Lululemon Athletica (LULU) 10-Q 31 Aug 17 2017 Q2 Quarterly report Financial data

Document and Entity Information

Document and Entity Information - shares	6 Months Ended
	Jul. 30, 2017	Aug. 28, 2017
Document Document And Entity Information [Abstract]
Document Type	10-Q
Amendment Flag	false
Document Period End Date	Jul. 30, 2017
Document Fiscal Year Focus	2,017
Document Fiscal Period Focus	Q2
Trading Symbol	LULU
Entity Registrant Name	lululemon athletica inc.
Entity Central Index Key	1,397,187
Current Fiscal Year End Date	--01-28
Entity Filer Category	Large Accelerated Filer
Entity Common Stock, Shares Outstanding		125,601,122

CONSOLIDATED BALANCE SHEETS

CONSOLIDATED BALANCE SHEETS - USD ($) $ in Thousands	Jul. 30, 2017	Jan. 29, 2017
Current assets
Cash and cash equivalents	$ 721,212	$ 734,846
Accounts receivable	15,873	9,200
Inventories	316,368	298,432
Prepaid and receivable income taxes	66,161	81,190
Other prepaid expenses and other current assets	51,408	39,069
Total current assets	1,171,022	1,162,737
Property and equipment, net	426,961	423,499
Goodwill and intangible assets, net	24,749	24,557
Deferred income tax assets	40,016	26,256
Other non-current assets	24,175	20,492
Total assets	1,686,923	1,657,541
Current liabilities
Accounts payable	19,049	24,846
Accrued inventory liabilities	21,292	8,601
Accrued compensation and related expenses	47,920	55,238
Income taxes payable	6,519	30,290
Unredeemed gift card liability	56,170	70,454
Other current liabilities	73,341	52,561
Total current liabilities	224,291	241,990
Deferred income tax liabilities	7,668	7,262
Other non-current liabilities	57,155	48,316
Total liabilities	289,114	297,568
Stockholders' equity
Undesignated preferred stock, $0.01 par value: 5,000 shares authorized; none issued and outstanding	0	0
Exchangeable stock, no par value: 60,000 shares authorized; 9,781 and 9,781 issued and outstanding	0	0
Special voting stock, $0.000005 par value: 60,000 shares authorized; 9,781 and 9,781 issued and outstanding	0	0
Common stock, $0.005 par value: 400,000 shares authorized; 125,697 and 127,304 issued and outstanding	628	637
Additional paid-in capital	272,043	266,622
Retained earnings	1,285,559	1,294,214
Accumulated other comprehensive loss	(160,421)	(201,500)
Total stockholders' equity	1,397,809	1,359,973
Total liabilities and stockholders' equity	$ 1,686,923	$ 1,657,541

CONSOLIDATED BALANCE SHEETS (Pa

CONSOLIDATED BALANCE SHEETS (Parenthetical) - $ / shares	Jul. 30, 2017	Jan. 29, 2017
Statement of Financial Position [Abstract]
Undesignated preferred stock, par value (in USD per share)	$ 0.01	$ 0.01
Undesignated preferred stock, shares authorized	5,000,000	5,000,000
Undesignated preferred stock, shares issued	0	0
Undesignated preferred stock, shares outstanding	0	0
Exchangeable stock, shares authorized	60,000,000	60,000,000
Exchangeable stock, shares issued	9,781,000	9,781,000
Exchangeable stock, shares outstanding	9,781,000	9,781,000
Special voting stock, par value (in USD per share)	$ 0.000005	$ 0.000005
Special voting stock, shares authorized	60,000,000	60,000,000
Special voting stock, shares issued	9,781,000	9,781,000
Special voting stock, shares outstanding	9,781,000	9,781,000
Common stock, par value (in USD per share)	$ 0.005	$ 0.005
Common stock, shares authorized	400,000,000	400,000,000
Common stock, shares issued	125,697,000	127,304,000
Common stock, shares outstanding	125,697,000	127,304,000

CONSOLIDATED STATEMENTS OF OPER

CONSOLIDATED STATEMENTS OF OPERATIONS AND COMPREHENSIVE INCOME - USD ($) shares in Thousands, $ in Thousands	3 Months Ended		6 Months Ended
	Jul. 30, 2017	Jul. 31, 2016	Jul. 30, 2017	Jul. 31, 2016
Income Statement [Abstract]
Net revenue	$ 581,054	$ 514,520	$ 1,101,361	$ 1,010,036
Cost of goods sold	283,632	260,359	547,044	516,744
Gross profit	297,422	254,161	554,317	493,292
Selling, general and administrative expenses	225,524	180,202	424,665	361,744
Asset impairment and restructuring costs	3,186	0	15,517	0
Income from operations	68,712	73,959	114,135	131,548
Other income (expense), net	812	578	1,719	92
Income before income tax expense	69,524	74,537	115,854	131,640
Income tax expense	20,813	20,912	35,897	32,679
Net income	48,711	53,625	79,957	98,961
Other comprehensive income (loss):
Foreign currency translation adjustment	72,854	(28,052)	41,079	45,510
Comprehensive income	$ 121,565	$ 25,573	$ 121,036	$ 144,471
Basic earnings per share (in USD per share)	$ 0.36	$ 0.39	$ 0.59	$ 0.72
Diluted earnings per share (in USD per share)	$ 0.36	$ 0.39	$ 0.58	$ 0.72
Basic weighted-average number of shares outstanding (in shares)	136,171	136,987	136,604	137,071
Diluted weighted-average number of shares outstanding (in shares)	136,303	137,229	136,747	137,309

CONSOLIDATED STATEMENTS OF STOC

CONSOLIDATED STATEMENTS OF STOCKHOLDERS' EQUITY - 6 months ended Jul. 30, 2017 - USD ($) shares in Thousands, $ in Thousands	Total	Exchangeable Stock	Special Voting Stock	Common Stock	Additional Paid-in Capital	Retained Earnings	Accumulated Other Comprehensive Loss
Beginning balance (in shares) at Jan. 29, 2017		9,781	9,781	127,304
Beginning balance at Jan. 29, 2017	$ 1,359,973		$ 0	$ 637	$ 266,622	$ 1,294,214	$ (201,500)
Increase (Decrease) in Stockholders' Equity [Roll Forward]
Net income	79,957					79,957
Foreign currency translation adjustment	41,079						41,079
Stock-based compensation expense	8,710				8,710
Common stock issued upon settlement of stock-based compensation (in shares)				141
Common stock issued upon settlement of stock-based compensation	915			$ 1	914
Shares withheld related to net share settlement of stock-based compensation (in shares)				(41)
Shares withheld related to net share settlement of stock-based compensation	$ (2,024)			$ 0	(2,024)
Repurchase of common stock (in shares)	(1,700)			(1,707)
Repurchase of common stock	$ (90,801)			$ (10)	(2,179)	(88,612)
Ending balance (in shares) at Jul. 30, 2017		9,781	9,781	125,697
Ending balance at Jul. 30, 2017	$ 1,397,809		$ 0	$ 628	$ 272,043	$ 1,285,559	$ (160,421)

CONSOLIDATED STATEMENTS OF CASH

CONSOLIDATED STATEMENTS OF CASH FLOWS - USD ($) $ in Thousands	6 Months Ended
	Jul. 30, 2017	Jul. 31, 2016
Cash flows from operating activities
Net income	$ 79,957	$ 98,961
Items not affecting cash
Depreciation and amortization	51,569	39,683
Stock-based compensation expense	8,710	8,126
Asset impairment	11,593	0
Changes in operating assets and liabilities
Inventories	(10,041)	16,947
Prepaid and receivable income taxes	15,029	(6,020)
Other prepaid expenses and other current assets	(17,502)	(9,595)
Other non-current assets	(15,620)	(9,317)
Accounts payable	(6,784)	(2,512)
Accrued inventory liabilities	9,571	(8,432)
Accrued compensation and related expenses	(8,970)	(5,967)
Income taxes payable	(25,310)	(6,948)
Unredeemed gift card liability	(15,192)	(12,679)
Other accrued and non-current liabilities	25,028	(1,054)
Net cash provided by operating activities	102,038	101,193
Cash flows from investing activities
Purchase of property and equipment	(49,889)	(71,261)
Net cash used in investing activities	(49,889)	(71,261)
Cash flows from financing activities
Proceeds from settlement of stock-based compensation	915	5,079
Taxes paid related to net share settlement of stock-based compensation	(2,024)	(1,605)
Repurchase of common stock	(90,801)	(28,556)
Net cash used in financing activities	(91,910)	(25,082)
Effect of exchange rate changes on cash and cash equivalents	26,127	29,018
(Decrease) increase in cash and cash equivalents	(13,634)	33,868
Cash and cash equivalents, beginning of period	734,846	501,482
Cash and cash equivalents, end of period	$ 721,212	$ 535,350

NATURE OF OPERATIONS AND BASIS

NATURE OF OPERATIONS AND BASIS OF PRESENTATION	6 Months Ended
	Jul. 30, 2017
Accounting Policies [Abstract]
NATURE OF OPERATIONS AND BASIS OF PRESENTATION	NATURE OF OPERATIONS AND BASIS OF PRESENTATION Nature of operations lululemon athletica inc., a Delaware corporation ("lululemon" and, together with its subsidiaries unless the context otherwise requires, the "Company") is engaged in the design, distribution, and retail of healthy lifestyle inspired athletic apparel, which is sold through a chain of company-operated stores, direct to consumer through e-commerce, outlets, showrooms, temporary locations, sales to wholesale accounts, warehouse sales, and through license and supply arrangements. Its apparel is marketed under the lululemon and ivivva brand names. The Company operates stores in the United States, Canada, Australia, the United Kingdom, New Zealand, China, Hong Kong, Singapore, South Korea, Germany, Ireland, Japan, Puerto Rico, and Switzerland. There were a total of 421 and 406 company-operated stores in operation as of July 30, 2017 and January 29, 2017 , respectively. On June 1, 2017, the Company announced a plan to restructure its ivivva operations. On August 20, 2017 , as part of this plan, the Company closed 47 of the 55 ivivva branded company-operated stores. Of the eight remaining ivivva branded stores, seven are expected to remain in operation and one is expected to be converted to a lululemon branded store. All of the Company's ivivva branded showrooms and other temporary locations have been closed. The Company continues to offer ivivva branded products on its e-commerce websites. Please refer to Note 6 of these unaudited interim consolidated financial statements for further details regarding the ivivva restructuring plans. Basis of presentation The unaudited interim consolidated financial statements as of July 30, 2017 and for the quarters and two quarters ended July 30, 2017 and July 31, 2016 are presented in United States dollars and have been prepared by the Company under the rules and regulations of the Securities and Exchange Commission ("SEC"). The financial information is presented in accordance with United States generally accepted accounting principles ("GAAP") for interim financial information and, accordingly, does not include all of the information and footnotes required by GAAP for complete financial statements. The financial information as of January 29, 2017 is derived from the Company's audited consolidated financial statements and related notes for the fiscal year ended January 29, 2017 , which are included in Item 8 in the Company's fiscal 2016 Annual Report on Form 10-K filed with the SEC on March 29, 2017 . These unaudited interim consolidated financial statements reflect all adjustments which are, in the opinion of management, necessary to a fair statement of the results for the interim periods presented. These unaudited interim consolidated financial statements should be read in conjunction with the Company's consolidated financial statements and related notes included in Item 8 in the Company's fiscal 2016 Annual Report on Form 10-K. The Company's fiscal year ends on the Sunday closest to January 31 of the following year, typically resulting in a 52-week year, but occasionally giving rise to an additional week, resulting in a 53-week year. Fiscal 2017 will end on January 28, 2018 and will be a 52-week year. The Company's business is affected by the pattern of seasonality common to most retail apparel businesses. Historically, the Company has recognized a significant portion of its operating profit in the fourth fiscal quarter of each year as a result of increased net revenue during the holiday season. Certain comparative figures have been reclassified to conform to the financial presentation adopted for the current year.

RECENT ACCOUNTING PRONOUNCEMENT

RECENT ACCOUNTING PRONOUNCEMENTS	6 Months Ended
	Jul. 30, 2017
Accounting Policies [Abstract]
RECENT ACCOUNTING PRONOUNCEMENTS	RECENT ACCOUNTING PRONOUNCEMENTS In May 2014, the Financial Accounting Standards Board ("FASB") issued Accounting Standards Update ("ASU") 2014-09, Revenue from Contracts with Customers ("ASC 606"). This ASU supersedes the revenue recognition requirements in ASC Topic 605 Revenue Recognition , including most industry-specific revenue recognition guidance. ASU 2014-09 requires that an entity recognize revenue to depict the transfer of promised goods or services to customers in an amount that reflects the consideration to which the entity expects to be entitled in exchange for those goods or services, and expands the related disclosure requirements. In 2015, the FASB deferred the effective date for this guidance, and in 2016, the FASB issued several updates that clarify the guidance in this topic. ASC 606 may be adopted either on a full retrospective basis or using a modified retrospective method with a cumulative adjustment to equity. This guidance will be adopted by the Company beginning in its first quarter of fiscal 2018. The Company continues to evaluate the impact that this new guidance may have on its consolidated financial statements, and the method of retrospective adoption that it will elect, but does not expect ASC 606 to materially impact the amount, or timing, of its revenue recognition. Under the new requirements, the Company expects to recognize its provision for sales returns on a gross basis, rather than a net basis on the consolidated balance sheets. In July 2015, the FASB amended ASC Topic 330, Inventory to simplify the measurement of inventory. The amendments require that an entity measure inventory at the lower of cost and net realizable value instead of the lower of cost and market. This guidance became effective for the Company the first quarter of fiscal 2017 and the adoption did not impact its consolidated financial statements. In February 2016, the FASB issued ASC Topic 842, Leases ("ASC 842") to increase transparency and comparability among organizations by recognizing lease assets and lease liabilities on the balance sheet and disclosing key information about leasing arrangements. Under the new guidance, lessees are required to recognize a lease liability, which represents the discounted obligation to make future minimum lease payments, and a corresponding right-of-use asset on the balance sheet for most leases. This guidance will be effective for the Company beginning in its first quarter of fiscal 2019, with early application permitted. The Company will adopt ASC 842 in its first quarter of fiscal 2019. While the Company is currently evaluating the impact that this new guidance will have on its consolidated financial statements, it is expected that the primary impact upon adoption will be the recognition, on a discounted basis, of the Company's minimum commitments under noncancelable operating leases as right of use assets and obligations on the consolidated balance sheets. It is expected that this will result in a significant increase in assets and liabilities on the consolidated balance sheets. In March 2016, the FASB amended ASC Topic 718, Stock Compensation simplifying the accounting for share-based payment transactions, including the income tax consequences, classification of awards as either equity or liabilities, and classification on the statement of cash flows. The new guidance also allows an entity to account for forfeitures when they occur. The Company adopted this amendment in the first quarter of fiscal 2017 and elected to continue to estimate expected forfeitures. The Company is now required to include excess tax benefits and deficiencies as a component of income tax expense, rather than a component of stockholders' equity. Additionally, the Company retrospectively adjusted its consolidated statement of cash flows for the two quarters ended July 31, 2016 to reclassify excess tax benefits of $1.2 million from financing activities to operating activities. In August 2017, the FASB amended ASC 815, Derivatives and Hedging to more closely align hedge accounting with companies' risk management strategies, simplify the application of hedge accounting, and increase transparency as to the scope and results of hedging programs. It will make more financial and nonfinancial hedging strategies eligible for hedge accounting. It also amends the presentation and disclosure requirements and changes how companies assess effectiveness. This guidance will be effective for the Company beginning in its first quarter of fiscal 2019, with early application permitted. The Company is currently evaluating the impact that this new guidance may have on its consolidated financial statements.

STOCK-BASED COMPENSATION AND BE

STOCK-BASED COMPENSATION AND BENEFIT PLANS	6 Months Ended
	Jul. 30, 2017
Disclosure of Compensation Related Costs, Share-based Payments [Abstract]
STOCK-BASED COMPENSATION AND BENEFIT PLANS	STOCK-BASED COMPENSATION AND BENEFIT PLANS Stock-based compensation plans The Company's eligible employees participate in various stock-based compensation plans, which are provided by the Company directly. Stock-based compensation expense charged to income for the plans was $8.7 million and $8.1 million for the two quarters ended July 30, 2017 and July 31, 2016 , respectively. Total unrecognized compensation cost for all stock-based compensation plans was $51.7 million at July 30, 2017 , which is expected to be recognized over a weighted-average period of 2.4 years. Company stock options, performance-based restricted stock units, restricted shares, and restricted stock units A summary of the Company's stock option, performance-based restricted stock unit, restricted share, and restricted stock unit activity as of July 30, 2017 , and changes during the first two quarters then ended, is presented below: Stock Options Performance-Based Restricted Stock Units Restricted Shares Restricted Stock Units Number Weighted-Average Exercise Price Number Weighted-Average Grant Date Fair Value Number Weighted-Average Grant Date Fair Value Number Weighted-Average Grant Date Fair Value (In thousands, except per share amounts) Balance at January 29, 2017 918 $ 59.20 390 $ 61.05 14 $ 70.54 360 $ 62.99 Granted 597 51.91 184 51.90 22 51.72 312 52.08 Exercised/released 26 35.27 — — 14 70.29 92 65.94 Forfeited 137 57.96 188 53.74 — — 67 57.08 Balance at July 30, 2017 1,352 $ 56.56 386 $ 60.25 22 $ 51.72 513 $ 56.60 Exercisable at July 30, 2017 314 $ 57.57 The fair value of each stock option granted is estimated on the date of grant using the Black-Scholes model. The assumptions used to calculate the fair value of the options granted are evaluated and revised, as necessary, to reflect market conditions and the Company's historical experience. The expected term of the options is based upon the historical experience of similar awards, giving consideration to expectations of future employee behavior. Expected volatility is based upon the historical volatility of the Company's common stock for the period corresponding with the expected term of the options. The risk-free interest rate is based on the U.S. Treasury yield curve for the period corresponding with the expected term of the options. The following assumptions were used in calculating the fair value of stock options granted in the first two quarters of fiscal 2017 : Two Quarters Ended Expected term 4.00 years Expected volatility 38.28 % Risk-free interest rate 1.72 % Dividend yield — % The Company's performance-based restricted stock units are awarded to eligible employees and entitle the grantee to receive a maximum of two shares of common stock per performance-based restricted stock unit if the Company achieves specified performance goals and the grantee remains employed during the vesting period. The fair value of performance-based restricted stock units is based on the closing price of the Company's common stock on the award date. Expense for performance-based restricted stock units is recognized when it is probable that the performance goal will be achieved. The fair value of the restricted shares and restricted stock units is based on the closing price of the Company's common stock on the award date. Employee share purchase plan The Company's board of directors and stockholders approved the Company's Employee Share Purchase Plan ("ESPP") in September 2007. Contributions are made by eligible employees, subject to certain limits defined in the ESPP, and the Company matches one-third of the contribution. The maximum number of shares authorized to be purchased under the ESPP is 6.0 million shares. All shares purchased under the ESPP are purchased in the open market. During the quarter ended July 30, 2017 , there were 43.5 thousand shares purchased. Defined contribution pension plans During the second quarter of fiscal 2016, the Company began offering defined contribution pension plans to its eligible employees in Canada and the United States. Participating employees may elect to defer and contribute a portion of their eligible compensation to a plan up to limits stated in the plan documents, not to exceed the dollar amounts set by applicable laws. The Company matches 50% to 75% of the contribution depending on the participant's length of service, and the contribution is subject to a two year vesting period. The Company's net expense for the defined contribution plans was $2.7 million and $0.9 million in the first two quarters of fiscal 2017 and fiscal 2016 , respectively.

FAIR VALUE MEASUREMENT

FAIR VALUE MEASUREMENT	6 Months Ended
	Jul. 30, 2017
Fair Value Disclosures [Abstract]
FAIR VALUE MEASUREMENT	FAIR VALUE MEASUREMENT Fair value is defined as the price that would be received to sell an asset or paid to transfer a liability in an orderly transaction between market participants at the measurement date. Fair value measurements are made using a three-tier fair value hierarchy, which prioritizes the inputs used in measuring fair value: • Level 1 - defined as observable inputs such as quoted prices in active markets; • Level 2 - defined as inputs other than quoted prices in active markets that are either directly or indirectly observable; and • Level 3 - defined as unobservable inputs in which little or no market data exists, therefore requiring an entity to develop its own assumptions. The fair value measurement is categorized in its entirety by reference to its lowest level of significant input. As of July 30, 2017 , the Company held certain assets and liabilities that are required to be measured at fair value on a recurring basis: July 30, 2017 Level 1 Level 2 Level 3 (in thousands) Net forward currency contract (liabilities) assets $ (1,131 ) $ — $ (1,131 ) $ — The Company records cash and cash equivalents, accounts receivable, accounts payable, and accrued liabilities at cost. The carrying values of these instruments approximate their fair value due to their short-term maturities. In addition to assets and liabilities that are recorded at fair value on a recurring basis, the Company has impaired certain long-lived assets and recorded them at their estimated fair value on a non-recurring basis. The fair value of these long-lived assets was determined using Level 3 inputs, principally the present value of the estimated future cash flows expected from their use and eventual disposition.

DERIVATIVE FINANCIAL INSTRUMENT

DERIVATIVE FINANCIAL INSTRUMENTS	6 Months Ended
	Jul. 30, 2017
Derivative Instruments and Hedging Activities Disclosure [Abstract]
DERIVATIVE FINANCIAL INSTRUMENTS	DERIVATIVE FINANCIAL INSTRUMENTS Foreign exchange risk The Company is exposed to risks associated with changes in foreign currency exchange rates and uses derivative financial instruments to manage its exposure to certain of these foreign currency exchange rate risks. The Company does not enter into derivative contracts for speculative or trading purposes. The Company currently hedges against changes in the Canadian dollar to U.S. dollar exchange rate using forward currency contracts. Net investment hedges The Company is exposed to foreign exchange gains and losses which arise on translation of its foreign subsidiaries' balance sheets into U.S. dollars. These gains and losses are recorded as a foreign currency translation adjustment in accumulated other comprehensive income or loss within stockholders' equity. The Company holds a significant portion of its assets in Canada and during the quarter ended July 30, 2017 entered into forward currency contracts designed to hedge a portion of the foreign currency exposure that arises on translation of a Canadian subsidiary into U.S. dollars. These forward currency contracts are designated as net investment hedges. The effective portions of the hedges are reported in accumulated other comprehensive income or loss and will subsequently be reclassified to net earnings in the period in which the hedged investment is either sold or substantially liquidated. The Company assesses hedge effectiveness based on changes in forward rates. The Company recorded no ineffectiveness from net investment hedges for the quarter ended July 30, 2017 . The Company classifies the cash flows at settlement of its net investment hedges within investing activities in the consolidated statements of cash flows. Derivatives not designated as hedging instruments The Company is exposed to gains and losses arising from changes in foreign exchange rates associated with transactions which are undertaken by its subsidiaries in currencies other than their functional currency. Such transactions include intercompany transactions and inventory purchases. These transactions result in the recognition of certain foreign currency denominated monetary assets and liabilities which are remeasured to the quarter-end or settlement date exchange rate. The resulting foreign currency gains and losses are recorded in selling, general and administrative expenses. During the quarter ended July 30, 2017 the Company entered into certain forward currency contracts designed to economically hedge the foreign exchange revaluation gains and losses that are recognized by its Canadian subsidiaries on U.S. dollar denominated monetary assets and liabilities. The Company has not applied hedge accounting to these instruments and the change in fair value of these derivatives is recorded within selling, general and administrative expenses. The Company classifies the cash flows at settlement of its forward currency contracts which are not designated in hedging relationships within operating activities in of the consolidated statements of cash flows. Outstanding notional amounts The Company had foreign exchange forward contracts outstanding with the following notional amounts: July 30, 2017 July 31, 2016 (in thousands) Derivatives designated as net investment hedges $ 78,000 $ — Derivatives not designated in a hedging relationship 65,000 — The forward currency contracts designated as net investment hedges mature in January 2018. The forward currency contracts not designated in a hedging relationship mature on different dates between October 2017 and December 2017. Quantitative disclosures about derivative financial instruments The Company presents its derivative assets and derivative liabilities at their gross fair values within other prepaid expenses and other current assets and other current liabilities on the consolidated balance sheets. However, the Company's Master International Swap Dealers Association, Inc., Agreements and other similar arrangements allow net settlements under certain conditions. As of July 30, 2017 , there were derivative assets of $4.1 million and derivative liabilities of $4.8 million subject to enforceable netting arrangements. The fair values of forward currency contracts were as follows: July 30, 2017 July 31, 2016 (in thousands) Derivatives designated as net investment hedges, recognized within: Other current liabilities $ 7,068 $ — Derivatives not designated in a hedging relationship, recognized within: Other prepaid expenses and other current assets 5,937 — The pre-tax gains and losses on foreign exchange forward contracts recorded in accumulated other comprehensive income and in the consolidated statement of operations, are as follows: July 30, 2017 July 31, 2016 (in thousands) Derivatives designated as net investment hedges: (Loss) gain recognized in other comprehensive income $ (8,925 ) $ — Derivatives not designated in a hedging relationship: Gain (loss) recognized in selling, general and administrative expenses 7,634 — No gains or losses have been reclassified from accumulated other comprehensive income into net income for derivative financial instruments in a net investment hedging relationship, as the Company has not sold or liquidated (or substantially liquidated) any of its hedged subsidiaries. Credit risk The Company is exposed to credit-related losses in the event of nonperformance by the counterparties to the forward currency contracts. The credit risk amount is the Company's unrealized gains on its derivative instruments, based on foreign currency rates at the time of nonperformance. The Company's forward currency contracts are entered into with large, reputable financial institutions that are monitored for counterparty risk. The Company's derivative contracts contain certain credit risk-related contingent features. Under certain circumstances, including an event of default, bankruptcy, termination, and cross default under the Company's revolving credit facility, the Company may be required to make immediate payment for outstanding liabilities under its derivative contracts.

ASSET IMPAIRMENT AND RESTRUCTUR

ASSET IMPAIRMENT AND RESTRUCTURING	6 Months Ended
	Jul. 30, 2017
Restructuring and Related Activities [Abstract]
ASSET IMPAIRMENT AND RESTRUCTURING	ASSET IMPAIRMENT AND RESTRUCTURING On June 1, 2017, the Company announced a plan to restructure its ivivva operations. On August 20, 2017 , as part of this plan, the Company closed 47 of its 55 ivivva branded company-operated stores. Of the eight remaining ivivva branded stores, seven are expected to remain in operation and one is expected to be converted to a lululemon branded store. All of the Company's ivivva branded showrooms and other temporary locations have been closed. The Company continues to offer ivivva branded products on its e-commerce websites. The Company expects the restructuring to be substantially complete by the end of the third quarter of fiscal 2017. As a result of the closures, the Company currently estimates that it will incur aggregate pre-tax charges of between $50.0 million and $60.0 million in fiscal 2017 , inclusive of $23.2 million recognized during the two quarters ended July 30, 2017 . The remaining costs, primarily related to lease terminations and employee related costs, are expected to be substantially recognized in the third quarter of fiscal 2017 . These estimates are based on significant assumptions and could change materially. A summary of the pre-tax charges recognized during the second quarter and the first two quarters of fiscal 2017 in connection with the Company's restructuring of its ivivva operations is as follows: Quarter Ended Two Quarters Ended (In thousands) Costs recorded in cost of goods sold: Provision to reduce inventories to net realizable value $ 962 $ 2,904 Expected loss on committed inventory purchases (941 ) 2,536 Accelerated depreciation 2,223 2,223 2,244 7,663 Costs recorded in operating expenses: Impairment of property and equipment — 11,593 Employee related costs 2,458 3,196 Lease termination and other restructuring costs 728 728 Asset impairment and restructuring costs 3,186 15,517 Restructuring and related costs $ 5,430 $ 23,180 Income tax recoveries of $1.4 million and $6.1 million were recorded on the above items in the second quarter and the first two quarters of fiscal 2017 , respectively. These income tax recoveries are based on the expected annual tax rate of the applicable tax jurisdictions. Costs recorded in cost of goods sold During the first two quarters of fiscal 2017 , the Company recognized expenses of $7.7 million in cost of goods sold as a result of the restructuring of its ivivva operations. This included $2.9 million to reduce inventories to their estimated net realizable value, and $2.5 million for the losses the Company expects to incur on certain firm inventory and fabric purchase commitments. The liability for the expected losses is included within accrued inventory liabilities on the consolidated balance sheets. During the second quarter of fiscal 2017, the Company took delivery of inventory that it had previously committed to purchase. As a result, there was a reduction in the Company's liability for expected losses on committed inventory purchases and a corresponding increase in its provision to reduce inventories to net realizable value. The Company also recorded accelerated depreciation charges of $2.2 million during the first two quarters of fiscal 2017 , primarily related to leasehold improvements and furniture and fixtures for stores which have been closed during the third quarter of fiscal 2017. Costs recorded in operating expenses The Company recognized asset impairment and restructuring costs of $15.5 million during the first two quarters of fiscal 2017 as a result of the restructuring of its ivivva operations. As a result of the plan to close the majority of the ivivva branded locations, the long-lived assets of each ivivva branded location were tested for impairment as of April 30, 2017. For impaired locations, a loss was recognized representing the difference between the net book value of the long-lived assets and their estimated fair value. Impairment losses totaling $11.6 million were recognized during the first quarter of fiscal 2017 . These losses primarily relate to leasehold improvements and furniture and fixtures of the company-operated stores segment. The fair value of the long-lived assets for each store was determined using Level 3 inputs, principally the present value of the estimated future cash flows expected from their use and eventual disposition. During the first two quarters of fiscal 2017 , the Company recognized employee related expenses as a result of the restructuring of $3.2 million . The Company recognized lease termination and other restructuring costs of $0.7 million during the first two quarters of fiscal 2017 .

INCOME TAXES

INCOME TAXES	6 Months Ended
	Jul. 30, 2017
Income Tax Disclosure [Abstract]
INCOME TAXES	INCOME TAXES As disclosed in Note 15 to the audited consolidated financial statements included in Item 8 of the Company's fiscal 2016 Annual Report on Form 10-K filed with the SEC on March 29, 2017 , the Company finalized a bilateral Advance Pricing Arrangement ("APA") with the Internal Revenue Service ("IRS") and the Canada Revenue Agency ("CRA") during fiscal 2016. The results for the quarter and two quarters ended July 30, 2017 did not include any discrete items or adjustments related to the APA. The results for the quarter and two quarters ended July 31, 2016 included net interest expenses of $0.3 million and $1.5 million , respectively, that were recorded in other income (expense), net, and net income tax recoveries of $1.9 million and $7.6 million , respectively, related to the expected outcome of the APA and taxes associated with the anticipated repatriation of foreign earnings.

EARNINGS PER SHARE

EARNINGS PER SHARE	6 Months Ended
	Jul. 30, 2017
Earnings Per Share [Abstract]
EARNINGS PER SHARE	EARNINGS PER SHARE The details of the computation of basic and diluted earnings per share are as follows: Quarter Ended Two Quarters Ended July 30, 2017 July 31, 2016 July 30, 2017 July 31, 2016 (In thousands, except per share amounts) Net income $ 48,711 $ 53,625 $ 79,957 $ 98,961 Basic weighted-average number of shares outstanding 136,171 136,987 136,604 137,071 Assumed conversion of dilutive stock options and awards 132 242 143 238 Diluted weighted-average number of shares outstanding 136,303 137,229 136,747 137,309 Basic earnings per share $ 0.36 $ 0.39 $ 0.59 $ 0.72 Diluted earnings per share $ 0.36 $ 0.39 $ 0.58 $ 0.72 The Company's calculation of weighted-average shares includes the common stock of the Company as well as the exchangeable shares. Exchangeable shares are the equivalent of common shares in all material respects. All classes of stock have, in effect, the same rights and share equally in undistributed net income. For the two quarters ended July 30, 2017 and July 31, 2016 , 0.2 million and 0.1 million stock options and awards, respectively, were anti-dilutive to earnings per share and therefore have been excluded from the computation of diluted earnings per share. On June 11, 2014, the Company's board of directors approved a program to repurchase shares of the Company's common stock up to an aggregate value of $450.0 million . This stock repurchase program was completed during the second quarter of fiscal 2016. On December 1, 2016, the Company's board of directors approved a program to repurchase shares of the Company's common stock up to an aggregate value of $100.0 million . The common stock generally is repurchased in the open market at prevailing market prices, with the timing and actual number of shares repurchased depending upon market conditions, eligibility to trade, and other factors. The repurchases may be made until December 9, 2018. As of July 30, 2017 , the remaining aggregate value of shares available to be repurchased under this program was $8.5 million . During the two quarters ended July 30, 2017 and July 31, 2016 , 1.7 million and 0.4 million shares, respectively, were repurchased under the program at a total cost of $90.8 million and $28.6 million , respectively. Subsequent to July 30, 2017 , and up to August 28, 2017 , 0.1 million shares were repurchased at a total cost of $5.8 million .

SUPPLEMENTARY FINANCIAL INFORMA

SUPPLEMENTARY FINANCIAL INFORMATION	6 Months Ended
	Jul. 30, 2017
Organization, Consolidation and Presentation of Financial Statements [Abstract]
SUPPLEMENTARY FINANCIAL INFORMATION	SUPPLEMENTARY FINANCIAL INFORMATION For the quarters ended July 30, 2017 and July 31, 2016 , there were net foreign exchange and derivative revaluation losses of $1.7 million and gains of $5.1 million , respectively, included within selling, general and administrative expenses. For the two quarters ended July 30, 2017 and July 31, 2016 , there were net foreign exchange and derivative revaluation gains of $4.1 million and losses of $8.5 million , respectively, included within selling, general and administrative expenses. A summary of certain consolidated balance sheet accounts is as follows: July 30, January 29, (In thousands) Inventories: Finished goods $ 329,535 $ 306,087 Provision to reduce inventories to net realizable value (13,167 ) (7,655 ) $ 316,368 $ 298,432 Property and equipment, net: Land $ 82,358 $ 78,561 Buildings 39,032 32,174 Leasehold improvements 285,931 273,801 Furniture and fixtures 86,610 84,479 Computer hardware 61,611 58,270 Computer software 187,040 160,835 Equipment and vehicles 14,670 13,704 Accumulated depreciation (330,291 ) (278,325 ) $ 426,961 $ 423,499 Goodwill and intangible assets, net: Goodwill $ 25,496 $ 25,496 Changes in foreign currency exchange rates (947 ) (1,263 ) 24,549 24,233 Intangibles - reacquired franchise rights 10,150 10,150 Accumulated amortization (9,942 ) (9,807 ) Changes in foreign currency exchange rates (8 ) (19 ) 200 324 $ 24,749 $ 24,557 Other current liabilities: Accrued duty, freight, and other operating expenses $ 38,871 $ 27,477 Sales tax collected 12,551 10,182 Accrued rent 4,988 5,562 Other 16,931 9,340 $ 73,341 $ 52,561 Other non-current liabilities: Deferred lease liability $ 27,514 $ 26,648 Tenant inducements 23,808 21,668 Other 5,833 — $ 57,155 $ 48,316 As of July 30, 2017 , as result of the restructuring of its ivivva operations, the Company had a provision of $2.9 million to reduce the carrying value of certain ivivva branded finished goods inventories to their estimated net realizable value. In addition, the Company had a liability for the losses it expects to incur on certain firm inventory and fabric purchase commitments of $2.5 million . This liability is included within accrued inventory liabilities on the consolidated balance sheets. Please refer to Note 6 of these unaudited interim consolidated financial statements for further details regarding the ivivva restructuring plans, including impairment of property and equipment, net which was recorded during the first quarter of fiscal 2017 .

SEGMENT REPORTING

SEGMENT REPORTING	6 Months Ended
	Jul. 30, 2017
Segment Reporting [Abstract]
SEGMENT REPORTING	SEGMENT REPORTING The Company applies ASC Topic 280, Segment Reporting ("ASC 280"), in determining reportable segments for its financial statement disclosure. The Company reports segments based on the financial information it uses in managing its business. The Company's reportable segments are comprised of company-operated stores and direct to consumer. Direct to consumer represents sales from the Company's e-commerce websites. Outlets, showrooms, sales to wholesale accounts, temporary locations, warehouse sales, and license and supply arrangement net revenue have been combined into other. Information for these segments is detailed in the table below: Quarter Ended Two Quarters Ended July 30, 2017 July 31, 2016 July 30, 2017 July 31, 2016 (In thousands) Net revenue: Company-operated stores $ 413,944 $ 381,389 $ 793,043 $ 740,093 Direct to consumer 113,049 87,399 210,272 184,965 Other 54,061 45,732 98,046 84,978 $ 581,054 $ 514,520 $ 1,101,361 $ 1,010,036 Income from operations before general corporate expense: Company-operated stores $ 92,609 $ 80,277 $ 170,139 $ 153,564 Direct to consumer 40,139 32,644 75,566 71,152 Other 6,952 4,636 9,760 6,720 139,700 117,557 255,465 231,436 General corporate expense 65,558 43,598 118,150 99,888 Restructuring and related costs 5,430 — 23,180 — Income from operations 68,712 73,959 114,135 131,548 Other income (expense), net 812 578 1,719 92 Income before income tax expense $ 69,524 $ 74,537 $ 115,854 $ 131,640 Capital expenditures: Company-operated stores $ 16,634 $ 11,515 $ 23,802 $ 28,265 Direct to consumer 6,861 4,551 8,841 5,715 Corporate and other 6,515 28,552 17,246 37,281 $ 30,010 $ 44,618 $ 49,889 $ 71,261 Depreciation and amortization: Company-operated stores $ 15,881 $ 14,511 $ 31,081 $ 28,295 Direct to consumer 4,353 1,725 6,347 3,054 Corporate and other 8,172 4,261 14,141 8,334 $ 28,406 $ 20,497 $ 51,569 $ 39,683 The accelerated depreciation related to the restructuring of the ivivva operations is included in corporate and other in the above breakdown of depreciation and amortization.

LEGAL PROCEEDINGS

LEGAL PROCEEDINGS	6 Months Ended
	Jul. 30, 2017
Commitments and Contingencies Disclosure [Abstract]
LEGAL PROCEEDINGS	LEGAL PROCEEDINGS In addition to the legal matter described below, the Company is, from time to time, involved in routine legal matters incidental to the conduct of its business, including legal matters such as initiation and defense of proceedings to protect intellectual property rights, personal injury claims, product liability claims, employment claims, and similar matters. The Company believes the ultimate resolution of any such current proceeding will not have a material adverse effect on its consolidated balance sheets, results of operations or cash flows. On October 9, 2015, certain current and former hourly employees of the Company filed a class action lawsuit in the Supreme Court of New York entitled Rebecca Gathmann-Landini et al v. lululemon USA inc. On December 2, 2015, the case was moved to the United States District Court for the Eastern District of New York. The lawsuit alleges that the Company violated various New York labor codes by failing to pay all earned wages, including overtime compensation. The plaintiffs are seeking an unspecified amount of damages. The Company intends to vigorously defend this matter.

NATURE OF OPERATIONS AND BASI18

NATURE OF OPERATIONS AND BASIS OF PRESENTATION (Policies)	6 Months Ended
	Jul. 30, 2017
Accounting Policies [Abstract]
Basis of presentation	Basis of presentation The unaudited interim consolidated financial statements as of July 30, 2017 and for the quarters and two quarters ended July 30, 2017 and July 31, 2016 are presented in United States dollars and have been prepared by the Company under the rules and regulations of the Securities and Exchange Commission ("SEC"). The financial information is presented in accordance with United States generally accepted accounting principles ("GAAP") for interim financial information and, accordingly, does not include all of the information and footnotes required by GAAP for complete financial statements. The financial information as of January 29, 2017 is derived from the Company's audited consolidated financial statements and related notes for the fiscal year ended January 29, 2017 , which are included in Item 8 in the Company's fiscal 2016 Annual Report on Form 10-K filed with the SEC on March 29, 2017 . These unaudited interim consolidated financial statements reflect all adjustments which are, in the opinion of management, necessary to a fair statement of the results for the interim periods presented. These unaudited interim consolidated financial statements should be read in conjunction with the Company's consolidated financial statements and related notes included in Item 8 in the Company's fiscal 2016 Annual Report on Form 10-K.
Fiscal period	The Company's fiscal year ends on the Sunday closest to January 31 of the following year, typically resulting in a 52-week year, but occasionally giving rise to an additional week, resulting in a 53-week year. Fiscal 2017 will end on January 28, 2018 and will be a 52-week year.
Reclassification	Certain comparative figures have been reclassified to conform to the financial presentation adopted for the current year.
Recent accounting pronouncements	RECENT ACCOUNTING PRONOUNCEMENTS In May 2014, the Financial Accounting Standards Board ("FASB") issued Accounting Standards Update ("ASU") 2014-09, Revenue from Contracts with Customers ("ASC 606"). This ASU supersedes the revenue recognition requirements in ASC Topic 605 Revenue Recognition , including most industry-specific revenue recognition guidance. ASU 2014-09 requires that an entity recognize revenue to depict the transfer of promised goods or services to customers in an amount that reflects the consideration to which the entity expects to be entitled in exchange for those goods or services, and expands the related disclosure requirements. In 2015, the FASB deferred the effective date for this guidance, and in 2016, the FASB issued several updates that clarify the guidance in this topic. ASC 606 may be adopted either on a full retrospective basis or using a modified retrospective method with a cumulative adjustment to equity. This guidance will be adopted by the Company beginning in its first quarter of fiscal 2018. The Company continues to evaluate the impact that this new guidance may have on its consolidated financial statements, and the method of retrospective adoption that it will elect, but does not expect ASC 606 to materially impact the amount, or timing, of its revenue recognition. Under the new requirements, the Company expects to recognize its provision for sales returns on a gross basis, rather than a net basis on the consolidated balance sheets. In July 2015, the FASB amended ASC Topic 330, Inventory to simplify the measurement of inventory. The amendments require that an entity measure inventory at the lower of cost and net realizable value instead of the lower of cost and market. This guidance became effective for the Company the first quarter of fiscal 2017 and the adoption did not impact its consolidated financial statements. In February 2016, the FASB issued ASC Topic 842, Leases ("ASC 842") to increase transparency and comparability among organizations by recognizing lease assets and lease liabilities on the balance sheet and disclosing key information about leasing arrangements. Under the new guidance, lessees are required to recognize a lease liability, which represents the discounted obligation to make future minimum lease payments, and a corresponding right-of-use asset on the balance sheet for most leases. This guidance will be effective for the Company beginning in its first quarter of fiscal 2019, with early application permitted. The Company will adopt ASC 842 in its first quarter of fiscal 2019. While the Company is currently evaluating the impact that this new guidance will have on its consolidated financial statements, it is expected that the primary impact upon adoption will be the recognition, on a discounted basis, of the Company's minimum commitments under noncancelable operating leases as right of use assets and obligations on the consolidated balance sheets. It is expected that this will result in a significant increase in assets and liabilities on the consolidated balance sheets. In March 2016, the FASB amended ASC Topic 718, Stock Compensation simplifying the accounting for share-based payment transactions, including the income tax consequences, classification of awards as either equity or liabilities, and classification on the statement of cash flows. The new guidance also allows an entity to account for forfeitures when they occur. The Company adopted this amendment in the first quarter of fiscal 2017 and elected to continue to estimate expected forfeitures. The Company is now required to include excess tax benefits and deficiencies as a component of income tax expense, rather than a component of stockholders' equity. Additionally, the Company retrospectively adjusted its consolidated statement of cash flows for the two quarters ended July 31, 2016 to reclassify excess tax benefits of $1.2 million from financing activities to operating activities. In August 2017, the FASB amended ASC 815, Derivatives and Hedging to more closely align hedge accounting with companies' risk management strategies, simplify the application of hedge accounting, and increase transparency as to the scope and results of hedging programs. It will make more financial and nonfinancial hedging strategies eligible for hedge accounting. It also amends the presentation and disclosure requirements and changes how companies assess effectiveness. This guidance will be effective for the Company beginning in its first quarter of fiscal 2019, with early application permitted. The Company is currently evaluating the impact that this new guidance may have on its consolidated financial statements.

STOCK-BASED COMPENSATION AND 19

STOCK-BASED COMPENSATION AND BENEFIT PLANS (Tables)	6 Months Ended
	Jul. 30, 2017
Disclosure of Compensation Related Costs, Share-based Payments [Abstract]
Summary of Company's Stock Option, Performance Share Unit and Restricted Share Activity	A summary of the Company's stock option, performance-based restricted stock unit, restricted share, and restricted stock unit activity as of July 30, 2017 , and changes during the first two quarters then ended, is presented below: Stock Options Performance-Based Restricted Stock Units Restricted Shares Restricted Stock Units Number Weighted-Average Exercise Price Number Weighted-Average Grant Date Fair Value Number Weighted-Average Grant Date Fair Value Number Weighted-Average Grant Date Fair Value (In thousands, except per share amounts) Balance at January 29, 2017 918 $ 59.20 390 $ 61.05 14 $ 70.54 360 $ 62.99 Granted 597 51.91 184 51.90 22 51.72 312 52.08 Exercised/released 26 35.27 — — 14 70.29 92 65.94 Forfeited 137 57.96 188 53.74 — — 67 57.08 Balance at July 30, 2017 1,352 $ 56.56 386 $ 60.25 22 $ 51.72 513 $ 56.60 Exercisable at July 30, 2017 314 $ 57.57
Schedule of Share-based Payment Award, Stock Options, Valuation Assumptions	The following assumptions were used in calculating the fair value of stock options granted in the first two quarters of fiscal 2017 : Two Quarters Ended Expected term 4.00 years Expected volatility 38.28 % Risk-free interest rate 1.72 % Dividend yield — %

FAIR VALUE MEASUREMENT (Tables)

FAIR VALUE MEASUREMENT (Tables)	6 Months Ended
	Jul. 30, 2017
Fair Value Disclosures [Abstract]
Fair Value, Assets and Liabilities Measured on Recurring Basis	As of July 30, 2017 , the Company held certain assets and liabilities that are required to be measured at fair value on a recurring basis: July 30, 2017 Level 1 Level 2 Level 3 (in thousands) Net forward currency contract (liabilities) assets $ (1,131 ) $ — $ (1,131 ) $ —

DERIVATIVE FINANCIAL INSTRUME21

DERIVATIVE FINANCIAL INSTRUMENTS (Tables)	6 Months Ended
	Jul. 30, 2017
Derivative Instruments and Hedging Activities Disclosure [Abstract]
Schedule of Notional Amounts	The Company had foreign exchange forward contracts outstanding with the following notional amounts: July 30, 2017 July 31, 2016 (in thousands) Derivatives designated as net investment hedges $ 78,000 $ — Derivatives not designated in a hedging relationship 65,000 —
Schedule of Forward Currency Contracts, Statement of Financial Position	The fair values of forward currency contracts were as follows: July 30, 2017 July 31, 2016 (in thousands) Derivatives designated as net investment hedges, recognized within: Other current liabilities $ 7,068 $ — Derivatives not designated in a hedging relationship, recognized within: Other prepaid expenses and other current assets 5,937 —
Schedule of Pre-tax Gains (Losses) on Derivatives in Accumulated Other Comprehensive Income (Loss)	The pre-tax gains and losses on foreign exchange forward contracts recorded in accumulated other comprehensive income and in the consolidated statement of operations, are as follows: July 30, 2017 July 31, 2016 (in thousands) Derivatives designated as net investment hedges: (Loss) gain recognized in other comprehensive income $ (8,925 ) $ — Derivatives not designated in a hedging relationship: Gain (loss) recognized in selling, general and administrative expenses 7,634 —

ASSET IMPAIRMENT AND RESTRUCT22

ASSET IMPAIRMENT AND RESTRUCTURING (Tables)	6 Months Ended
	Jul. 30, 2017
Restructuring and Related Activities [Abstract]
Restructuring and Related Costs	A summary of the pre-tax charges recognized during the second quarter and the first two quarters of fiscal 2017 in connection with the Company's restructuring of its ivivva operations is as follows: Quarter Ended Two Quarters Ended (In thousands) Costs recorded in cost of goods sold: Provision to reduce inventories to net realizable value $ 962 $ 2,904 Expected loss on committed inventory purchases (941 ) 2,536 Accelerated depreciation 2,223 2,223 2,244 7,663 Costs recorded in operating expenses: Impairment of property and equipment — 11,593 Employee related costs 2,458 3,196 Lease termination and other restructuring costs 728 728 Asset impairment and restructuring costs 3,186 15,517 Restructuring and related costs $ 5,430 $ 23,180

EARNINGS PER SHARE (Tables)

EARNINGS PER SHARE (Tables)	6 Months Ended
	Jul. 30, 2017
Earnings Per Share [Abstract]
Computation of Basic and Diluted Earning Per Share	The details of the computation of basic and diluted earnings per share are as follows: Quarter Ended Two Quarters Ended July 30, 2017 July 31, 2016 July 30, 2017 July 31, 2016 (In thousands, except per share amounts) Net income $ 48,711 $ 53,625 $ 79,957 $ 98,961 Basic weighted-average number of shares outstanding 136,171 136,987 136,604 137,071 Assumed conversion of dilutive stock options and awards 132 242 143 238 Diluted weighted-average number of shares outstanding 136,303 137,229 136,747 137,309 Basic earnings per share $ 0.36 $ 0.39 $ 0.59 $ 0.72 Diluted earnings per share $ 0.36 $ 0.39 $ 0.58 $ 0.72

SUPPLEMENTARY FINANCIAL INFOR24

SUPPLEMENTARY FINANCIAL INFORMATION (Tables)	6 Months Ended
	Jul. 30, 2017
Organization, Consolidation and Presentation of Financial Statements [Abstract]
Summary of Certain Balance Sheet Accounts	A summary of certain consolidated balance sheet accounts is as follows: July 30, January 29, (In thousands) Inventories: Finished goods $ 329,535 $ 306,087 Provision to reduce inventories to net realizable value (13,167 ) (7,655 ) $ 316,368 $ 298,432 Property and equipment, net: Land $ 82,358 $ 78,561 Buildings 39,032 32,174 Leasehold improvements 285,931 273,801 Furniture and fixtures 86,610 84,479 Computer hardware 61,611 58,270 Computer software 187,040 160,835 Equipment and vehicles 14,670 13,704 Accumulated depreciation (330,291 ) (278,325 ) $ 426,961 $ 423,499 Goodwill and intangible assets, net: Goodwill $ 25,496 $ 25,496 Changes in foreign currency exchange rates (947 ) (1,263 ) 24,549 24,233 Intangibles - reacquired franchise rights 10,150 10,150 Accumulated amortization (9,942 ) (9,807 ) Changes in foreign currency exchange rates (8 ) (19 ) 200 324 $ 24,749 $ 24,557 Other current liabilities: Accrued duty, freight, and other operating expenses $ 38,871 $ 27,477 Sales tax collected 12,551 10,182 Accrued rent 4,988 5,562 Other 16,931 9,340 $ 73,341 $ 52,561 Other non-current liabilities: Deferred lease liability $ 27,514 $ 26,648 Tenant inducements 23,808 21,668 Other 5,833 — $ 57,155 $ 48,316

SEGMENT REPORTING (Tables)

SEGMENT REPORTING (Tables)	6 Months Ended
	Jul. 30, 2017
Segment Reporting [Abstract]
Segment Reporting	Information for these segments is detailed in the table below: Quarter Ended Two Quarters Ended July 30, 2017 July 31, 2016 July 30, 2017 July 31, 2016 (In thousands) Net revenue: Company-operated stores $ 413,944 $ 381,389 $ 793,043 $ 740,093 Direct to consumer 113,049 87,399 210,272 184,965 Other 54,061 45,732 98,046 84,978 $ 581,054 $ 514,520 $ 1,101,361 $ 1,010,036 Income from operations before general corporate expense: Company-operated stores $ 92,609 $ 80,277 $ 170,139 $ 153,564 Direct to consumer 40,139 32,644 75,566 71,152 Other 6,952 4,636 9,760 6,720 139,700 117,557 255,465 231,436 General corporate expense 65,558 43,598 118,150 99,888 Restructuring and related costs 5,430 — 23,180 — Income from operations 68,712 73,959 114,135 131,548 Other income (expense), net 812 578 1,719 92 Income before income tax expense $ 69,524 $ 74,537 $ 115,854 $ 131,640 Capital expenditures: Company-operated stores $ 16,634 $ 11,515 $ 23,802 $ 28,265 Direct to consumer 6,861 4,551 8,841 5,715 Corporate and other 6,515 28,552 17,246 37,281 $ 30,010 $ 44,618 $ 49,889 $ 71,261 Depreciation and amortization: Company-operated stores $ 15,881 $ 14,511 $ 31,081 $ 28,295 Direct to consumer 4,353 1,725 6,347 3,054 Corporate and other 8,172 4,261 14,141 8,334 $ 28,406 $ 20,497 $ 51,569 $ 39,683

NATURE OF OPERATIONS AND BASI26

NATURE OF OPERATIONS AND BASIS OF PRESENTATION (Detail) - store	Jul. 30, 2017	Jan. 29, 2017
Restructuring Cost and Reserve [Line Items]
Number of company-operated stores	421	406
Facility closing | ivivva
Restructuring Cost and Reserve [Line Items]
Number of stores expected to close	47
Number of company-operated stores	55

RECENT ACCOUNTING PRONOUNCEME27

RECENT ACCOUNTING PRONOUNCEMENTS (Details) - USD ($) $ in Thousands	6 Months Ended
	Jul. 30, 2017	Jul. 31, 2016
New Accounting Pronouncements or Change in Accounting Principle [Line Items]
Cash provided (used in) financing activities	$ (91,910)	$ (25,082)
Cash provided (used in) operating activities	$ 102,038	101,193
Accounting Standards Update 2016-09, Excess Tax Benefit Component
New Accounting Pronouncements or Change in Accounting Principle [Line Items]
Cash provided (used in) financing activities		(1,200)
Cash provided (used in) operating activities		$ 1,200

STOCK-BASED COMPENSATION AND 28

STOCK-BASED COMPENSATION AND BENEFIT PLANS - Additional Information (Detail) $ in Millions	3 Months Ended	6 Months Ended
	Jul. 30, 2017USD ($)shares	Jul. 30, 2017USD ($)shares	Jul. 31, 2016USD ($)
Share-based Compensation Arrangement by Share-based Payment Award [Line Items]
Stock-based compensation expense		$ 8.7	$ 8.1
Total unrecognized compensation cost	$ 51.7	$ 51.7
Expected weighted-average period of compensation cost		2 years 4 months 24 days
Common stock per performance share unit	2	2
Vesting period		2 years
Company contributions		$ 2.7	$ 0.9
ESPP
Share-based Compensation Arrangement by Share-based Payment Award [Line Items]
Company match contribution		33.33%
Maximum shares available under ESPP | shares	6,000,000	6,000,000
Shares purchased under ESPP | shares	43,500
Minimum
Share-based Compensation Arrangement by Share-based Payment Award [Line Items]
Participant contribution, company match percent		50.00%
Maximum
Share-based Compensation Arrangement by Share-based Payment Award [Line Items]
Participant contribution, company match percent		75.00%

STOCK-BASED COMPENSATION AND 29

STOCK-BASED COMPENSATION AND BENEFIT PLANS - Summary of Company's Stock Option, Performance Share Unit and Restricted Share Activity (Detail) shares in Thousands	6 Months Ended
	Jul. 30, 2017$ / sharesshares
Stock Options
Number of Stock Options
Number of Stock Options, Beginning Balance (in shares) | shares	918
Number of Stock Options, Granted (in shares) | shares	597
Number of Stock Options, Exercised/released (in shares) | shares	26
Number of Stock Options, Forfeited (in shares) | shares	137
Number of Stock Options, Ending Balance (in shares) | shares	1,352
Number of Stock Options, Exercisable at End of Period (in shares) | shares	314
Weighted-Average Exercise Price of Stock Options
Weighted-Average Exercise Price, Options, Beginning Balance (in dollars per share) | $ / shares	$ 59.20
Weighted-Average Exercise Price, Options, Granted (in dollars per share) | $ / shares	51.91
Weighted-Average Exercise Price, Options, Exercised/released (in dollars per share) | $ / shares	35.27
Weighted-Average Exercise Price, Options, Forfeited (in dollars per share) | $ / shares	57.96
Weighted-Average Exercise Price, Options, Ending Balance (in dollars per share) | $ / shares	56.56
Weighted-Average Exercise Price, Options, Exercisable (in dollars per share) | $ / shares	$ 57.57
Performance-Based Restricted Stock Units
Number of Performance-Based Restricted Stock Units and Restricted Shares
Number of Units/Shares, Beginning Balance (in shares) | shares	390
Number of Units/Shares, Granted (in shares) | shares	184
Number of Units/Shares, Exercised/released (in shares) | shares	0
Number of Units/Shares, Forfeited (in shares) | shares	188
Number of Units/Shares, Ending Balance (in shares) | shares	386
Weighted-Average Grant Date Fair Value
Weighted-Average Grant Date Fair Value, Beginning Balance (in dollars per share) | $ / shares	$ 61.05
Weighted-Average Grant Date Fair Value, Granted (in dollars per share) | $ / shares	51.90
Weighted-Average Grant Date Fair Value, Exercised/released (in dollars per share) | $ / shares	0
Weighted-Average Grant Date Fair Value, Forfeited (in dollars per share) | $ / shares	53.74
Weighted-Average Grant Date Fair Value, Ending Balance (in dollars per share) | $ / shares	$ 60.25
Restricted Shares
Number of Performance-Based Restricted Stock Units and Restricted Shares
Number of Units/Shares, Beginning Balance (in shares) | shares	14
Number of Units/Shares, Granted (in shares) | shares	22
Number of Units/Shares, Exercised/released (in shares) | shares	14
Number of Units/Shares, Forfeited (in shares) | shares	0
Number of Units/Shares, Ending Balance (in shares) | shares	22
Weighted-Average Grant Date Fair Value
Weighted-Average Grant Date Fair Value, Beginning Balance (in dollars per share) | $ / shares	$ 70.54
Weighted-Average Grant Date Fair Value, Granted (in dollars per share) | $ / shares	51.72
Weighted-Average Grant Date Fair Value, Exercised/released (in dollars per share) | $ / shares	70.29
Weighted-Average Grant Date Fair Value, Forfeited (in dollars per share) | $ / shares	0
Weighted-Average Grant Date Fair Value, Ending Balance (in dollars per share) | $ / shares	$ 51.72
Restricted Stock Units
Number of Performance-Based Restricted Stock Units and Restricted Shares
Number of Units/Shares, Beginning Balance (in shares) | shares	360
Number of Units/Shares, Granted (in shares) | shares	312
Number of Units/Shares, Exercised/released (in shares) | shares	92
Number of Units/Shares, Forfeited (in shares) | shares	67
Number of Units/Shares, Ending Balance (in shares) | shares	513
Weighted-Average Grant Date Fair Value
Weighted-Average Grant Date Fair Value, Beginning Balance (in dollars per share) | $ / shares	$ 62.99
Weighted-Average Grant Date Fair Value, Granted (in dollars per share) | $ / shares	52.08
Weighted-Average Grant Date Fair Value, Exercised/released (in dollars per share) | $ / shares	65.94
Weighted-Average Grant Date Fair Value, Forfeited (in dollars per share) | $ / shares	57.08
Weighted-Average Grant Date Fair Value, Ending Balance (in dollars per share) | $ / shares	$ 56.60

STOCK-BASED COMPENSATION AND 30

STOCK-BASED COMPENSATION AND BENEFIT PLANS - Fair Value Assumptions (Detail)	6 Months Ended
	Jul. 30, 2017
Disclosure of Compensation Related Costs, Share-based Payments [Abstract]
Expected term	4 years
Expected volatility	38.28%
Risk-free interest rate	1.72%
Dividend yield	0.00%

FAIR VALUE MEASUREMENT (Details

FAIR VALUE MEASUREMENT (Details) $ in Thousands	Jul. 30, 2017USD ($)
Fair Value, Assets and Liabilities Measured on Recurring and Nonrecurring Basis [Line Items]
Net forward currency contract (liabilities) assets	$ (1,131)
Level 1
Fair Value, Assets and Liabilities Measured on Recurring and Nonrecurring Basis [Line Items]
Net forward currency contract (liabilities) assets	0
Level 2
Fair Value, Assets and Liabilities Measured on Recurring and Nonrecurring Basis [Line Items]
Net forward currency contract (liabilities) assets	(1,131)
Level 3
Fair Value, Assets and Liabilities Measured on Recurring and Nonrecurring Basis [Line Items]
Net forward currency contract (liabilities) assets	$ 0

DERIVATIVE FINANCIAL INSTRUME32

DERIVATIVE FINANCIAL INSTRUMENTS - Outstanding Notional Amounts (Details) - Foreign Exchange Forward - USD ($) $ in Thousands	Jul. 30, 2017	Jul. 31, 2016
Designated as Hedging Instrument
Derivative [Line Items]
Derivatives designated as net investment hedges	$ 78,000	$ 0
Not Designated as Hedging Instrument
Derivative [Line Items]
Derivatives not designated in a hedging relationship	$ 65,000	$ 0

DERIVATIVE FINANCIAL INSTRUME33

DERIVATIVE FINANCIAL INSTRUMENTS - Quantitative Disclosures about Derivative Financial Instruments (Details) - USD ($) $ in Thousands	6 Months Ended
	Jul. 30, 2017	Jul. 31, 2016
Derivative Instruments and Hedging Activities Disclosure [Abstract]
Derivative assets subject to enforceable netting arrangements	$ 4,100
Derivative liabilities subject to enforceable netting arrangements	4,800
Foreign Exchange Forward | Designated as Hedging Instrument
Derivatives designated as net investment hedges, recognized within:
Other current liabilities	78,000	$ 0
Derivatives designated as net investment hedges:
(Loss) gain recognized in other comprehensive income	(8,925)	0
Foreign Exchange Forward | Designated as Hedging Instrument | Other current liabilities
Derivatives designated as net investment hedges, recognized within:
Other current liabilities	7,068	0
Foreign Exchange Forward | Not Designated as Hedging Instrument
Derivatives not designated in a hedging relationship, recognized within:
Other prepaid expenses and other current assets	65,000	0
Derivatives not designated in a hedging relationship:
Gain (loss) recognized in selling, general and administrative expenses	7,634	0
Foreign Exchange Forward | Not Designated as Hedging Instrument | Other prepaid expenses and other current assets
Derivatives not designated in a hedging relationship, recognized within:
Other prepaid expenses and other current assets	$ 5,937	$ 0

ASSET IMPAIRMENT AND RESTRUCT34

ASSET IMPAIRMENT AND RESTRUCTURING - Additional Information (Details) $ in Thousands	3 Months Ended			6 Months Ended
	Jul. 30, 2017USD ($)store	Apr. 30, 2017USD ($)	Jul. 31, 2016USD ($)	Jul. 30, 2017USD ($)store	Jul. 31, 2016USD ($)	Jan. 29, 2017store
Restructuring Cost and Reserve [Line Items]
Number of stores | store	421			421		406
Restructuring and related costs	$ 5,430		$ 0	$ 23,180	$ 0
Income tax expense (recovery)	20,813		20,912	35,897	32,679
Asset impairment and restructuring costs	$ 3,186		$ 0	15,517	0
Asset impairment				$ 11,593	$ 0
ivivva | Facility closing
Restructuring Cost and Reserve [Line Items]
Number of stores expected to close | store	47			47
Number of stores | store	55			55
Restructuring and related costs	$ 5,430			$ 23,180
Income tax expense (recovery)	(1,400)			(6,100)
Restructuring costs recorded in cost of goods sold	2,244			7,663
Provision for inventories	962			2,904
Expected loss on committed inventory purchases	(941)			2,536
Accelerated depreciation	2,223			2,223
Asset impairment and restructuring costs	3,186			15,517
Asset impairment	0	$ 11,600		11,593
Employee related costs	2,458			3,196
Lease termination and other restructuring costs	728			728
ivivva | Minimum | Facility closing
Restructuring Cost and Reserve [Line Items]
Restructuring estimated cost	50,000			50,000
ivivva | Maximum | Facility closing
Restructuring Cost and Reserve [Line Items]
Restructuring estimated cost	$ 60,000			$ 60,000

ASSET IMPAIRMENT AND RESTRUCT35

ASSET IMPAIRMENT AND RESTRUCTURING - Schedule of Restructuring Charges (Details) - USD ($) $ in Thousands	3 Months Ended			6 Months Ended
	Jul. 30, 2017	Apr. 30, 2017	Jul. 31, 2016	Jul. 30, 2017	Jul. 31, 2016
Restructuring Cost and Reserve [Line Items]
Impairment of property and equipment				$ 11,593	$ 0
Asset impairment and restructuring costs	$ 3,186		$ 0	15,517	0
Restructuring and related costs	5,430		$ 0	23,180	$ 0
ivivva | Facility closing
Restructuring Cost and Reserve [Line Items]
Provision to reduce inventories to net realizable value	962			2,904
Expected loss on committed inventory purchases	(941)			2,536
Accelerated depreciation	2,223			2,223
Restructuring costs recorded in cost of goods sold	2,244			7,663
Impairment of property and equipment	0	$ 11,600		11,593
Employee related costs	2,458			3,196
Lease termination and other restructuring costs	728			728
Asset impairment and restructuring costs	3,186			15,517
Restructuring and related costs	$ 5,430			$ 23,180

INCOME TAXES (Details)

INCOME TAXES (Details) - USD ($) $ in Millions	3 Months Ended	6 Months Ended
	Jul. 31, 2016	Jul. 31, 2016
Income Tax Disclosure [Abstract]
Net interest expense	$ 0.3	$ 1.5
Net income tax expense (recovery)	$ (1.9)	$ (7.6)

EARNINGS PER SHARE - Computatio

EARNINGS PER SHARE - Computation of Basic and Diluted Earning Per Share (Detail) - USD ($) $ / shares in Units, shares in Thousands, $ in Thousands	3 Months Ended		6 Months Ended
	Jul. 30, 2017	Jul. 31, 2016	Jul. 30, 2017	Jul. 31, 2016
Earnings Per Share [Abstract]
Net income	$ 48,711	$ 53,625	$ 79,957	$ 98,961
Basic weighted-average number of shares outstanding (in shares)	136,171	136,987	136,604	137,071
Assumed conversion of dilutive stock options and awards (in shares)	132	242	143	238
Diluted weighted-average number of shares outstanding (in shares)	136,303	137,229	136,747	137,309
Basic earnings per share (in USD per share)	$ 0.36	$ 0.39	$ 0.59	$ 0.72
Diluted earnings per share (in USD per share)	$ 0.36	$ 0.39	$ 0.58	$ 0.72

EARNINGS PER SHARE - Additional

EARNINGS PER SHARE - Additional Information (Detail) - USD ($) shares in Millions	1 Months Ended	6 Months Ended
	Aug. 28, 2017	Jul. 30, 2017	Jul. 31, 2016	Dec. 01, 2016	Jun. 11, 2014
Subsequent Event [Line Items]
Anti-dilutive stock options (in shares)		0.2	0.1
Aggregate amount authorized for stock repurchase				$ 100,000,000	$ 450,000,000
Remaining value of shares available to be repurchased		$ 8,500,000
Repurchase of common stock (in shares)		1.7	0.4
Repurchase of common stock		$ 90,801,000	$ 28,600,000
Subsequent Event
Subsequent Event [Line Items]
Repurchase of common stock (in shares)	0.1
Repurchase of common stock	$ 5,800,000

SUPPLEMENTARY FINANCIAL INFOR39

SUPPLEMENTARY FINANCIAL INFORMATION - Additional Information (Details) - USD ($) $ in Thousands	3 Months Ended		6 Months Ended
	Jul. 30, 2017	Jul. 31, 2016	Jul. 30, 2017	Jul. 31, 2016
Organization, Consolidation and Presentation of Financial Statements [Abstract]
Net foreign exchange gains (losses), before tax	$ (1,700)	$ 5,100	$ 4,100	$ (8,500)
Facility closing | ivivva
Restructuring Cost and Reserve [Line Items]
Provision for inventories	962		2,904
Expected loss on committed inventory purchases	$ (941)		$ 2,536

SUPPLEMENTARY FINANCIAL INFOR40

SUPPLEMENTARY FINANCIAL INFORMATION - Summary of Certain Balance Sheet Accounts (Detail) - USD ($) $ in Thousands	Jul. 30, 2017	Jan. 29, 2017
Inventories:
Finished goods	$ 329,535	$ 306,087
Provision to reduce inventories to net realizable value	(13,167)	(7,655)
Total inventories	316,368	298,432
Property and equipment, net:
Land	82,358	78,561
Buildings	39,032	32,174
Leasehold improvements	285,931	273,801
Furniture and fixtures	86,610	84,479
Computer hardware	61,611	58,270
Computer software	187,040	160,835
Equipment and vehicles	14,670	13,704
Accumulated depreciation	(330,291)	(278,325)
Total property and equipment	426,961	423,499
Goodwill and intangible assets, net:
Goodwill	25,496	25,496
Changes in foreign currency exchange rates	(947)	(1,263)
Goodwill, net	24,549	24,233
Intangibles - reacquired franchise rights	10,150	10,150
Accumulated amortization	(9,942)	(9,807)
Changes in foreign currency exchange rates	(8)	(19)
Total intangible assets	200	324
Goodwill and intangible assets, net	24,749	24,557
Other current liabilities:
Accrued duty, freight, and other operating expenses	38,871	27,477
Sales tax collected	12,551	10,182
Accrued rent	4,988	5,562
Other	16,931	9,340
Total accrued liabilities	73,341	52,561
Other non-current liabilities:
Deferred lease liability	27,514	26,648
Tenant inducements	23,808	21,668
Other	5,833	0
Other non-current liabilities	$ 57,155	$ 48,316

SEGMENT REPORTING (Detail)

SEGMENT REPORTING (Detail) - USD ($) $ in Thousands	3 Months Ended		6 Months Ended
	Jul. 30, 2017	Jul. 31, 2016	Jul. 30, 2017	Jul. 31, 2016
Net revenue:
Net revenue	$ 581,054	$ 514,520	$ 1,101,361	$ 1,010,036
Income from operations before general corporate expense:
Income from operations before general corporate expense	139,700	117,557	255,465	231,436
General corporate expense	65,558	43,598	118,150	99,888
Restructuring and related costs	5,430	0	23,180	0
Income from operations	68,712	73,959	114,135	131,548
Other income (expense), net	812	578	1,719	92
Income before income tax expense	69,524	74,537	115,854	131,640
Capital expenditures:
Capital expenditures	30,010	44,618	49,889	71,261
Depreciation and amortization:
Depreciation and amortization	28,406	20,497	51,569	39,683
Company-operated stores
Net revenue:
Net revenue	413,944	381,389	793,043	740,093
Income from operations before general corporate expense:
Income from operations before general corporate expense	92,609	80,277	170,139	153,564
Direct to consumer
Net revenue:
Net revenue	113,049	87,399	210,272	184,965
Income from operations before general corporate expense:
Income from operations before general corporate expense	40,139	32,644	75,566	71,152
Other
Net revenue:
Net revenue	54,061	45,732	98,046	84,978
Income from operations before general corporate expense:
Income from operations before general corporate expense	6,952	4,636	9,760	6,720
Operating Segments | Company-operated stores
Capital expenditures:
Capital expenditures	16,634	11,515	23,802	28,265
Depreciation and amortization:
Depreciation and amortization	15,881	14,511	31,081	28,295
Operating Segments | Direct to consumer
Capital expenditures:
Capital expenditures	6,861	4,551	8,841	5,715
Depreciation and amortization:
Depreciation and amortization	4,353	1,725	6,347	3,054
Corporate and other
Capital expenditures:
Capital expenditures	6,515	28,552	17,246	37,281
Depreciation and amortization:
Depreciation and amortization	$ 8,172	$ 4,261	$ 14,141	$ 8,334