lululemon athletica
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| Type | Public (TSX: LLL NASDAQ: LULU) |
|---|---|
| Founded | 1998 |
| Founder(s) | Chip Wilson |
| Headquarters | Vancouver, BC, Canada |
| Area served | Canada, United States, Australia, Japan |
| Key people | Christine Day - CEO |
| Industry | Clothing |
| Products | Clothing |
| Operating income | ▲ CDN$-80.0 million (2006)[1] |
| Employees | 1700[2] |
| Divisions | lululemon athletica OQOQO |
| Website | www.lululemon.com |
lululemon athletica inc. (TSX: LLL, NASDAQ: LULU) (pronounced /ˌluːluːˈlɛmən/, with the last two syllables pronounced like "lemon") — self-described as a yoga-inspired athletic apparel company — produces a clothing line and runs international clothing-stores from its company base in Vancouver, British Columbia, Canada.
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[edit] Company history
Dennis "Chip" Wilson founded lululemon athletica (usually referred to simply as "lululemon", "lulu") in 1998 in response to increased female participation in sports and in accordance with his belief in yoga as the optimal way to maintain athletic excellence into an advanced age. Wilson had previously made a foray into the sportswear business by setting up Westbeach Sports in 1979.
Wilson opened the first lululemon store in the Vancouver neighbourhood of Kitsilano: it included a design-studio/retail-store. It also shared space with a fledgling yoga-studio. As of August 2008, there were 40 lululemon athletica stores across Canada, 38 stores and showrooms in the United States and seven stores and showrooms in Australia. The company continues to expand: it expects to open approximately 60 locations across Canada and the United States over the next[update] two years.
Lululemon has a subsidiary company called OQOQO which focuses on clothing made from sustainable fabrics. OQOQO has a flagship store located in Vancouver and some OQOQO pieces are carried in lululemon stores across Canada and the US.
In 2005, Advent International (partnered with Highland Capital Partners), a U.S. private equity firm, bought a 48% minority interest in lululemon for a reported CAD $225 million, and former Reebok chief executive officer Robert Meers became the new lululemon CEO. Wilson, the founder, now has 42% ownership, with retail-staff owning 10% in stocks and shares. The company formed a partnership with Descente of Japan, to oversee lululemon's Japanese operations. However in mid 2008, lululemon closed its Japanese operations (three stores) to focus on the North American market.
lululemon athletica announced an initial public offering in May 2007 and became a public company on July 27, 2007. Chip Wilson rang the opening bell on the Nasdaq exchange in the United States that day [3].
The Retail Council of Canada recognized the company as the 2003 Innovative Retailer of the Year in its "small store" classification.[4]
[edit] Corporate philosophy and practices
lululemon has its main factory in Vancouver, British Columbia, Canada. In 2004 production expanded outside Canada and currently[update] takes place in factories in the United States, China, Israel, Taiwan, India, Thailand, Peru and Indonesia.
lululemon athletica offers free yoga-classes, health-benefits and growth-opportunities, etc., to its employees. Controversially,[5] the company also pays for management-staff — and other employees who have worked for the company for over a year — to attend the Landmark Forum.
[edit] Vitasea fabric controversy
In November 2007 The New York Times reported that it had commissioned laboratory-tests that failed to find significant differences in mineral-levels between cotton T-shirts and the fabric Vitasea, used by lululemon in some of its clothing-lines[6].
Following the publication of the NY Times article, lululemon commissioned a rush laboratory-test that it claimed confirmed the seaweed-content of its Vitasea line.[7]
Lululemon subsequently agreed to remove all health claims from its seaweed-based products marketed in Canada, following a request from the Competition Bureau of Canada. [8]
[edit] Footnotes
- ^ http://www.vef.org/presentations/KOPKEVEFPresentation28feb2006.pdf
- ^ lululemon athletica | about us | FAQ
- ^ "Dennis "Chip" Wilson, founder of Lululemon Athletica, presides over the opening bell". Nasdaq. http://www.nasdaq.com/reference/200707/market_open_072707.stm. Retrieved on 2007-07-29.
- ^ "Innovative Retailer of the Year". Retail Council of Canada. http://www.retailcouncil.org/awards/rcc/innovative/. Retrieved on 2006-08-15. Link inaccessible as of 2007-09-13.
- ^ CNW Group | CHATELAINE | Murder in Mexico: Chatelaine exclusive
- ^ "Seaweed Clothing Has None, Tests Show". New York Times. http://www.nytimes.com/2007/11/14/business/14seaweed.html. Retrieved on 2007-11-14.
- ^ "Lululemon Atheletica Confirms VitaSea Fabric Contents and Testing Process". lululemon Atheltica Corporation. http://www.lululemon.com/about/media/news/74. Retrieved on 2007-11-17.
- ^ "Lululemon VitaSea Clothing: Competition Bureau Takes Action to Ensure Unsubstantiated Claims Removed from Lululemon Clothing". Government of Canada. http://www.competitionbureau.gc.ca/internet/index.cfm?itemID=2517&lg=e. Retrieved on 2007-11-16.
[edit] External links
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