000,000	5,000,000
Undesignated preferred stock, shares issued (in shares)	0	0
Undesignated preferred stock, shares outstanding (in shares)	0	0
Exchangeable stock shares authorized (in shares)	60,000,000	60,000,000
Exchangeable stock shares issued (in shares)	5,116,000	5,116,000
Exchangeable stock shares outstanding (in shares)	5,116,000	5,116,000
Special voting stock par value (in dollars per share)	$ 0.000005	$ 0.000005
Special voting stock shares authorized (in shares)	60,000,000	60,000,000
Special voting stock shares issued (in shares)	5,116,000	5,116,000
Special voting stock shares outstanding (in shares)	5,116,000	5,116,000
Common stock, par value (in dollars per share)	$ 0.005	$ 0.005
Common stock, shares authorized (in shares)	400,000,000	400,000,000
Common stock, shares, issued (in shares)	120,470,000	121,106,000
Common stock, shares, outstanding (in shares)	120,470,000	121,106,000

CONSOLIDATED STATEMENTS OF OPERATIONS AND COMPREHENSIVE INCOME - USD ($) shares in Thousands, $ in Thousands	3 Months Ended
	Apr. 28, 2024	Apr. 30, 2023
Income Statement [Abstract]
Net revenue	$ 2,208,891	$ 2,000,792
Cost of goods sold	933,823	849,987
Gross profit	1,275,068	1,150,805
Selling, general and administrative expenses	842,426	747,513
Amortization of intangible assets	0	1,878
Income from operations	432,642	401,414
Other income (expense), net	23,283	8,025
Income before income tax expense	455,925	409,439
Income tax expense	134,504	119,034
Net income	321,421	290,405
Other comprehensive income (loss), net of tax:
Foreign currency translation adjustment	(44,305)	(42,750)
Net investment hedge gains	13,481	17,720
Other comprehensive income (loss), net of tax	(30,824)	(25,030)
Comprehensive income	$ 290,597	$ 265,375
Basic earnings per share (in dollars per share)	$ 2.55	$ 2.28
Diluted earnings per share (in dollars per share)	$ 2.54	$ 2.28
Basic weighted-average number of shares outstanding (in shares)	125,989	127,246
Diluted weighted-average number of shares outstanding (in shares)	126,336	127,621

CONSOLIDATED STATEMENTS OF STOCKHOLDERS' EQUITY - USD ($) shares in Thousands, $ in Thousands	Total	Exchangeable Stock	Special Voting Stock	Common Stock	Additional Paid-in Capital	Retained Earnings	Accumulated Other Comprehensive Loss
Beginning balance (in shares) at Jan. 29, 2023		5,116	5,116
Beginning balance at Jan. 29, 2023	$ 3,148,799		$ 0	$ 611	$ 474,645	$ 2,926,127	$ (252,584)
Beginning balance (in shares) at Jan. 29, 2023				122,205
Increase (Decrease) in Stockholders' Equity [Roll Forward]
Net income	290,405					290,405
Other comprehensive income (loss), net of tax	(25,030)						(25,030)
Stock-based compensation expense	21,301				21,301
Common stock issued upon settlement of stock-based compensation (in shares)				274
Common stock issued upon settlement of stock-based compensation	11,873				11,873
Shares withheld related to net share settlement of stock-based compensation (in shares)				(88)
Shares withheld related to net share settlement of stock-based compensation	$ (28,793)				(28,793)
Repurchase of common stock, including excise tax (in shares)	(300)			(292)
Repurchase of common stock, including excise tax	$ (98,479)			$ (1)	(530)	(97,948)
Ending balance (in shares) at Apr. 30, 2023		5,116	5,116
Ending balance at Apr. 30, 2023	3,320,076		$ 0	$ 610	478,496	3,118,584	(277,614)
Ending balance (in shares) at Apr. 30, 2023				122,099
Beginning balance (in shares) at Jan. 28, 2024		5,116	5,116
Beginning balance at Jan. 28, 2024	$ 4,232,081		$ 0	$ 606	575,369	3,920,362	(264,256)
Beginning balance (in shares) at Jan. 28, 2024	121,106			121,106
Increase (Decrease) in Stockholders' Equity [Roll Forward]
Net income	$ 321,421					321,421
Other comprehensive income (loss), net of tax	(30,824)						(30,824)
Stock-based compensation expense	25,758				25,758
Common stock issued upon settlement of stock-based compensation (in shares)				200
Common stock issued upon settlement of stock-based compensation	3,393				3,393
Shares withheld related to net share settlement of stock-based compensation (in shares)				(85)
Shares withheld related to net share settlement of stock-based compensation	$ (32,542)				(32,542)
Repurchase of common stock, including excise tax (in shares)	(800)			(751)
Repurchase of common stock, including excise tax	$ (299,479)			$ (4)	(1,692)	(297,783)
Ending balance (in shares) at Apr. 28, 2024		5,116	5,116
Ending balance at Apr. 28, 2024	$ 4,219,808		$ 0	$ 602	$ 570,286	$ 3,944,000	$ (295,080)
Ending balance (in shares) at Apr. 28, 2024	120,470			120,470

CONSOLIDATED STATEMENTS OF CASH FLOWS - USD ($) $ in Thousands	3 Months Ended
	Apr. 28, 2024	Apr. 30, 2023
Cash flows from operating activities
Net income	$ 321,421	$ 290,405
Adjustments to reconcile net income to net cash provided by (used in) operating activities:
Depreciation and amortization	95,759	84,116
Stock-based compensation expense	25,758	21,301
Settlement of derivatives not designated in a hedging relationship	(316)	(721)
Changes in operating assets and liabilities:
Inventories	(36,425)	(155,174)
Prepaid and receivable income taxes	(10,104)	3,249
Prepaid expenses and other current assets	(22,532)	27,511
Other non-current assets	(17,969)	(7,222)
Accounts payable	(82,366)	116,935
Accrued liabilities and other	37,534	(53,685)
Accrued compensation and related expenses	(190,513)	(120,699)
Current and non-current income taxes payable	41,116	(141,237)
Unredeemed gift card liability	(37,172)	(26,506)
Right-of-use lease assets and current and non-current lease liabilities	1,097	5,255
Other current and non-current liabilities	2,236	1,975
Net cash provided by operating activities	127,524	45,503
Cash flows from investing activities
Purchase of property and equipment	(130,681)	(136,942)
Settlement of net investment hedges	(856)	(1,277)
Net cash used in investing activities	(131,537)	(138,219)
Cash flows from financing activities
Proceeds from settlement of stock-based compensation	3,393	11,873
Shares withheld related to net share settlement of stock-based compensation	(32,542)	(28,793)
Repurchase of common stock	(299,479)	(98,479)
Net cash used in financing activities	(328,628)	(115,399)
Effect of foreign currency exchange rate changes on cash and cash equivalents	(10,658)	3,855
Decrease in cash and cash equivalents	(343,299)	(204,260)
Cash and cash equivalents, beginning of period	2,243,971	1,154,867
Cash and cash equivalents, end of period	$ 1,900,672	$ 950,607

Nature of Operations and Basis of Presentation	3 Months Ended
Nature of Operations and Basis of Presentation	Apr. 28, 2024
Accounting Policies [Abstract]
Nature of Operations and Basis of Presentation	Nature of Operations and Basis of Presentation Nature of operations lululemon athletica inc., a Delaware corporation, ("lululemon" and, together with its subsidiaries unless the context otherwise requires, the "Company") is engaged in the design, distribution, and retail of technical athletic apparel, footwear, and accessories. The Company organizes its operations into four regional markets: Americas, China Mainland, Asia Pacific ("APAC"), and Europe and the Middle East ("EMEA"). It conducts its business through a number of different channels in each market, including company-operated stores, e-commerce, temporary locations, wholesale, outlets, a re-commerce program, and license and supply arrangements. There were 711 and 711 company-operated stores as of April 28, 2024 and January 28, 2024, respectively. Basis of presentation The unaudited interim consolidated financial statements, including the financial position as of April 28, 2024 and the results of operations and cash flows for the periods disclosed, are presented in U.S. dollars and have been prepared by the Company under the rules and regulations of the Securities and Exchange Commission ("SEC"). The financial information is presented in accordance with United States generally accepted accounting principles ("GAAP") for interim financial information and, accordingly, does not include all of the information and footnotes required by GAAP for complete financial statements. The financial information as of January 28, 2024 is derived from the Company's audited consolidated financial statements and related notes for the fiscal year ended January 28, 2024, which are included in Item 8 in the Company's fiscal 2023 Annual Report on Form 10-K filed with the SEC on March 21, 2024. These unaudited interim consolidated financial statements reflect all adjustments which are, in the opinion of management, necessary to a fair statement of the results for the interim periods presented. These unaudited interim consolidated financial statements should be read in conjunction with the Company's consolidated financial statements and related notes included in Item 8 in the Company's fiscal 2023 Annual Report on Form 10-K. Note 2. Recent Accounting Pronouncements sets out the impact of recent accounting pronouncements. The Company's fiscal year ends on the Sunday closest to January 31 of the following year, typically resulting in a 52-week year, but occasionally giving rise to an additional week, resulting in a 53-week year. Fiscal 2024 will end on February 2, 2025 and will be a 53-week year. Fiscal 2023 was a 52-week year and ended on January 28, 2024. Fiscal 2024 and fiscal 2023 are referred to as "2024," and "2023," respectively. The first quarter of 2024 and 2023 ended on April 28, 2024 and April 30, 2023, respectively. The Company's business is affected by the pattern of seasonality common to most retail apparel businesses. Historically, the Company has recognized a significant portion of its operating profit in the fourth fiscal quarter of each year as a result of increased net revenue during the holiday season. Use of estimates The preparation of financial statements in conformity with GAAP in the United States requires management to make estimates and assumptions that affect the reported amounts of assets and liabilities and the disclosure of contingent assets and liabilities at the date of the financial statements as well as the reported amounts of net revenue and expenses during the reporting period. Actual results could differ from those estimates.

Recent Accounting Pronouncements	3 Months Ended
Recent Accounting Pronouncements	Apr. 28, 2024
Accounting Policies [Abstract]
Recent Accounting Pronouncements	Recent Accounting Pronouncements The Company considers the applicability and impact of all Accounting Standard Updates ("ASUs"). ASUs recently issued not listed below were assessed and determined to be either not applicable or are expected to have minimal impact on the Company's consolidated financial position or results of operations. Recently issued accounting pronouncements In November 2023, the FASB issued ASU 2023-07, Segment Reporting (Topic 280): Improvements to Reportable Segment Disclosures. Entities will be required to provide disclosures of significant segmented expenses and other categories used by the Chief Operating Decision Maker ("CODM") in order to enhance disclosure at the segment level. This amendment is effective for annual periods beginning after December 15, 2023, and interim periods beginning after December 15, 2024, and is applied retrospectively for periods presented in the financial statements. The Company is currently evaluating the impact that this new guidance may have on its financial statement disclosures. In December 2023, the FASB issued ASU 2023-09, Income Taxes (Topic 740): Improvements to Income Tax Disclosures. This disclosure requires expanded disclosure within the rate reconciliation as well as disaggregation of annual taxes paid. This amendment is effective for annual periods beginning after December 15, 2023, and is applied prospectively. The Company is currently evaluating the impact that this new guidance may have on its financial statement disclosures.

Revolving Credit Facilities	3 Months Ended
Revolving Credit Facilities	Apr. 28, 2024
Debt Disclosure [Abstract]
Revolving Credit Facilities	Revolving Credit Facilities Americas revolving credit facility On December 14, 2021, the Company entered into an amended and restated credit agreement extending its existing credit facility, which provides for $400.0 million in commitments under an unsecured five-year revolving credit facility. The credit facility has a maturity date of December 14, 2026, subject to extension under certain circumstances. Borrowings under the credit facility may be prepaid and commitments may be reduced or terminated without premium or penalty (other than customary breakage costs). As of April 28, 2024, aside from letters of credit of $6.3 million, the Company had no other borrowings outstanding under this credit facility. Borrowings made under the credit facility bear interest at a rate per annum equal to, at the Company's option, either (a) a rate based on the Secured Overnight Financing Rate as administered by the Federal Reserve Bank of New York ("SOFR"), or (b) an alternate base rate, plus, in each case, an applicable margin. The applicable margin is determined by reference to a pricing grid, based on the ratio of indebtedness to earnings before interest, tax, depreciation, amortization, and rent ("EBITDAR") and ranges between 1.000%-1.375% for SOFR loans and 0.000%-0.375% for alternate base rate or Canadian prime rate loans. Additionally, a commitment fee of between 0.100%-0.200%, also determined by reference to the pricing grid, is payable on the average daily unused amounts under the credit facility. The applicable interest rates and commitment fees are subject to adjustment based on certain sustainability key performance indicators ("KPIs"). The two KPIs are based on greenhouse gas emissions intensity reduction and gender pay equity, and the Company's performance against certain targets measured on an annual basis could result in positive or negative sustainability rate adjustments of 2.50 basis points to its drawn pricing and positive or negative sustainability fee adjustments of 0.50 basis points to its undrawn pricing. The credit agreement contains negative covenants that, among other things and subject to certain exceptions, limit the ability of the Company's subsidiaries to incur indebtedness, incur liens, undergo fundamental changes, make dispositions of all or substantially all of their assets, alter their businesses and enter into agreements limiting subsidiary dividends and distributions. The Company's financial covenants include maintaining an operating lease adjusted leverage ratio of not greater than 3.25:1.00 and the ratio of consolidated EBITDAR to consolidated interest charges (plus rent) of not less than 2.00:1.00. The credit agreement also contains certain customary representations, warranties, affirmative covenants, and events of default (including, among others, an event of default upon the occurrence of a change of control). If an event of default occurs, the credit agreement may be terminated, and the maturity of any outstanding amounts may be accelerated. As of April 28, 2024, the Company was in compliance with the covenants of the credit facility. China Mainland revolving credit facility The Company has an uncommitted and unsecured 240.0 million Chinese Yuan ($33.1 million) revolving credit facility with terms that are reviewed on an annual basis. It is comprised of a revolving loan of up to 200.0 million Chinese Yuan ($27.6 million) and a financial guarantee facility of up to 40.0 million Chinese Yuan ($5.5 million), or its equivalent in another currency. Loans are available for a period not to exceed 12 months, at an interest rate equal to the loan prime rate plus a spread of 0.5175%. The Company is required to follow certain covenants. As of April 28, 2024, the Company was in compliance with the covenants and, aside from letters of credit of 33.2 million Chinese Yuan ($4.6 million), there were no other borrowings or guarantees outstanding under this credit facility.

Supply Chain Financing Program	3 Months Ended
Supply Chain Financing Program	Apr. 28, 2024
Payables and Accruals [Abstract]
Supply Chain Financing Program	Supply Chain Financing Program The Company facilitates a voluntary supply chain financing ("SCF") program that allows its suppliers to elect to sell the receivables owed to them by the Company to a third party financial institution. Participating suppliers negotiate arrangements directly with the financial institution. If a supplier chooses to participate in the SCF program it may request an invoice be paid earlier than it would by the Company, and the financial institution at its sole and absolute discretion, may elect to make an early payment to the supplier at a discount. The Company’s obligations to its suppliers, including amounts due and scheduled payment terms, are not impacted by a supplier's participation in the arrangement and the Company provides no guarantees to any third parties under the SCF program. As of April 28, 2024 and January 28, 2024, $37.9 million and $42.1 million, respectively, were outstanding under the SCF program and presented within accounts payable.

Stock-Based Compensation and Benefit Plans

3 Months Ended

Apr. 28, 2024

Share-Based Payment Arrangement [Abstract]

Stock-Based Compensation and Benefit Plans

Stock-based compensation plans

The Company's eligible employees participate in various stock-based compensation plans, provided directly by the Company.

A summary of the balances of the Company's stock-based compensation plans as of April 28, 2024, and changes during the first quarter then ended, is presented below:


	Stock Options			Performance-Based Restricted Stock Units			Restricted Shares			Restricted Stock Units
	Number	Weighted-Average Exercise Price		Number	Weighted-Average Grant Date Fair Value		Number	Weighted-Average Grant Date Fair Value		Number	Weighted-Average Grant Date Fair Value
	(In thousands, except per share amounts)
Balance as of January 28, 2024	783	$	285.69	175	$	349.84	4	$	370.85	223	$	359.12
Granted	216	388.90		120	356.47		—	388.90		115	388.90
Exercised/released	20	184.81		98	309.89		—	—		84	348.08
Forfeited/expired	4	366.87		—	362.00		—	—		3	373.94
Balance as of April 28, 2024	975	$	310.26	197	$	373.82	4	$	371.33	251	$	376.27
Exercisable as of April 28, 2024	475	$	247.34

The grant date fair value of the restricted shares and restricted stock units is based on the closing price of the Company's common stock on the grant date.


	First Quarter
	2024
Expected term	3.75 years
Expected volatility	37.39	%
Risk-free interest rate	4.30	%
Dividend yield	—	%

Employee share purchase plan

Defined contribution pension plans

Fair Value Measurement

3 Months Ended

Apr. 28, 2024

Fair Value Disclosures [Abstract]

Fair Value Measurement

•Level 1 - defined as observable inputs such as quoted prices in active markets;

•Level 2 - defined as inputs other than quoted prices in active markets that are either directly or indirectly observable; and

•Level 3 - defined as unobservable inputs in which little or no market data exists, therefore requiring an entity to develop its own assumptions.

Assets and liabilities measured at fair value on a recurring basis


	April 28, 2024		Level 1		Level 2		Level 3		Balance Sheet Classification
	(In thousands)
Money market funds	$	690,071	$	690,071	$	—	$	—	Cash and cash equivalents

Term deposits	8		—		8		—		Cash and cash equivalents
Forward currency contract assets	21,620		—		21,620		—		Prepaid expenses and other current assets
Forward currency contract liabilities	18,873		—		18,873		—		Other current liabilities


	January 28, 2024		Level 1		Level 2		Level 3		Balance Sheet Classification
	(In thousands)
Money market funds	$	1,102,119	$	1,102,119	$	—	$	—	Cash and cash equivalents

Term deposits	8		—		8		—		Cash and cash equivalents
Forward currency contract assets	647		—		647		—		Prepaid expenses and other current assets
Forward currency contract liabilities	2,872		—		2,872		—		Other current liabilities

Derivative Financial Instruments

3 Months Ended

Apr. 28, 2024

Derivative Instruments and Hedging Activities Disclosure [Abstract]

Derivative Financial Instruments

Foreign currency exchange risk

Net investment hedges

changes in forward rates. The Company recorded no ineffectiveness from net investment hedges during the first quarter of 2024.

The Company classifies the cash flows at settlement of its net investment hedges within investing activities in the consolidated statements of cash flows.

Derivatives not designated as hedging instruments

Quantitative disclosures about derivative financial instruments

The notional amounts and fair values of forward currency contracts were as follows:


	April 28, 2024						January 28, 2024
	Gross Notional		Assets		Liabilities		Gross Notional		Assets		Liabilities
	(In thousands)
Derivatives designated as net investment hedges:
Forward currency contracts	$	1,029,000	$	18,735	$	—	$	1,242,000	$	—	$	258
Derivatives not designated in a hedging relationship:
Forward currency contracts	1,368,789		2,885		18,873		1,543,351		647		2,614
Net derivatives recognized on consolidated balance sheets:
Forward currency contracts			$	21,620	$	18,873			$	647	$	2,872

The forward currency contracts designated as net investment hedges outstanding as of April 28, 2024 mature on different dates between May 2024 and September 2024.

The forward currency contracts not designated in a hedging relationship outstanding as of April 28, 2024 mature on different dates between May 2024 and October 2024.

The pre-tax gains and losses on foreign currency exchange forward contracts recorded in accumulated other comprehensive income or loss were as follows:


	First Quarter
		2024		2023
		(In thousands)
Gains (losses) recognized in net investment hedge gains (losses):
Derivatives designated as net investment hedges		$	18,137	$	24,127

The pre-tax net foreign currency exchange and derivative gains and losses recorded in the consolidated statement of operations were as follows:


	First Quarter
		2024		2023
		(In thousands)
Gains (losses) recognized in selling, general and administrative expenses:
Foreign currency exchange gains (losses)		$	14,935	$	8,328
Derivatives not designated in a hedging relationship		(14,327)		(9,707)
Net foreign currency exchange and derivative gains (losses)		$	608	$	(1,379)

Credit risk

Earnings Per Share

3 Months Ended

Apr. 28, 2024

Earnings Per Share [Abstract]

Earnings Per Share

The details of the computation of basic and diluted earnings per share are as follows:


	First Quarter
	2024		2023
	(In thousands, except per share amounts)
Net income	$	321,421	$	290,405
Basic weighted-average number of shares outstanding	125,989		127,246
Assumed conversion of dilutive stock options and awards	347		375
Diluted weighted-average number of shares outstanding	126,336		127,621
Basic earnings per share	$	2.55	$	2.28
Diluted earnings per share	$	2.54	$	2.28

Subsequent to April 28, 2024, and up to May 30, 2024, 0.6 million shares were repurchased at a total cost including commissions and excise taxes of $201.1 million.

Supplementary Financial Information

3 Months Ended

Apr. 28, 2024

Organization, Consolidation and Presentation of Financial Statements [Abstract]

Supplementary Financial Information

A summary of certain consolidated balance sheet accounts is as follows:


	April 28, 2024		January 28, 2024
	(In thousands)
Inventories:
Inventories, at cost	$	1,435,492	$	1,465,076
Provision to reduce inventories to net realizable value	(90,225)		(141,474)
	$	1,345,267	$	1,323,602
Prepaid expenses and other current assets:
Prepaid expenses	$	146,651	$	137,203
Forward currency contract assets	21,620		647
Other current assets	34,573		46,652
	$	202,844	$	184,502
Property and equipment, net:
Land	$	79,062	$	79,498
Buildings	28,739		29,032
Leasehold improvements	1,096,822		1,006,926
Furniture and fixtures	160,041		156,656
Computer hardware	184,630		176,597
Computer software	1,100,899		1,032,567
Equipment and vehicles	46,058		34,017
Work in progress	148,026		247,943
Property and equipment, gross	2,844,277		2,763,236
Accumulated depreciation	(1,283,092)		(1,217,425)
	$	1,561,185	$	1,545,811
Other non-current assets:
Cloud computing arrangement implementation costs	$	144,070	$	133,597
Security deposits	34,557		31,825
Other	23,756		21,262
	$	202,383	$	186,684


	April 28, 2024		January 28, 2024
	(In thousands)
Accrued liabilities and other:
Accrued operating expenses	$	163,726	$	147,215
Sales return allowances	54,622		61,634
Accrued freight	41,226		41,241
Accrued capital expenditures	22,689		31,936
Accrued duty	27,163		25,817
Accrued rent	16,579		12,522
Accrued inventory liabilities	3,410		4,783
Sales tax collected	8,885		3,088
Forward currency contract liabilities	18,873		2,872
Other	17,273		17,447
	$	374,446	$	348,555

Segmented Information

3 Months Ended

Apr. 28, 2024

Segment Reporting [Abstract]

Segmented Information

The Company's operating segments are based on the financial information the CODM, who is the Chief Executive Officer, uses to evaluate performance and allocate resources.


	First Quarter
	2024		2023
	(In thousands)
Net revenue:
Americas	$	1,622,264	$	1,567,738
China Mainland	303,786		210,068
Rest of World	282,841		222,986
	$	2,208,891	$	2,000,792
Segmented income from operations:
Americas	$	564,840	$	581,222
China Mainland	119,778		73,885
Rest of World	66,681		43,794
	751,299		698,901
General corporate expense	318,657		295,609


Amortization of intangible assets	—		1,878

Income from operations	432,642		401,414
Other income (expense), net	23,283		8,025
Income before income tax expense	$	455,925	$	409,439

Depreciation and amortization:
Americas	$	44,326	$	35,136
China Mainland	8,025		5,965
Rest of World	6,506		5,298
Corporate	36,902		37,717
	$	95,759	$	84,116

Disaggregated Net Revenue

3 Months Ended

Apr. 28, 2024

Revenue from Contract with Customer [Abstract]

Disaggregated Net Revenue

In addition to the disaggregation of net revenue by reportable segment in Note 10. Segmented Information, the following table disaggregates the Company's net revenue by geographic area.


	First Quarter
	2024		2023
	(In thousands)
United States	$	1,340,400	$	1,314,391
Canada	281,864		253,347

China Mainland	303,786		210,068
Hong Kong SAR, Taiwan, and Macau SAR	42,264		39,617
People's Republic of China	346,050		249,685

Other geographic areas	240,577		183,369
	$	2,208,891	$	2,000,792

The following table disaggregates the Company's net revenue by category. Other categories is primarily composed of accessories, footwear, and lululemon Studio.


	First Quarter
	2024		2023
	(In thousands)
Women's product	$	1,435,241	$	1,308,828
Men's product	505,698		438,165
Other categories	267,952		253,799
	$	2,208,891	$	2,000,792

The following table disaggregates the Company's net revenue by channel.


	First Quarter
	2024		2023
	(In thousands)
Company-operated stores	$	1,070,525	$	958,087
E-commerce	905,787		834,942
Other channels	232,579		207,763
	$	2,208,891	$	2,000,792

Legal Proceedings and Other Contingencies	3 Months Ended
Legal Proceedings and Other Contingencies	Apr. 28, 2024
Commitments and Contingencies Disclosure [Abstract]
Legal Proceedings and Other Contingencies	Legal Proceedings and Other Contingencies The Company is, from time to time, involved in routine legal matters, and audits and inspections by governmental agencies and other third parties which are incidental to the conduct of its business. This includes legal matters such as initiation and defense of proceedings to protect intellectual property rights, employment claims, product liability claims, personal injury claims, and similar matters. The Company believes the ultimate resolution of any such legal proceedings, audits, and inspections will not have a material adverse effect on its consolidated balance sheets, results of operations or cash flows. The Company has recognized immaterial provisions related to the expected outcome of legal proceedings.

Subsequent Events	3 Months Ended
Subsequent Events	Apr. 28, 2024
Subsequent Events [Abstract]
Subsequent Events	Subsequent EventsSubsequent to April 28, 2024, the Company entered into an agreement to acquire the operations and lululemon branded retail locations being run by a third party under a license and supply arrangement in Mexico for approximately $160.0 million in cash. The Company had previously granted this third party the right to operate lululemon branded retail locations and to sell lululemon products in Mexico. The transaction is subject to customary closing conditions and regulatory approval.

Pay vs Performance Disclosure - USD ($) $ in Thousands	3 Months Ended
Pay vs Performance Disclosure - USD ($) $ in Thousands	Apr. 28, 2024	Apr. 30, 2023
Pay vs Performance Disclosure
Net income	$ 321,421	$ 290,405

Insider Trading Arrangements	3 Months Ended
Insider Trading Arrangements	Apr. 28, 2024
Trading Arrangements, by Individual
Rule 10b5-1 Arrangement Adopted	false
Non-Rule 10b5-1 Arrangement Adopted	false
Rule 10b5-1 Arrangement Terminated	false
Non-Rule 10b5-1 Arrangement Terminated	false

Nature of Operations and Basis of Presentation (Policies)	3 Months Ended
	Apr. 28, 2024
Accounting Policies [Abstract]
Basis of presentation	Basis of presentation The unaudited interim consolidated financial statements, including the financial position as of April 28, 2024 and the results of operations and cash flows for the periods disclosed, are presented in U.S. dollars and have been prepared by the Company under the rules and regulations of the Securities and Exchange Commission ("SEC"). The financial information is presented in accordance with United States generally accepted accounting principles ("GAAP") for interim financial information and, accordingly, does not include all of the information and footnotes required by GAAP for complete financial statements. The financial information as of January 28, 2024 is derived from the Company's audited consolidated financial statements and related notes for the fiscal year ended January 28, 2024, which are included in Item 8 in the Company's fiscal 2023 Annual Report on Form 10-K filed with the SEC on March 21, 2024. These unaudited interim consolidated financial statements reflect all adjustments which are, in the opinion of management, necessary to a fair statement of the results for the interim periods presented. These unaudited interim consolidated financial statements should be read in conjunction with the Company's consolidated financial statements and related notes included in Item 8 in the Company's fiscal 2023 Annual Report on Form 10-K. Note 2. Recent Accounting Pronouncements
Fiscal period	The Company's fiscal year ends on the Sunday closest to January 31 of the following year, typically resulting in a 52-week year, but occasionally giving rise to an additional week, resulting in a 53-week year. Fiscal 2024 will end on February 2, 2025 and will be a 53-week year. Fiscal 2023 was a 52-week year and ended on January 28, 2024. Fiscal 2024 and fiscal 2023 are referred to as "2024," and "2023," respectively. The first quarter of 2024 and 2023 ended on April 28, 2024 and April 30, 2023, respectively. The Company's business is affected by the pattern of seasonality common to most retail apparel businesses. Historically, the Company has recognized a significant portion of its operating profit in the fourth fiscal quarter of each year as a result of increased net revenue during the holiday season.
Use of estimates	Use of estimates The preparation of financial statements in conformity with GAAP in the United States requires management to make estimates and assumptions that affect the reported amounts of assets and liabilities and the disclosure of contingent assets and liabilities at the date of the financial statements as well as the reported amounts of net revenue and expenses during the reporting period. Actual results could differ from those estimates.
Recently issued accounting pronouncements	Recently issued accounting pronouncements In November 2023, the FASB issued ASU 2023-07, Segment Reporting (Topic 280): Improvements to Reportable Segment Disclosures. Entities will be required to provide disclosures of significant segmented expenses and other categories used by the Chief Operating Decision Maker ("CODM") in order to enhance disclosure at the segment level. This amendment is effective for annual periods beginning after December 15, 2023, and interim periods beginning after December 15, 2024, and is applied retrospectively for periods presented in the financial statements. The Company is currently evaluating the impact that this new guidance may have on its financial statement disclosures. In December 2023, the FASB issued ASU 2023-09, Income Taxes (Topic 740): Improvements to Income Tax Disclosures. This disclosure requires expanded disclosure within the rate reconciliation as well as disaggregation of annual taxes paid. This amendment is effective for annual periods beginning after December 15, 2023, and is applied prospectively. The Company is currently evaluating the impact that this new guidance may have on its financial statement disclosures.
Fair value measurement	Fair Value Measurement Fair value is defined as the price that would be received to sell an asset or paid to transfer a liability in an orderly transaction between market participants at the measurement date. Fair value measurements are made using a three-tier fair value hierarchy, which prioritizes the inputs used in measuring fair value: •Level 1 - defined as observable inputs such as quoted prices in active markets; •Level 2 - defined as inputs other than quoted prices in active markets that are either directly or indirectly observable; and •Level 3 - defined as unobservable inputs in which little or no market data exists, therefore requiring an entity to develop its own assumptions. The Company records cash, accounts receivable, accounts payable, and accrued liabilities at cost. The carrying values of these instruments approximate their fair value due to their short-term maturities. The Company has short-term, highly liquid investments classified as cash equivalents, which are invested in money market funds and short-term deposits with original maturities of three months or less. The Company records cash equivalents at their original purchase prices plus interest that has accrued at the stated rate. The fair values of the forward currency contract assets and liabilities are determined using observable Level 2 inputs, including foreign currency spot exchange rates, forward pricing curves, and interest rates. The fair values consider the credit risk of the Company and its counterparties. The Company's Master International Swap Dealers Association, Inc., Agreements and other similar arrangements allow net settlements under certain conditions. However, the Company records all derivatives on its consolidated balance sheets at fair value and does not offset derivative assets and liabilities.

Stock-Based Compensation and Benefit Plans (Tables)

3 Months Ended

Apr. 28, 2024

Share-Based Payment Arrangement [Abstract]

Summary of Company's Stock Option, Performance Stock Unit and Restricted Share Activity

A summary of the balances of the Company's stock-based compensation plans as of April 28, 2024, and changes during the first quarter then ended, is presented below:


	Stock Options			Performance-Based Restricted Stock Units			Restricted Shares			Restricted Stock Units
	Number	Weighted-Average Exercise Price		Number	Weighted-Average Grant Date Fair Value		Number	Weighted-Average Grant Date Fair Value		Number	Weighted-Average Grant Date Fair Value
	(In thousands, except per share amounts)
Balance as of January 28, 2024	783	$	285.69	175	$	349.84	4	$	370.85	223	$	359.12
Granted	216	388.90		120	356.47		—	388.90		115	388.90
Exercised/released	20	184.81		98	309.89		—	—		84	348.08
Forfeited/expired	4	366.87		—	362.00		—	—		3	373.94
Balance as of April 28, 2024	975	$	310.26	197	$	373.82	4	$	371.33	251	$	376.27
Exercisable as of April 28, 2024	475	$	247.34

Schedule of Share-based Payment Award, Stock Options, Valuation Assumptions

The following are weighted averages of the assumptions that were used in calculating the fair value of stock options granted during the first quarter of 2024:


	First Quarter
	2024
Expected term	3.75 years
Expected volatility	37.39	%
Risk-free interest rate	4.30	%
Dividend yield	—	%

Fair Value Measurement (Tables)

3 Months Ended

Apr. 28, 2024

Fair Value Disclosures [Abstract]

Schedule of Fair Value, Assets and Liabilities Measured on Recurring Basis

As of April 28, 2024 and January 28, 2024, the Company held certain assets and liabilities that are required to be measured at fair value on a recurring basis:


	April 28, 2024		Level 1		Level 2		Level 3		Balance Sheet Classification
	(In thousands)
Money market funds	$	690,071	$	690,071	$	—	$	—	Cash and cash equivalents

Term deposits	8		—		8		—		Cash and cash equivalents
Forward currency contract assets	21,620		—		21,620		—		Prepaid expenses and other current assets
Forward currency contract liabilities	18,873		—		18,873		—		Other current liabilities


	January 28, 2024		Level 1		Level 2		Level 3		Balance Sheet Classification
	(In thousands)
Money market funds	$	1,102,119	$	1,102,119	$	—	$	—	Cash and cash equivalents

Term deposits	8		—		8		—		Cash and cash equivalents
Forward currency contract assets	647		—		647		—		Prepaid expenses and other current assets
Forward currency contract liabilities	2,872		—		2,872		—		Other current liabilities

Derivative Financial Instruments (Tables)

3 Months Ended

Apr. 28, 2024

Derivative Instruments and Hedging Activities Disclosure [Abstract]

Schedule of Forward Currency Contracts, Statement of Financial Position

The notional amounts and fair values of forward currency contracts were as follows:


	April 28, 2024						January 28, 2024
	Gross Notional		Assets		Liabilities		Gross Notional		Assets		Liabilities
	(In thousands)
Derivatives designated as net investment hedges:
Forward currency contracts	$	1,029,000	$	18,735	$	—	$	1,242,000	$	—	$	258
Derivatives not designated in a hedging relationship:
Forward currency contracts	1,368,789		2,885		18,873		1,543,351		647		2,614
Net derivatives recognized on consolidated balance sheets:
Forward currency contracts			$	21,620	$	18,873			$	647	$	2,872

Schedule of Pre-tax Gains (Losses) on Derivatives in Accumulated Other Comprehensive Income (Loss)

The pre-tax gains and losses on foreign currency exchange forward contracts recorded in accumulated other comprehensive income or loss were as follows:


	First Quarter
		2024		2023
		(In thousands)
Gains (losses) recognized in net investment hedge gains (losses):
Derivatives designated as net investment hedges		$	18,137	$	24,127

Schedule of Pre-Tax Net Foreign Exchange and Derivative Gains and Losses

The pre-tax net foreign currency exchange and derivative gains and losses recorded in the consolidated statement of operations were as follows:


	First Quarter
		2024		2023
		(In thousands)
Gains (losses) recognized in selling, general and administrative expenses:
Foreign currency exchange gains (losses)		$	14,935	$	8,328
Derivatives not designated in a hedging relationship		(14,327)		(9,707)
Net foreign currency exchange and derivative gains (losses)		$	608	$	(1,379)

Earnings Per Share (Tables)

3 Months Ended

Apr. 28, 2024

Earnings Per Share [Abstract]

Schedule of Computation of Basic and Diluted Earning Per Share

The details of the computation of basic and diluted earnings per share are as follows:


	First Quarter
	2024		2023
	(In thousands, except per share amounts)
Net income	$	321,421	$	290,405
Basic weighted-average number of shares outstanding	125,989		127,246
Assumed conversion of dilutive stock options and awards	347		375
Diluted weighted-average number of shares outstanding	126,336		127,621
Basic earnings per share	$	2.55	$	2.28
Diluted earnings per share	$	2.54	$	2.28

Supplementary Financial Information (Tables)

3 Months Ended

Apr. 28, 2024

Organization, Consolidation and Presentation of Financial Statements [Abstract]

Summary of Certain Balance Sheet Accounts

A summary of certain consolidated balance sheet accounts is as follows:


	April 28, 2024		January 28, 2024
	(In thousands)
Inventories:
Inventories, at cost	$	1,435,492	$	1,465,076
Provision to reduce inventories to net realizable value	(90,225)		(141,474)
	$	1,345,267	$	1,323,602
Prepaid expenses and other current assets:
Prepaid expenses	$	146,651	$	137,203
Forward currency contract assets	21,620		647
Other current assets	34,573		46,652
	$	202,844	$	184,502
Property and equipment, net:
Land	$	79,062	$	79,498
Buildings	28,739		29,032
Leasehold improvements	1,096,822		1,006,926
Furniture and fixtures	160,041		156,656
Computer hardware	184,630		176,597
Computer software	1,100,899		1,032,567
Equipment and vehicles	46,058		34,017
Work in progress	148,026		247,943
Property and equipment, gross	2,844,277		2,763,236
Accumulated depreciation	(1,283,092)		(1,217,425)
	$	1,561,185	$	1,545,811
Other non-current assets:
Cloud computing arrangement implementation costs	$	144,070	$	133,597
Security deposits	34,557		31,825
Other	23,756		21,262
	$	202,383	$	186,684


	April 28, 2024		January 28, 2024
	(In thousands)
Accrued liabilities and other:
Accrued operating expenses	$	163,726	$	147,215
Sales return allowances	54,622		61,634
Accrued freight	41,226		41,241
Accrued capital expenditures	22,689		31,936
Accrued duty	27,163		25,817
Accrued rent	16,579		12,522
Accrued inventory liabilities	3,410		4,783
Sales tax collected	8,885		3,088
Forward currency contract liabilities	18,873		2,872
Other	17,273		17,447
	$	374,446	$	348,555

Segmented Information (Tables)

3 Months Ended

Apr. 28, 2024

Segment Reporting [Abstract]

Schedule of Detailed Segmented Information


	First Quarter
	2024		2023
	(In thousands)
Net revenue:
Americas	$	1,622,264	$	1,567,738
China Mainland	303,786		210,068
Rest of World	282,841		222,986
	$	2,208,891	$	2,000,792
Segmented income from operations:
Americas	$	564,840	$	581,222
China Mainland	119,778		73,885
Rest of World	66,681		43,794
	751,299		698,901
General corporate expense	318,657		295,609


Amortization of intangible assets	—		1,878

Income from operations	432,642		401,414
Other income (expense), net	23,283		8,025
Income before income tax expense	$	455,925	$	409,439

Depreciation and amortization:
Americas	$	44,326	$	35,136
China Mainland	8,025		5,965
Rest of World	6,506		5,298
Corporate	36,902		37,717
	$	95,759	$	84,116

Disaggregated Net Revenue (Tables)

3 Months Ended

Apr. 28, 2024

Revenue from Contract with Customer [Abstract]

Disaggregation of Revenue

In addition to the disaggregation of net revenue by reportable segment in Note 10. Segmented Information, the following table disaggregates the Company's net revenue by geographic area.


	First Quarter
	2024		2023
	(In thousands)
United States	$	1,340,400	$	1,314,391
Canada	281,864		253,347

China Mainland	303,786		210,068
Hong Kong SAR, Taiwan, and Macau SAR	42,264		39,617
People's Republic of China	346,050		249,685

Other geographic areas	240,577		183,369
	$	2,208,891	$	2,000,792

The following table disaggregates the Company's net revenue by category. Other categories is primarily composed of accessories, footwear, and lululemon Studio.


	First Quarter
	2024		2023
	(In thousands)
Women's product	$	1,435,241	$	1,308,828
Men's product	505,698		438,165
Other categories	267,952		253,799
	$	2,208,891	$	2,000,792

The following table disaggregates the Company's net revenue by channel.


	First Quarter
	2024		2023
	(In thousands)
Company-operated stores	$	1,070,525	$	958,087
E-commerce	905,787		834,942
Other channels	232,579		207,763
	$	2,208,891	$	2,000,792

Nature of Operations and Basis of Presentation - Narrative (Details)	3 Months Ended
	Apr. 28, 2024 store market	Jan. 28, 2024 store
Accounting Policies [Abstract]
Number of regional markets \| market	4
Number of company-operated stores \| store	711	711

Revolving Credit Facilities - Narrative (Details) ¥ in Millions		1 Months Ended	3 Months Ended
	Dec. 14, 2021 USD ($)	Dec. 31, 2019 USD ($)	Apr. 28, 2024 USD ($)	Apr. 28, 2024 CNY (¥)	Jan. 28, 2024 USD ($)	Jan. 28, 2024 CNY (¥)	Dec. 31, 2019 CNY (¥)
Line of Credit Facility [Line Items]
Revolving credit facilities borrowing limit					$ 33,100,000	¥ 240.0
Letters of credit and guarantee			$ 6,300,000
Other borrowings			$ 0
Rent adjusted leverage ratio			3.25	3.25
EBITDAR to interest charges ratio			2.00	2.00
Short-term debt			$ 0
Revolving Credit Facility
Line of Credit Facility [Line Items]
Debt instrument, term		12 months
Revolving Credit Facility \| Prime Rate
Line of Credit Facility [Line Items]
Basis spread on variable rate		0.5175%
Revolving Credit Facility \| Line of Credit
Line of Credit Facility [Line Items]
Revolving credit facilities borrowing limit	$ 400,000,000
Debt instrument, term	5 years
Sustainability rate adjustment drawn pricing			0.025%
Sustainability rate adjustment undrawn pricing			0.005%
Revolving Credit Facility \| Line of Credit \| Minimum
Line of Credit Facility [Line Items]
Commitment fee percentage on unused amounts			0.10%
Revolving Credit Facility \| Line of Credit \| Maximum
Line of Credit Facility [Line Items]
Commitment fee percentage on unused amounts			0.20%
Revolving Credit Facility \| Line of Credit \| SOFR \| Minimum
Line of Credit Facility [Line Items]
Basis spread on variable rate			1.00%
Revolving Credit Facility \| Line of Credit \| SOFR \| Maximum
Line of Credit Facility [Line Items]
Basis spread on variable rate			1.375%
Revolving Credit Facility \| Line of Credit \| Base Rate \| Minimum
Line of Credit Facility [Line Items]
Basis spread on variable rate			0.00%
Revolving Credit Facility \| Line of Credit \| Base Rate \| Maximum
Line of Credit Facility [Line Items]
Basis spread on variable rate			0.375%
Revolving Loan
Line of Credit Facility [Line Items]
Revolving credit facilities borrowing limit		$ 27,600,000					¥ 200.0
Financial Bank Guarantee Facility
Line of Credit Facility [Line Items]
Revolving credit facilities borrowing limit		$ 5,500,000					¥ 40.0
Letter of Credit
Line of Credit Facility [Line Items]
Letters of credit and guarantee			$ 4,600,000	¥ 33.2

Supply Chain Financing Program - Narrative (Details) - USD ($) $ in Millions	Apr. 28, 2024	Jan. 28, 2024
Payables and Accruals [Abstract]
Supplier finance program, obligation, current	$ 37.9	$ 42.1

Stock-Based Compensation and Benefit Plans - Narrative (Details) - USD ($) $ in Millions	3 Months Ended
	Apr. 28, 2024	Apr. 30, 2023
Share-based Compensation Arrangement by Share-based Payment Award [Line Items]
Stock-based compensation expense	$ 25.4	$ 21.0
Total unrecognized compensation cost	$ 224.3
Expected weighted-average period of compensation cost	2 years 6 months
Common stock per performance share unit (in shares)	2
Company match contribution	33.33%
Vesting period	2 years
Company contributions	$ 5.8	$ 4.8
Minimum
Share-based Compensation Arrangement by Share-based Payment Award [Line Items]
Participant contribution, company match percent	50.00%
Maximum
Share-based Compensation Arrangement by Share-based Payment Award [Line Items]
Participant contribution, company match percent	75.00%
Employee Stock
Share-based Compensation Arrangement by Share-based Payment Award [Line Items]
Maximum shares available under ESPP (in shares)	6,000,000
Shares purchased under ESPP (in shares)	28,000
Employee stock purchase plan, remaining number of shares authorized to be repurchased	4,400,000

Stock-Based Compensation and Benefit Plans - Summary of Company's Stock Option, Performance Share Unit and Restricted Share Activity (Details) shares in Thousands	3 Months Ended
	Apr. 28, 2024 $ / shares shares
Stock Options
Number of Stock Options
Beginning balance (in shares) \| shares	783
Granted (in shares) \| shares	216
Exercised/released (in shares) \| shares	20
Forfeited/expired (in shares) \| shares	4
Ending balance (in shares) \| shares	975
Number of stock options, exercisable at end of period (in shares) \| shares	475
Weighted-Average Exercise Price of Stock Options
Beginning balance (in dollars per share) \| $ / shares	$ 285.69
Granted (in dollars per share) \| $ / shares	388.90
Exercised/released (in dollars per share) \| $ / shares	184.81
Forfeited/expired (in dollars per share) \| $ / shares	366.87
Ending balance (in dollars per share) \| $ / shares	310.26
Weighted-average exercise price, options, exercisable at end of period (in dollars per share) \| $ / shares	$ 247.34
Performance-Based Restricted Stock Units
Number of Performance-Based Restricted Stock Units, Restricted Shares, and Restricted Stock Units
Beginning balance (in shares) \| shares	175
Granted (in shares) \| shares	120
Exercised/released (in shares) \| shares	98
Forfeited/expired (in shares) \| shares	0
Ending balance (in shares) \| shares	197
Weighted-Average Grant Date Fair Value
Beginning balance (in dollars per share) \| $ / shares	$ 349.84
Granted (in dollars per share) \| $ / shares	356.47
Exercised/released (in dollars per share) \| $ / shares	309.89
Forfeited/expired (in dollars per share) \| $ / shares	362.00
Ending balance (in dollars per share) \| $ / shares	$ 373.82
Restricted Shares
Number of Performance-Based Restricted Stock Units, Restricted Shares, and Restricted Stock Units
Beginning balance (in shares) \| shares	4
Granted (in shares) \| shares	0
Exercised/released (in shares) \| shares	0
Forfeited/expired (in shares) \| shares	0
Ending balance (in shares) \| shares	4
Weighted-Average Grant Date Fair Value
Beginning balance (in dollars per share) \| $ / shares	$ 370.85
Granted (in dollars per share) \| $ / shares	388.90
Exercised/released (in dollars per share) \| $ / shares	0
Forfeited/expired (in dollars per share) \| $ / shares	0
Ending balance (in dollars per share) \| $ / shares	$ 371.33
Restricted Stock Units
Number of Performance-Based Restricted Stock Units, Restricted Shares, and Restricted Stock Units
Beginning balance (in shares) \| shares	223
Granted (in shares) \| shares	115
Exercised/released (in shares) \| shares	84
Forfeited/expired (in shares) \| shares	3
Ending balance (in shares) \| shares	251
Weighted-Average Grant Date Fair Value
Beginning balance (in dollars per share) \| $ / shares	$ 359.12
Granted (in dollars per share) \| $ / shares	388.90
Exercised/released (in dollars per share) \| $ / shares	348.08
Forfeited/expired (in dollars per share) \| $ / shares	373.94
Ending balance (in dollars per share) \| $ / shares	$ 376.27

Stock-Based Compensation and Benefit Plans - Summary of Fair Value Assumptions (Details)	3 Months Ended
	Apr. 28, 2024
Share-Based Payment Arrangement [Abstract]
Expected term	3 years 9 months
Expected volatility	37.39%
Risk-free interest rate	4.30%
Dividend yield	0.00%

Fair Value Measurement - Summary of Assets and Liabilities (Details) - USD ($) $ in Thousands	Apr. 28, 2024	Jan. 28, 2024
Fair Value, Assets and Liabilities Measured on Recurring and Nonrecurring Basis [Line Items]
Forward currency contract assets	$ 21,620	$ 647
Derivative Asset, Statement of Financial Position [Extensible Enumeration]	Prepaid expenses and other current assets	Prepaid expenses and other current assets
Forward currency contract liabilities	$ 18,873	$ 2,872
Derivative Liability, Statement of Financial Position [Extensible Enumeration]	Other current liabilities	Other current liabilities
Level 1
Fair Value, Assets and Liabilities Measured on Recurring and Nonrecurring Basis [Line Items]
Forward currency contract assets	$ 0	$ 0
Forward currency contract liabilities	0	0
Level 2
Fair Value, Assets and Liabilities Measured on Recurring and Nonrecurring Basis [Line Items]
Forward currency contract assets	21,620	647
Forward currency contract liabilities	18,873	2,872
Level 3
Fair Value, Assets and Liabilities Measured on Recurring and Nonrecurring Basis [Line Items]
Forward currency contract assets	0	0
Forward currency contract liabilities	0	0
Cash and cash equivalents \| Money market funds
Fair Value, Assets and Liabilities Measured on Recurring and Nonrecurring Basis [Line Items]
Cash and cash equivalents	690,071	1,102,119
Cash and cash equivalents \| Term deposits
Fair Value, Assets and Liabilities Measured on Recurring and Nonrecurring Basis [Line Items]
Cash and cash equivalents	8	8
Cash and cash equivalents \| Level 1 \| Money market funds
Fair Value, Assets and Liabilities Measured on Recurring and Nonrecurring Basis [Line Items]
Cash and cash equivalents	690,071	1,102,119
Cash and cash equivalents \| Level 1 \| Term deposits
Fair Value, Assets and Liabilities Measured on Recurring and Nonrecurring Basis [Line Items]
Cash and cash equivalents	0	0
Cash and cash equivalents \| Level 2 \| Money market funds
Fair Value, Assets and Liabilities Measured on Recurring and Nonrecurring Basis [Line Items]
Cash and cash equivalents	0	0
Cash and cash equivalents \| Level 2 \| Term deposits
Fair Value, Assets and Liabilities Measured on Recurring and Nonrecurring Basis [Line Items]
Cash and cash equivalents	8	8
Cash and cash equivalents \| Level 3 \| Money market funds
Fair Value, Assets and Liabilities Measured on Recurring and Nonrecurring Basis [Line Items]
Cash and cash equivalents	0	0
Cash and cash equivalents \| Level 3 \| Term deposits
Fair Value, Assets and Liabilities Measured on Recurring and Nonrecurring Basis [Line Items]
Cash and cash equivalents	$ 0	$ 0

Derivative Financial Instruments - Summary of Quantitative Disclosures about Derivative Financial Instruments (Details) - USD ($) $ in Thousands	3 Months Ended
	Apr. 28, 2024	Apr. 30, 2023	Jan. 28, 2024
Derivatives, Fair Value [Line Items]
Derivative assets	$ 21,600
Derivative liabilities	18,900
Assets	21,600
Liabilities	18,900
Forward currency contracts
Derivatives, Fair Value [Line Items]
Derivative assets	21,620		$ 647
Derivative liabilities	18,873		2,872
Assets	21,620		647
Liabilities	18,873		2,872
Gains (losses) recognized in selling, general and administrative expenses:
Net foreign currency exchange and derivative gains (losses)	608	$ (1,379)
Forward currency contracts \| Derivatives designated as net investment hedges:
Derivatives, Fair Value [Line Items]
Derivative assets	18,735		0
Derivative liabilities	0		258
Gross Notional	1,029,000		1,242,000
Assets	18,735		0
Liabilities	0		258
Gains (losses) recognized in net investment hedge gains (losses):
Derivatives designated as net investment hedges	18,137	24,127
Gains (losses) recognized in selling, general and administrative expenses:
Net foreign currency exchange and derivative gains (losses)	14,935	8,328
Forward currency contracts \| Derivatives not designated in a hedging relationship:
Derivatives, Fair Value [Line Items]
Derivative assets	2,885		647
Derivative liabilities	18,873		2,614
Gross Notional	1,368,789		1,543,351
Assets	2,885		647
Liabilities	18,873		$ 2,614
Gains (losses) recognized in selling, general and administrative expenses:
Net foreign currency exchange and derivative gains (losses)	$ (14,327)	$ (9,707)

Earnings Per Share - Summary of Computation of Basic and Diluted Earning Per Share (Details) - USD ($) $ / shares in Units, shares in Thousands, $ in Thousands	3 Months Ended
	Apr. 28, 2024	Apr. 30, 2023
Earnings Per Share [Abstract]
Net income	$ 321,421	$ 290,405
Basic weighted-average number of shares outstanding (in shares)	125,989	127,246
Assumed conversion of dilutive stock options and awards (in shares)	347	375
Diluted weighted-average number of shares outstanding (in shares)	126,336	127,621
Basic earnings per share (in dollars per share)	$ 2.55	$ 2.28
Diluted earnings per share (in dollars per share)	$ 2.54	$ 2.28

Earnings Per Share - Narrative (Details) - USD ($) $ in Thousands, shares in Millions	1 Months Ended	3 Months Ended
	May 30, 2024	Apr. 28, 2024	Apr. 30, 2023	Nov. 29, 2023	Mar. 23, 2022
Subsequent Event [Line Items]
Anti-dilutive stock options (in shares)		0.1	0.1
Aggregate amount authorized for stock repurchase (up to)				$ 1,000,000	$ 1,000,000
Remaining authorized repurchase amount		$ 892,300
Repurchase of common stock (in shares)		0.8	0.3
Repurchase of common stock		$ 299,479	$ 98,479
Subsequent Event
Subsequent Event [Line Items]
Repurchase of common stock (in shares)	0.6
Repurchase of common stock	$ 201,100

Supplementary Financial Information - Summary of Consolidated Balance Sheets (Details) - USD ($) $ in Thousands	Apr. 28, 2024	Jan. 28, 2024
Inventories:
Inventories, at cost	$ 1,435,492	$ 1,465,076
Provision to reduce inventories to net realizable value	(90,225)	(141,474)
Total inventories	1,345,267	1,323,602
Prepaid expenses and other current assets:
Prepaid expenses	146,651	137,203
Forward currency contract assets	21,620	647
Other current assets	34,573	46,652
Prepaid expenses and other current assets	202,844	184,502
Property and equipment, net:
Land	79,062	79,498
Buildings	28,739	29,032
Leasehold improvements	1,096,822	1,006,926
Furniture and fixtures	160,041	156,656
Computer hardware	184,630	176,597
Computer software	1,100,899	1,032,567
Equipment and vehicles	46,058	34,017
Work in progress	148,026	247,943
Property and equipment, gross	2,844,277	2,763,236
Accumulated depreciation	(1,283,092)	(1,217,425)
Total property and equipment	1,561,185	1,545,811
Other non-current assets:
Cloud computing arrangement implementation costs	144,070	133,597
Security deposits	34,557	31,825
Other	23,756	21,262
Total other non-current assets	202,383	186,684
Accrued liabilities and other:
Accrued operating expenses	163,726	147,215
Sales return allowances	54,622	61,634
Accrued freight	41,226	41,241
Accrued capital expenditures	22,689	31,936
Accrued duty	27,163	25,817
Accrued rent	16,579	12,522
Accrued inventory liabilities	3,410	4,783
Sales tax collected	8,885	3,088
Forward currency contract liabilities	18,873	2,872
Other	17,273	17,447
Other accrued liabilities	$ 374,446	$ 348,555

Segmented Information - Reportable Segment (Details) $ in Thousands		3 Months Ended
	Jan. 28, 2024 segment	Apr. 28, 2024 USD ($)	Apr. 30, 2023 USD ($)
Segment Reporting [Abstract]
Number of reportable segments \| segment	3
Revenue from Contract with Customer [Abstract]
Net revenue		$ 2,208,891	$ 2,000,792
Segmented income from operations:
Segmented income from operations		751,299	698,901
General corporate expense		318,657	295,609
Amortization of intangible assets		0	1,878
Income from operations		432,642	401,414
Other income (expense), net		23,283	8,025
Income before income tax expense		455,925	409,439
Depreciation and amortization:
Depreciation and amortization		95,759	84,116
Operating Segments \| Americas
Revenue from Contract with Customer [Abstract]
Net revenue		1,622,264	1,567,738
Segmented income from operations:
Segmented income from operations		564,840	581,222
Depreciation and amortization:
Depreciation and amortization		44,326	35,136
Operating Segments \| China Mainland
Revenue from Contract with Customer [Abstract]
Net revenue		303,786	210,068
Segmented income from operations:
Segmented income from operations		119,778	73,885
Depreciation and amortization:
Depreciation and amortization		8,025	5,965
Operating Segments \| Rest of World
Revenue from Contract with Customer [Abstract]
Net revenue		282,841	222,986
Segmented income from operations:
Segmented income from operations		66,681	43,794
Depreciation and amortization:
Depreciation and amortization		6,506	5,298
Corporate
Depreciation and amortization:
Depreciation and amortization		$ 36,902	$ 37,717

Disaggregated Net Revenue - Summary of Geographical Area (Details) - USD ($) $ in Thousands	3 Months Ended
	Apr. 28, 2024	Apr. 30, 2023
Revenue, Major Customer [Line Items]
Net revenue	$ 2,208,891	$ 2,000,792
Company-operated stores
Revenue, Major Customer [Line Items]
Net revenue	1,070,525	958,087
E-commerce
Revenue, Major Customer [Line Items]
Net revenue	905,787	834,942
Other channels
Revenue, Major Customer [Line Items]
Net revenue	232,579	207,763
Women's product
Revenue, Major Customer [Line Items]
Net revenue	1,435,241	1,308,828
Men's product
Revenue, Major Customer [Line Items]
Net revenue	505,698	438,165
Other categories
Revenue, Major Customer [Line Items]
Net revenue	267,952	253,799
United States
Revenue, Major Customer [Line Items]
Net revenue	1,340,400	1,314,391
Canada
Revenue, Major Customer [Line Items]
Net revenue	281,864	253,347
China Mainland
Revenue, Major Customer [Line Items]
Net revenue	303,786	210,068
Hong Kong SAR, Taiwan, and Macau SAR
Revenue, Major Customer [Line Items]
Net revenue	42,264	39,617
People's Republic of China
Revenue, Major Customer [Line Items]
Net revenue	346,050	249,685
Other geographic areas
Revenue, Major Customer [Line Items]
Net revenue	$ 240,577	$ 183,369

Subsequent Events - Narrative (Details) $ in Millions	1 Months Ended
Subsequent Events - Narrative (Details) $ in Millions	Jun. 05, 2024 USD ($)
Subsequent Event \| Retail Locations and Operations \| Third-Party, Mexico
Subsequent Event [Line Items]
Payments to acquire operations and retail locations	$ 160.0