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Lululemon Athletica Inc   (LULU)
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Lululemon Athletica Inc

Business Segments Description





We primarily conduct our business through two channels: company-operated stores and direct to consumer.
We also generate net revenue from our outlets, showrooms, sales to wholesale accounts, warehouse sales, sales from temporary locations, and license and supply arrangements. The net revenue we generate from these sources is combined in our other segment.


Outlets and warehouse sales - We utilize outlets as well as warehouse sales, which are held from time to time, to sell slow moving inventory and inventory from prior seasons to retail customers at discounted prices.

Showrooms - Our showrooms are typically small locations that we open when we enter new markets and feature a limited selection of our product offering.

Wholesale - Our wholesale accounts include premium yoga studios, health clubs, and fitness centers. We believe these premium wholesale locations offer an alternative distribution channel that is convenient for our core consumer and enhances the image of our brand. We do not intend wholesale to be a significant contributor to overall sales. Instead, we use the channel to build brand awareness, especially in new markets, including those outside of North America.

Temporary locations - Our temporary locations are typically opened for a short period of time in markets in which we may not already have a presence.

License and supply arrangements - We enter into license and supply arrangements from time to time when we believe that it will be to our advantage to partner with companies and individuals with significant experience and proven success in certain target markets.

   

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