Kailey Schaneberg BA 497.01

lululemon athletica inc. Internal Case Analysis Report

MEMORANDUM

TO: Mr. Laurent Potdevin, Chief Executive Officer, lululemon athletica inc.

FROM: Ms. Kailey Schaneberg

DATE: 8 February 2016

RE: Internal Case Analysis

BACKGROUND: Lululemon athletica is a brand leader of customer loyalty in the athletic wear industry. Currently operating in 211 corporate owned stores in the United States and 91 stores

globally, lululemon is expanding globally into high end regions such as United Arab Emirates and

Australia.1 Lululemon was ranked on Fortune's Fastest-Growing Companies list for three years in a

row next to companies such as Facebook and Netflix, yet saw a decline after a damaging product

recall and top leadership transitions.2 These events were flanked by self-reported $57-$67 million

revenue loss in damaged inventory and lost sales that has only been recovered through two years

of solid growth.3 Completely regaining customer confidence in its product line as new competition

is rapidly joining the industry will be difficult, but presents a clear focus for strategic decisions.

JUSTIFICATION: Lululemon’s high cost structure allows them to have significant revenues, but also

requires a higher standard of product quality and customer benefit. Lululemon’s history is full of

product recalls from the notorious sheer yoga pants to a recent hoodie string recall.4 While its

strength in is brand loyalty, lululemon needs to be constantly innovating to meet the needs of this

luxury market. The Luon fabric accounts for 30% of total fabric used in products and is sourced

from a third party manufacturer in Southeast Asia.5 Poor inventory and supply chain management

resulted in a 17.56% increase cost of goods sold last year.6 Additionally, men age 18-34 are the

largest purchasers of high end sportwear at 43%, but typically their desires lean towards

traditional sport specific gear such as basketball shorts, or soccer jerseys.7 While lululemon has

expanded its product line to increase wear for men, it may need to prioritize the market’s needs.

RECOMMENDATION: To further strengthen the customer loyalty and hold on to market share in

the midst of new competition, we recommend that lululemon create an exclusive multi-site fitness

membership to partner studios offering a wide variety of activities. Loyal lululemon customers will

find value in the opportunity to try diverse workouts while partner studios will benefit from brand

awareness and increased traffic. Lululemon should also make an acquisition of the factory and

company that manufacturer the luon fabric to improve quality control and lower costs associated

with using a third party manufacturer. Lululemon should take advantage of the increasing market

for men’s fitness wear by expanding its product line to include men’s traditional sports specific

wear such as baseball, basketball or soccer. To complement such a strategy, lululemon should also

expand its brand ambassador program to professional athletes in such sports or entire sports

teams to broaden its reach to a more general audience.

CLOSING: Further detail and analysis supporting these recommendations is attached for your

review. Thank you for your time and consideration. We hope these strategies are beneficial for you

and your company and look forward to discussing with you on Monday, February 29.

ATTACHMENT:

Executive Summary

Lululemon is often credited as the catalyst for the yoga wear movement, making it a leader

in high-end fitness wear for the conscious shopper.8 This report includes a comprehensive internal,

and financial analysis to reveal lululemon’s core competencies. These core competencies and

market opportunities were used to formulate strategic recommendations for how lululemon can

regain customer confidence and gain a sustainable competitive advantage over its increasing

competition. The internal analysis consists of a SWOT Analysis, Core Competence Map and Strategy,

VRIO, key Financial Ratios. Important information was gathered from key research databases such

as Passport, Mintel, LexisNexis and Hoover and magazines such as The New York Times, Business

Insider, and Fortune.

The Situational Analysis (SWOT) identifies critical strengths and weaknesses of lululemon

which include company culture, fabric innovation, store expansion, and employee training. Some

weaknesses include top management turmoil, high shipping and manufacturing costs, poor

inventory management, and product quality concerns. New opportunities in the industry include

ecommerce growth, global expansion, men’s fitness wear, and increased health club membership.

Some threats that lululemon may face are increasing competition, rise of obesity and cost of labor.

The VRIO chart analyzes company resources for core competencies and other effects on success.

The Core Competence Chart maps the system in which lululemon’s core competencies feed into to

create its end products.

Taking into account the aforementioned research, the strategic recommendations seek to

boost lululemon into a sustained competitive advantage and continue to build a trusted reputation.

These recommendations include creation of a multi-site gym membership for loyal customers, an

acquisition of Luon fabric manufacturing, expansion of men’s sports-specific apparel and use of

professional athlete brand ambassadors. Lululemon should exploit its current core competencies,

as well as grow in capabilities to distinguish itself as the leader of the fitness wear industry.

Table of Contents

Memorandum ………………………………………………………………………………………………………………

Executive Summary ………………………………………………………………………………………………………

Table of Contents …………………………………………………………………………………………………………..

Internal Analysis

SWOT ………………………………………………………………………………………………………………… 1

Core Competence Map ……………………………………………………………………………………….. 2

Core Competence Strategy ………………………………………………………………………………….. 3

VRIO Analysis …………………………………………………………………………………………………..... 4

Financial Ratios …………………………………………………………………………………………………. 5

Summary of Internal Analysis Charts …………..………………………………………………………8

Strategic Recommendations …………………………………………………………………………………...…… 10

Bibliography ………………………………………………………………………………………………………………. 16

Situation Analysis: SWOT

STRENGTHS WEAKNESSES

Strong company culture and brand (H, CC) Attracts committed employees and consumer

through slogan of, "elevating the world from mediocrity to greatness"9

Defined as a “transformational experience”10 Fabric Technology (H)

Offers a wide variety of high quality yoga and fitness related products tailored to customers11

Innovates new fabrics using water-proof, high performance, and high flexibility technology12

Store Expansion (H, CC) New Stores in Australia, New Zealand, Singapore,

Canada, and the U.K.13 Will be moving to the UAE, Kuwait, Qatar, Oman and Bahrain in next 5 years14

Relationships with Suppliers (M) Developed long-standing relationships with few

suppliers, but no contracts15 Vendor code of ethics ensures CSR 16

Employee Training and Culture (M, CC) Unique meditation, yoga and fitness activities are an

integral part of corporate life17 Brand Ambassador Program connects employees on

a grassroots level18 Financial (H, CC)

19% increase in 4th quarter revenue from 2014 to 201519

Free cash flow of over 1.9 million opens opportunity for expansion20

No long-term debt and low total debt to equity ratio of 0.1921

Top Leadership (H) Resignation of CEO, Christina Day22 Resignation of Founder and Board Chairman in

201423 Founder, Chip Wilson is known to be controlling

and unfocused24 Shipping Costs (M)

To keep up with demand, air shipping costs hurt profit margins25

Resulted in a 17.56% increase cost of goods sold26 High Cost Structure (H)

Self-proclaimed technical apparel is sold at a premium27

Excess Inventory forced markdowns and caused low margins and bruised brand28

Customers recently complain of 22% price hike in most popular goods29

Product Concerns (H) 2013 yoga pant recall for transparent fabric lost

US$67 million in sales and hurt brand30 Lack of patents and intellectual property rights

could strengthen competitors advantage31 Lacks management infrastructure for quality

control32

OPPORTUNITIES THREATS

Global Expansion (H) Population in Qatar and UAE have increased by 103%

and 101.2%, respectively33 Growth of Hispanic Population (L)

Will comprise19% of total US population by 201934 Hispanics purchase significantly more fitness apparel

than any other race35 E-commerce (M)

Online sales are projected to increase 77% from 2014-201936

Health Club Partnerships (M) Membership at health clubs is at an all-time high.37

Men’s Fitness Wear (H) The largest age and gender group to purchase specialty

fitness clothing is men, age 18-34, at 43% of those who purchase activewear38

Consumer Demand (M) Women’s sports apparel market in the US grew by 8%

in 201439 Growth of “athleisure” in young women40 70% of 20-30 year old women engage in stress-

lowering activities, such as yoga 41

Competition (H) Seasoned competitors and new companies are

increasing activity in fitness wear42 Continued Rise of Obesity (M)

Adults over 20 years old are increasingly overweight and obese43

These individuals are significantly less likely to purchase activewear44

Security Concerns (L) Security breaches to customer and employee data

could hurt brand and revenues45 Cost of Labor (H)

South and Southeast Asian labor costs are increasing because of labor laws and trade sanctions46

Foreign Currency Fluctuations (L) Increases costs because of Canadian and Australian

Dollar depreciation47 Wealth Effect (L)

Forecast decrease in annual disposable income of Americans over the next 10 years48

Co

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etence M

ap

EXTENSION RECOMBINATION

1. Fitness Membership Program Provide an exclusive multi-site fitness

membership for lululemon customers to a variety of fitness gyms.

Membership fees go to lululemon with a percentage returning to gyms such as SoulCycle, Barre class, Pilates, etc.

2. Customer Loyalty Program Create a customer loyalty points systems for

purchases. Just as Starbucks, Bloomingdale’s and Sephora

use a point system, lululemon can incorporate rewards for repeat shoppers.49

Increases brand loyalty in a competitive market.

Lowers prices for faithful customers.

3. New Product Technology Create a fitness band that is specialized for

yoga and running crowd and branded by lululemon.

Utilize current “Fit-bit” type technology with ascetic appeal.

1. Body Positive Campaign To combat negative press, lululemon should

launch its own body-positive, active-lifestyle campaign.50

Fight “Fat-talk”, promote health. Brand ambassadors could be a focus of the

campaign to start with current connections.

2. Annual Health/Fitness Magazine

Publish an annual health/fitness magazine compiled from articles and findings from customers and employees throughout the year

3. Buyout of Luon Fabric Manufacturing Luon fabric accounts for 30% of total fabric

used in products51. The fabric is sourced some a single supplier

in Southeast Asia, and should be bought-out to increase quality control and reduce costs.52

EFFICIENCY MARKET DEVELOPMENT

1. Corporate Social Responsibility Choose a local or international charity related

to health and fitness to donate 5% of proceeds to.

Market the campaign through social media and local store channels.

Launch a specific item that would be the product piece for this campaign, donating 20% of all profits from that item.

2. Product Quality Create a workforce department specifically

related to product quality testing and control. Apply Lean 6 Sigma quality control measures

to insure future success of products and prevent further recalls.

3. Expansion of Men’s Product Lines Men are an increasingly larger target market,

but their needs are different than just yoga pants.53

Lululemon should expand its product line to shoes, winter wear and sport specific gear (i.e. soccer, baseball, etc).

1. Professional Athletics Market Expand brand ambassadors to professional

athletes in more intense sports. Examples include professional surfers,

Olympians, track athletes, basketball players, etc.

Promotes growth outside of yoga market.

2. Expand Customer-Brand Interaction Run a design competition for a new product. Choose 10 winners for customer to vote

online. #1 winner works with design team to create the new product.

Roll out new product as “Designed by You.” This would help lululemon stay relevant

with new customer demands and desires.

3. Low-cost/Mass-market Sister Brand Develop a related sister brand, like

lululemon’s current ivivva brand, with limited product options, but cheaper prices.

Low-cost implementation strategies would capture low-income audience that usually avoids shopping at lululemon.

Core Competency Strategies

VRIO Analysis

Resource/Capability Rare Valuable Costly to Imitate

Exploits Opportunity

Multiple Markets?

Core Competency

Economic /competitive implications

Strength/ Weakness

Company Culture Y Y Y Y Y Y SCA S Corporate Owned Distribution Channels N Y Y Y Y Y TCA S

Customer Experience Y Y Y Y Y Y SCA S Global Expansion N Y Y Y Y Y TCA S

In-depth Staff Training and Culture Y Y Y Y Y Y SCA S Low Long-Term Liabilities Y Y Y Y Y Y SCA S Globally Recognized Brand N Y Y Y N N TCA S Targeting the Male Market N Y N Y Y N SCA S

Customer Loyalty Y Y Y Y N N SCA S Brand Popularity N Y N Y Y N CP S

Product Innovation N Y N Y Y N CP S Product Variety N Y N Y Y N CP S

Vendor Code of Ethics, CSR Y Y N N Y N CP S High Price Structure Y Y N Y Y N TCA S

Lack of Valuable Patents N N N N Y N CD W Weak Supplier Relationships N N N N Y N CD W

Poor Product Quality Y N N N Y N CD W Top Leadership Dysfunction Y N N N Y N CD W

High Shipping Costs N N N N Y N CD W Cost Structure’s Dependency on the

Economy Y Y N N Y N CP W

Excess Inventory Causing Markdowns N N N N Y N CD W 2013 Product Recall Y N N N N N CD W

CD: Competitive Disadvantage

SCA: Sustained Competitive Advantage

CP: Competitive Parity

TCA: Temporary Competitive Advantage

Financial Ratios

All Financial Data based on February 1st, 2015 numbers in lululemon athletica inc. 10k Report

Profitability

1. Return on (Average) Assets: Net Income/Average Total Assets: 239,689,684/ ((1296213000+ 1249688000)/2)54

239033000/1272950500

18.78%

2. Return on (Average) Equity (ROE% - Net): Net Income/Average Total Equity:

239033000/((1089568000+1,096,682,000)/2)

21.94%

3. ROI % (Operating): Operating Income/(Total Debt + Total Equity):

376,033,000 /(206,645,000 + 1,096,682,000)

29.01%

4. EBITDA Margin=EBIT + Depreciation & Amortization/Revenue:

383,135,000 +58,364,000/ 1797213000

24.57%

5. Gross Profit Margin= Revenue - Cost of Revenue/Revenue =

1797213000 - 883033000 / 1797213000

50.87%

6. Net Profit Margin=Net Income/Revenue =

239033000/1797213000

13.3%

Liquidity Ratio

1. Quick Ratio= Cash & Equivalents + Receivables/Current Liabilities =

664,479,000 + 13,746,000/159881000

4.242

2. Current Ratio= Current Assets/Current Liabilities =

951012000/159881000

5.948

Debt Management

3. Long-term Debt to Equity= Long-Term Debt/Total Shareholders Equity =

0/1089568000

Not Relevant

4. Total Debt to Equity= Total Liabilities/Total Shareholder’s Equity =

206645000/1089568000

0.19

5. Times Interest Earned=EBIT/Interest Expense =

383,135,000/14,000

27366.79 (Not Relevant)

Asset Management

6. Total (Average) Asset Turnover= Revenue/Total Average Assets =

1797213000/((1296213000+ 1249688000)/2)

1.412

7. (Average) Accounts Receivables Turnover=Revenue/Average Accounts Receivable =

1797213000/((13746000+11903000)/2)

140.14

8. Average Collection Period= 365/Average Accounts Receivable Turnover =

365/ 140.14 2.6045

9. (Average) Inventory Turnover=Cost of Sales/Average Inventory =

883033000/((208116000+186090000)/2)

4.48

10. (Average) Accounts Payable Turnover= Purchases/Average Accounts Payable

(18879000+83303300-208116000) / ((9339000+12647000)/2)

78.57

Financial/Capital Market Ratios

1. Stock Price:

January 30th, 2015: 66.2455

October 30th, 2015: 49.17

2. Earnings per Share: Net Income/Average Number of Outstanding Shares =

239033000/((141945000+145297000)/2)

February 1st, 2015: 239,033,000 / 132,120,000 = 1.809

3. Price Earnings Ratio: Price/Earnings per Share =

Historical: 66.24/1.809

36.16

TTM: 49.17/1.48

33.22

4. Cash flow per share: Operating Income/Shares Outstanding =

376,033,000/141945000

2.649

5. Dividend Yield: Cash Dividend per Share/Price per Share = 0

lululemon athletica inc. does not pay out dividends56

6. Free Cash Flow: Operating Cash Flow - Capital Expenditures =

314,449,000-119,733,000

194,716,000

7. Market Cap for 1/22/2016: Shares Outstanding*Current Market Price of One Share =

February 5th, 2016: 141945000*60.75

8,623,158,000

8. Enterprise Value: Market Cap + Total Debt – Cash =

8623158000 + 206645000 – 664479000 8,165,324,000

Summary of Internal Analysis Charts

To develop this internal analysis a SWOT analysis, Core Competence analysis and chart, a

VRIO analysis and the most recent financial ratios were compiled and evaluated.

While lululemon athletica may have had a bumpy recent history after a decade of award-

winning successes, its sustainable culture and financial acumen has steadied the course. Gross

profits margins are consistently higher than competitors at 50.87% compared to GAP and Nike with

38.3% and 45.97%, respectively.57 This consistency is a result of the intentional culture-building

within the corporate owned retail stores and communities. The grassroots efforts of brand

ambassadors and social media have kept the lululemon brand recognition strong. It attracted initial

audience through slogans such as, "elevating the world from mediocrity to greatness," but with the

changing times it may need to adapt to a more welcoming and all-inclusive marketing strategy.58

Lululemon has kept pace with new apparel technology with its Anti-stink Gear and Engineered

Sensation line.59 Financially, it consistently performs well in the fourth quarter, with 19% increases

revenues this year.60 Its 1.9 billion dollars in free cash flow and absence of long-term debt give it

leverage and leeway to further invest.61

Even though lululemon’s high cost structure may increase revenues, its power proves to be

waning with the influx of cheaper competition. Brands like Athleta, Nike, Under Armour and

Reebok sell similar style yoga pants for $30-$50 cheaper.62 High shipping costs that result from

poor inventory management and third party manufacturing hurt profits.63 Multiple product recalls

that occurred within the last three years have damaged customer trust and image as a luxury

brand.64 There is a lack of management and structural support to insure product quality and supply

chain efficiency. With the rapid growth of the company through its first 10 years, built-in

technology and structure is insufficient for a company of its current size.65 Some of these issues

stem from top management conflict and changes that occurred when Chip Wilson, the founder, and

the Board Chairman resigned, as well as CEO, Christina Day.66 Lululemon has begun efforts to clean

up its management and product line, but more strategies should be enacted to expedite this

process.

Current market trends reveal an increase in spending from the male 18-34 age range for

specialty activewear.67 This presents an opportunity to expand product line further into male

markets, beyond the current cycling, running and yoga. Health club membership is at an all-time

high, with new types of fitness gyms starting on a regular basis.68 These locations all fall into

mission-alignment with lululemon’s active manifesto. With this surplus of new unique workouts,

lululemon has an opportunity to strengthen its partnerships with such fitness studios, while

increasing its market recognition and offering a unique service to its customers. Consumer demand

for “athleisure” is consistently growing, and more brands are joining in on this market

opportunity.69

Cost of labor in regions of Southeast Asia and other parts of Asia is increasing, which will

lead to increased cost of goods sold.70 In order to account for this increase in costs, lululemon

should acquire its own manufacturing to reduce third party fees and difficulties. The continued rise

of obesity poses a threat towards activewear retailers, like lululemon, because these individuals are

significantly less likely to purchase any type of fitness wear, especially a specialty brand.71 The

wealth effect for the future of retail in the United States should also be a concern, as disposable

income is expected to decrease consistently over the next ten years.72 Lululemon needs to continue

to create value for its loyal customers as their income decreases and reach new markets as

competition increases.

Strategic Recommendations

Lululemon should implement an extension strategy through the creation of multi-site

fitness club membership for loyal customers to mission-aligned studios in their communities. This

type of unique service is new to the industry of health and fitness clubs. Traditionally, a user will

commit to one individual gym, but with the influx of new fitness techniques such as cycling, pilates,

Barre, Zumba and Crossfit, there are more options and diversification within the market.73 This

strategy would appeal to lululemon’s current target market of active young adults and fitness gurus.

It would also expand into greater partnerships with local studios who may begin to sell lululemon

products. Gymfinite and Class Pass are two options currently available to fitness club users that

offer this “multi-site” membership, but their brand recognition is weak, especially in regions

outside of Colorado.74 Lululemon would differentiate itself by leveraging customer loyalty and

company culture to create partnerships with local studios and provide savings for its customers.

12% of consumers are currently use a similar service, and an additional 30% would be interested in

joining.75 The additional costs incurred as a result of this strategy implementation would be low,

considering there is not a physical product being sold. Additional staff would be hired to manage

studio relationships and some additional technology would be required to advertise, and explain

these services. Lululemon should offer this premium service to its loyal customer of providing a

membership to a variety of studios in the area, while allocating a percentage of the cost to studios

and retaining the rest as a new source of income.

Lululemon should acquire the manufacturing plant of its Luon fabric in Southeast Asia as

part of a recombination strategy. Lululemon’s patented “Full on Luon” is a specific blend of 81%

nylon and 19% Lycra.76 This fabric accounts for 30% of all of lululemon’s products and a key part of

the cost of goods sold.77 As reported in its 10k report, the supply chain from Southeast Asia

presents growing concerns of increased labor costs and third party fees, which could cause

disruption in the supply of products.78 Most competitors such as Nike, Gap and Under Armour do

not own their own manufacturing plants, but more conscious brands such as Patagonia, and

Columbia Sportswear do.79 Lululemon would differentiate itself by a higher commitment to social

responsibility and more control of its quality control. Lululemon currently has strong relationships

with its current manufacturers, but has no long-term contracts.80 Using these relationships

lululemon would present a strategy of buyout to one of its main manufacturers, to make it a sole

manufacturer of the Luon fabric. Using lululemon’s lack of long-term debt and surplus of free cash

flow, this acquisition would be a feasible and economic move in the long-term for decreasing costs

and increasing product quality.81

Lululemon should enact an efficiency strategy by expanding its men’s product lines to

include sports-specific gear. While lululemon has already made incredible leaps in the men’s

apparel, its market share is much lower than competitors such as Nike and Under Armour. One

reason is due to lululemon’s lack of sport specific clothing for men.82 Sports-inspired apparel is

expected to rise in value for the next 5 years as the popularity of technical apparel convinces

consumer to purchase more.83 This expansion will target the mass male market, rather than simply

the yoga/fitness male market that lululemon is currently reaching into. Lululemon would utilize its

current product innovation team and even leverage its current CEO’s background in snowboarding

to reach this new audience.84 Lululemon’s unique customer experience stems from its engaged and

motivated staff that spends time to meet each customer’s needs.85 Customization is important in the

athletic industry and lululemon staff offers free tailoring for any pants and advice beyond what

color to purchase. It would be beneficial for lululemon to roll out each product line separately to

give each sport the marketing attention required for success. Men are more likely than women to

purchase fitness or sports related clothing, especially specialty sports related gear.86 This market,

though heavily sought after by many brands, offers a sustainable arena for market growth for

lululemon.

Lululemon should expand its Ambassador program to specifically target professional

athletes as part of a market development strategy. This strategy employs one of lululemon’s

greatest core competencies, its grassroots brand awareness, combined with expansion into a new

arena of mainstream athletics. This market development strategy goes hand in hand with the

efficiency strategy of expanding the men’s product lines. While most professional athletes are used

to being brand ambassadors for sports-specific clothing, lululemon offers casual fitness wear as

well for individuals to advertise. Successful advertising in the sportswear industry appeals to a

“young, active demographic, inviting them to engage in a range of sports and equate their own goals

with those of top athletes.”87 A key differentiator for lululemon will be the use of social media

within this strategy, because 35% of all lululemon customers visited a social media site before

purchasing and 33% purchased a product while they were visiting a social media site.88 Most

importantly, 37% of all male customers use social media before purchasing.89 Lululemon has the

ability to leverage its own 1.2 million Instagram followers and 1.4 million likes on Facebook to add

new famous faces to its brand. Acquiring celebrity endorsement from professional soccer players,

basketball players and even tennis players will extend brand awareness into those sectors and

prove that lululemon is more than just a yoga brand.

1 "lululemon athletica inc. 2015 10k Report," Mergent Online, February 2014, Accessed January 2016. 2 Beth Kowitt, and Colleen Leahey, "LULULEMON: In an Uncomfortable Position," Fortune Magazine (via

EbscoHost), September 2013, Accessed February 2016. 3 Stephanie Clifford, "Recall is Expensive Setback for Maker of Yoga Pants, " The New York Times, March 2013,

Accessed February 2016, http://www.nytimes.com/2013/03/22/business/

lululemon-says-yoga-pants-mishap-will-be-costly.html?_r=0. 4 Hiroko Tabuchi, "Business Briefing; Lululemon Recalls Drawstrings in 318,000 Hoodies and Tops," The New

York Times (via LexisNexis), June 2015, Accessed February 2016. 5 Phalguni Soni, "Lululemon Attempts To Reinvigorate Its Interrupted Growth Model," Market Realist,

December 2014, Accessed January 2016, http://marketrealist.com/2014/12/lululemon-attempts-reinvigorate-interrupted-growth-model/.

6 "lululemon athletica inc. 2015 10k Report," op. cit., pg. 21 7 "Market Driver - Fitness Clothing," Mintel, October 2014, Accessed January 2016. 8 "Lululemon sets pace in women's activewear," The Star Phoenix (via LexisNexis), January 2011, Accessed

February 2016. 9 "lululemon athletica inc. 2015 10k Report," Mergent Online, February 2015, Accessed January 2016. 10 Ibid. 11 "SWOT Analysis," GlobalData Ltd. (via LexisNexis Academic), January 2016, Accessed January 2016. 12 lululemon athletica inc., "what's new for women," http://shop.lululemon.com/?, Accessed February 2016. 13 Ibid. 14 "lululemon athletica inc. 2015 10k Report," op. cit. pg. 2 15 Ibid. 16 Ibid. 17 Beth Kowitt, and Colleen Leahey, "LULULEMON: In an Uncomfortable Position," Fortune Magazine (via

EbscoHost), September 2013, Accessed February 2016. 18 Phalguni Soni, "Lululemon Attempts To Reinvigorate Its Interrupted Growth Model," Market Realist, December

2014, Accessed January 2016, http://marketrealist.com/2014/12/lululemon-attempts-reinvigorate-interrupted-growth-model/.

19 Joseph Teklits, and Caitlin Morahan, "lululemon athletica inc. Updates Guidance for Fourth Quarter of Fiscal

2015 Ahead of Presentation at the ICR Conference," Business Wire, January 2016, Accessed February

2016, http://www.businesswire.com/news/home/20160111006491/en/. 20 "lululemon athletica inc. 2015 10k Report," op. cit. 21 Ibid. 22 "In-depth Records, 2016, Lululemon Athletica Canada Inc.," Hoover's Company Records (via LexisNexis

Academic), January 2016, Accessed January 2016. 23 Ibid. 24 Beth Kowitt, op. cit. 25 Marina Strauss, "Lululemon Athletica cuts full-year outlook," The Globe and Mail (via LexisNexis Academic),

December 2015, Accessed January 2016. 26 "lululemon athletica inc. 2015 10k Report," op. cit. pg. 21 27 "lululemon athletica inc. 2015 10k Report," op. cit. pg. 6 28 Marina Strauss, op. cit. 29 Emily Potts, "Lululemon Revamps Product Range and Pricing," Passport, October 2015, Accessed January 2016. 30 Ibid. 31 "lululemon athletica inc. 2015 10k Report," op. cit. pg. 9 32 Beth Kowitt, op. cit. 33 "Special Report: The Challenges and Prospects of a Seven Billion Global Population," Passport, November 2011,

Accessed February 2016. 34 "Market Driver - Fitness Clothing,"Mintel, October 2014, Accessed January 2016. 35 Ibid.

36 “Market Drivers – Fitness Clothing,” op. cit. pg. 7 37 “Market Drivers – Fitness Clothing,” op. cit. pg. 9 38 Ibid. 39 "Young Women's Health: Global Attitude towards Health, Fitness and Wellbeing among the under 30s and

Market Impact," Passport, September 2015, pg. 7, Accessed January 2016. 40 Ibid. pg. 77 41 Ibid. pg. 24 42 "SWOT Analysis," op. cit. 43 “Market Drivers – Fitness Clothing” op. cit. pg. 6 44 Ibid. 45 "lululemon athletica inc. 2015 10k Report," op. cit. pg. 7 46 Ibid. pg. 9 47 Phalguni Soni, op. cit. 48 "INCOME AND EXPENDITURE: USA," Passport, March 2015, Accessed February 2016. 49 Connor J. Laughlin, "7 of the Best Customer Loyalty Programs and How You Can Use Them," Brad's Deals, July

2015, Accessed February 2016, http://www.bradsdeals.com/blog/get-rewarded-for-your-loyalty-the-best-customer-loyalty-programs-their-benefits.

50 Rebecca Adams, "How 'Fat Talk' Became A Social Epidemic -- And How You Can Stop It," Huffington Post, May

2014, Accessed February 2016, http://www.huffingtonpost.com/2014/05/27/fat-talk-

women_n_5331507.html. 51 Phalguni Soni, "Lululemon Attempts To Reinvigorate Its Interrupted Growth Model," Market Realist, December

2014, Accessed January 2016, http://marketrealist.com/2014/12/lululemon-attempts-reinvigorate-

interrupted-growth-model/. 52 Ibid. 53 "Market Driver - Fitness Clothing," Mintel, October 2014, Accessed January 2016. 54 "lululemon athletica inc. 2015 10k Report," Mergent Online,. February 2015, Accessed January 2016. 55 "Lululemon Athletica Inc. Historical Prices," Yahoo Finance, January 2015, Accessed January 2016,

http://finance.yahoo.com/q/hp?s=LULU&a=00&b=15&c=2015&d=00&e=29&f=2016&g=d&z=66&y=198. 56 "lululemon athletica inc. 2015 10k Report," op. cit.

57 Phalguni Soni, "Analyzing Lululemon Athletica’s Market-Moving Fiscal 2015 Results," Market Realist, April

2015, Accessed February 2016, http://marketrealist.com/2015/04/analyzing-lululemon-athleticas-

market-moving-fiscal-2015-results/. 58 "lululemon athletica inc. 2015 10k Report," Mergent Online,. February 2015, Accessed January 2016. 59 lululemon athletica inc., "anti-stink gear," http://shop.lululemon.com/products/category/women-anti-

stink?mnid=mn;USwomen;features;womensantistink, Accessed February 2016. 60 Joseph Teklits, and Caitlin Morahan, "lululemon athletica inc. Updates Guidance for Fourth Quarter of Fiscal

2015 Ahead of Presentation at the ICR Conference," Business Wire, January 2016, Accessed February 2016, http://www.businesswire.com/news/home/20160111006491/en/.

61 "lululemon athletica inc. 2015 10k Report," op. cit. 62 Hayley Peterson, "Lululemon's Pants Aren't Worth That Much More Than Competition," Business Insider.

September 2014, Accessed January 2016, http://www.businessinsider.com/why-lululemons-pants-

are-so-expensive-2014-9. 63 Marina Strauss, "Lululemon Athletica cuts full-year outlook," The Globe and Mail (via LexisNexis Academic),

December 2015, Accessed January 2016. 64 Hayley Peterson, op. cit. 65 Beth Kowitt, and Colleen Leahey, "LULULEMON: In an Uncomfortable Position," Fortune Magazine (via

EbscoHost), September 2013, Accessed February 2016. 66 "In-depth Records, 2016, Lululemon Athletica Canada Inc.," Hoover's Company Records (via LexisNexis

Academic), January 2016, Accessed January 2016. 67 "Market Driver - Fitness Clothing," Mintel, October 2014, Accessed January 2016.

68 Ibid. pg. 9 69 "Young Women's Health: Global Attitude towards Health, Fitness and Wellbeing among the under 30s and

Market Impact," Passport, September 2015, pg. 7, Accessed January 2016. 70 "lululemon athletica inc. 2015 10k Report," op. cit. pg. 9 71 “Market Drivers – Fitness Clothing” op. cit. pg. 6 72 "INCOME AND EXPENDITURE: USA," Passport, March 2015, Accessed February 2016. 73 "Health and Fitness Clubs – US," Mintel, June 2013, Accessed February 2016. 74 Gymfinite, "Our Story," https://gymfinite.com/about, Accessed February 2016. 75 "Fitness and Health Club Memberships - US," Mintel, November 2015, Accessed February 2016. 76 Hayley Peterson, op. cit. 77 Phalguni Soni, "Lululemon Attempts To Reinvigorate Its Interrupted Growth Model," Market Realist, December

2014, Accessed January 2016, http://marketrealist.com/2014/12/lululemon-attempts-reinvigorate-interrupted-growth-model/.

78 "lululemon athletica inc. 2015 10k Report," op. cit. pg. 5 79 Nick English, "The 14 Athletic Wear Companies That Are Actually Good for the World," Greatist. December 2013,

Accessed February 2016, http://greatist.com/fitness/athletic-wear-companies-social-good. 80 "lululemon athletica inc. 2015 10k Report," op. cit. pg. 5 81 Ibid. 82 "Sportswear in the US," Passport, May 2015, Accessed February 2016. 83 Ibid. 84 lululemon athletica inc., "management & board of directors,"

http://investor.lululemon.com/management.cfm, Accessed February 2016. 85 Jonathan Stoller, "Engaged staff deliver high ROI for Lululemon," The Globe and Mail (via LexisNexis),

November 2012, Accessed February 2016. 86 "Sportswear in the US," op. cit. 87 "Fitness Clothing - US - Marketing Strategies,"Mintel, October 2014, Accessed February 2016. 88 "Fitness Clothing - US - Appendix - Social Media," Mintel, October 2014. Accessed February 2016. 89 Ibid.

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