Tuesday, June 9, 2015

2015 Q1 Conference Call Highlights

Today was the conference call for the end of the first fiscal quarter in 2015. Here are the more interesting highlights. I won't go too much into the financial stuff since all I really care about is the product.

They did well this quarter, though - 6% growth and a 31% increase in e-commerce. A sharp analyst asked whether the uptick in e-commerce was due to weather (the northeast got hammered with snow this winter) and the website having a better product selection than the stores due to the port issues. The CFO said those two points were indeed factors and Potdevin also pointed out in the Q&A that the store backroom app (where eds use their ipod thingies to order for you from the warehouse) also fed into this number.

  • The second half of the year should see a return to normal as to inventory and product flow (i.e., the ports issue backup will have dissipated by then).
  • First quarter ended with elevated inventory - that means nice markdown racks and WMTM for us. They are planning an on-line warehouse sale in Q2 of the leftover holiday merch but I hope there is more.
  • They are gong to re-launch the Pants Wall in Q3. I assume the Inspires being moved to on-line only is part of this. One of my eds was surprised to hear the Pace Rival is slotted to replace the Inspires. She said the Inspires are a best seller. On a tangential topic, she was asking what people thought of the replacement of the 105F with the What the Sport since people are asking for the 105F and the WTS are just filling the tank wall. The 105F/What the Sport is another SRB/CRB situation. I hope the 105F makes a comeback. People like the favorites for a reason.
  • RE: the tank line - they are introducing higher support constructions, more diverse coverage options [Yay!], and a wider selection of fits. Halle-freaking-lujah! The thing that really hooked me into lululemon was their great tank selection and to see it decimated over the past few years killed me. The tank wall is set to be re-launched in the first half of 2016.  I have to say I am optimistic given the new tanks that have shown up so far - the Amala, Wrap It Up, Inspiration Tank, Ace Tank, Scoop Back Tank, and Straight Up tanks - to name a few. Granted, a lot of the new tanks are on the short side so they have to fix that but I love the return of tanks made of full weight luon and other technical fabrics, more complex designs, and with a diversity of styling. 
  • They are re-designing the website and phase 1 will occur before the end of the year. It's supposed to have better product story telling and targeted product recommendations so I assume it's going to become more sophisticated like the Lucy or Athleta sites.
  • In the Q&A, an analyst asked about the men's line and whether there will be more standalone men's stores and Potdevin's response was amusing: "...the one format we're most excited about right now is the expanded store where both men's and women's are co-located as our female guests shops a lot for him. I mean he does - our male guest does have a lot more permission [lol, is this a translation misspeak?] to come into the lululemon collective, but she still shops a lot for him. So the expanded format - the co-located format is the one that we're seeing tremendous results with." I've written before that my husband has no problem shopping at lululemon since there are often lots of nice looking women in tight stretchy clothes shopping and working there. I honestly think it's a pain in the ass to have two different stores if we're both out shopping together. It's not like the guy's stuff is jammed in a dark back corner and they have to wade through aisles of bras and panties to find it, it's always been right up front with the ladies. The dressing rooms are all together in the back in most stores but I can't see that being a deterrent to most men.
  • Tara Posley (the Chief Product Officer), when asked about swim, seemed to indicate they've heard our response to the cheekiness of the bottoms and lack of coverage on the tops: "We have more opportunity to add additional coverage...offerings in swim, so we've had some good learning in the spring...we could see more upside and opportunity as we move into designing next year for 2016."
  • Potdevin closed his remarks by saying they have shifted from playing defense to playing offense, to which I say, Game On! Let's see what you've got, we've been waiting.

Pistachio/Black Swiftly SS, Poseidon Pleat to Street Skirt, and More

lululemon-pleat-to-street-skirt poseidon

lululemon-om pant



Floral Back Drop Multi Om Pants, Net Pop Inspire Crops, and More

Lululemon–om–pant om-SS–tee


Lululemon–om–pant yoga–flow–LS



Lululemon–wunder–under–floral-backdrop-Pant Iris–Flower–Swiftly-tank

Lululemon–wunder–under–floral-backdrop-Pant Wrap-it-up-tank

Lululemon–wunder–under–floral-backdrop-Pant Wrap-it-up-tank
Floral Sport Multi Wunder Under Pant. Shown with the Iris Flower Swiftly Tank and Black Wrap It Up Tank.

Lululemon–run –for–gold–tank net–pop–Inspire Crop

Lululemon net–pop–Inspire Crop


Lululemon–run –for–gold–tank true-self-crop

Lululemon–run–for–gold–tank gator






Lululemon–dancing-warrior-slate true-self-bleacher-stripe

Lululemon dancing-warrior-slate true-self-bleacher-stripe

Lululemon–dancing-warrior-slate true-self-bleacher-stripe

Heathered Slate Dancing Warrior Tank with True Self Crops. This Dancing Warrior looks fantastic on this woman - she is totally selling me on it.


Lululemon– true-self-bleacher-stripe
Calf detail on the True Self Crops.

Lululemon–summer-lovin-tote floral-backdrop

Lululemon–refresh-max blue-stripe

Lululemon–refresh-max black-cherry

Lululemon–refresh-max black-white-stripe

Lululemon–refresh-max black-white-stripe
Refresh Maxi Dresses

Australian Spoilers

Lululemon-scuba-Space dye-twist-Iris-flower
Not a ton of new items on the Australian upload. Very pretty Space Dye Twist Iris Flower Scuba.

Lululemon-ebb-to-street-pant gator

Lululemon-ebb-to-street-pant gator
Gator Green Ebb To Street Pants

Net Pop Black All Sport Crop

Navel Blue Ta Ta Tamer

Grapefruit Tuck In LS - this isn't new but the write up calls the material luon.  I definitely want to try this one.


Upload! Get it here.


After looking at the cute stuff the foreign sites got, our upload was a bit disappointing. Canada got the Pistachio Cool Racerback, though.  Update - it's gone already! Also shown is a new Net Pop CRB.




The US got three new colors in the Runbeam Hoodie - Lullaby, Texture Twist, and Black. The Lullaby is tempting, though the black is always useful. 



The US got the Wrap It Up Tank. I've heard this can be a little difficult to get on and off, on the order of a Power Y. I ordered the Black version.

lululemon-true-self-crop black-white

lululemon-true-self-crop multi
The US got all four colors in the new True Self Crops. Canada just got the Black and White Bleacher version.

lululemon-true-self-bra black-white

lululemon-true-self-bra grapefruit

lululemon-true-self-multi bra

The US got the Pistachio/Black Swiftly SS. I want to see this in the store.

lululemon-floral-backdrop wunder-udner-crop


The US got the funky new Happy Strappy Long Line Bra.



lululemon-yoga-flow-ls black-cherry

New burnout Yoga Flow LS top. It also comes in White and Black.

lululemon-dancing-warrior bleacher

lululemon-dancing-warrior slate
The US got new colors in the Dancing Warrior. I am really tempted by the Bleacher Stripe one but I still haven't taken the tags off the Jeweled Magenta DW I ordered a couple of weeks ago. I'll wait to see this in the store.

lululemon-liberty-short bleacher

lululemon-liberty-short grapefruit

lululemon-gingham free-to-be-wild-bra

lululemon-gingham free-to-be-wild-bra



lululemon-superb-ss blush-quartz

lululemon-superb-ss denim-blue

lululemon-pleat-to-street-skirt poseidon

The US finally got new colors in the Pleat to Street Skirts.

The US got new colors in the Crossback Tank.


lululemon-om-pant jazzy

lululemon-silver-fox swiftly-ls

Canada got a very pretty Heathered Silver Fox LS Swiftly

Cute Party Om Bag in Floral Backdrop.

lululemon-race-to-win-hat floral-backdrop
The US got the Floral Backdrop Race to Win Hat. This is super tempting to me but I'm waiting to see it in the store.





lululemon-seamlessly-street iris-flower

Just the Wrap It Up tank for me. Did you get anything today?