Lululemon Athletica Inc. Provides Update on COVID-19 Employee Support Plan
April 02 2020 - 4:10PM
Business Wire
lululemon athletica inc. (NASDAQ:LULU) today detailed a range of
actions and initiatives to support its employees as COVID-19
continues to impact the business. The company is committed to
supporting its people while continuing to invest in its Power of
Three growth strategy.
Understanding the COVID-19 pandemic may continue for the
foreseeable future, stores in North America, Europe, Malaysia,
Australia, and New Zealand will remain closed until they can safely
reopen. In addition, the company has made the decision to continue
pay protection for its employees through June 1, whether stores
reopen or remain closed.
“At lululemon, our people are our top priority. These decisions
enable us to support our teams and immediate business priorities,
while balancing what is required to plan for the recovery and
growth to follow,” said Calvin McDonald, Chief Executive Officer.
“We’re making the right commitments now as we navigate what’s ahead
for the future.”
In addition, for the next three months, the company’s Senior
Leadership Team will reduce their salaries by 20 percent, and the
Board of Directors will forgo their cash retainer. These funds will
go towards the newly-established We Stand Together Fund to help
lululemon employees facing COVID-19 related hardships at this
time.
These measures are in addition to the previously announced
actions at lululemon, including actively managing the company’s
expense structure, capital investment, and store opening and
remodel projects. The company has also made the decision to
temporarily pause its share repurchase program.
lululemon’s website and mobile app remain operational across all
regions. The company will continue to monitor the evolving COVID-19
situation and provide additional updates as necessary.
About lululemon athletica inc. lululemon athletica inc.
(NASDAQ:LULU) is a healthy lifestyle inspired athletic apparel
company for yoga, running, training, and most other sweaty
pursuits, creating transformational products and experiences which
enable people to live a life they love. Setting the bar in
technical fabrics and functional designs, lululemon works with
yogis and athletes in local communities for continuous research and
product feedback. For more information, visit
WWW.LULULEMON.COM.
Forward-Looking Statements: This press release includes
estimates, projections, statements relating to our business plans,
objectives, and expected operating results that are
"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. In many cases, you can identify forward-looking
statements by terms such as "may," "will," "should," "expects,"
"plans," "anticipates," "outlook," "believes," "intends,"
"estimates," "predicts," "potential" or the negative of these terms
or other comparable terminology. These forward-looking statements
also include our guidance and outlook statements. These statements
are based on management's current expectations but they involve a
number of risks and uncertainties. Actual results and the timing of
events could differ materially from those anticipated in the
forward-looking statements as a result of risks and uncertainties,
which include, without limitation: our ability to maintain the
value and reputation of our brand; the acceptability of our
products to our guests; the recent COVID-19 coronavirus outbreak
and related government, private sector, and individual consumer
responsive actions; our highly competitive market and increasing
competition; our reliance on and limited control over third-party
suppliers to provide fabrics for and to produce our products;
suppliers or manufacturers not complying with our Vendor Code of
Ethics or applicable laws; the operations of many of our suppliers
are subject to international and other risks; an economic downturn
or economic uncertainty in our key markets; increasing product
costs and decreasing selling prices; our ability to anticipate
consumer preferences and successfully develop and introduce new,
innovative and updated products; our ability to accurately forecast
guest demand for our products; our ability to safeguard against
security breaches with respect to our information technology
systems; any material disruption of our information systems; our
ability to have technology-based systems function effectively and
grow our e-commerce business globally; changes in consumer shopping
preferences and shifts in distribution channels; the fluctuating
costs of raw materials; our ability to expand internationally in
light of our limited operating experience and limited brand
recognition in new international markets; global economic and
political conditions and global events such as health pandemics;
our ability to deliver our products to the market and to meet guest
expectations if we have problems with our distribution system;
imitation by our competitors; our ability to protect our
intellectual property rights; our ability to source and sell our
merchandise profitably or at all if new trade restrictions are
imposed or existing trade restrictions become more burdensome;
changes in tax laws or unanticipated tax liabilities; our ability
to manage our growth and the increased complexity of our business
effectively; our ability to cancel store leases if an existing or
new store is not profitable; increasing labor costs and other
factors associated with the production of our products in South and
South East Asia; our ability to successfully open new store
locations in a timely manner; our ability to comply with trade and
other regulations; the service of our senior management;
seasonality; fluctuations in foreign currency exchange rates;
conflicting trademarks and the prevention of sale of certain
products; our exposure to various types of litigation; actions of
activist stockholders; anti-takeover provisions in our certificate
of incorporation and bylaws; and other risks and uncertainties set
out in filings made from time to time with the United States
Securities and Exchange Commission and available at WWW.SEC.GOV,
including, without limitation, our most recent reports on Form 10-K
and Form 10-Q. You are urged to consider these factors carefully in
evaluating the forward-looking statements contained herein and are
cautioned not to place undue reliance on such forward-looking
statements, which are qualified in their entirety by these
cautionary statements. The forward-looking statements made herein
speak only as of the date of this press release and we undertake no
obligation to publicly update such forward-looking statements to
reflect subsequent events or circumstances, except as may be
required by law.
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version on businesswire.com: https://www.businesswire.com/news/home/20200402005765/en/
Investors: lululemon athletica inc. Howard Tubin
1-604-732-6124 or ICR, Inc. Joseph Teklits/Caitlin Churchill
1-203-682-8200
Media: lululemon athletica inc. Erin Hankinson
1-604-732-6124 or Brunswick Group Eleanor French 1-415-671-7676
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