Cover page
Cover page - USD ($) $ in Millions | 12 Months Ended | ||
Jan. 29, 2023 | Mar. 22, 2023 | Jul. 29, 2022 | |
Cover [Abstract] | |||
Document Type | 10-K | ||
Document Annual Report | true | ||
Document Period End Date | Jan. 29, 2023 | ||
Current Fiscal Year End Date | --01-29 | ||
Document Transition Report | false | ||
Entity File Number | 001-33608 | ||
Entity Registrant Name | lululemon athletica inc. | ||
Entity Incorporation, State or Country Code | DE | ||
Entity Tax Identification Number | 20-3842867 | ||
Entity Address, Address Line One | 1818 Cornwall Avenue | ||
Entity Address, City or Town | Vancouver | ||
Entity Address, State or Province | BC | ||
Entity Address, Postal Zip Code | V6J 1C7 | ||
City Area Code | 604 | ||
Local Phone Number | 732-6124 | ||
Title of 12(b) Security | Common Stock, par value $0.005 per share | ||
Trading Symbol | LULU | ||
Security Exchange Name | NASDAQ | ||
Entity Well-known Seasoned Issuer | Yes | ||
Entity Voluntary Filers | No | ||
Entity Current Reporting Status | Yes | ||
Entity Interactive Data Current | Yes | ||
Entity Filer Category | Large Accelerated Filer | ||
Entity Small Business | false | ||
Entity Emerging Growth Company | false | ||
ICFR Auditor Attestation Flag | true | ||
Entity Shell Company | false | ||
Entity Public Float | $ 33,762 | ||
Entity Common Stock, Shares Outstanding | 122,048,680 | ||
Documents Incorporated by Reference | Portions of the Proxy Statement for the 2023 Annual Meeting of Stockholders have been incorporated by reference into Part III of this Annual Report on Form 10-K. | ||
Amendment Flag | false | ||
Document Fiscal Year Focus | 2022 | ||
Document Fiscal Period Focus | FY | ||
Entity Central Index Key | 0001397187 |
Audit Information
Audit Information | 12 Months Ended |
Jan. 29, 2023 | |
Audit Information [Abstract] | |
Auditor Firm ID | 271 |
Auditor Name | PricewaterhouseCoopers LLP |
Auditor Location | Vancouver, Canada |
CONSOLIDATED BALANCE SHEETS
CONSOLIDATED BALANCE SHEETS - USD ($) $ in Thousands | Jan. 29, 2023 | Jan. 30, 2022 |
Current assets | ||
Cash and cash equivalents | $ 1,154,867 | $ 1,259,871 |
Accounts receivable, net | 132,906 | 77,001 |
Inventories | 1,447,367 | 966,481 |
Prepaid and receivable income taxes | 185,641 | 118,928 |
Prepaid expenses and other current assets | 238,672 | 192,572 |
Total current assets | 3,159,453 | 2,614,853 |
Property and equipment, net | 1,269,614 | 927,710 |
Right-of-use lease assets | 969,419 | 803,543 |
Goodwill | 24,144 | 386,880 |
Intangible assets, net | 21,961 | 71,299 |
Deferred income tax assets | 6,402 | 6,091 |
Other non-current assets | 156,045 | 132,102 |
Total assets | 5,607,038 | 4,942,478 |
Current liabilities | ||
Accounts payable | 172,732 | 289,728 |
Accrued liabilities and other | 399,223 | 330,800 |
Accrued compensation and related expenses | 248,167 | 204,921 |
Current lease liabilities | 207,972 | 188,996 |
Current income taxes payable | 174,221 | 133,852 |
Unredeemed gift card liability | 251,478 | 208,195 |
Other current liabilities | 38,405 | 48,842 |
Total current liabilities | 1,492,198 | 1,405,334 |
Non-current lease liabilities | 862,362 | 692,056 |
Non-current income taxes payable | 28,555 | 38,074 |
Deferred income tax liabilities | 55,084 | 53,352 |
Other non-current liabilities | 20,040 | 13,616 |
Total liabilities | 2,458,239 | 2,202,432 |
Commitments and contingencies | ||
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; 5,116 and 5,203 issued and outstanding | 0 | 0 |
Special voting stock, $0.000005 par value: 60,000 shares authorized; 5,116 and 5,203 issued and outstanding | 0 | 0 |
Common stock, $0.005 par value: 400,000 shares authorized; 122,205 and 123,297 issued and outstanding | 611 | 616 |
Additional paid-in capital | 474,645 | 422,507 |
Retained earnings | 2,926,127 | 2,512,840 |
Accumulated other comprehensive loss | (252,584) | (195,917) |
Total stockholders' equity | 3,148,799 | 2,740,046 |
Total liabilities and stockholders' equity | $ 5,607,038 | $ 4,942,478 |
CONSOLIDATED BALANCE SHEETS (Pa
CONSOLIDATED BALANCE SHEETS (Parenthetical) - $ / shares | Jan. 29, 2023 | Jan. 30, 2022 |
Statement of Financial Position [Abstract] | ||
Undesignated preferred stock, par value (in dollars per share) | $ 0.01 | $ 0.01 |
Undesignated preferred stock, shares authorized (in shares) | 5,000,000 | 5,000,000 |
Undesignated preferred stock, shares issued (in shares) | 0 | 0 |
Undesignated preferred stock, shares outstanding (in shares) | 0 | 0 |
Exchangeable stock, shares authorized (in shares) | 60,000,000 | 60,000,000 |
Exchangeable stock, shares issued (in shares) | 5,116,000 | 5,203,000 |
Exchangeable stock, shares outstanding (in shares) | 5,116,000 | 5,203,000 |
Special voting stock, par value (in dollars per share) | $ 0.000005 | $ 0.000005 |
Special voting stock, shares authorized (in shares) | 60,000,000 | 60,000,000 |
Special voting stock, shares issued (in shares) | 5,116,000 | 5,203,000 |
Special voting stock, shares outstanding (in shares) | 5,116,000 | 5,203,000 |
Common stock, par value (in dollars per share) | $ 0.005 | $ 0.005 |
Common stock, shares authorized (in shares) | 400,000,000 | 400,000,000 |
Common stock, shares issued (in shares) | 122,205,000 | 123,297,000 |
Common stock, shares outstanding (in shares) | 122,205,000 | 123,297,000 |
CONSOLIDATED STATEMENTS OF OPER
CONSOLIDATED STATEMENTS OF OPERATIONS AND COMPREHENSIVE INCOME - USD ($) shares in Thousands | 12 Months Ended | ||
Jan. 29, 2023 | Jan. 30, 2022 | Jan. 31, 2021 | |
Income Statement [Abstract] | |||
Net revenue | $ 8,110,518,000 | $ 6,256,617,000 | $ 4,401,879,000 |
Cost of goods sold | 3,618,178,000 | 2,648,052,000 | 1,937,888,000 |
Gross profit | 4,492,340,000 | 3,608,565,000 | 2,463,991,000 |
Selling, general and administrative expenses | 2,757,447,000 | 2,225,034,000 | 1,609,003,000 |
Amortization of intangible assets | 8,752,000 | 8,782,000 | 5,160,000 |
Impairment of goodwill and other assets | 407,913,000 | 0 | 0 |
Acquisition-related expenses | 0 | 41,394,000 | 29,842,000 |
Gain on disposal of assets | (10,180,000) | 0 | 0 |
Income from operations | 1,328,408,000 | 1,333,355,000 | 819,986,000 |
Other income (expense), net | 4,163,000 | 514,000 | (636,000) |
Income before income tax expense | 1,332,571,000 | 1,333,869,000 | 819,350,000 |
Income tax expense | 477,771,000 | 358,547,000 | 230,437,000 |
Net income | 854,800,000 | 975,322,000 | 588,913,000 |
Other comprehensive income (loss), net of tax: | |||
Foreign currency translation adjustment | (65,571,000) | (28,494,000) | 72,731,000 |
Net investment hedge gains (losses) | 8,904,000 | 9,732,000 | (25,305,000) |
Other comprehensive income (loss), net of tax | (56,667,000) | (18,762,000) | 47,426,000 |
Comprehensive income | $ 798,133,000 | $ 956,560,000 | $ 636,339,000 |
Basic earnings per share (in dollars per share) | $ 6.70 | $ 7.52 | $ 4.52 |
Diluted earnings per share (in dollars per share) | $ 6.68 | $ 7.49 | $ 4.50 |
Basic weighted-average number of shares outstanding (in shares) | 127,666 | 129,768 | 130,289 |
Diluted weighted-average number of shares outstanding (in shares) | 128,017 | 130,295 | 130,871 |
CONSOLIDATED STATEMENTS OF STOC
CONSOLIDATED STATEMENTS OF STOCKHOLDERS' EQUITY - 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 (shares) at Feb. 02, 2020 | 6,227 | 6,227 | 124,122 | ||||
Beginning balance at Feb. 02, 2020 | $ 1,952,218 | $ 0 | $ 621 | $ 355,541 | $ 1,820,637 | $ (224,581) | |
Increase (Decrease) in Stockholders' Equity [Roll Forward] | |||||||
Net income | 588,913 | 588,913 | |||||
Other comprehensive income (loss), net of tax | 47,426 | 47,426 | |||||
Common stock issued upon exchange of exchangeable shares (shares) | (1,024) | (1,024) | 1,024 | ||||
Common stock issued upon exchange of exchangeable shares | 0 | $ 0 | $ 5 | (5) | |||
Stock-based compensation expense | 50,797 | 50,797 | |||||
Common stock issued upon settlement of stock-based compensation (shares) | 532 | ||||||
Common stock issued upon settlement of stock-based compensation | 15,263 | $ 3 | 15,260 | ||||
Shares withheld related to net share settlement of stock-based compensation (shares) | (159) | ||||||
Shares withheld related to net share settlement of stock-based compensation | $ (32,388) | $ (1) | (32,387) | ||||
Repurchase of common stock (in shares) | (400) | (369) | |||||
Repurchase of common stock | $ (63,663) | $ (2) | (539) | (63,122) | |||
Ending balance (shares) at Jan. 31, 2021 | 5,203 | 5,203 | 125,150 | ||||
Ending balance at Jan. 31, 2021 | 2,558,566 | $ 0 | $ 626 | 388,667 | 2,346,428 | (177,155) | |
Increase (Decrease) in Stockholders' Equity [Roll Forward] | |||||||
Net income | 975,322 | 975,322 | |||||
Other comprehensive income (loss), net of tax | (18,762) | (18,762) | |||||
Stock-based compensation expense | 69,137 | 69,137 | |||||
Common stock issued upon settlement of stock-based compensation (shares) | 502 | ||||||
Common stock issued upon settlement of stock-based compensation | 18,194 | $ 2 | 18,192 | ||||
Shares withheld related to net share settlement of stock-based compensation (shares) | (153) | ||||||
Shares withheld related to net share settlement of stock-based compensation | $ (49,809) | $ (1) | (49,808) | ||||
Repurchase of common stock (in shares) | (2,200) | (2,202) | |||||
Repurchase of common stock | $ (812,602) | $ (11) | (3,681) | (808,910) | |||
Ending balance (shares) at Jan. 30, 2022 | 5,203 | 5,203 | 123,297 | ||||
Ending balance at Jan. 30, 2022 | 2,740,046 | $ 0 | $ 616 | 422,507 | 2,512,840 | (195,917) | |
Increase (Decrease) in Stockholders' Equity [Roll Forward] | |||||||
Net income | 854,800 | 854,800 | |||||
Other comprehensive income (loss), net of tax | (56,667) | (56,667) | |||||
Common stock issued upon exchange of exchangeable shares (shares) | 87 | 87 | 87 | ||||
Common stock issued upon exchange of exchangeable shares | 0 | $ 0 | $ 0 | 0 | |||
Stock-based compensation expense | 78,075 | 78,075 | |||||
Common stock issued upon settlement of stock-based compensation (shares) | 322 | ||||||
Common stock issued upon settlement of stock-based compensation | 11,704 | $ 2 | 11,702 | ||||
Shares withheld related to net share settlement of stock-based compensation (shares) | (105) | ||||||
Shares withheld related to net share settlement of stock-based compensation | $ (35,158) | $ 0 | (35,158) | ||||
Repurchase of common stock (in shares) | (1,400) | (1,396) | |||||
Repurchase of common stock | $ (444,001) | $ (7) | (2,481) | (441,513) | |||
Ending balance (shares) at Jan. 29, 2023 | 5,116 | 5,116 | 122,205 | ||||
Ending balance at Jan. 29, 2023 | $ 3,148,799 | $ 0 | $ 611 | $ 474,645 | $ 2,926,127 | $ (252,584) |
CONSOLIDATED STATEMENTS OF CASH
CONSOLIDATED STATEMENTS OF CASH FLOWS - USD ($) $ in Thousands | 12 Months Ended | ||
Jan. 29, 2023 | Jan. 30, 2022 | Jan. 31, 2021 | |
Cash flows from operating activities | |||
Net income | $ 854,800 | $ 975,322 | $ 588,913 |
Adjustments to reconcile net income to net cash provided by operating activities: | |||
Depreciation and amortization | 291,791 | 224,206 | 185,478 |
Impairment of goodwill and other assets | 407,913 | 0 | 0 |
Gain on disposal of assets | (10,180) | 0 | 0 |
Stock-based compensation expense | 78,075 | 69,137 | 50,797 |
Derecognition of unredeemed gift card liability | (23,337) | (18,699) | (13,696) |
Settlement of derivatives not designated in a hedging relationship | (38,649) | 15,191 | 4,485 |
Deferred income taxes | 3,042 | (5,180) | 34,908 |
Changes in operating assets and liabilities: | |||
Inventories | (510,510) | (323,609) | (96,548) |
Prepaid and receivable income taxes | (66,714) | 20,108 | (53,966) |
Prepaid expenses and other current assets | (113,820) | (82,404) | (70,999) |
Other non-current assets | (36,518) | (17,556) | (49,056) |
Accounts payable | (107,280) | 117,655 | 82,663 |
Accrued liabilities and other | 65,364 | 103,878 | 99,161 |
Accrued compensation and related expenses | 47,254 | 75,273 | (6,692) |
Current and non-current income taxes payable | 35,986 | 120,778 | (24,125) |
Unredeemed gift card liability | 68,266 | 71,441 | 47,962 |
Right-of-use lease assets and current and non-current lease liabilities | 23,905 | 13,494 | 13,267 |
Other current and non-current liabilities | (2,925) | 30,073 | 10,784 |
Net cash provided by operating activities | 966,463 | 1,389,108 | 803,336 |
Cash flows from investing activities | |||
Purchase of property and equipment | (638,657) | (394,502) | (229,226) |
Settlement of net investment hedges | 47,804 | (23,389) | (14,607) |
Acquisition, net of cash acquired | 0 | 0 | (452,581) |
Other investing activities | 20,916 | (10,000) | 882 |
Net cash used in investing activities | (569,937) | (427,891) | (695,532) |
Cash flows from financing activities | |||
Proceeds from settlement of stock-based compensation | 11,704 | 18,194 | 15,263 |
Shares withheld related to net share settlement of stock-based compensation | (35,158) | (49,809) | (32,388) |
Repurchase of common stock | (444,001) | (812,602) | (63,663) |
Other financing activities | (32) | (770) | 0 |
Net cash used in financing activities | (467,487) | (844,987) | (80,788) |
Effect of foreign currency exchange rate changes on cash and cash equivalents | (34,043) | (6,876) | 29,996 |
Increase (decrease) in cash and cash equivalents | (105,004) | 109,354 | 57,012 |
Cash and cash equivalents, beginning of period | 1,259,871 | 1,150,517 | 1,093,505 |
Cash and cash equivalents, end of period | $ 1,154,867 | $ 1,259,871 | $ 1,150,517 |
Nature of Operations and Basis
Nature of Operations and Basis of Presentation | 12 Months Ended |
Jan. 29, 2023 | |
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 technical athletic apparel, footwear, and accessories, which are sold through company-operated stores, direct to consumer through e-commerce, outlets, sales to wholesale accounts, license and supply arrangements, recommerce, and sales from temporary locations. Recommerce is the sale of repurchased product via the Company's "Like New" program. The Company operates stores in the United States, the People's Republic of China ("PRC"), Canada, Australia, the United Kingdom, South Korea, Germany, New Zealand, Singapore, Japan, France, Ireland, Spain, Malaysia, Sweden, the Netherlands, Norway, and Switzerland. There were 655, 574, and 521 company-operated stores in operation as of January 29, 2023, January 30, 2022, and January 31, 2021, respectively. The Company also engages in the design and retail of in-home connected fitness equipment and associated content subscriptions through lululemon Studio, which was rebranded from the Company's former MIRROR brand during fiscal 2022. COVID-19 Pandemic The outbreak of a novel strain of coronavirus ("COVID-19") caused governments and public health officials to impose restrictions and recommend precautions to mitigate the spread of the virus. The Company temporarily closed almost all of its retail locations for a significant portion of the first half of fiscal 2020. While most of the Company's retail locations have been open since then, certain locations were temporarily closed based on government and health authority guidance, including certain closures during 2022 in the PRC. In response to the COVID-19 pandemic, various government programs were announced which provide financial relief for affected businesses. The most significant relief measures which the Company qualified for are the Employee Retention Credit under the Coronavirus Aid, Relief, and Economic Security Act ("CARES Act") in the United States, and the Canada Emergency Wage Subsidy ("CEWS") under the COVID-19 Economic Response Plan in Canada. During fiscal 2020 the Company recognized payroll subsidies totaling $37.1 million under these wage subsidy programs and similar plans in other jurisdictions. The Company utilized the grant accounting model and these subsidies were recorded as a reduction in the associated wage costs which the Company incurred, and were recognized in selling, general and administrative expenses. These subsidies partially offset the wages paid to employees while its retail locations were temporarily closed due to COVID-19. The Company did not recognize any payroll subsidies in fiscal 2022 and fiscal 2021. The COVID-19 pandemic materially impacted the Company's operations. The extent to which COVID-19 continues to impact the Company's operations, and in turn, its operating results and financial position will depend on future developments, which are highly uncertain and cannot be predicted. Basis of presentation The consolidated financial statements have been presented in U.S. dollars and are prepared in accordance with United States generally accepted accounting principles ("GAAP"). 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 2022, fiscal 2021, and fiscal 2020 were each 52-week years. Fiscal 2022, 2021, and 2020 ended on January 29, 2023, January 30, 2022, and January 31, 2021, respectively, and are referred to as "2022," "2021," and "2020," respectively. 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. |
Summary of Significant Accounti
Summary of Significant Accounting Policies | 12 Months Ended |
Jan. 29, 2023 | |
Accounting Policies [Abstract] | |
Summary of Significant Accounting Policies | Summary of Significant Accounting Policies Principles of consolidation The consolidated financial statements include the accounts of lululemon athletica inc. and its wholly-owned subsidiaries. All intercompany balances and transactions have been eliminated. Cash and cash equivalents Cash and cash equivalents consist of cash on hand, bank balances, and short-term deposits with original maturities of three months or less. The Company has not experienced any losses related to these balances, and management believes the Company's credit risk to be minimal. Accounts receivable Accounts receivable primarily arise out of duty receivables, sales to wholesale accounts, and license and supply arrangements. The allowance for doubtful accounts represents management's best estimate of probable credit losses in accounts receivable. Receivables are written off against the allowance when management believes that the amount receivable will not be recovered. As of January 29, 2023, January 30, 2022, and January 31, 2021, the Company recorded an insignificant allowance for doubtful accounts. Inventories Inventories, consisting of finished goods, inventories in transit, and raw materials, are stated at the lower of cost and net realizable value. Cost is determined using weighted-average costs, and includes all costs incurred to deliver inventory to the Company's distribution centers including freight, non-refundable taxes, duty, and other landing costs. The Company periodically reviews its inventories and makes a provision as necessary to appropriately value goods that are obsolete, have quality issues, or are damaged. The amount of the provision is equal to the difference between the cost of the inventory and its net realizable value based upon assumptions about product quality, damages, future demand, selling prices, and market conditions. If changes in market conditions result in reductions in the estimated net realizable value of its inventory below its previous estimate, the Company would increase its reserve in the period in which it made such a determination. In addition, the Company provides for inventory shrinkage based on historical trends from actual physical inventory counts. Inventory shrinkage estimates are made to reduce the inventory value for lost or stolen items. The Company performs physical inventory counts and cycle counts throughout the year and adjusts the shrink reserve accordingly. Business combinations The purchase price of an acquisition is measured as the aggregate of the fair value of the consideration transferred including the acquisition-date fair value of the Company's previously held equity interests. The purchase price is allocated to the fair values of the tangible and intangible assets acquired and liabilities assumed, with any excess recorded as goodwill. These fair value determinations require judgment and may involve the use of significant estimates and assumptions. The purchase price allocation may be provisional during a measurement period of up to one year to provide reasonable time to obtain the information necessary to identify and measure the assets acquired and liabilities assumed. Any such measurement period adjustments are recognized in the period in which the adjustment amount is determined. Transaction costs associated with the acquisition are expensed as incurred. Goodwill Goodwill represents the excess of the aggregate of the consideration transferred, the fair value of any non-controlling interest in the acquiree, and the acquisition-date fair value of the Company's previously held equity interest over the net assets acquired and liabilities assumed. Goodwill is allocated to the reporting unit which is expected to receive the benefit from the synergies of the combination. Goodwill is tested annually for impairment or more frequently when an event or circumstance indicates that goodwill might be impaired. Generally, the Company first performs a qualitative assessment to determine whether it is more likely than not that the fair value of a reporting unit is less than its carrying value. If factors indicate that this is the case, the Company then estimates the fair value of the related reporting unit. If the fair value is less than the carrying value, the goodwill of the reporting unit is determined to be impaired and the Company will record an impairment equal to the excess of the carrying value over its fair value. Intangible assets Acquired finite-lived intangible assets are amortized on a straight-line basis over their estimated useful lives, and are reviewed for impairment when events or circumstances indicate that the asset group to which the intangible assets belong might be impaired. The Company revises the estimated remaining useful life of these assets when events or changes in circumstances warrant a revision. If the Company revises the useful life, the unamortized balance is amortized over the remaining useful life on a prospective basis. Property and equipment Property and equipment are recorded at cost less accumulated depreciation. Direct internal and external costs related to software used for internal purposes which are incurred during the application development stage or for upgrades that add functionality are capitalized. All other costs related to internal use software are expensed as incurred. Property and equipment carrying values are reviewed for impairment when events or circumstances indicate that the asset group to which the property and equipment belong might be impaired. Depreciation commences when an asset is ready for its intended use. Buildings are depreciated on a straight-line basis over the expected useful life of the asset, which is individually assessed, and estimated to be up to 40 years. Leasehold improvements are depreciated on a straight-line basis over the lesser of the expected lease term and the estimated useful life of the improvement, to a maximum of 10 years for stores and 15 years for corporate offices and distribution centers. All other property and equipment are depreciated using the declining balance method as follows: Furniture and fixtures 20% Computer hardware and software 20% - 50% Equipment and vehicles 20% - 30% Cloud Computing Arrangements The Company incurs costs to implement cloud computing arrangements hosted by third party vendors. Costs incurred to implement cloud computing service arrangements are capitalized when incurred during the application development phase, and recognized as other non-current assets. Implementation costs are subsequently amortized over the expected term of the related cloud service. The carrying value of cloud computing implementation costs are tested for impairment when an event or circumstance indicates that the asset might be impaired. Changes in cloud computing arrangement implementation costs are classified within operating activities in the consolidated statements of cash flows. Impairment of long-lived assets Long-lived assets, including intangible assets with finite lives, held for use are evaluated for impairment when the occurrence of events or a change in circumstances indicates that the carrying value of the assets may not be recoverable as measured by comparing their carrying value to the estimated undiscounted future cash flows generated by their use and eventual disposition. Impaired assets are recorded at fair value, determined principally by discounting the future cash flows expected from their use and eventual disposition. Reductions in asset values resulting from impairment valuations are recognized in income in the period that the impairment is determined. Leased property and equipment At lease commencement, which is generally when the Company takes possession of the asset, the Company records a lease liability and corresponding right-of-use asset. Lease liabilities represent the present value of minimum lease payments over the expected lease term, which includes options to extend or terminate the lease when it is reasonably certain those options will be exercised. The present value of the lease liability is determined using the Company's incremental collateralized borrowing rate at the lease commencement. Minimum lease payments include base rent, fixed escalation of rental payments, and rental payments that are adjusted periodically depending on a rate or index. In determining minimum lease payments, the Company does not separate non-lease components for real estate leases. Non-lease components are generally services that the lessor performs for the Company associated with the leased asset, such as common area maintenance. Right-of-use assets represent the right to control the use of the leased asset during the lease and are initially recognized in an amount equal to the lease liability. In addition, prepaid rent, initial direct costs, and adjustments for lease incentives are components of the right-of-use asset. Over the lease term the lease expense is amortized on a straight-line basis beginning on the lease commencement date. Right-of-use assets are assessed for impairment as part of the impairment of long-lived assets, which is performed whenever events or changes in circumstances indicate that the carrying amount of an asset or asset group may not be recoverable. Variable lease payments, including contingent rental payments based on sales volume, are recognized when the achievement of the specific target is probable. A right-of-use asset and lease liability are not recognized for leases with an initial term of 12 months or less, and the lease expense is recognized on a straight-line basis over the lease term. The Company recognizes a liability for the fair value of asset retirement obligations ("AROs") when such obligations are incurred. The Company's AROs are primarily associated with leasehold improvements which, at the end of a lease, the Company is contractually obligated to remove in order to comply with the lease agreement. At the inception of a lease with such conditions, the Company records an ARO liability and a corresponding capital asset in an amount equal to the estimated fair value of the obligation. The liability is estimated based on a number of assumptions requiring management's judgment, including store closing costs, cost inflation rates and discount rates, and is accreted to its projected future value over time. The capitalized asset is depreciated using the convention for depreciation of leasehold improvement assets. Upon satisfaction of the ARO conditions, any difference between the recorded ARO liability and the actual retirement costs incurred is recognized as an operating gain or loss in the consolidated statements of operations. The Company recognizes a liability for a cost associated with a lease exit or disposal activity when such obligation is incurred. A lease exit or disposal liability is measured initially at its fair value in the period in which the liability is incurred. The Company estimates fair value at the cease-use date of its operating leases as the remaining lease rentals, reduced by estimated sublease rentals that could be reasonably obtained for the property, even where the Company does not intend to enter into a sublease. Estimating the cost of certain lease exit costs involves subjective assumptions, including the time it would take to sublease the leased location and the related potential sublease income. The estimated accruals for these costs could be significantly affected if future experience differs from the assumptions used in the initial estimate. Revenue recognition Net revenue is comprised of company-operated store net revenue, direct to consumer net revenue through websites and mobile apps, including mobile apps on in-store devices that allow demand to be fulfilled via the Company's distribution centers, and other net revenue, which includes revenue from outlets, sales to wholesale accounts, license and supply arrangement net revenue, which consists of royalties as well as sales of the Company's products to licensees, recommerce revenue, revenue from temporary locations, and lululemon Studio revenue. All revenue is reported net of markdowns, discounts, sales taxes collected from customers on behalf of taxing authorities, and returns. lululemon Studio generates net revenue from the sale of in-home fitness equipment and associated content subscriptions. Certain in-home fitness contracts contain multiple performance obligations, including hardware and a subscription service commitment. For customer contracts that contain multiple performance obligations the Company accounts for individual performance obligations if they are distinct. The transaction price, net of discounts, is allocated to each performance obligation based on its standalone selling price. Revenue is recognized when performance obligations are satisfied through the transfer of control of promised goods or services to the Company's customers. Control transfers once a customer has the ability to direct the use of, and obtain substantially all of the benefits from, the product. This includes the transfer of legal title, physical possession, the risks and rewards of ownership, and customer acceptance. Revenue from company-operated stores and other retail locations is recognized at the point of sale. Direct to consumer revenue, sales to wholesale accounts and in-home fitness hardware sales are recognized upon receipt by the customer. In certain arrangements the Company receives payment before the customer receives the promised good. These payments are initially recorded as deferred revenue, and recognized as revenue in the period when control is transferred to the customer. Revenue is presented net of an allowance for estimated returns. The Company's liability for sales return refunds is recognized within accrued liabilities and other, and an asset for the value of inventory which is expected to be returned is recognized within other prepaid expenses and other current assets on the consolidated balance sheets. As of January 29, 2023 and January 30, 2022, the sales return allowance was $55.5 million and $41.7 million, respectively. Shipping fees billed to customers are recorded as revenue, and shipping costs are recognized within selling, general and administrative expenses in the same period the related revenue is recognized. Proceeds from the sale of gift cards are initially deferred and recognized within unredeemed gift card liability on the consolidated balance sheets, and are recognized as revenue when tendered for payment. While the Company will continue to honor all gift cards presented for payment, to the extent management determines there is no requirement to remit unused card balances to government agencies under unclaimed property laws, the portion of card balances not expected to be redeemed are recognized in net revenue in proportion to the gift cards which have been redeemed, under the redemption recognition method. For 2022, 2021, and 2020, net revenue recognized on unredeemed gift card balances was $23.3 million, $18.7 million, and $13.7 million, respectively. Cost of goods sold Cost of goods sold includes: • the cost of purchased merchandise, which includes acquisition and production costs including raw material and labor, as applicable; • the cost incurred to deliver inventory to the Company's distribution centers including freight, non-refundable taxes, duty, and other landing costs; • the cost of the Company's distribution centers, such as labor, rent, utilities, and depreciation; • the cost of the Company's production, design, research and development, distribution, and merchandising departments including salaries, stock-based compensation and benefits, and other expenses; • occupancy costs such as minimum rent, contingent rent where applicable, property taxes, utilities, and depreciation expense for the Company's company-operated store locations; • hemming costs; • shrink and inventory provision expense; and • the cost of digital content subscription services, including the costs of content creation, studio overhead, and related production departments. Selling, general and administrative expenses Selling, general and administrative expenses consist of all operating costs not otherwise included in cost of goods sold, intangible asset amortization, or acquisition-related expenses. The Company's selling, general and administrative expenses include the costs of corporate and retail employee wages and benefits, costs to transport the Company's products from the distribution facilities to the Company's retail locations and e-commerce guests, professional fees, marketing, technology, human resources, accounting, legal, corporate facility and occupancy costs, and depreciation and amortization expense other than in cost of goods sold. For 2022, 2021, and 2020, the Company incurred costs to transport its products from its distribution facilities to its retail locations and e-commerce guests of $353.7 million, $270.8 million, and $232.4 million, respectively. Advertising and Marketing Costs Advertising costs, including the costs to produce advertising, are expensed as incurred. Advertising expenses were $328.6 million, $297.5 million, and $216.0 million for 2022, 2021, and 2020, respectively, and are included within selling, general and administrative expenses. Store pre-opening costs Operating costs incurred prior to the opening of new stores are expensed as incurred as selling, general and administrative expenses. Income taxes The Company follows the liability method with respect to accounting for income taxes. Deferred income tax assets and liabilities are determined based on the temporary differences between the carrying amounts and the tax basis of assets and liabilities, and for tax losses, tax credit carryforwards, and other tax attributes. Deferred income tax assets and liabilities are measured using enacted tax rates, for the appropriate tax jurisdiction, that are expected to be in effect when these differences are anticipated to reverse. The Company has not recognized U.S. state income taxes and foreign withholding taxes on undistributed earnings of foreign subsidiaries which the Company has determined to be indefinitely reinvested. Deferred income tax assets are reduced by a valuation allowance, if based on the weight of available evidence, it is more likely than not that some portion or all of the deferred tax assets will not be realized. The evaluation as to the likelihood of realizing the benefit of a deferred income tax asset is based on the timing of scheduled reversals of deferred tax liabilities, taxable income forecasts, and tax-planning strategies. The recognition of a deferred income tax asset is based upon several assumptions and forecasts, including current and anticipated taxable income, the utilization of previously unrealized non-operating loss carryforwards, and regulatory reviews of tax filings. The Company evaluates its tax filing positions and recognizes the largest amount of tax benefit that is considered more likely than not to be sustained upon examination by the relevant taxing authorities based on the technical merits of the position. This determination requires the use of significant judgment. Income tax expense is adjusted in the period in which an uncertain tax position is effectively settled, the statute of limitations expires, facts or circumstances change, tax laws change, or new information becomes available. The Company's policy is to recognize interest expense and penalties related to income tax matters as part of other income (expense), net. Accrued interest and penalties are included within the related tax liability on the Company's consolidated balance sheets. The Company treats the global intangible low-taxed income ("GILTI") tax as a current period expense. Fair value of financial instruments 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. The Company records cash, 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. Unless otherwise noted, it is management's opinion that the Company is not exposed to significant interest or credit risks arising from these financial instruments. The Company holds certain assets and liabilities that are required to be measured at fair value on a recurring basis, and performs certain valuations on a non-recurring basis, which are outlined in Note 15. Fair Value Measurement. Foreign currency The functional currency for each entity included in these consolidated financial statements that is domiciled outside of the United States is generally the applicable local currency. Assets and liabilities of each foreign entity are translated into U.S. dollars at the exchange rate in effect on the balance sheet date. Net revenue and expenses are translated at the average rate in effect during the period. Unrealized translation gains and losses are recorded as a foreign currency translation adjustment, which is included in other comprehensive income (loss), net of tax, which is a component of accumulated other comprehensive income or loss included in stockholders' equity. Foreign currency transactions denominated in a currency other than an entity's functional currency are remeasured into the functional currency with any resulting gains and losses recognized in selling, general and administrative expenses, except for gains and losses arising on intercompany foreign currency transactions that are of a long-term investment nature, which are recorded as a net investment hedge gains (losses) in other comprehensive income (loss), net of tax. Derivative financial instruments The Company uses derivative financial instruments to manage its exposure to certain foreign currency exchange rate risks. Net investment hedges . The Company enters into certain forward currency contracts that are designated as net investment hedges. The effective portions of the hedges are reported in accumulated other comprehensive income or loss, net of tax, and will subsequently be reclassified to net earnings in the period in which the hedged investment is either sold or substantially liquidated. Hedge effectiveness is measured using a method based on changes in forward exchange rates. 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 also enters into certain forward currency contracts that are not designated as net investment hedges. They are designed to economically hedge the foreign exchange revaluation gains and losses of certain 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 the consolidated statements of cash flows. The Company presents its derivative assets and derivative liabilities at their gross fair values within 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. The Company does not enter into derivative contracts for speculative or trading purposes. Additional information on the Company's derivative financial instruments is included in Note 15. Fair Value Measurement and Note 16. Derivative Financial Instruments. Concentration of credit risk Accounts receivable are primarily from inventory duty receivables, wholesale accounts, and from license and supply arrangements. The Company generally does not require collateral to support the accounts receivable; however, in certain circumstances, the Company may require parties to provide payment for goods prior to delivery of the goods or to provide letters of credit. The accounts receivable are net of an allowance for doubtful accounts, which is established based on management's assessment of the credit risk of the underlying accounts. Cash and cash equivalents are held with high quality financial institutions. The amount of cash and cash equivalents held with certain financial institutions exceeds government-insured limits. The Company is also 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 has not experienced any losses related to these items, and it believes credit risk to be minimal. The Company seeks to minimize its credit risk by entering into transactions with investment grade credit worthy and reputable financial institutions and by monitoring the credit standing of the financial institutions with whom it transacts. It seeks to limit the amount of exposure with any one counterparty. 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 North American revolving credit facility, the Company may be required to make immediate payment for outstanding liabilities under its derivative contracts. Stock-based compensation The Company accounts for stock-based compensation using the fair value method. The fair value of awards granted is estimated at the date of grant. Awards settled in cash or common stock at the election of the employee are remeasured to fair value at the end of each reporting period until settlement. The employee compensation expense is recognized on a straight-line basis over the requisite service period with the offsetting credit to additional paid-in capital for awards that are settled in common shares, and with the offsetting credit to accrued compensation and related expenses for awards that are settled in cash or common stock at the election of the employee. For awards with service and/or performance conditions, the amount of compensation expense recognized is based on the number of awards expected to vest, reflecting estimated expected forfeitures, and is adjusted to reflect those awards that do ultimately vest. The forfeiture rate is based on management's best estimate of expected forfeitures, taking into consideration historical trends and expected future behavior. For awards with performance conditions, the Company recognizes the compensation expense if and when the Company concludes that it is probable that the performance condition will be achieved. The Company reassesses the probability of achieving the performance condition at each reporting date. The grant date fair value of each stock option granted is estimated on the grant date using the Black-Scholes model, and the grant date fair value of restricted shares, performance-based restricted stock units, and restricted stock units is based on the closing price of the Company's common stock on the grant date. Restricted stock units that are settled in cash or common stock at the election of the employee are remeasured to fair value at the end of each reporting period until settlement. This fair value is based on the closing price of the Company's common stock on the last business day before each period end. Earnings per share Earnings per share is calculated using the weighted-average number of common and exchangeable shares outstanding during the period. 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. Diluted earnings per share is calculated by dividing net income available to stockholders for the period by the diluted weighted-average number of shares outstanding during the period. Diluted earnings per share reflects the potential dilution from common shares issuable through stock options, performance-based restricted stock units that have satisfied their performance factor, restricted shares, and restricted stock units using the treasury stock method. Contingencies In the ordinary course of business, the Company is involved in legal proceedings regarding contractual and employment relationships and a variety of other matters. The Company records contingent liabilities resulting from claims against us, when a loss is assessed to be probable and the amount of the loss is reasonably estimable. Use of estimates The preparation of financial statements in conformity with GAAP in the United States requires management to make estimates and assumptions that affect the reported amounts of assets and liabilities and the disclosure of contingent assets and liabilities at the date of the financial statements as well as the reported amounts of net revenue and expenses during the reporting period. Actual results could differ from those estimates. Recently adopted accounting pronouncements The Company considers the applicability and impact of all Accounting Standard Updates ("ASUs"). ASUs adopted during 2022 not listed below were assessed, and determined to be either not applicable or are expected to have minimal impact on its consolidated financial position or results of operations. In November 2021, the FASB issued ASC 832, Government Assistance to require annual disclosures about the nature of certain government assistance received, the accounting policy used to account for the transactions, the location in the financial statements where such transactions were recorded and significant terms and conditions associated with such transactions. The Company adopted this update prospectively during the first quarter of 2022 and it did not have a material impact on the Company's consolidated financial statements. Recently issued accounting pronouncements ASUs recently issued not listed below were assessed and determined to be either not applicable or are expected to have minimal impact on its consolidated financial position or results of operations. In September 2022, the FASB issued ASC 405-50, Liabilities - Supplier Finance Programs, to require annual and interim disclosures about the key terms of supplier finance programs used in connection with the purchase of goods and services along with information about the obligations under these programs, including the amount outstanding at the end of each reporting period and a rollforward of those obligations. The guidance is effective for fiscal years beginning after December 15, 2022, including interim periods in those fiscal years, with early adoption permitted. The Company is currently evaluating the impact that this new guidance may have on its consolidated financial statements. |
Inventories
Inventories | 12 Months Ended |
Jan. 29, 2023 | |
Inventory Disclosure [Abstract] | |
Inventories | Inventories January 29, 2023 January 30, 2022 (In thousands) Inventories, at cost $ 1,571,981 $ 1,004,526 Provision to reduce inventories to net realizable value: Obsolescence provision (84,231) (11,325) Damages provision (38,996) (24,404) Shrink provision (1,387) (2,316) (124,614) (38,045) Inventories $ 1,447,367 $ 966,481 |
Prepaid Expenses and Other Curr
Prepaid Expenses and Other Current Assets | 12 Months Ended |
Jan. 29, 2023 | |
Prepaid Expense and Other Assets, Current [Abstract] | |
Prepaid Expenses and Other Current Assets | Prepaid Expenses and Other Current Assets January 29, 2023 January 30, 2022 (In thousands) Prepaid inventories $ 1,082 $ 42,691 Other prepaid expenses 140,921 98,254 Forward currency contract assets 16,707 19,077 Other current assets 79,962 32,550 Prepaid expenses and other current assets $ 238,672 $ 192,572 |
Property and Equipment
Property and Equipment | 12 Months Ended |
Jan. 29, 2023 | |
Property, Plant and Equipment [Abstract] | |
Property and Equipment | Property and Equipment January 29, 2023 January 30, 2022 (In thousands) Land $ 80,692 $ 74,297 Buildings 28,850 30,880 Leasehold improvements 818,071 676,762 Furniture and fixtures 144,572 125,213 Computer hardware 166,768 130,393 Computer software 742,295 532,819 Equipment and vehicles 30,766 23,060 Work in progress 244,898 163,420 Property and equipment, gross 2,256,912 1,756,844 Accumulated depreciation (987,298) (829,134) Property and equipment, net $ 1,269,614 $ 927,710 There were capitalized computer software costs of $67.9 million, $35.8 million, and $23.5 million in 2022, 2021, and 2020, respectively, associated with internally developed software. Depreciation expense related to property and equipment was $282.7 million, $215.3 million, and $180.1 million for 2022, 2021, and 2020, respectively. Gain on Disposal of Assets During the second quarter of 2022, the Company completed the sale of an administrative office building, which resulted in a pre-tax gain of $10.2 million. The income tax effect of the gain on disposal of assets was an expense of $1.7 million. |
Intangible Assets, Goodwill and
Intangible Assets, Goodwill and Other Assets | 12 Months Ended |
Jan. 29, 2023 | |
Goodwill and Intangible Assets Disclosure [Abstract] | |
Impairment of Goodwill and Other | Impairment of Goodwill and Other AssetsEvents as of January 29, 2023 indicated the Company should conduct an impairment test for the goodwill, intangible assets, and property and equipment related to lululemon Studio (formerly MIRROR). Sales of hardware units did not meet the Company's fourth quarter expectations and the Company revised its short and long term forecasts for lululemon Studio, with an adverse impact on expected cash flows. As a result, the Company updated its strategy for the lululemon Studio reporting unit. During the fourth quarter of 2022, the Company recorded impairment of goodwill and other assets related to the lululemon Studio business unit. The following table summarizes the amounts recognized: 2022 (In thousands) Costs recorded in cost of goods sold: Obsolescence provision $ 62,928 Costs recorded in operating expenses: Impairment of goodwill $ 362,492 Impairment of intangible assets 40,585 Impairment of property and equipment 4,836 Impairment of goodwill and other assets 407,913 Total pre-tax charges $ 470,841 Income tax effects of charges $ (28,171) Total after-tax charges $ 442,670 Goodwill To perform the goodwill impairment test on January 29, 2023, the Company used a discounted cash flow model to estimate the fair value of the lululemon Studio reporting unit based on the updated strategic plans, supplemented by market comparable analysis, which indicated the fair value of lululemon Studio was lower than its carrying value, and led to a recognition of an impairment of goodwill of $362.5 million. The key assumptions used to estimate the fair value of the lululemon Studio reporting unit were the revenue growth rates, operating profit margins, and the discount rate. The fair value of the lululemon Studio reporting unit is a Level 3 fair value measurement. Intangible assets Undiscounted cash flows of the lululemon Studio asset group to which the intangible assets belong were less than their carrying value, and therefore the Company calculated the fair value of the asset group, which was also less than its carrying value. This resulted in impairments of $40.6 million relating to the MIRROR brand, which is associated with in-home hardware, and to the customer relationship intangible assets that were recognized as part of the acquisition. The carrying value of individual long-lived assets was not reduced to lower than their fair value. The fair values of the brand and the customer relationships were based on a relief from royalty method and a discounted cash flow model respectively, and are Level 3 fair value measurements. Inventories |
Acquisition-Related Expenses
Acquisition-Related Expenses | 12 Months Ended |
Jan. 29, 2023 | |
Business Combination and Asset Acquisition [Abstract] | |
Acquisition-Related Expenses | Acquisition-Related ExpensesIn connection with the acquisition of MIRROR, the Company recognized certain expenses which were recognized within acquisition-related expenses in the consolidated statements of operations. These amounts included acquisition-related compensation, transaction and integration costs, and a gain on the Company's existing investment in MIRROR. The amounts recognized were $41.4 million and $29.8 million in 2021 and 2020, respectively. There were no acquisition-related expenses recognized in 2022. |
Goodwill
Goodwill | 12 Months Ended |
Jan. 29, 2023 | |
Goodwill and Intangible Assets Disclosure [Abstract] | |
Goodwill | Goodwill The changes in the carrying amounts of goodwill were as follows: Goodwill (In thousands) Balance as of January 31, 2021 $ 386,877 Effect of foreign currency translation 3 Balance as of January 30, 2022 $ 386,880 Impairment of goodwill (362,492) Effect of foreign currency translation (244) Balance as of January 29, 2023 $ 24,144 The Company recognized an impairment of $362.5 million related to the lululemon Studio reporting unit as of January 29, 2023 on the goodwill that arose from the acquisition of MIRROR. lululemon Studio is included within Other in the Company's segment disclosures. Please refer to Note 8. Impairment of Goodwill and Other Assets for further information. |
Intangible Assets
Intangible Assets | 12 Months Ended |
Jan. 29, 2023 | |
Goodwill and Intangible Assets Disclosure [Abstract] | |
Intangible Assets | Intangible Assets A summary of the balances of the Company's intangible assets as of January 29, 2023, January 30, 2022, is presented below: January 29, 2023 January 30, 2022 Gross Carrying Amount Accumulated Amortization Impairment Net Carrying Amount Remaining Useful Life (Years) Gross Carrying Amount Accumulated Amortization Net Carrying Amount Remaining Useful Life (Years) (In thousands, except in years) MIRROR brand $ 26,500 $ (3,423) $ (20,077) $ 3,000 3.0 $ 26,500 $ (2,098) $ 24,402 18.4 Customer relationships 28,000 (7,492) (20,508) — n/a 28,000 (4,592) 23,408 8.4 Technology 25,500 (8,956) — 16,544 3.0 25,500 (5,489) 20,011 5.9 Content 5,000 (2,583) — 2,417 2.4 5,000 (1,583) 3,417 3.4 Other 270 (270) — — n/a 270 (209) 61 0.7 Intangible assets $ 85,270 $ (22,724) $ (40,585) $ 21,961 2.9 $ 85,270 $ (13,971) $ 71,299 10.9 Amortization of intangible assets was $8.8 million, $8.8 million, and $5.2 million in 2022, 2021, and 2020, respectively. As of January 29, 2023, the Company recorded an impairment charge of $40.6 million related to the intangible assets in the lululemon Studio reporting unit. Please refer to Note 8. Impairment of Goodwill and Other Assets for further information. There were no impairment charges in 2021 and 2020. The following table presents the future expected amortization expense as of January 29, 2023: January 29, 2023 (In thousands) 2023 $ 7,515 2024 7,515 2025 6,931 Total estimated future amortization expense $ 21,961 |
Other Non-Current Assets
Other Non-Current Assets | 12 Months Ended |
Jan. 29, 2023 | |
Other Assets, Noncurrent Disclosure [Abstract] | |
Other Non-Current Assets | Other Non-Current Assets January 29, 2023 January 30, 2022 (In thousands) Cloud computing arrangement implementation costs $ 114,700 $ 89,334 Security deposits 28,447 24,083 Other 12,898 18,685 Other non-current assets $ 156,045 $ 132,102 As of January 29, 2023 and January 30, 2022, cloud computing arrangement implementation costs consisted of deferred costs of $212.4 million and $138.4 million, respectively, and associated accumulated amortization of $97.7 million and $49.0 million, respectively. |
Accrued Liabilities and Other
Accrued Liabilities and Other | 12 Months Ended |
Jan. 29, 2023 | |
Accounts Payable and Accrued Liabilities [Abstract] | |
Accrued Liabilities and Other | Accrued Liabilities and Other January 29, 2023 January 30, 2022 (In thousands) Accrued operating expenses $ 169,429 $ 116,822 Accrued freight 57,692 71,390 Sales return allowances 55,528 41,690 Forward currency contract liabilities 25,625 18,985 Accrued duty 21,046 27,182 Sales tax collected 20,183 13,540 Accrued capital expenditures 19,365 9,616 Accrued rent 12,223 11,254 Accrued inventory liabilities 4,345 4,005 Other 13,787 16,316 Accrued liabilities and other $ 399,223 $ 330,800 |
Revolving Credit Facilities
Revolving Credit Facilities | 12 Months Ended |
Jan. 29, 2023 | |
Debt Disclosure [Abstract] | |
Revolving Credit Facilities | Revolving Credit Facilities North America revolving credit facility On December 14, 2021, the Company entered into an amended and restated credit agreement extending its existing credit facility, which provides for $400.0 million in commitments under an unsecured five-year revolving credit facility. The credit facility has a maturity date of December 14, 2026, subject to extension under certain circumstances. Borrowings under the credit facility may be prepaid and commitments may be reduced or terminated without premium or penalty (other than customary breakage costs). As of January 29, 2023, aside from letters of credit of $6.5 million, the Company had no other borrowings outstanding under this credit facility. Borrowings made under the credit facility bear interest at a rate per annum equal to, at the Company's option, either (a) a rate based on the Secured Overnight Financing Rate as administered by the Federal Reserve Bank of New York ("SOFR"), or (b) an alternate base rate, plus, in each case, an applicable margin. The applicable margin is determined by reference to a pricing grid, based on the ratio of indebtedness to earnings before interest, tax, depreciation, amortization, and rent ("EBITDAR") and ranges between 1.000%-1.375% for SOFR loans and 0.000%-0.375% for alternate base rate or Canadian prime rate loans. Additionally, a commitment fee of between 0.100%-0.200%, also determined by reference to the pricing grid, is payable on the average daily unused amounts under the credit facility. The applicable interest rates and commitment fees are subject to adjustment based on certain sustainability key performance indicators ("KPIs"). The two KPIs are based on greenhouse gas emissions intensity reduction and gender pay equity, and the Company's performance against certain targets measured on an annual basis could result in positive or negative sustainability rate adjustments of 2.50 basis points to its drawn pricing and positive or negative sustainability fee adjustments of 0.50 basis points to its undrawn pricing. The credit agreement contains negative covenants that, among other things and subject to certain exceptions, limit the ability of the Company's subsidiaries to incur indebtedness, incur liens, undergo fundamental changes, make dispositions of all or substantially all of their assets, alter their businesses and enter into agreements limiting subsidiary dividends and distributions. The Company's financial covenants include maintaining an operating lease adjusted leverage ratio of not greater than 3.25:1.00 and the ratio of consolidated EBITDAR to consolidated interest charges (plus rent) of not less than 2.00:1.00. The credit agreement also contains certain customary representations, warranties, affirmative covenants, and events of default (including, among others, an event of default upon the occurrence of a change of control). If an event of default occurs, the credit agreement may be terminated, and the maturity of any outstanding amounts may be accelerated. As of January 29, 2023, the Company was in compliance with the covenants of the credit facility. China Mainland revolving credit facility In December 2019, the Company entered into an uncommitted and unsecured 130.0 million Chinese Yuan ($19.2 million) revolving credit facility with terms that are reviewed on an annual basis. The credit facility was increased to 230.0 million Chinese Yuan ($33.9 million) during 2020. It is comprised of a revolving loan of up to 200.0 million Chinese Yuan ($29.5 million) and a financial guarantee facility of up to 30.0 million Chinese Yuan ($4.4 million), or its equivalent in another currency. Loans are available for a period not to exceed 12 months, at an interest rate equal to the loan prime rate plus a spread of 0.5175%. The Company is required to follow certain covenants. As of January 29, 2023, the Company was in compliance with the covenants and, aside from letters of credit of 14.3 million Chinese Yuan ($2.1 million), there were no other borrowings or guarantees outstanding under this credit facility. 364-Day revolving credit facility In June 2020, the Company obtained a 364-day $300.0 million committed and unsecured revolving credit facility. In December 2020, the Company elected to terminate this credit facility. |
Stockholders' Equity
Stockholders' Equity | 12 Months Ended |
Jan. 29, 2023 | |
Stockholders' Equity Note [Abstract] | |
Stockholders' Equity | Stockholders' Equity Special voting stock and exchangeable shares The holders of the special voting stock are entitled to one vote for each share held. The special voting shares are not entitled to receive dividends or distributions or receive any consideration in the event of a liquidation, dissolution, or wind-up. To the extent that exchangeable shares as described below are exchanged for common stock, a corresponding number of special voting shares will be cancelled without consideration. The holders of the exchangeable shares have dividend and liquidation rights equivalent to those of holders of the common shares of the Company. The exchangeable shares can be converted on a one for one basis by the holder at any time into common shares of the Company plus a cash payment for any accrued and unpaid dividends. Holders of exchangeable shares are entitled to the same or economically equivalent dividend as declared on the common stock of the Company. The exchangeable shares are non-voting. The Company has the right to convert the exchangeable shares into common shares of the Company at any time after the earliest of July 26, 2047, the date on which fewer than 4.2 million exchangeable shares are outstanding, or in the event of certain events such as a change in control. |
Stock-Based Compensation and Be
Stock-Based Compensation and Benefit Plans | 12 Months Ended |
Jan. 29, 2023 | |
Share-Based Payment Arrangement [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, provided directly by the Company. In June 2014, the Company's stockholders approved the adoption of the lululemon athletica inc. 2014 Equity Incentive Plan ("2014 Plan"). The 2014 Plan provides for awards in the form of stock options, stock appreciation rights, restricted stock purchase rights, restricted share bonuses, restricted stock units, performance shares, performance-based restricted stock units, cash-based awards, other stock-based awards, and deferred compensation awards to employees (including officers and directors who are also employees), consultants, and directors of the Company. The Company has granted stock options, performance-based restricted stock units, restricted stock units, and restricted shares. Stock options granted to date generally have a four-year vesting period and vest at a rate of 25% each year on the anniversary date of the grant. Stock options generally expire on the earlier of seven years from the date of grant, or a specified period of time following termination. Performance-based restricted stock units issued generally vest three years from the grant date and restricted shares generally vest one year from the grant date. Restricted stock units granted generally have a three-year vesting period and vest at a certain percentage each year on the anniversary date of the grant. The Company issues previously unissued shares upon the exercise of Company options, vesting of performance-based restricted stock units or restricted stock units that are settled in common stock, and granting of restricted shares. Stock-based compensation expense charged to income for the plans was $77.2 million, $66.4 million, and $56.6 million for 2022, 2021, and 2020, respectively. Total unrecognized compensation cost for all stock-based compensation plans was $118.0 million as of January 29, 2023, which is expected to be recognized over a weighted-average period of 2.1 years, and was $96.7 million as of January 30, 2022 over a weighted-average period of 2.0 years. A summary of the balances of the Company's stock-based compensation plans as of January 29, 2023, January 30, 2022, and January 31, 2021, and changes during the fiscal years then ended is presented below: Stock Options Performance-Based Restricted Stock Units Restricted Shares Restricted Stock Units 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 Number Weighted-Average Fair Value (In thousands, except per share amounts) Balance as of February 2, 2020 776 $ 113.41 238 $ 103.52 7 $ 175.82 333 $ 108.44 29 $ 239.39 Granted 241 182.78 140 122.21 4 299.09 130 208.35 — — Exercised/vested 182 83.89 171 63.03 7 175.82 175 87.31 14 366.42 Forfeited/expired 31 155.33 8 155.08 — — 13 162.60 — — Balance as of January 31, 2021 804 $ 139.27 199 $ 149.20 4 $ 299.09 275 $ 166.50 15 $ 328.68 Granted 194 310.29 139 185.37 4 326.70 129 331.42 — — Exercised/vested 174 104.85 165 100.89 4 299.09 144 139.33 15 397.83 Forfeited/expired 35 199.76 6 216.62 — — 22 235.23 — — Balance as of January 30, 2022 789 $ 186.10 167 $ 225.27 4 $ 326.70 238 $ 265.90 — $ — Granted 192 371.04 117 274.90 5 308.66 120 364.51 — — Exercised/vested 93 127.68 114 170.04 4 326.70 111 241.02 — — Forfeited/expired 22 286.56 4 307.76 — — 26 334.39 — — Balance as of January 29, 2023 866 $ 230.78 166 $ 295.93 5 $ 308.66 221 $ 323.89 — $ — A total of 12.3 million shares of the Company's common stock have been authorized for future issuance under the Company's 2014 Equity Incentive Plan. 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 grant date. Expense for performance-based restricted stock units is recognized when it is probable that the performance goal will be achieved. The grant date fair value of the restricted shares and restricted stock units is based on the closing price of the Company's common stock on the grant date. Restricted stock units that are settled in cash or common stock at the election of the employee are remeasured to fair value at the end of each reporting period until settlement. This fair value is based on the closing price of the Company's common stock on the last business day before each period end. The grant date fair value of each stock option granted is estimated on the date of grant using the Black-Scholes model. The closing price of the Company's common stock on the grant date is used in the 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 exercise 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 are weighted averages of the assumptions that were used in calculating the fair value of stock options granted in 2022, 2021, and 2020: 2022 2021 2020 Expected term 3.75 years 3.75 years 3.61 years Expected volatility 40.00 % 39.32 % 40.01 % Risk-free interest rate 2.51 % 0.50 % 0.32 % Dividend yield — % — % — % The following table summarizes information about stock options outstanding and exercisable as of January 29, 2023: Outstanding Exercisable Range of Exercise Prices Number of Options Weighted-Average Exercise Price Weighted-Average Remaining Life (Years) Number of Options Weighted-Average Exercise Price Weighted-Average Remaining Life (Years) (In thousands, except per share amounts and years) $2.78-$155.97 173 $ 98.43 2.1 173 $ 98.43 2.1 $167.54-$174.52 170 167.78 3.2 111 167.76 3.2 $188.84-$296.36 161 189.55 4.2 69 189.61 4.2 $306.71-$326.39 179 307.53 5.3 38 307.48 5.1 $327.22-$426.44 183 375.52 6.1 4 362.50 5.3 866 $ 230.78 4.2 395 $ 156.64 3.1 Intrinsic value $ 81,280 $ 61,050 As of January 29, 2023, the unrecognized compensation cost related to these options was $29.7 million, which is expected to be recognized over a weighted-average period of 2.6 years. The weighted-average grant date fair value of options granted during 2022, 2021, and 2020 was $124.17, $94.09, and $74.91, respectively. The following table summarizes the intrinsic value of options exercised and awards that vested during 2022, 2021, and 2020: 2022 2021 2020 (In thousands) Stock options $ 19,906 $ 46,761 $ 37,022 Performance-based restricted stock units 37,672 52,495 32,384 Restricted shares 1,152 1,364 2,115 Restricted stock units 37,275 47,042 37,791 Restricted stock units (liability accounting) — 5,938 5,309 $ 96,005 $ 153,600 $ 114,621 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 2022, there were 0.1 million shares purchased. Defined contribution pension plans The Company offers defined contribution pension plans to its eligible employees. 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 $14.0 million, $11.8 million, and $9.2 million during 2022, 2021, and 2020, respectively. |
Fair Value Measurement
Fair Value Measurement | 12 Months Ended |
Jan. 29, 2023 | |
Fair Value Disclosures [Abstract] | |
Fair Value Measurement | Fair Value Measurement Assets and liabilities measured at fair value on a recurring basis As of January 29, 2023 and January 30, 2022, the Company held certain assets and liabilities that are required to be measured at fair value on a recurring basis: January 29, 2023 Level 1 Level 2 Level 3 Balance Sheet Classification (In thousands) Money market funds $ 568,000 $ 568,000 $ — $ — Cash and cash equivalents Term deposits 8 — 8 — Cash and cash equivalents Forward currency contract assets 16,707 — 16,707 — Prepaid expenses and other current assets Forward currency contract liabilities 25,625 — 25,625 — Other current liabilities January 30, 2022 Level 1 Level 2 Level 3 Balance Sheet Classification (In thousands) Money market funds $ 38,475 $ 38,475 $ — $ — Cash and cash equivalents Term deposits 318,698 — 318,698 — Cash and cash equivalents Forward currency contract assets 19,077 — 19,077 — Prepaid expenses and other current assets Forward currency contract liabilities 18,985 — 18,985 — Other current liabilities The Company has short-term, highly liquid investments classified as cash equivalents, which are invested in money market funds and term deposits. The Company records cash equivalents at their original purchase prices plus interest that has accrued at the stated rate. The fair values of the forward currency contract assets and liabilities are determined using observable Level 2 inputs, including foreign currency spot exchange rates, forward pricing curves, and interest rates. The fair values consider the credit risk of the Company and its counterparties. The Company's Master International Swap Dealers Association, Inc., Agreements and other similar arrangements allow net settlements under certain conditions. However, the Company records all derivatives on its consolidated balance sheets at fair value and does not offset derivative assets and liabilities. Assets and liabilities measured at fair value on a non-recurring basis The Company has also recorded lease termination liabilities at fair value on a non-recurring basis, determined using Level 3 inputs based on remaining lease rentals and reduced by estimated sublease income. As of January 29, 2023, the Company recorded impairment charges for goodwill, intangible assets, and property and equipment, as disclosed in Note 8. Impairment of Goodwill and Other Assets. That note includes details on the discounted cash flow model used to estimate fair value, which is a Level 3 valuation technique. |
Derivative Financial Instrument
Derivative Financial Instruments | 12 Months Ended |
Jan. 29, 2023 | |
Derivative Instruments and Hedging Activities Disclosure [Abstract] | |
Derivative Financial Instruments | Derivative Financial InstrumentsThe Company currently hedges against changes in the Canadian dollar and Chinese Yuan to the U.S. dollar exchange rate and changes in the Euro and Australian dollar to the Canadian dollar exchange rate using forward currency contracts. Net investment hedges The Company is exposed to foreign currency exchange gains and losses which arise on translation of its international subsidiaries' balance sheets into U.S. dollars. These gains and losses are recorded as other comprehensive income (loss), net of tax in accumulated other comprehensive income or loss within stockholders' equity. The Company holds a significant portion of its assets in Canada and enters 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 Company assesses hedge effectiveness based on changes in forward rates. The Company recorded no ineffectiveness from net investment hedges during 2022. Derivatives not designated as hedging instruments During 2022, the Company entered into certain forward currency contracts designed to economically hedge the foreign currency exchange revaluation gains and losses that are recognized by its Canadian and Chinese subsidiaries on specific monetary assets and liabilities denominated in currencies other than the functional currency of the entity. 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. Quantitative disclosures about derivative financial instruments The notional amounts and fair values of forward currency contracts were as follows: January 29, 2023 January 30, 2022 Gross Notional Assets Liabilities Gross Notional Assets Liabilities (In thousands) Derivatives designated as net investment hedges: Forward currency contracts $ 1,070,000 $ — $ 17,211 $ 1,502,000 $ 18,468 $ — Derivatives not designated in a hedging relationship: Forward currency contracts 1,605,284 16,707 8,414 1,597,878 609 18,985 Net derivatives recognized on consolidated balance sheets: Forward currency contracts $ 16,707 $ 25,625 $ 19,077 $ 18,985 As of January 29, 2023, there were derivative assets of $16.7 million and derivative liabilities of $25.6 million subject to enforceable netting arrangements. The forward currency contracts designated as net investment hedges outstanding as of January 29, 2023 mature on different dates between February 2023 and August 2023. The forward currency contracts not designated in a hedging relationship outstanding as of January 29, 2023 mature on different dates between February 2023 and August 2023. The pre-tax gains and losses on foreign currency exchange forward contracts recorded in accumulated other comprehensive income or loss were as follows: 2022 2021 2020 (In thousands) Gains (losses) recognized in net investment hedge gains (losses): Derivatives designated as net investment hedges $ 12,125 $ 13,177 $ (34,289) No gains or losses have been reclassified from accumulated other comprehensive income or loss into net income for derivative financial instruments in a net investment hedging relationship, as the Company has not sold or liquidated (or substantially liquidated) its hedged subsidiary. The pre-tax net foreign currency exchange and derivative gains and losses recorded in the consolidated statement of operations were as follows: 2022 2021 2020 (In thousands) Gains (losses) recognized in selling, general and administrative expenses: Foreign exchange gains (losses) $ 4,410 $ 11,511 $ (26,053) Derivatives not designated in a hedging relationship (11,945) (19,874) 22,949 Net foreign exchange and derivative losses $ (7,535) $ (8,363) $ (3,104) |
Leases
Leases | 12 Months Ended |
Jan. 29, 2023 | |
Leases [Abstract] | |
Leases | Leases The Company has obligations under operating leases for its store and other retail locations, distribution centers, offices, and equipment. As of January 29, 2023, the initial lease terms of the various leases generally range from two The following table details the Company's net lease expense. Certain of the Company's leases include rent escalation clauses, rent holidays, and leasehold rental incentives. The majority of the Company's leases for store premises also include contingent rental payments based on sales volume. The variable lease expenses disclosed below include contingent rent payments and other non-fixed lease related costs, including common area maintenance, property taxes, and landlord's insurance. 2022 2021 2020 (In thousands) Net lease expense: Operating lease expense $ 245,767 $ 215,549 $ 193,498 Short-term lease expense 16,790 12,366 11,721 Variable lease expense 114,441 90,852 60,991 $ 376,998 $ 318,767 $ 266,210 The following table presents future minimum lease payments by fiscal year and the impact of discounting. January 29, 2023 (In thousands) 2023 $ 238,343 2024 265,787 2025 197,934 2026 143,603 2027 117,639 Thereafter 210,718 Future minimum lease payments $ 1,174,024 Impact of discounting (103,690) Present value of lease liabilities $ 1,070,334 Balance sheet classification: Current lease liabilities $ 207,972 Non-current lease liabilities 862,362 $ 1,070,334 As of January 29, 2023, the Company's minimum lease commitment for distribution center operating leases which have been committed to, but not yet commenced, was $632.0 million, which is not reflected in the table above. The weighted-average remaining lease term and weighted-average discount rate were as follows: January 29, 2023 Weighted-average remaining lease term 5.64 years Weighted-average discount rate 3.1 % |
Income Taxes
Income Taxes | 12 Months Ended |
Jan. 29, 2023 | |
Income Tax Disclosure [Abstract] | |
Income Taxes | Income Taxes The Company's domestic and foreign income before income tax expense and current and deferred income taxes from federal, state, and foreign sources are as follows: 2022 2021 2020 (In thousands) Income (loss) before income tax expense Domestic $ (98,764) $ 204,350 $ 122,573 Foreign 1,431,335 1,129,519 696,777 $ 1,332,571 $ 1,333,869 $ 819,350 Current income tax expense Federal $ 34,752 $ 25,701 $ 70 State 33,369 17,608 10,439 Foreign 400,250 322,105 185,803 $ 468,371 $ 365,414 $ 196,312 Deferred income tax expense (recovery) Federal $ 8,932 $ 5,858 $ 19,754 State 2,363 1,045 5,923 Foreign (1,895) (13,770) 8,448 $ 9,400 $ (6,867) $ 34,125 Income tax expense $ 477,771 $ 358,547 $ 230,437 The Company's income tax expense for 2022, 2021, and 2020 include certain discrete tax amounts, as follows: 2022 2021 2020 (In thousands) Impairment of goodwill and other assets $ (28,171) $ — $ — Gain on disposal of assets 1,661 — — Acquisition-related expenses — (1,417) (3,133) Total tax adjustments $ (26,510) $ (1,417) $ (3,133) Please refer to Note 5. Property and Equipment, Note 8. Impairment of Goodwill and Other Assets, and Note 9. Acquisition-Related Expenses for further information. The U.S. tax reforms enacted in December 2017 required the Company to pay U.S. income taxes on accumulated foreign subsidiary earnings not previously subject to U.S. income tax at a rate of 15.5% on cash and cash equivalents and 8% on the remaining earnings, net of foreign tax credits. The one-time transition tax is payable over eight years. On August 16, 2022, President Biden signed the Inflation Reduction Act of 2022 (“IRA”) into law. The IRA contains a number of revisions to the Internal Revenue Code, including a 15% corporate minimum income tax for tax years beginning after December 31, 2022. It also assesses a 1% excise tax on repurchases of corporate stock. While this is not expected to have a material adverse effect on the Company's results of operations going forward, the Company will continue to evaluate its impact as further information becomes available. As of January 29, 2023, the Company's net investment in its Canadian subsidiaries was $2.4 billion, of which $1.3 billion was determined to be indefinitely reinvested. A deferred income tax liability of $20.2 million has been recognized in relation to the portion of the Company's net investment in its Canadian subsidiaries that is not indefinitely reinvested, representing the Canadian withholding taxes and U.S. state income taxes which would be due upon repatriation. This deferred tax liability has been recorded on the basis that the Company would choose to make the repatriation transactions in the most tax efficient manner. Specifically, to the extent that the Canadian subsidiaries have sufficient paid-up-capital, any such distributions would be structured as a return of capital, and therefore not subject to Canadian withholding tax. The unrecognized deferred tax liability on the indefinitely reinvested amount is approximately $72.2 million. No deferred income tax liabilities have been recognized on any of the undistributed earnings of the Company's other foreign subsidiaries as these earnings are permanently reinvested outside of the United States. Excluding its Canadian subsidiaries, cumulative undistributed earnings of the Company's foreign subsidiaries as of January 29, 2023 were $323.0 million. As of January 29, 2023, the Company had cash and cash equivalents of $470.6 million outside of the United States. A summary reconciliation of the effective tax rate is as follows: 2022 2021 2020 (Percentages) Federal income tax at statutory rate 21.0 % 21.0 % 21.0 % Foreign tax rate differentials 6.8 5.0 4.6 U.S. state taxes (0.4) 0.8 0.8 Non-deductible compensation expense 0.7 0.7 2.1 Excess tax benefits from stock-based compensation (0.5) (0.9) (0.8) Impairment of goodwill and other assets and gain on disposal of assets 7.8 — — Permanent and other 0.5 0.3 0.4 Effective tax rate 35.9 % 26.9 % 28.1 % The tax effects of temporary differences that give rise to significant portions of the deferred income tax assets and deferred income tax liabilities as of January 29, 2023 and January 30, 2022 are presented below: January 29, 2023 January 30, 2022 (In thousands) Deferred income tax assets: Net operating loss carryforwards $ 2,312 $ 6,686 Inventories 43,471 16,326 Intangible assets, net 778 873 Non-current lease liabilities 216,495 173,700 Stock-based compensation 16,093 10,739 Accrued bonuses 13,647 7,830 Unredeemed gift card liability 12,877 9,804 Foreign tax credits 1,909 2,003 Other 6,958 10,116 Deferred income tax assets $ 314,540 238,077 Valuation allowance (743) (2,804) Deferred income tax assets, net of valuation allowance $ 313,797 $ 235,273 Deferred income tax liabilities: Property and equipment, net $ (142,516) $ (104,498) Intangible assets, net (5,224) (17,669) Right-of-use lease assets (192,221) (154,634) Other (22,518) (5,733) Deferred income tax liabilities (362,479) (282,534) Net deferred income tax liabilities $ (48,682) $ (47,261) Balance sheet classification: Deferred income tax assets $ 6,402 $ 6,091 Deferred income tax liabilities (55,084) (53,352) Net deferred income tax liabilities $ (48,682) $ (47,261) As of January 29, 2023, the Company had net operating loss carryforwards of $8.2 million. The majority of the net operating loss carryforwards expire, if unused, between fiscal 2030 and fiscal 2040. There was a $2.1 million net decrease in the valuation allowance in 2022, compared to a $3.7 million net decrease in 2021, and a $0.8 million net increase in 2020. The Company files income tax returns in the U.S., Canada, and various foreign, state, and provincial jurisdictions. The 2017 to 2020 tax years remain subject to examination by the U.S. federal and state tax authorities. The 2013 tax year is still open for certain state tax authorities. The 2016 to 2021 tax years remain subject to examination by Canadian tax authorities. The 2016 to 2021 tax years remain subject to examination by tax authorities in certain foreign jurisdictions. The Company does not have any significant unrecognized tax benefits arising from uncertain tax positions taken, or expected to be taken, in the Company's tax returns. |
Earnings Per Share
Earnings Per Share | 12 Months Ended |
Jan. 29, 2023 | |
Earnings Per Share [Abstract] | |
Earnings Per Share | 19. Earnings Per Share The details of the computation of basic and diluted earnings per share are as follows: 2022 2021 2020 (In thousands, except per share amounts) Net income $ 854,800 $ 975,322 $ 588,913 Basic weighted-average number of shares outstanding 127,666 129,768 130,289 Assumed conversion of dilutive stock options and awards 351 527 582 Diluted weighted-average number of shares outstanding 128,017 130,295 130,871 Basic earnings per share $ 6.70 $ 7.52 $ 4.52 Diluted earnings per share $ 6.68 $ 7.49 $ 4.50 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 2022, 2021, and 2020, 43.5 thousand, 36.0 thousand, and 30.8 thousand 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 January 31, 2019, the Company's board of directors approved a stock repurchase program for up to $500.0 million of the Company's common shares. On December 1, 2020, it approved an increase in the remaining authorization from $263.6 million to $500.0 million, and on October 1, 2021, it approved an increase in the remaining authorization from $141.2 million to $641.2 million. During the first quarter of 2022, the Company completed the remaining stock repurchases under this program. On March 23, 2022, the Company's board of directors approved a stock repurchase program for up to $1.0 billion of the Company's common shares on the open market or in privately negotiated transactions. The repurchase plan has no time limit and does not require the repurchase of a minimum number of shares. Common shares repurchased on the open market are at prevailing market prices, including under plans complying with the provisions of Rule 10b5-1 and Rule 10b-18 of the Securities Exchange Act of 1934. The timing and actual number of common shares to be repurchased will depend upon market conditions, eligibility to trade, and other factors, in accordance with Securities and Exchange Commission requirements. The authorized value of shares available to be repurchased under this program excludes the cost of commissions and excise taxes and as of January 29, 2023, the remaining authorized value was $743.8 million. During 2022, 2021, and 2020, 1.4 million, 2.2 million, and 0.4 million shares, respectively, were repurchased under the programs at a total cost including commissions and excise taxes of $444.0 million, $812.6 million, and $63.7 million, respectively. |
Commitments and Contingencies
Commitments and Contingencies | 12 Months Ended |
Jan. 29, 2023 | |
Commitments and Contingencies Disclosure [Abstract] | |
Commitments and Contingencies | Commitments and Contingencies Commitments Leases . The Company has obligations under operating leases for its store and other retail locations, distribution centers, offices, and equipment. Please refer to Note 17. Leases for further details regarding lease commitments and the timing of future minimum lease payments. License and supply arrangements . The Company has entered into license and supply arrangements with partners in the Middle East and Mexico which grant them the right to operate lululemon branded retail locations in the United Arab Emirates, Kuwait, Qatar, Oman, Bahrain, Saudi Arabia, and Mexico. Under these arrangements, the Company supplies the partners with lululemon products, training, and other support. An extension to the initial term of the agreement for the Middle East was signed in 2020 and it extends the arrangement to December 2024. The initial term of the agreement for Mexico expires in November 2026. As of January 29, 2023, there were 26 licensed locations, including 12 in Mexico, seven in the United Arab Emirates, three in Qatar, three in Saudi Arabia, and one in Kuwait. There was also an e-commerce website operated through the license and supply arrangements. The following table summarizes the Company's contractual arrangements as of January 29, 2023, and the timing and effect that such commitments are expected to have on its liquidity and cash flows in future periods: Payments Due by Fiscal Year Total 2023 2024 2025 2026 2027 Thereafter (In thousands) One-time transition tax payable $ 38,073 $ 9,518 $ 12,691 $ 15,864 $ — $ — $ — One-time transition tax payable . The U.S. tax reforms enacted in December 2017 imposed a mandatory transition tax on accumulated foreign subsidiary earnings which have not previously been subject to U.S. income tax. The one-time transition tax is payable over eight years beginning in fiscal 2018. The one-time transition tax payable is net of foreign tax credits, and the table above outlines the expected payments due by fiscal year. Contingencies Legal proceedings. In addition to the legal proceedings described below, the Company is, from time to time, involved in routine legal matters, and audits and inspections by governmental agencies and other third parties which are incidental to the conduct of its business. This includes 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 legal proceedings, audits, and inspections will not have a material adverse effect on its consolidated balance sheets, results of operations or cash flows. The Company has recognized immaterial provisions related to the expected outcome of legal proceedings. In April 2021, DISH Technologies L.L.C., and Sling TV L.L.C. (DISH) filed a complaint in the United States District Court for the District of Delaware and, along with DISH DBS Corporation, also with the United States International Trade Commission (ITC) under Section 337 of the Tariff Act of 1930 against the Company and its Curiouser Products subsidiary (MIRROR), along with ICON Health & Fitness, Inc., FreeMotion Fitness, Inc., NordicTrack, Inc., and Peloton Interactive, Inc., alleging infringement of various patents related to fitness devices containing internet-streaming enabled video displays. In the ITC complaint, DISH seeks an exclusion order barring the importation of MIRROR fitness devices, streaming components and systems containing components that infringe one or more of the asserted patents as well as a cease and desist order preventing the Company from carrying out commercial activities within the United States related to those products. In the District of Delaware complaint, DISH is seeking an order permanently enjoining the Company from infringing the asserted patents, an award of damages for the infringement of the asserted patents, and an award of damages for lost sales. In the ITC investigation, an Administrative Law Judge issued an Initial Determination recommending an Exclusion Order and Cease and Desist Order be entered against the Company. In February 2023, the parties finalized the details of a settlement agreement resolving all litigation between DISH and the Company for an immaterial amount. |
Supplemental Cash Flow Informat
Supplemental Cash Flow Information | 12 Months Ended |
Jan. 29, 2023 | |
Supplemental Cash Flow Information [Abstract] | |
Supplemental Cash Flow Information | Supplemental Cash Flow Information 2022 2021 2020 (In thousands) Cash paid for income taxes $ 502,136 $ 245,213 $ 260,886 Cash paid for amounts included in the measurement of lease liabilities 242,758 215,157 180,536 Leased assets obtained in exchange for new operating lease liabilities 450,787 287,008 178,504 Interest paid 116 12 110 |
Segmented Information
Segmented Information | 12 Months Ended |
Jan. 29, 2023 | |
Segment Reporting [Abstract] | |
Segmented Information | Segmented Information The Company's segments are based on the financial information it uses in managing its business and comprise two reportable segments: (i) company-operated stores and (ii) direct to consumer. The remainder of its operations which includes outlets, sales to wholesale accounts, license and supply arrangements, recommerce, temporary locations, and lululemon Studio, are included within Other. 2022 2021 2020 (In thousands) Net revenue: Company-operated stores $ 3,648,127 $ 2,821,497 $ 1,658,807 Direct to consumer 3,699,791 2,777,944 2,284,068 Other 762,600 657,176 459,004 $ 8,110,518 $ 6,256,617 $ 4,401,879 Segmented income from operations: Company-operated stores $ 991,067 $ 727,735 $ 212,592 Direct to consumer 1,562,538 1,216,496 1,029,102 Other 107,083 77,283 10,502 2,660,688 2,021,514 1,252,196 General corporate expenses 862,867 637,983 397,208 lululemon Studio obsolescence provision 62,928 — — Amortization of intangible assets 8,752 8,782 5,160 Impairment of goodwill and other assets 407,913 — — Acquisition-related expenses — 41,394 29,842 Gain on disposal of assets (10,180) — — Income from operations 1,328,408 1,333,355 819,986 Other income (expense), net 4,163 514 (636) Income before income tax expense $ 1,332,571 $ 1,333,869 $ 819,350 Capital expenditures: Company-operated stores $ 303,697 $ 189,629 $ 134,203 Direct to consumer 57,086 81,679 37,245 Corporate and other 277,874 123,194 57,778 $ 638,657 $ 394,502 $ 229,226 Depreciation and amortization: Company-operated stores $ 132,715 $ 116,107 $ 100,776 Direct to consumer 36,128 29,877 14,847 Corporate and other 122,948 78,222 69,855 $ 291,791 $ 224,206 $ 185,478 Intercompany amounts are excluded from the above table as they are not included in the materials reviewed by the chief operating decision maker. The amortization of intangible assets in the above table includes $8.7 million, $8.7 million, and $5.2 million related to lululemon Studio for 2022, 2021, and 2020, respectively. lululemon Studio is included within Other in the Company's segment disclosures. Property and equipment, net by geographic area as of January 29, 2023 and January 30, 2022 were as follows: January 29, 2023 January 30, 2022 (In thousands) United States $ 671,212 $ 418,317 Canada 431,349 392,192 Outside of North America 167,053 117,201 $ 1,269,614 $ 927,710 In addition to the disaggregation of net revenue by reportable segment in Note 22. Segmented Information, the following table disaggregates the Company's net revenue by geographic area. 2022 2021 2020 (In thousands) United States $ 5,654,343 $ 4,345,687 $ 3,105,133 Canada 1,163,111 954,219 672,607 People's Republic of China 681,633 520,372 297,690 Rest of world 611,431 436,339 326,449 $ 8,110,518 $ 6,256,617 $ 4,401,879 The following table disaggregates the Company's net revenue by category. Other categories is primarily composed of accessories, lululemon Studio, and footwear. 2022 2021 2020 (In thousands) Women's product $ 5,259,803 $ 4,171,762 $ 3,049,906 Men's product 1,956,602 1,535,850 953,183 Other categories 894,113 549,005 398,790 $ 8,110,518 $ 6,256,617 $ 4,401,879 |
Net Revenue by Category and Geo
Net Revenue by Category and Geography | 12 Months Ended |
Jan. 29, 2023 | |
Segment Reporting [Abstract] | |
Net Revenue by Category and Geography | Segmented Information The Company's segments are based on the financial information it uses in managing its business and comprise two reportable segments: (i) company-operated stores and (ii) direct to consumer. The remainder of its operations which includes outlets, sales to wholesale accounts, license and supply arrangements, recommerce, temporary locations, and lululemon Studio, are included within Other. 2022 2021 2020 (In thousands) Net revenue: Company-operated stores $ 3,648,127 $ 2,821,497 $ 1,658,807 Direct to consumer 3,699,791 2,777,944 2,284,068 Other 762,600 657,176 459,004 $ 8,110,518 $ 6,256,617 $ 4,401,879 Segmented income from operations: Company-operated stores $ 991,067 $ 727,735 $ 212,592 Direct to consumer 1,562,538 1,216,496 1,029,102 Other 107,083 77,283 10,502 2,660,688 2,021,514 1,252,196 General corporate expenses 862,867 637,983 397,208 lululemon Studio obsolescence provision 62,928 — — Amortization of intangible assets 8,752 8,782 5,160 Impairment of goodwill and other assets 407,913 — — Acquisition-related expenses — 41,394 29,842 Gain on disposal of assets (10,180) — — Income from operations 1,328,408 1,333,355 819,986 Other income (expense), net 4,163 514 (636) Income before income tax expense $ 1,332,571 $ 1,333,869 $ 819,350 Capital expenditures: Company-operated stores $ 303,697 $ 189,629 $ 134,203 Direct to consumer 57,086 81,679 37,245 Corporate and other 277,874 123,194 57,778 $ 638,657 $ 394,502 $ 229,226 Depreciation and amortization: Company-operated stores $ 132,715 $ 116,107 $ 100,776 Direct to consumer 36,128 29,877 14,847 Corporate and other 122,948 78,222 69,855 $ 291,791 $ 224,206 $ 185,478 Intercompany amounts are excluded from the above table as they are not included in the materials reviewed by the chief operating decision maker. The amortization of intangible assets in the above table includes $8.7 million, $8.7 million, and $5.2 million related to lululemon Studio for 2022, 2021, and 2020, respectively. lululemon Studio is included within Other in the Company's segment disclosures. Property and equipment, net by geographic area as of January 29, 2023 and January 30, 2022 were as follows: January 29, 2023 January 30, 2022 (In thousands) United States $ 671,212 $ 418,317 Canada 431,349 392,192 Outside of North America 167,053 117,201 $ 1,269,614 $ 927,710 In addition to the disaggregation of net revenue by reportable segment in Note 22. Segmented Information, the following table disaggregates the Company's net revenue by geographic area. 2022 2021 2020 (In thousands) United States $ 5,654,343 $ 4,345,687 $ 3,105,133 Canada 1,163,111 954,219 672,607 People's Republic of China 681,633 520,372 297,690 Rest of world 611,431 436,339 326,449 $ 8,110,518 $ 6,256,617 $ 4,401,879 The following table disaggregates the Company's net revenue by category. Other categories is primarily composed of accessories, lululemon Studio, and footwear. 2022 2021 2020 (In thousands) Women's product $ 5,259,803 $ 4,171,762 $ 3,049,906 Men's product 1,956,602 1,535,850 953,183 Other categories 894,113 549,005 398,790 $ 8,110,518 $ 6,256,617 $ 4,401,879 |
Summary of Significant Accoun_2
Summary of Significant Accounting Policies (Policies) | 12 Months Ended |
Jan. 29, 2023 | |
Accounting Policies [Abstract] | |
Basis of presentation | Basis of presentation The consolidated financial statements have been presented in U.S. dollars and are prepared in accordance with United States generally accepted accounting principles ("GAAP"). |
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 2022, fiscal 2021, and fiscal 2020 were each 52-week years. Fiscal 2022, 2021, and 2020 ended on January 29, 2023, January 30, 2022, and January 31, 2021, respectively, and are referred to as "2022," "2021," and "2020," respectively. |
Principles of consolidation | Principles of consolidation The consolidated financial statements include the accounts of lululemon athletica inc. and its wholly-owned subsidiaries. All intercompany balances and transactions have been eliminated. |
Cash and cash equivalents | Cash and cash equivalents Cash and cash equivalents consist of cash on hand, bank balances, and short-term deposits with original maturities of three months or less. The Company has not experienced any losses related to these balances, and management believes the Company's credit risk to be minimal. |
Accounts receivable | Accounts receivable Accounts receivable primarily arise out of duty receivables, sales to wholesale accounts, and license and supply arrangements. The allowance for doubtful accounts represents management's best estimate of probable credit losses in accounts receivable. Receivables are written off against the allowance when management believes that the amount receivable will not be recovered. As of January 29, 2023, January 30, 2022, and January 31, 2021, the Company recorded an insignificant allowance for doubtful accounts. |
Inventories | Inventories Inventories, consisting of finished goods, inventories in transit, and raw materials, are stated at the lower of cost and net realizable value. Cost is determined using weighted-average costs, and includes all costs incurred to deliver inventory to the Company's distribution centers including freight, non-refundable taxes, duty, and other landing costs. The Company periodically reviews its inventories and makes a provision as necessary to appropriately value goods that are obsolete, have quality issues, or are damaged. The amount of the provision is equal to the difference between the cost of the inventory and its net realizable value based upon assumptions about product quality, damages, future demand, selling prices, and market conditions. If changes in market conditions result in reductions in the estimated net realizable value of its inventory below its previous estimate, the Company would increase its reserve in the period in which it made such a determination. |
Business Combinations Policy | Business combinationsThe purchase price of an acquisition is measured as the aggregate of the fair value of the consideration transferred including the acquisition-date fair value of the Company's previously held equity interests. The purchase price is allocated to the fair values of the tangible and intangible assets acquired and liabilities assumed, with any excess recorded as goodwill. These fair value determinations require judgment and may involve the use of significant estimates and assumptions. The purchase price allocation may be provisional during a measurement period of up to one year to provide reasonable time to obtain the information necessary to identify and measure the assets acquired and liabilities assumed. Any such measurement period adjustments are recognized in the period in which the adjustment amount is determined. Transaction costs associated with the acquisition are expensed as incurred. |
Goodwill and Intangible assets | Goodwill Goodwill represents the excess of the aggregate of the consideration transferred, the fair value of any non-controlling interest in the acquiree, and the acquisition-date fair value of the Company's previously held equity interest over the net assets acquired and liabilities assumed. Goodwill is allocated to the reporting unit which is expected to receive the benefit from the synergies of the combination. Goodwill is tested annually for impairment or more frequently when an event or circumstance indicates that goodwill might be impaired. Generally, the Company first performs a qualitative assessment to determine whether it is more likely than not that the fair value of a reporting unit is less than its carrying value. If factors indicate that this is the case, the Company then estimates the fair value of the related reporting unit. If the fair value is less than the carrying value, the goodwill of the reporting unit is determined to be impaired and the Company will record an impairment equal to the excess of the carrying value over its fair value. Intangible assets Acquired finite-lived intangible assets are amortized on a straight-line basis over their estimated useful lives, and are reviewed for impairment when events or circumstances indicate that the asset group to which the intangible assets belong might be impaired. The Company revises the estimated remaining useful life of these assets when events or changes in circumstances warrant a revision. If the Company revises the useful life, the unamortized balance is amortized over the remaining useful life on a prospective basis. |
Property and equipment | Property and equipment Property and equipment are recorded at cost less accumulated depreciation. Direct internal and external costs related to software used for internal purposes which are incurred during the application development stage or for upgrades that add functionality are capitalized. All other costs related to internal use software are expensed as incurred. Property and equipment carrying values are reviewed for impairment when events or circumstances indicate that the asset group to which the property and equipment belong might be impaired. Depreciation commences when an asset is ready for its intended use. Buildings are depreciated on a straight-line basis over the expected useful life of the asset, which is individually assessed, and estimated to be up to 40 years. Leasehold improvements are depreciated on a straight-line basis over the lesser of the expected lease term and the estimated useful life of the improvement, to a maximum of 10 years for stores and 15 years for corporate offices and distribution centers. All other property and equipment are depreciated using the declining balance method as follows: Furniture and fixtures 20% Computer hardware and software 20% - 50% Equipment and vehicles 20% - 30% |
Impairment of long-lived assets | Impairment of long-lived assets Long-lived assets, including intangible assets with finite lives, held for use are evaluated for impairment when the occurrence of events or a change in circumstances indicates that the carrying value of the assets may not be recoverable as measured by comparing their carrying value to the estimated undiscounted future cash flows generated by their use and eventual disposition. Impaired assets are recorded at fair value, determined principally by discounting the future cash flows expected from their use and eventual disposition. Reductions in asset values resulting from impairment valuations are recognized in income in the period that the impairment is determined. |
Leased property and equipment | Leased property and equipment At lease commencement, which is generally when the Company takes possession of the asset, the Company records a lease liability and corresponding right-of-use asset. Lease liabilities represent the present value of minimum lease payments over the expected lease term, which includes options to extend or terminate the lease when it is reasonably certain those options will be exercised. The present value of the lease liability is determined using the Company's incremental collateralized borrowing rate at the lease commencement. Minimum lease payments include base rent, fixed escalation of rental payments, and rental payments that are adjusted periodically depending on a rate or index. In determining minimum lease payments, the Company does not separate non-lease components for real estate leases. Non-lease components are generally services that the lessor performs for the Company associated with the leased asset, such as common area maintenance. Right-of-use assets represent the right to control the use of the leased asset during the lease and are initially recognized in an amount equal to the lease liability. In addition, prepaid rent, initial direct costs, and adjustments for lease incentives are components of the right-of-use asset. Over the lease term the lease expense is amortized on a straight-line basis beginning on the lease commencement date. Right-of-use assets are assessed for impairment as part of the impairment of long-lived assets, which is performed whenever events or changes in circumstances indicate that the carrying amount of an asset or asset group may not be recoverable. Variable lease payments, including contingent rental payments based on sales volume, are recognized when the achievement of the specific target is probable. A right-of-use asset and lease liability are not recognized for leases with an initial term of 12 months or less, and the lease expense is recognized on a straight-line basis over the lease term. The Company recognizes a liability for the fair value of asset retirement obligations ("AROs") when such obligations are incurred. The Company's AROs are primarily associated with leasehold improvements which, at the end of a lease, the Company is contractually obligated to remove in order to comply with the lease agreement. At the inception of a lease with such conditions, the Company records an ARO liability and a corresponding capital asset in an amount equal to the estimated fair value of the obligation. The liability is estimated based on a number of assumptions requiring management's judgment, including store closing costs, cost inflation rates and discount rates, and is accreted to its projected future value over time. The capitalized asset is depreciated using the convention for depreciation of leasehold improvement assets. Upon satisfaction of the ARO conditions, any difference between the recorded ARO liability and the actual retirement costs incurred is recognized as an operating gain or loss in the consolidated statements of operations. |
Revenue recognition | Revenue recognition Net revenue is comprised of company-operated store net revenue, direct to consumer net revenue through websites and mobile apps, including mobile apps on in-store devices that allow demand to be fulfilled via the Company's distribution centers, and other net revenue, which includes revenue from outlets, sales to wholesale accounts, license and supply arrangement net revenue, which consists of royalties as well as sales of the Company's products to licensees, recommerce revenue, revenue from temporary locations, and lululemon Studio revenue. All revenue is reported net of markdowns, discounts, sales taxes collected from customers on behalf of taxing authorities, and returns. lululemon Studio generates net revenue from the sale of in-home fitness equipment and associated content subscriptions. Certain in-home fitness contracts contain multiple performance obligations, including hardware and a subscription service commitment. For customer contracts that contain multiple performance obligations the Company accounts for individual performance obligations if they are distinct. The transaction price, net of discounts, is allocated to each performance obligation based on its standalone selling price. Revenue is recognized when performance obligations are satisfied through the transfer of control of promised goods or services to the Company's customers. Control transfers once a customer has the ability to direct the use of, and obtain substantially all of the benefits from, the product. This includes the transfer of legal title, physical possession, the risks and rewards of ownership, and customer acceptance. Revenue from company-operated stores and other retail locations is recognized at the point of sale. Direct to consumer revenue, sales to wholesale accounts and in-home fitness hardware sales are recognized upon receipt by the customer. In certain arrangements the Company receives payment before the customer receives the promised good. These payments are initially recorded as deferred revenue, and recognized as revenue in the period when control is transferred to the customer. Revenue is presented net of an allowance for estimated returns. The Company's liability for sales return refunds is recognized within accrued liabilities and other, and an asset for the value of inventory which is expected to be returned is recognized within other prepaid expenses and other current assets on the consolidated balance sheets. As of January 29, 2023 and January 30, 2022, the sales return allowance was $55.5 million and $41.7 million, respectively. Shipping fees billed to customers are recorded as revenue, and shipping costs are recognized within selling, general and administrative expenses in the same period the related revenue is recognized. Proceeds from the sale of gift cards are initially deferred and recognized within unredeemed gift card liability on the consolidated balance sheets, and are recognized as revenue when tendered for payment. While the Company will continue to honor all gift cards presented for payment, to the extent management determines there is no requirement to remit unused card balances to government agencies under unclaimed property laws, the portion of card balances not expected to be redeemed are recognized in net revenue in proportion to the gift cards which have been redeemed, under the redemption |
Cost of goods sold | Cost of goods sold Cost of goods sold includes: • the cost of purchased merchandise, which includes acquisition and production costs including raw material and labor, as applicable; • the cost incurred to deliver inventory to the Company's distribution centers including freight, non-refundable taxes, duty, and other landing costs; • the cost of the Company's distribution centers, such as labor, rent, utilities, and depreciation; • the cost of the Company's production, design, research and development, distribution, and merchandising departments including salaries, stock-based compensation and benefits, and other expenses; • occupancy costs such as minimum rent, contingent rent where applicable, property taxes, utilities, and depreciation expense for the Company's company-operated store locations; • hemming costs; • shrink and inventory provision expense; and • the cost of digital content subscription services, including the costs of content creation, studio overhead, and related production departments. |
Selling, general and administrative expenses | Selling, general and administrative expenses Selling, general and administrative expenses consist of all operating costs not otherwise included in cost of goods sold, intangible asset amortization, or acquisition-related expenses. The Company's selling, general and administrative expenses include the costs of corporate and retail employee wages and benefits, costs to transport the Company's products from the distribution facilities to the Company's retail locations and e-commerce guests, professional fees, marketing, technology, human resources, accounting, legal, corporate facility and occupancy costs, and depreciation and amortization expense other than in cost of goods sold. |
Advertising and Marketing Costs | Advertising and Marketing CostsAdvertising costs, including the costs to produce advertising, are expensed as incurred. |
Store pre-opening costs | Store pre-opening costs Operating costs incurred prior to the opening of new stores are expensed as incurred as selling, general and administrative expenses. |
Income taxes | Income taxes The Company follows the liability method with respect to accounting for income taxes. Deferred income tax assets and liabilities are determined based on the temporary differences between the carrying amounts and the tax basis of assets and liabilities, and for tax losses, tax credit carryforwards, and other tax attributes. Deferred income tax assets and liabilities are measured using enacted tax rates, for the appropriate tax jurisdiction, that are expected to be in effect when these differences are anticipated to reverse. The Company has not recognized U.S. state income taxes and foreign withholding taxes on undistributed earnings of foreign subsidiaries which the Company has determined to be indefinitely reinvested. Deferred income tax assets are reduced by a valuation allowance, if based on the weight of available evidence, it is more likely than not that some portion or all of the deferred tax assets will not be realized. The evaluation as to the likelihood of realizing the benefit of a deferred income tax asset is based on the timing of scheduled reversals of deferred tax liabilities, taxable income forecasts, and tax-planning strategies. The recognition of a deferred income tax asset is based upon several assumptions and forecasts, including current and anticipated taxable income, the utilization of previously unrealized non-operating loss carryforwards, and regulatory reviews of tax filings. The Company evaluates its tax filing positions and recognizes the largest amount of tax benefit that is considered more likely than not to be sustained upon examination by the relevant taxing authorities based on the technical merits of the position. This determination requires the use of significant judgment. Income tax expense is adjusted in the period in which an uncertain tax position is effectively settled, the statute of limitations expires, facts or circumstances change, tax laws change, or new information becomes available. The Company's policy is to recognize interest expense and penalties related to income tax matters as part of other income (expense), net. Accrued interest and penalties are included within the related tax liability on the Company's consolidated balance sheets. The Company treats the global intangible low-taxed income ("GILTI") tax as a current period expense. |
Fair value of financial instruments | Fair value of financial instruments 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. The Company records cash, 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. Unless otherwise noted, it is management's opinion that the Company is not exposed to significant interest or credit risks arising from these financial instruments. The Company holds certain assets and liabilities that are required to be measured at fair value on a recurring basis, and performs certain valuations on a non-recurring basis, which are outlined in Note 15. Fair Value Measurement. Foreign currency The functional currency for each entity included in these consolidated financial statements that is domiciled outside of the United States is generally the applicable local currency. Assets and liabilities of each foreign entity are translated into U.S. dollars at the exchange rate in effect on the balance sheet date. Net revenue and expenses are translated at the average rate in effect during the period. Unrealized translation gains and losses are recorded as a foreign currency translation adjustment, which is included in other comprehensive income (loss), net of tax, which is a component of accumulated other comprehensive income or loss included in stockholders' equity. Foreign currency transactions denominated in a currency other than an entity's functional currency are remeasured into the functional currency with any resulting gains and losses recognized in selling, general and administrative expenses, except for gains and losses arising on intercompany foreign currency transactions that are of a long-term investment nature, which are recorded as a net investment hedge gains (losses) in other comprehensive income (loss), net of tax. |
Derivative financial instruments | Derivative financial instruments The Company uses derivative financial instruments to manage its exposure to certain foreign currency exchange rate risks. Net investment hedges . The Company enters into certain forward currency contracts that are designated as net investment hedges. The effective portions of the hedges are reported in accumulated other comprehensive income or loss, net of tax, and will subsequently be reclassified to net earnings in the period in which the hedged investment is either sold or substantially liquidated. Hedge effectiveness is measured using a method based on changes in forward exchange rates. 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 also enters into certain forward currency contracts that are not designated as net investment hedges. They are designed to economically hedge the foreign exchange revaluation gains and losses of certain 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 the consolidated statements of cash flows. The Company presents its derivative assets and derivative liabilities at their gross fair values within 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. |
Concentration of credit risk | Concentration of credit risk Accounts receivable are primarily from inventory duty receivables, wholesale accounts, and from license and supply arrangements. The Company generally does not require collateral to support the accounts receivable; however, in certain circumstances, the Company may require parties to provide payment for goods prior to delivery of the goods or to provide letters of credit. The accounts receivable are net of an allowance for doubtful accounts, which is established based on management's assessment of the credit risk of the underlying accounts. Cash and cash equivalents are held with high quality financial institutions. The amount of cash and cash equivalents held with certain financial institutions exceeds government-insured limits. The Company is also 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 has not experienced any losses related to these items, and it believes credit risk to be minimal. The Company seeks to minimize its credit risk by entering into transactions with investment grade credit worthy and reputable financial institutions and by monitoring the credit standing of the financial institutions with whom it transacts. It seeks to limit the amount of exposure with any one counterparty. 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 North American revolving credit facility, the Company may be required to make immediate payment for outstanding liabilities under its derivative contracts. |
Stock-based compensation | Stock-based compensation The Company accounts for stock-based compensation using the fair value method. The fair value of awards granted is estimated at the date of grant. Awards settled in cash or common stock at the election of the employee are remeasured to fair value at the end of each reporting period until settlement. The employee compensation expense is recognized on a straight-line basis over the requisite service period with the offsetting credit to additional paid-in capital for awards that are settled in common shares, and with the offsetting credit to accrued compensation and related expenses for awards that are settled in cash or common stock at the election of the employee. For awards with service and/or performance conditions, the amount of compensation expense recognized is based on the number of awards expected to vest, reflecting estimated expected forfeitures, and is adjusted to reflect those awards that do ultimately vest. The forfeiture rate is based on management's best estimate of expected forfeitures, taking into consideration historical trends and expected future behavior. For awards with performance conditions, the Company recognizes the compensation expense if and when the Company concludes that it is probable that the performance condition will be achieved. The Company reassesses the probability of achieving the performance condition at each reporting date. The grant date fair value of each stock option granted is estimated on the grant date using the Black-Scholes model, and the grant date fair value of restricted shares, performance-based restricted stock units, and restricted stock units is based on |
Earnings per share | Earnings per share Earnings per share is calculated using the weighted-average number of common and exchangeable shares outstanding during the period. 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. Diluted earnings per share is calculated by dividing net income available to stockholders for the period by the diluted weighted-average number of shares outstanding during the period. Diluted earnings per share reflects the potential dilution from common shares issuable through stock options, performance-based restricted stock units that have satisfied their performance factor, restricted shares, and restricted stock units using the treasury stock method. |
Contingencies | Contingencies In the ordinary course of business, the Company is involved in legal proceedings regarding contractual and employment relationships and a variety of other matters. The Company records contingent liabilities resulting from claims against us, when a loss is assessed to be probable and the amount of the loss is reasonably estimable. |
Use of estimates | Use of estimates The preparation of financial statements in conformity with GAAP in the United States requires management to make estimates and assumptions that affect the reported amounts of assets and liabilities and the disclosure of contingent assets and liabilities at the date of the financial statements as well as the reported amounts of net revenue and expenses during the reporting period. Actual results could differ from those estimates. |
Recently adopted & issued accounting pronouncements | Recently adopted accounting pronouncements The Company considers the applicability and impact of all Accounting Standard Updates ("ASUs"). ASUs adopted during 2022 not listed below were assessed, and determined to be either not applicable or are expected to have minimal impact on its consolidated financial position or results of operations. In November 2021, the FASB issued ASC 832, Government Assistance to require annual disclosures about the nature of certain government assistance received, the accounting policy used to account for the transactions, the location in the financial statements where such transactions were recorded and significant terms and conditions associated with such transactions. The Company adopted this update prospectively during the first quarter of 2022 and it did not have a material impact on the Company's consolidated financial statements. Recently issued accounting pronouncements ASUs recently issued not listed below were assessed and determined to be either not applicable or are expected to have minimal impact on its consolidated financial position or results of operations. In September 2022, the FASB issued ASC 405-50, Liabilities - Supplier Finance Programs, to require annual and interim disclosures about the key terms of supplier finance programs used in connection with the purchase of goods and services along with information about the obligations under these programs, including the amount outstanding at the end of each reporting period and a rollforward of those obligations. The guidance is effective for fiscal years beginning after December 15, 2022, including interim periods in those fiscal years, with early adoption permitted. The Company is currently evaluating the impact that this new guidance may have on its consolidated financial statements. |
Summary of Significant Accoun_3
Summary of Significant Accounting Policies (Tables) | 12 Months Ended |
Jan. 29, 2023 | |
Accounting Policies [Abstract] | |
Amortization of Property and Equipment Using Declining Balance Method | All other property and equipment are depreciated using the declining balance method as follows: Furniture and fixtures 20% Computer hardware and software 20% - 50% Equipment and vehicles 20% - 30% |
Inventories (Tables)
Inventories (Tables) | 12 Months Ended |
Jan. 29, 2023 | |
Inventory Disclosure [Abstract] | |
Summary of Inventories | January 29, 2023 January 30, 2022 (In thousands) Inventories, at cost $ 1,571,981 $ 1,004,526 Provision to reduce inventories to net realizable value: Obsolescence provision (84,231) (11,325) Damages provision (38,996) (24,404) Shrink provision (1,387) (2,316) (124,614) (38,045) Inventories $ 1,447,367 $ 966,481 |
Prepaid Expenses and Other Cu_2
Prepaid Expenses and Other Current Assets (Tables) | 12 Months Ended |
Jan. 29, 2023 | |
Prepaid Expense and Other Assets, Current [Abstract] | |
Prepaid Expenses and Other Current Assets | January 29, 2023 January 30, 2022 (In thousands) Prepaid inventories $ 1,082 $ 42,691 Other prepaid expenses 140,921 98,254 Forward currency contract assets 16,707 19,077 Other current assets 79,962 32,550 Prepaid expenses and other current assets $ 238,672 $ 192,572 |
Property and Equipment (Tables)
Property and Equipment (Tables) | 12 Months Ended |
Jan. 29, 2023 | |
Property, Plant and Equipment [Abstract] | |
Summary of Property and Equipment | January 29, 2023 January 30, 2022 (In thousands) Land $ 80,692 $ 74,297 Buildings 28,850 30,880 Leasehold improvements 818,071 676,762 Furniture and fixtures 144,572 125,213 Computer hardware 166,768 130,393 Computer software 742,295 532,819 Equipment and vehicles 30,766 23,060 Work in progress 244,898 163,420 Property and equipment, gross 2,256,912 1,756,844 Accumulated depreciation (987,298) (829,134) Property and equipment, net $ 1,269,614 $ 927,710 |
Impairment of Goodwill and Othe
Impairment of Goodwill and Other Assets (Tables) | 12 Months Ended |
Jan. 29, 2023 | |
Goodwill and Intangible Assets Disclosure [Abstract] | |
Schedule of Asset Impairment Charges | Events as of January 29, 2023 indicated the Company should conduct an impairment test for the goodwill, intangible assets, and property and equipment related to lululemon Studio (formerly MIRROR). Sales of hardware units did not meet the Company's fourth quarter expectations and the Company revised its short and long term forecasts for lululemon Studio, with an adverse impact on expected cash flows. As a result, the Company updated its strategy for the lululemon Studio reporting unit. During the fourth quarter of 2022, the Company recorded impairment of goodwill and other assets related to the lululemon Studio business unit. The following table summarizes the amounts recognized: 2022 (In thousands) Costs recorded in cost of goods sold: Obsolescence provision $ 62,928 Costs recorded in operating expenses: Impairment of goodwill $ 362,492 Impairment of intangible assets 40,585 Impairment of property and equipment 4,836 Impairment of goodwill and other assets 407,913 Total pre-tax charges $ 470,841 Income tax effects of charges $ (28,171) Total after-tax charges $ 442,670 |
Goodwill (Tables)
Goodwill (Tables) | 12 Months Ended |
Jan. 29, 2023 | |
Goodwill and Intangible Assets Disclosure [Abstract] | |
Schedule of Goodwill | The changes in the carrying amounts of goodwill were as follows: Goodwill (In thousands) Balance as of January 31, 2021 $ 386,877 Effect of foreign currency translation 3 Balance as of January 30, 2022 $ 386,880 Impairment of goodwill (362,492) Effect of foreign currency translation (244) Balance as of January 29, 2023 $ 24,144 |
Intangible Assets (Tables)
Intangible Assets (Tables) | 12 Months Ended |
Jan. 29, 2023 | |
Goodwill and Intangible Assets Disclosure [Abstract] | |
Schedule of Finite-Lived Intangible Assets | A summary of the balances of the Company's intangible assets as of January 29, 2023, January 30, 2022, is presented below: January 29, 2023 January 30, 2022 Gross Carrying Amount Accumulated Amortization Impairment Net Carrying Amount Remaining Useful Life (Years) Gross Carrying Amount Accumulated Amortization Net Carrying Amount Remaining Useful Life (Years) (In thousands, except in years) MIRROR brand $ 26,500 $ (3,423) $ (20,077) $ 3,000 3.0 $ 26,500 $ (2,098) $ 24,402 18.4 Customer relationships 28,000 (7,492) (20,508) — n/a 28,000 (4,592) 23,408 8.4 Technology 25,500 (8,956) — 16,544 3.0 25,500 (5,489) 20,011 5.9 Content 5,000 (2,583) — 2,417 2.4 5,000 (1,583) 3,417 3.4 Other 270 (270) — — n/a 270 (209) 61 0.7 Intangible assets $ 85,270 $ (22,724) $ (40,585) $ 21,961 2.9 $ 85,270 $ (13,971) $ 71,299 10.9 |
Schedule of Finite-Lived Intangible Assets, Future Amortization Expense | The following table presents the future expected amortization expense as of January 29, 2023: January 29, 2023 (In thousands) 2023 $ 7,515 2024 7,515 2025 6,931 Total estimated future amortization expense $ 21,961 |
Other Non-Current Assets (Table
Other Non-Current Assets (Tables) | 12 Months Ended |
Jan. 29, 2023 | |
Other Assets, Noncurrent Disclosure [Abstract] | |
Schedule of Non-Current Assets | January 29, 2023 January 30, 2022 (In thousands) Cloud computing arrangement implementation costs $ 114,700 $ 89,334 Security deposits 28,447 24,083 Other 12,898 18,685 Other non-current assets $ 156,045 $ 132,102 |
Accrued Liabilities and Other (
Accrued Liabilities and Other (Tables) | 12 Months Ended |
Jan. 29, 2023 | |
Accounts Payable and Accrued Liabilities [Abstract] | |
Summary of Accrued Liabilities | January 29, 2023 January 30, 2022 (In thousands) Accrued operating expenses $ 169,429 $ 116,822 Accrued freight 57,692 71,390 Sales return allowances 55,528 41,690 Forward currency contract liabilities 25,625 18,985 Accrued duty 21,046 27,182 Sales tax collected 20,183 13,540 Accrued capital expenditures 19,365 9,616 Accrued rent 12,223 11,254 Accrued inventory liabilities 4,345 4,005 Other 13,787 16,316 Accrued liabilities and other $ 399,223 $ 330,800 |
Stock-Based Compensation and _2
Stock-Based Compensation and Benefit Plans (Tables) | 12 Months Ended |
Jan. 29, 2023 | |
Share-Based Payment Arrangement [Abstract] | |
Summary of Company's Stock Option, Performance Stock Unit and Restricted Share Activity | A summary of the balances of the Company's stock-based compensation plans as of January 29, 2023, January 30, 2022, and January 31, 2021, and changes during the fiscal years then ended is presented below: Stock Options Performance-Based Restricted Stock Units Restricted Shares Restricted Stock Units 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 Number Weighted-Average Fair Value (In thousands, except per share amounts) Balance as of February 2, 2020 776 $ 113.41 238 $ 103.52 7 $ 175.82 333 $ 108.44 29 $ 239.39 Granted 241 182.78 140 122.21 4 299.09 130 208.35 — — Exercised/vested 182 83.89 171 63.03 7 175.82 175 87.31 14 366.42 Forfeited/expired 31 155.33 8 155.08 — — 13 162.60 — — Balance as of January 31, 2021 804 $ 139.27 199 $ 149.20 4 $ 299.09 275 $ 166.50 15 $ 328.68 Granted 194 310.29 139 185.37 4 326.70 129 331.42 — — Exercised/vested 174 104.85 165 100.89 4 299.09 144 139.33 15 397.83 Forfeited/expired 35 199.76 6 216.62 — — 22 235.23 — — Balance as of January 30, 2022 789 $ 186.10 167 $ 225.27 4 $ 326.70 238 $ 265.90 — $ — Granted 192 371.04 117 274.90 5 308.66 120 364.51 — — Exercised/vested 93 127.68 114 170.04 4 326.70 111 241.02 — — Forfeited/expired 22 286.56 4 307.76 — — 26 334.39 — — Balance as of January 29, 2023 866 $ 230.78 166 $ 295.93 5 $ 308.66 221 $ 323.89 — $ — |
Fair Value of Stock Options Issued | The following are weighted averages of the assumptions that were used in calculating the fair value of stock options granted in 2022, 2021, and 2020: 2022 2021 2020 Expected term 3.75 years 3.75 years 3.61 years Expected volatility 40.00 % 39.32 % 40.01 % Risk-free interest rate 2.51 % 0.50 % 0.32 % Dividend yield — % — % — % |
Summary of Information About Stock Options Outstanding and Exercisable | The following table summarizes information about stock options outstanding and exercisable as of January 29, 2023: Outstanding Exercisable Range of Exercise Prices Number of Options Weighted-Average Exercise Price Weighted-Average Remaining Life (Years) Number of Options Weighted-Average Exercise Price Weighted-Average Remaining Life (Years) (In thousands, except per share amounts and years) $2.78-$155.97 173 $ 98.43 2.1 173 $ 98.43 2.1 $167.54-$174.52 170 167.78 3.2 111 167.76 3.2 $188.84-$296.36 161 189.55 4.2 69 189.61 4.2 $306.71-$326.39 179 307.53 5.3 38 307.48 5.1 $327.22-$426.44 183 375.52 6.1 4 362.50 5.3 866 $ 230.78 4.2 395 $ 156.64 3.1 Intrinsic value $ 81,280 $ 61,050 |
Summary Of Intrinsic Value Of Options Exercised And Full Awards Vested | The following table summarizes the intrinsic value of options exercised and awards that vested during 2022, 2021, and 2020: 2022 2021 2020 (In thousands) Stock options $ 19,906 $ 46,761 $ 37,022 Performance-based restricted stock units 37,672 52,495 32,384 Restricted shares 1,152 1,364 2,115 Restricted stock units 37,275 47,042 37,791 Restricted stock units (liability accounting) — 5,938 5,309 $ 96,005 $ 153,600 $ 114,621 |
Fair Value Measurement (Tables)
Fair Value Measurement (Tables) | 12 Months Ended |
Jan. 29, 2023 | |
Fair Value Disclosures [Abstract] | |
Schedule of Fair Value, Assets and Liabilities Measured on Recurring Basis | As of January 29, 2023 and January 30, 2022, the Company held certain assets and liabilities that are required to be measured at fair value on a recurring basis: January 29, 2023 Level 1 Level 2 Level 3 Balance Sheet Classification (In thousands) Money market funds $ 568,000 $ 568,000 $ — $ — Cash and cash equivalents Term deposits 8 — 8 — Cash and cash equivalents Forward currency contract assets 16,707 — 16,707 — Prepaid expenses and other current assets Forward currency contract liabilities 25,625 — 25,625 — Other current liabilities January 30, 2022 Level 1 Level 2 Level 3 Balance Sheet Classification (In thousands) Money market funds $ 38,475 $ 38,475 $ — $ — Cash and cash equivalents Term deposits 318,698 — 318,698 — Cash and cash equivalents Forward currency contract assets 19,077 — 19,077 — Prepaid expenses and other current assets Forward currency contract liabilities 18,985 — 18,985 — Other current liabilities |
Derivative Financial Instrume_2
Derivative Financial Instruments (Tables) | 12 Months Ended |
Jan. 29, 2023 | |
Derivative Instruments and Hedging Activities Disclosure [Abstract] | |
Schedule of Forward Currency Contracts, Statement of Financial Position | The notional amounts and fair values of forward currency contracts were as follows: January 29, 2023 January 30, 2022 Gross Notional Assets Liabilities Gross Notional Assets Liabilities (In thousands) Derivatives designated as net investment hedges: Forward currency contracts $ 1,070,000 $ — $ 17,211 $ 1,502,000 $ 18,468 $ — Derivatives not designated in a hedging relationship: Forward currency contracts 1,605,284 16,707 8,414 1,597,878 609 18,985 Net derivatives recognized on consolidated balance sheets: Forward currency contracts $ 16,707 $ 25,625 $ 19,077 $ 18,985 |
Schedule of Pre-tax Gains (Losses) on Derivatives in Accumulated Other Comprehensive Income | The pre-tax gains and losses on foreign currency exchange forward contracts recorded in accumulated other comprehensive income or loss were as follows: 2022 2021 2020 (In thousands) Gains (losses) recognized in net investment hedge gains (losses): Derivatives designated as net investment hedges $ 12,125 $ 13,177 $ (34,289) |
Schedule of Pre-Tax Net Foreign Exchange and Derivative Gains and Losses | The pre-tax net foreign currency exchange and derivative gains and losses recorded in the consolidated statement of operations were as follows: 2022 2021 2020 (In thousands) Gains (losses) recognized in selling, general and administrative expenses: Foreign exchange gains (losses) $ 4,410 $ 11,511 $ (26,053) Derivatives not designated in a hedging relationship (11,945) (19,874) 22,949 Net foreign exchange and derivative losses $ (7,535) $ (8,363) $ (3,104) |
Leases (Tables)
Leases (Tables) | 12 Months Ended |
Jan. 29, 2023 | |
Leases [Abstract] | |
Lease Cost | The following table details the Company's net lease expense. Certain of the Company's leases include rent escalation clauses, rent holidays, and leasehold rental incentives. The majority of the Company's leases for store premises also include contingent rental payments based on sales volume. The variable lease expenses disclosed below include contingent rent payments and other non-fixed lease related costs, including common area maintenance, property taxes, and landlord's insurance. 2022 2021 2020 (In thousands) Net lease expense: Operating lease expense $ 245,767 $ 215,549 $ 193,498 Short-term lease expense 16,790 12,366 11,721 Variable lease expense 114,441 90,852 60,991 $ 376,998 $ 318,767 $ 266,210 The weighted-average remaining lease term and weighted-average discount rate were as follows: January 29, 2023 Weighted-average remaining lease term 5.64 years Weighted-average discount rate 3.1 % |
Operating Lease Maturities | The following table presents future minimum lease payments by fiscal year and the impact of discounting. January 29, 2023 (In thousands) 2023 $ 238,343 2024 265,787 2025 197,934 2026 143,603 2027 117,639 Thereafter 210,718 Future minimum lease payments $ 1,174,024 Impact of discounting (103,690) Present value of lease liabilities $ 1,070,334 Balance sheet classification: Current lease liabilities $ 207,972 Non-current lease liabilities 862,362 $ 1,070,334 |
Income Taxes (Tables)
Income Taxes (Tables) | 12 Months Ended |
Jan. 29, 2023 | |
Income Tax Disclosure [Abstract] | |
Company's Current and Deferred Taxes from Federal, State and Foreign Sources | The Company's domestic and foreign income before income tax expense and current and deferred income taxes from federal, state, and foreign sources are as follows: 2022 2021 2020 (In thousands) Income (loss) before income tax expense Domestic $ (98,764) $ 204,350 $ 122,573 Foreign 1,431,335 1,129,519 696,777 $ 1,332,571 $ 1,333,869 $ 819,350 Current income tax expense Federal $ 34,752 $ 25,701 $ 70 State 33,369 17,608 10,439 Foreign 400,250 322,105 185,803 $ 468,371 $ 365,414 $ 196,312 Deferred income tax expense (recovery) Federal $ 8,932 $ 5,858 $ 19,754 State 2,363 1,045 5,923 Foreign (1,895) (13,770) 8,448 $ 9,400 $ (6,867) $ 34,125 Income tax expense $ 477,771 $ 358,547 $ 230,437 |
Schedule of Effective Income Tax Rate Reconciliation | The Company's income tax expense for 2022, 2021, and 2020 include certain discrete tax amounts, as follows: 2022 2021 2020 (In thousands) Impairment of goodwill and other assets $ (28,171) $ — $ — Gain on disposal of assets 1,661 — — Acquisition-related expenses — (1,417) (3,133) Total tax adjustments $ (26,510) $ (1,417) $ (3,133) A summary reconciliation of the effective tax rate is as follows: 2022 2021 2020 (Percentages) Federal income tax at statutory rate 21.0 % 21.0 % 21.0 % Foreign tax rate differentials 6.8 5.0 4.6 U.S. state taxes (0.4) 0.8 0.8 Non-deductible compensation expense 0.7 0.7 2.1 Excess tax benefits from stock-based compensation (0.5) (0.9) (0.8) Impairment of goodwill and other assets and gain on disposal of assets 7.8 — — Permanent and other 0.5 0.3 0.4 Effective tax rate 35.9 % 26.9 % 28.1 % |
Tax Effects of Temporary Differences of Deferred Tax Assets and Deferred Tax Liabilities | The tax effects of temporary differences that give rise to significant portions of the deferred income tax assets and deferred income tax liabilities as of January 29, 2023 and January 30, 2022 are presented below: January 29, 2023 January 30, 2022 (In thousands) Deferred income tax assets: Net operating loss carryforwards $ 2,312 $ 6,686 Inventories 43,471 16,326 Intangible assets, net 778 873 Non-current lease liabilities 216,495 173,700 Stock-based compensation 16,093 10,739 Accrued bonuses 13,647 7,830 Unredeemed gift card liability 12,877 9,804 Foreign tax credits 1,909 2,003 Other 6,958 10,116 Deferred income tax assets $ 314,540 238,077 Valuation allowance (743) (2,804) Deferred income tax assets, net of valuation allowance $ 313,797 $ 235,273 Deferred income tax liabilities: Property and equipment, net $ (142,516) $ (104,498) Intangible assets, net (5,224) (17,669) Right-of-use lease assets (192,221) (154,634) Other (22,518) (5,733) Deferred income tax liabilities (362,479) (282,534) Net deferred income tax liabilities $ (48,682) $ (47,261) Balance sheet classification: Deferred income tax assets $ 6,402 $ 6,091 Deferred income tax liabilities (55,084) (53,352) Net deferred income tax liabilities $ (48,682) $ (47,261) |
Earnings Per Share (Tables)
Earnings Per Share (Tables) | 12 Months Ended |
Jan. 29, 2023 | |
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: 2022 2021 2020 (In thousands, except per share amounts) Net income $ 854,800 $ 975,322 $ 588,913 Basic weighted-average number of shares outstanding 127,666 129,768 130,289 Assumed conversion of dilutive stock options and awards 351 527 582 Diluted weighted-average number of shares outstanding 128,017 130,295 130,871 Basic earnings per share $ 6.70 $ 7.52 $ 4.52 Diluted earnings per share $ 6.68 $ 7.49 $ 4.50 |
Commitments and Contingencies (
Commitments and Contingencies (Tables) | 12 Months Ended |
Jan. 29, 2023 | |
Commitments and Contingencies Disclosure [Abstract] | |
Schedule of Contractual Obligations | The following table summarizes the Company's contractual arrangements as of January 29, 2023, and the timing and effect that such commitments are expected to have on its liquidity and cash flows in future periods: Payments Due by Fiscal Year Total 2023 2024 2025 2026 2027 Thereafter (In thousands) One-time transition tax payable $ 38,073 $ 9,518 $ 12,691 $ 15,864 $ — $ — $ — |
Supplemental Cash Flow Inform_2
Supplemental Cash Flow Information (Tables) | 12 Months Ended |
Jan. 29, 2023 | |
Supplemental Cash Flow Information [Abstract] | |
Summary of Supplemental Cash Flow Information | 2022 2021 2020 (In thousands) Cash paid for income taxes $ 502,136 $ 245,213 $ 260,886 Cash paid for amounts included in the measurement of lease liabilities 242,758 215,157 180,536 Leased assets obtained in exchange for new operating lease liabilities 450,787 287,008 178,504 Interest paid 116 12 110 |
Segmented Information (Tables)
Segmented Information (Tables) | 12 Months Ended |
Jan. 29, 2023 | |
Segment Reporting [Abstract] | |
Schedule of Detailed Segment Information | 2022 2021 2020 (In thousands) Net revenue: Company-operated stores $ 3,648,127 $ 2,821,497 $ 1,658,807 Direct to consumer 3,699,791 2,777,944 2,284,068 Other 762,600 657,176 459,004 $ 8,110,518 $ 6,256,617 $ 4,401,879 Segmented income from operations: Company-operated stores $ 991,067 $ 727,735 $ 212,592 Direct to consumer 1,562,538 1,216,496 1,029,102 Other 107,083 77,283 10,502 2,660,688 2,021,514 1,252,196 General corporate expenses 862,867 637,983 397,208 lululemon Studio obsolescence provision 62,928 — — Amortization of intangible assets 8,752 8,782 5,160 Impairment of goodwill and other assets 407,913 — — Acquisition-related expenses — 41,394 29,842 Gain on disposal of assets (10,180) — — Income from operations 1,328,408 1,333,355 819,986 Other income (expense), net 4,163 514 (636) Income before income tax expense $ 1,332,571 $ 1,333,869 $ 819,350 Capital expenditures: Company-operated stores $ 303,697 $ 189,629 $ 134,203 Direct to consumer 57,086 81,679 37,245 Corporate and other 277,874 123,194 57,778 $ 638,657 $ 394,502 $ 229,226 Depreciation and amortization: Company-operated stores $ 132,715 $ 116,107 $ 100,776 Direct to consumer 36,128 29,877 14,847 Corporate and other 122,948 78,222 69,855 $ 291,791 $ 224,206 $ 185,478 Property and equipment, net by geographic area as of January 29, 2023 and January 30, 2022 were as follows: January 29, 2023 January 30, 2022 (In thousands) United States $ 671,212 $ 418,317 Canada 431,349 392,192 Outside of North America 167,053 117,201 $ 1,269,614 $ 927,710 2022 2021 2020 (In thousands) United States $ 5,654,343 $ 4,345,687 $ 3,105,133 Canada 1,163,111 954,219 672,607 People's Republic of China 681,633 520,372 297,690 Rest of world 611,431 436,339 326,449 $ 8,110,518 $ 6,256,617 $ 4,401,879 The following table disaggregates the Company's net revenue by category. Other categories is primarily composed of accessories, lululemon Studio, and footwear. 2022 2021 2020 (In thousands) Women's product $ 5,259,803 $ 4,171,762 $ 3,049,906 Men's product 1,956,602 1,535,850 953,183 Other categories 894,113 549,005 398,790 $ 8,110,518 $ 6,256,617 $ 4,401,879 |
Net Revenue by Category and G_2
Net Revenue by Category and Geography (Tables) | 12 Months Ended |
Jan. 29, 2023 | |
Segment Reporting [Abstract] | |
Schedule of Detailed Segment Information | 2022 2021 2020 (In thousands) Net revenue: Company-operated stores $ 3,648,127 $ 2,821,497 $ 1,658,807 Direct to consumer 3,699,791 2,777,944 2,284,068 Other 762,600 657,176 459,004 $ 8,110,518 $ 6,256,617 $ 4,401,879 Segmented income from operations: Company-operated stores $ 991,067 $ 727,735 $ 212,592 Direct to consumer 1,562,538 1,216,496 1,029,102 Other 107,083 77,283 10,502 2,660,688 2,021,514 1,252,196 General corporate expenses 862,867 637,983 397,208 lululemon Studio obsolescence provision 62,928 — — Amortization of intangible assets 8,752 8,782 5,160 Impairment of goodwill and other assets 407,913 — — Acquisition-related expenses — 41,394 29,842 Gain on disposal of assets (10,180) — — Income from operations 1,328,408 1,333,355 819,986 Other income (expense), net 4,163 514 (636) Income before income tax expense $ 1,332,571 $ 1,333,869 $ 819,350 Capital expenditures: Company-operated stores $ 303,697 $ 189,629 $ 134,203 Direct to consumer 57,086 81,679 37,245 Corporate and other 277,874 123,194 57,778 $ 638,657 $ 394,502 $ 229,226 Depreciation and amortization: Company-operated stores $ 132,715 $ 116,107 $ 100,776 Direct to consumer 36,128 29,877 14,847 Corporate and other 122,948 78,222 69,855 $ 291,791 $ 224,206 $ 185,478 Property and equipment, net by geographic area as of January 29, 2023 and January 30, 2022 were as follows: January 29, 2023 January 30, 2022 (In thousands) United States $ 671,212 $ 418,317 Canada 431,349 392,192 Outside of North America 167,053 117,201 $ 1,269,614 $ 927,710 2022 2021 2020 (In thousands) United States $ 5,654,343 $ 4,345,687 $ 3,105,133 Canada 1,163,111 954,219 672,607 People's Republic of China 681,633 520,372 297,690 Rest of world 611,431 436,339 326,449 $ 8,110,518 $ 6,256,617 $ 4,401,879 The following table disaggregates the Company's net revenue by category. Other categories is primarily composed of accessories, lululemon Studio, and footwear. 2022 2021 2020 (In thousands) Women's product $ 5,259,803 $ 4,171,762 $ 3,049,906 Men's product 1,956,602 1,535,850 953,183 Other categories 894,113 549,005 398,790 $ 8,110,518 $ 6,256,617 $ 4,401,879 |
Nature of Operations and Basi_2
Nature of Operations and Basis of Presentation (Detail) $ in Millions | 12 Months Ended | ||
Jan. 31, 2021 USD ($) store | Jan. 29, 2023 store | Jan. 30, 2022 store | |
Accounting Policies [Abstract] | |||
Number of company-operated stores | store | 521 | 655 | 574 |
Government payroll subsidy recognized | $ | $ 37.1 |
Summary of Significant Accoun_4
Summary of Significant Accounting Policies (Detail) - USD ($) $ in Thousands | 12 Months Ended | ||
Jan. 29, 2023 | Jan. 30, 2022 | Jan. 31, 2021 | |
Property, Plant and Equipment [Line Items] | |||
Sales return allowances | $ 55,528 | $ 41,690 | |
Net revenue on unredeemed gift card balances | 23,300 | 18,700 | $ 13,700 |
Cost of goods sold | 3,618,178 | 2,648,052 | 1,937,888 |
Advertising expenses | 328,600 | 297,500 | 216,000 |
Right-of-use lease assets | 969,419 | 803,543 | |
Lease related liabilities | 1,070,334 | ||
Assets, current | 3,159,453 | 2,614,853 | |
Shipping and Handling | |||
Property, Plant and Equipment [Line Items] | |||
Cost of goods sold | $ 353,700 | $ 270,800 | $ 232,400 |
Buildings | |||
Property, Plant and Equipment [Line Items] | |||
Estimated useful life of assets | 40 years | ||
Leasehold Improvements | |||
Property, Plant and Equipment [Line Items] | |||
Estimated useful life of assets | 10 years | ||
Corporate Offices and Distribution Centres | |||
Property, Plant and Equipment [Line Items] | |||
Estimated useful life of assets | 15 years | ||
Furniture and fixtures | |||
Property, Plant and Equipment [Line Items] | |||
Property and equipment, amortization rate | 20% | ||
Computer hardware | Minimum | |||
Property, Plant and Equipment [Line Items] | |||
Property and equipment, amortization rate | 20% | ||
Computer hardware | Maximum | |||
Property, Plant and Equipment [Line Items] | |||
Property and equipment, amortization rate | 50% | ||
Equipment and vehicles | Minimum | |||
Property, Plant and Equipment [Line Items] | |||
Property and equipment, amortization rate | 20% | ||
Equipment and vehicles | Maximum | |||
Property, Plant and Equipment [Line Items] | |||
Property and equipment, amortization rate | 30% |
Inventories (Details)
Inventories (Details) - USD ($) $ in Thousands | 3 Months Ended | 12 Months Ended | ||
Jan. 29, 2023 | Jan. 29, 2023 | Jan. 30, 2022 | Jan. 31, 2021 | |
Inventory [Line Items] | ||||
Inventories, at cost | $ 1,571,981 | $ 1,571,981 | $ 1,004,526 | |
Provision to reduce inventories to net realizable value | (124,614) | (124,614) | (38,045) | |
Inventories | 1,447,367 | 1,447,367 | 966,481 | |
Obsolescence provision | 62,928 | 62,900 | 0 | $ 0 |
Obsolescence provision | ||||
Inventory [Line Items] | ||||
Provision to reduce inventories to net realizable value | (84,231) | (84,231) | (11,325) | |
Damages provision | ||||
Inventory [Line Items] | ||||
Provision to reduce inventories to net realizable value | (38,996) | (38,996) | (24,404) | |
Shrink provision | ||||
Inventory [Line Items] | ||||
Provision to reduce inventories to net realizable value | $ (1,387) | $ (1,387) | $ (2,316) |
Prepaid Expenses and Other Cu_3
Prepaid Expenses and Other Current Assets (Details) - USD ($) $ in Thousands | Jan. 29, 2023 | Jan. 30, 2022 |
Prepaid Expense and Other Assets, Current [Abstract] | ||
Prepaid inventories | $ 1,082 | $ 42,691 |
Other prepaid expenses | 140,921 | 98,254 |
Forward currency contract assets | 16,707 | 19,077 |
Other current assets | 79,962 | 32,550 |
Prepaid expenses and other current assets | $ 238,672 | $ 192,572 |
Property and Equipment (Detail)
Property and Equipment (Detail) - USD ($) $ in Thousands | 3 Months Ended | 12 Months Ended | ||
Jul. 31, 2022 | Jan. 29, 2023 | Jan. 30, 2022 | Jan. 31, 2021 | |
Property, Plant and Equipment [Line Items] | ||||
Property and equipment, gross | $ 2,256,912 | $ 1,756,844 | ||
Accumulated depreciation | (987,298) | (829,134) | ||
Property and equipment, net | 1,269,614 | 927,710 | ||
Computer software | 67,900 | 35,800 | $ 23,500 | |
Depreciation expense related to property and equipment | 282,700 | 215,300 | 180,100 | |
Pre-tax gain | 10,180 | 0 | 0 | |
Gain on disposal of assets | $ 1,661 | 0 | $ 0 | |
Disposal Group, Disposed of by Sale, Not Discontinued Operations | Administrative Office Building | ||||
Property, Plant and Equipment [Line Items] | ||||
Pre-tax gain | 10,200 | |||
Gain on disposal of assets | $ 1,700 | |||
Land | ||||
Property, Plant and Equipment [Line Items] | ||||
Property and equipment, gross | 80,692 | 74,297 | ||
Buildings | ||||
Property, Plant and Equipment [Line Items] | ||||
Property and equipment, gross | 28,850 | 30,880 | ||
Leasehold improvements | ||||
Property, Plant and Equipment [Line Items] | ||||
Property and equipment, gross | 818,071 | 676,762 | ||
Furniture and fixtures | ||||
Property, Plant and Equipment [Line Items] | ||||
Property and equipment, gross | 144,572 | 125,213 | ||
Computer hardware | ||||
Property, Plant and Equipment [Line Items] | ||||
Property and equipment, gross | 166,768 | 130,393 | ||
Computer software | ||||
Property, Plant and Equipment [Line Items] | ||||
Property and equipment, gross | 742,295 | 532,819 | ||
Equipment and vehicles | ||||
Property, Plant and Equipment [Line Items] | ||||
Property and equipment, gross | 30,766 | 23,060 | ||
Work in progress | ||||
Property, Plant and Equipment [Line Items] | ||||
Property and equipment, gross | $ 244,898 | $ 163,420 |
Impairment of Goodwill and Ot_2
Impairment of Goodwill and Other Assets - Schedule of Asset Impairment Charges (Details) - USD ($) | 3 Months Ended | 12 Months Ended | ||
Jan. 29, 2023 | Jan. 29, 2023 | Jan. 30, 2022 | Jan. 31, 2021 | |
Goodwill and Intangible Assets Disclosure [Abstract] | ||||
Obsolescence provision | $ 62,928,000 | $ 62,900,000 | $ 0 | $ 0 |
Impairment of goodwill | 362,492,000 | 362,492,000 | ||
Impairment of intangible assets | 40,585,000 | 40,585,000 | 0 | 0 |
Impairment of property and equipment | 4,836,000 | |||
Impairment of goodwill and other assets | 407,913,000 | $ 407,913,000 | 0 | 0 |
Total pre-tax charges | 470,841,000 | |||
Income tax effects of charges | (28,171,000) | $ 0 | $ 0 | |
Asset Impairment Charges, Net Of Tax | $ 442,670,000 |
Impairment of Goodwill and Ot_3
Impairment of Goodwill and Other Assets - Narrative (Details) - USD ($) | 3 Months Ended | 12 Months Ended | ||
Jan. 29, 2023 | Jan. 29, 2023 | Jan. 30, 2022 | Jan. 31, 2021 | |
Goodwill [Line Items] | ||||
Impairment of goodwill | $ 362,492,000 | $ 362,492,000 | ||
Impairment of intangible assets | 40,585,000 | 40,585,000 | $ 0 | $ 0 |
Obsolescence provision | 62,928,000 | $ 62,900,000 | $ 0 | $ 0 |
Lululemon Studio | ||||
Goodwill [Line Items] | ||||
Impairment of goodwill | $ 362,500,000 |
Acquisition-Related Expenses -
Acquisition-Related Expenses - Narrative (Details) - USD ($) | 12 Months Ended | ||
Jan. 29, 2023 | Jan. 30, 2022 | Jan. 31, 2021 | |
Business Combination and Asset Acquisition [Abstract] | |||
Acquisition-related expenses | $ 0 | $ 41,394,000 | $ 29,842,000 |
Goodwill (Detail)
Goodwill (Detail) - USD ($) $ in Thousands | 3 Months Ended | 12 Months Ended | |
Jan. 29, 2023 | Jan. 29, 2023 | Jan. 30, 2022 | |
Goodwill [Roll Forward] | |||
Goodwill, beginning balance | $ 386,880 | $ 386,877 | |
Impairment of goodwill | $ (362,492) | (362,492) | |
Effect of foreign currency translation | (244) | 3 | |
Goodwill, ending balance | 24,144 | 24,144 | 386,880 |
Impairment of goodwill | 362,492 | 362,492 | |
Goodwill | 24,144 | 24,144 | $ 386,880 |
Stores Segment | |||
Goodwill [Roll Forward] | |||
Goodwill, ending balance | 24,100 | 24,100 | |
Goodwill | 24,100 | $ 24,100 | |
Lululemon Studio | |||
Goodwill [Roll Forward] | |||
Impairment of goodwill | (362,500) | ||
Impairment of goodwill | $ 362,500 |
Intangible Assets - Summary of
Intangible Assets - Summary of Balances of the Company's Intangible Assets (Detail) - USD ($) | 3 Months Ended | 12 Months Ended | ||
Jan. 29, 2023 | Jan. 29, 2023 | Jan. 30, 2022 | Jan. 31, 2021 | |
Finite-Lived Intangible Assets [Line Items] | ||||
Gross Carrying Amount | $ 85,270,000 | $ 85,270,000 | $ 85,270,000 | |
Accumulated Amortization | (22,724,000) | (22,724,000) | (13,971,000) | |
Impairment | (40,585,000) | (40,585,000) | 0 | $ 0 |
Intangible assets, net | 21,961,000 | $ 21,961,000 | $ 71,299,000 | |
Remaining Useful Life (Years) | 2 years 10 months 24 days | 10 years 10 months 24 days | ||
MIRROR brand | ||||
Finite-Lived Intangible Assets [Line Items] | ||||
Gross Carrying Amount | 26,500,000 | $ 26,500,000 | $ 26,500,000 | |
Accumulated Amortization | (3,423,000) | (3,423,000) | (2,098,000) | |
Impairment | (20,077,000) | |||
Intangible assets, net | 3,000,000 | $ 3,000,000 | $ 24,402,000 | |
Remaining Useful Life (Years) | 3 years | 18 years 4 months 24 days | ||
Customer relationships | ||||
Finite-Lived Intangible Assets [Line Items] | ||||
Gross Carrying Amount | 28,000,000 | $ 28,000,000 | $ 28,000,000 | |
Accumulated Amortization | (7,492,000) | (7,492,000) | (4,592,000) | |
Impairment | (20,508,000) | |||
Intangible assets, net | 0 | 0 | $ 23,408,000 | |
Remaining Useful Life (Years) | 8 years 4 months 24 days | |||
Technology | ||||
Finite-Lived Intangible Assets [Line Items] | ||||
Gross Carrying Amount | 25,500,000 | 25,500,000 | $ 25,500,000 | |
Accumulated Amortization | (8,956,000) | (8,956,000) | (5,489,000) | |
Intangible assets, net | 16,544,000 | $ 16,544,000 | $ 20,011,000 | |
Remaining Useful Life (Years) | 3 years | 5 years 10 months 24 days | ||
Content | ||||
Finite-Lived Intangible Assets [Line Items] | ||||
Gross Carrying Amount | 5,000,000 | $ 5,000,000 | $ 5,000,000 | |
Accumulated Amortization | (2,583,000) | (2,583,000) | (1,583,000) | |
Intangible assets, net | 2,417,000 | $ 2,417,000 | $ 3,417,000 | |
Remaining Useful Life (Years) | 2 years 4 months 24 days | 3 years 4 months 24 days | ||
Other | ||||
Finite-Lived Intangible Assets [Line Items] | ||||
Gross Carrying Amount | 270,000 | $ 270,000 | $ 270,000 | |
Accumulated Amortization | (270,000) | (270,000) | (209,000) | |
Intangible assets, net | $ 0 | $ 0 | $ 61,000 | |
Remaining Useful Life (Years) | 8 months 12 days |
Intangible Assets - Narrative (
Intangible Assets - Narrative (Details) - USD ($) | 3 Months Ended | 12 Months Ended | ||
Jan. 29, 2023 | Jan. 29, 2023 | Jan. 30, 2022 | Jan. 31, 2021 | |
Goodwill and Intangible Assets Disclosure [Abstract] | ||||
Amortization of intangible assets | $ 8,752,000 | $ 8,782,000 | $ 5,160,000 | |
Impairment of intangible assets | $ 40,585,000 | $ 40,585,000 | $ 0 | $ 0 |
Intangible Assets - Expected Am
Intangible Assets - Expected Amortization Expense (Details) - USD ($) $ in Thousands | Jan. 29, 2023 | Jan. 30, 2022 |
Goodwill and Intangible Assets Disclosure [Abstract] | ||
2023 | $ 7,515 | |
2024 | 7,515 | |
2025 | 6,931 | |
Intangible assets, net | $ 21,961 | $ 71,299 |
Other Non-Current Assets (Detai
Other Non-Current Assets (Detail) - USD ($) $ in Thousands | Jan. 29, 2023 | Jan. 30, 2022 |
Other Assets, Noncurrent Disclosure [Abstract] | ||
Cloud computing arrangement implementation costs | $ 114,700 | $ 89,334 |
Security deposits | 28,447 | 24,083 |
Other | 12,898 | 18,685 |
Other non-current assets | $ 156,045 | $ 132,102 |
Other Non-Current Assets - Narr
Other Non-Current Assets - Narrative (Details) - USD ($) $ in Millions | Jan. 29, 2023 | Jan. 30, 2022 |
Other Assets, Noncurrent Disclosure [Abstract] | ||
Implementation costs | $ 212.4 | $ 138.4 |
Accumulated amortization | $ 97.7 | $ 49 |
Accrued Liabilities and Other_2
Accrued Liabilities and Other (Detail) - USD ($) $ in Thousands | Jan. 29, 2023 | Jan. 30, 2022 |
Accounts Payable and Accrued Liabilities [Abstract] | ||
Accrued operating expenses | $ 169,429 | $ 116,822 |
Accrued freight | 57,692 | 71,390 |
Sales return allowances | 55,528 | 41,690 |
Forward currency contract liabilities | 25,625 | 18,985 |
Accrued duty | 21,046 | 27,182 |
Sales tax collected | 20,183 | 13,540 |
Accrued capital expenditures | 19,365 | 9,616 |
Accrued rent | 12,223 | 11,254 |
Accrued inventory liabilities | 4,345 | 4,005 |
Other | 13,787 | 16,316 |
Accrued liabilities and other | $ 399,223 | $ 330,800 |
Revolving Credit Facilities (De
Revolving Credit Facilities (Detail) | 1 Months Ended | 12 Months Ended | ||||||
Dec. 14, 2021 USD ($) | Jun. 30, 2020 USD ($) | Dec. 31, 2019 USD ($) | Jan. 29, 2023 USD ($) | Jan. 29, 2023 CNY (¥) | Jan. 31, 2021 USD ($) | Jan. 31, 2021 CNY (¥) | Dec. 31, 2019 CNY (¥) | |
Line of Credit Facility | ||||||||
Letters of credit | $ 6,500,000 | |||||||
Other borrowings | $ 0 | |||||||
Rent adjusted leverage ratio | 3.25 | 3.25 | ||||||
EBITDAR to interest charges ratio | 2 | 2 | ||||||
Short-term debt | $ 0 | |||||||
Revolving Credit Facility | ||||||||
Line of Credit Facility | ||||||||
Revolving credit facilities borrowing limit | $ 400,000,000 | $ 130,000,000 | $ 230,000,000 | ¥ 33,900,000 | ¥ 19,200,000 | |||
Debt instrument, term | 12 months | |||||||
Revolving Credit Facility | Line of Credit | ||||||||
Line of Credit Facility | ||||||||
Revolving credit facilities borrowing limit | $ 300,000,000 | |||||||
Debt instrument, term | 5 years | 364 days | ||||||
Commitment fee percentage, adjustments | 0.025% | |||||||
Commitment fee percentage, unused adjustments | 0.005% | |||||||
Revolving Credit Facility | Minimum | Line of Credit | ||||||||
Line of Credit Facility | ||||||||
Commitment fee percentage on unused amounts | 0.10% | |||||||
Revolving Credit Facility | Maximum | Line of Credit | ||||||||
Line of Credit Facility | ||||||||
Commitment fee percentage on unused amounts | 0.20% | |||||||
Revolving Credit Facility | SOFR | Minimum | Line of Credit | ||||||||
Line of Credit Facility | ||||||||
Basis spread on variable rate | 1% | |||||||
Revolving Credit Facility | SOFR | Maximum | Line of Credit | ||||||||
Line of Credit Facility | ||||||||
Basis spread on variable rate | 1.375% | |||||||
Revolving Credit Facility | Alternate Base Rate | Minimum | Line of Credit | ||||||||
Line of Credit Facility | ||||||||
Basis spread on variable rate | 0% | |||||||
Revolving Credit Facility | Alternate Base Rate | Maximum | Line of Credit | ||||||||
Line of Credit Facility | ||||||||
Basis spread on variable rate | 0.375% | |||||||
Revolving Credit Facility | Prime Rate | ||||||||
Line of Credit Facility | ||||||||
Basis spread on variable rate | 0.5175% | |||||||
Letter of Credit | ||||||||
Line of Credit Facility | ||||||||
Letters of credit | $ 14,300,000 | ¥ 2,100,000 | ||||||
Revolving Loan | ||||||||
Line of Credit Facility | ||||||||
Revolving credit facilities borrowing limit | $ 200,000,000 | 29,500,000 | ||||||
Financial Bank Guarantee Facility | ||||||||
Line of Credit Facility | ||||||||
Revolving credit facilities borrowing limit | $ 30,000,000 | ¥ 4,400,000 |
Stockholders' Equity (Detail)
Stockholders' Equity (Detail) shares in Millions | 12 Months Ended |
Jan. 29, 2023 vote shares | |
Stockholders' Equity Note [Abstract] | |
Number of votes for the holders of special voting stock | vote | 1 |
Conversion ratio | 1 |
Conversion of exchangeable shares into common shares, maximum conversion threshold (in shares) | shares | 4.2 |
Stock-Based Compensation and _3
Stock-Based Compensation and Benefit Plans - Additional Information (Detail) $ / shares in Units, $ in Millions | 12 Months Ended | ||
Jan. 29, 2023 USD ($) $ / shares shares | Jan. 30, 2022 USD ($) $ / shares | Jan. 31, 2021 USD ($) $ / shares | |
Share-based Compensation Arrangement by Share-based Payment Award [Line Items] | |||
Stock options granted vesting rate | 25% | ||
Stock-based compensation expense | $ 77.2 | $ 66.4 | $ 56.6 |
Unrecognized compensation cost for all stock-based compensation plans | $ 118 | $ 96.7 | |
Unrecognized compensation cost for all stock-based compensation plans, recognition period | 2 years 1 month 6 days | 2 years | |
Common stock per performance share unit | 2 | ||
Weighted-average grant date fair value of granted shares (in dollars per share) | $ / shares | $ 124.17 | $ 94.09 | $ 74.91 |
Shares issues for ESPP | shares | 100,000 | ||
Vesting period | 2 years | ||
Company contributions | $ 14 | $ 11.8 | $ 9.2 |
ESPP participant contribution, company match percent | 33.33% | ||
Minimum | |||
Share-based Compensation Arrangement by Share-based Payment Award [Line Items] | |||
Participant contribution, company match percent | 50% | ||
Maximum | |||
Share-based Compensation Arrangement by Share-based Payment Award [Line Items] | |||
Participant contribution, company match percent | 75% | ||
Common Stock | 2014 Equity Incentive Plan | |||
Share-based Compensation Arrangement by Share-based Payment Award [Line Items] | |||
Maximum shares available under plan | shares | 12,300,000 | ||
Stock Options | |||
Share-based Compensation Arrangement by Share-based Payment Award [Line Items] | |||
Vesting period | 4 years | ||
Expiration period | 7 years | ||
Unrecognized compensation cost for all stock-based compensation plans | $ 29.7 | ||
Unrecognized compensation cost for all stock-based compensation plans, recognition period | 2 years 7 months 6 days | ||
Performance-Based Restricted Stock Units | |||
Share-based Compensation Arrangement by Share-based Payment Award [Line Items] | |||
Vesting period | 3 years | ||
Restricted Shares | |||
Share-based Compensation Arrangement by Share-based Payment Award [Line Items] | |||
Vesting period | 1 year | ||
Restricted Stock Units | |||
Share-based Compensation Arrangement by Share-based Payment Award [Line Items] | |||
Vesting period | 3 years | ||
ESPP | |||
Share-based Compensation Arrangement by Share-based Payment Award [Line Items] | |||
Maximum shares available under plan | shares | 6,000,000 |
Stock-Based Compensation and _4
Stock-Based Compensation and Benefit Plans - Summary of Company's Stock Option, Performance Share Units and Restricted Share Activity (Detail) - $ / shares shares in Thousands | 12 Months Ended | ||
Jan. 29, 2023 | Jan. 30, 2022 | Jan. 31, 2021 | |
Stock Options | |||
Number of Stock Options | |||
Number of Stock Options, Beginning Balance (in shares) | 789 | 804 | 776 |
Number of Stock Options, Granted (in shares) | 192 | 194 | 241 |
Number of Stock Options, Exercised/vested (in shares) | 93 | 174 | 182 |
Number of Stock Options, Forfeited/expired (in shares) | 22 | 35 | 31 |
Number of Stock Options, Ending Balance (in shares) | 866 | 789 | 804 |
Weighted-Average Exercise Price | |||
Weighted-Average Exercise Price, Beginning Balance (in dollars per share) | $ 186.10 | $ 139.27 | $ 113.41 |
Weighted-Average Exercise Price, Granted (in dollars per share) | 371.04 | 310.29 | 182.78 |
Weighted-Average Exercise Price, Exercised/vested (in dollars per share) | 127.68 | 104.85 | 83.89 |
Weighted-Average Exercise Price, Forfeited/expired (in dollars per share) | 286.56 | 199.76 | 155.33 |
Weighted-Average Exercise Price, Ending Balance (in dollars per share) | $ 230.78 | $ 186.10 | $ 139.27 |
Performance-Based Restricted Stock Units | |||
Number of Performance-Based Restricted Stock Units, Restricted Shares, and Restricted Stock Units | |||
Number of Shares, Beginning Balance (in shares) | 167 | 199 | 238 |
Number of Shares, Granted (in shares) | 117 | 139 | 140 |
Number of Shares, Exercised/vested (in shares) | 114 | 165 | 171 |
Number of Shares, Forfeited/expired (in shares) | 4 | 6 | 8 |
Number of Shares, Ending Balance (in shares) | 166 | 167 | 199 |
Weighted-Average Grant Date Fair Value | |||
Weighted-Average Grant Fair Value, Beginning Balance (in dollars per share) | $ 225.27 | $ 149.20 | $ 103.52 |
Weighted-Average Grant Fair Value, Granted (in dollars per share) | 274.90 | 185.37 | 122.21 |
Weighted-Average Grant Fair Value, Exercised/vested (in dollars per share) | 170.04 | 100.89 | 63.03 |
Weighted-Average Grant Fair Value, Forfeited (in dollars per share) | 307.76 | 216.62 | 155.08 |
Weighted-Average Grant Fair Value, Ending Balance (in dollars per share) | $ 295.93 | $ 225.27 | $ 149.20 |
Restricted Shares | |||
Number of Performance-Based Restricted Stock Units, Restricted Shares, and Restricted Stock Units | |||
Number of Shares, Beginning Balance (in shares) | 4 | 4 | 7 |
Number of Shares, Granted (in shares) | 5 | 4 | 4 |
Number of Shares, Exercised/vested (in shares) | 4 | 4 | 7 |
Number of Shares, Forfeited/expired (in shares) | 0 | 0 | 0 |
Number of Shares, Ending Balance (in shares) | 5 | 4 | 4 |
Weighted-Average Grant Date Fair Value | |||
Weighted-Average Grant Fair Value, Beginning Balance (in dollars per share) | $ 326.70 | $ 299.09 | $ 175.82 |
Weighted-Average Grant Fair Value, Granted (in dollars per share) | 308.66 | 326.70 | 299.09 |
Weighted-Average Grant Fair Value, Exercised/vested (in dollars per share) | 326.70 | 299.09 | 175.82 |
Weighted-Average Grant Fair Value, Forfeited (in dollars per share) | 0 | 0 | 0 |
Weighted-Average Grant Fair Value, Ending Balance (in dollars per share) | $ 308.66 | $ 326.70 | $ 299.09 |
Restricted Stock Units | |||
Number of Performance-Based Restricted Stock Units, Restricted Shares, and Restricted Stock Units | |||
Number of Shares, Beginning Balance (in shares) | 238 | 275 | 333 |
Number of Shares, Granted (in shares) | 120 | 129 | 130 |
Number of Shares, Exercised/vested (in shares) | 111 | 144 | 175 |
Number of Shares, Forfeited/expired (in shares) | 26 | 22 | 13 |
Number of Shares, Ending Balance (in shares) | 221 | 238 | 275 |
Weighted-Average Grant Date Fair Value | |||
Weighted-Average Grant Fair Value, Beginning Balance (in dollars per share) | $ 265.90 | $ 166.50 | $ 108.44 |
Weighted-Average Grant Fair Value, Granted (in dollars per share) | 364.51 | 331.42 | 208.35 |
Weighted-Average Grant Fair Value, Exercised/vested (in dollars per share) | 241.02 | 139.33 | 87.31 |
Weighted-Average Grant Fair Value, Forfeited (in dollars per share) | 334.39 | 235.23 | 162.60 |
Weighted-Average Grant Fair Value, Ending Balance (in dollars per share) | $ 323.89 | $ 265.90 | $ 166.50 |
Restricted Stock Units (Liability Accounting) | |||
Number of Performance-Based Restricted Stock Units, Restricted Shares, and Restricted Stock Units | |||
Number of Shares, Beginning Balance (in shares) | 0 | 15 | 29 |
Number of Shares, Granted (in shares) | 0 | 0 | 0 |
Number of Shares, Exercised/vested (in shares) | 0 | 15 | 14 |
Number of Shares, Forfeited/expired (in shares) | 0 | 0 | 0 |
Number of Shares, Ending Balance (in shares) | 0 | 0 | 15 |
Weighted-Average Grant Date Fair Value | |||
Weighted-Average Grant Fair Value, Beginning Balance (in dollars per share) | $ 0 | $ 328.68 | $ 239.39 |
Weighted-Average Grant Fair Value, Granted (in dollars per share) | 0 | 0 | 0 |
Weighted-Average Grant Fair Value, Exercised/vested (in dollars per share) | 0 | 397.83 | 366.42 |
Weighted-Average Grant Fair Value, Forfeited (in dollars per share) | 0 | 0 | 0 |
Weighted-Average Grant Fair Value, Ending Balance (in dollars per share) | $ 0 | $ 0 | $ 328.68 |
Stock-Based Compensation and _5
Stock-Based Compensation and Benefit Plans - Fair Value of Stock Options Issued (Detail) | 12 Months Ended | ||
Jan. 29, 2023 | Jan. 30, 2022 | Jan. 31, 2021 | |
Share-Based Payment Arrangement [Abstract] | |||
Expected term | 3 years 9 months | 3 years 9 months | 3 years 7 months 9 days |
Expected volatility | 40% | 39.32% | 40.01% |
Risk-free interest rate | 2.51% | 0.50% | 0.32% |
Dividend yield | 0% | 0% | 0% |
Stock-Based Compensation and _6
Stock-Based Compensation and Benefit Plans - Summary of Information About Stock Options Outstanding and Exercisable (Detail) $ / shares in Units, shares in Thousands, $ in Thousands | 12 Months Ended |
Jan. 29, 2023 USD ($) $ / shares shares | |
Share-based Compensation, Shares Authorized under Stock Option Plans, Exercise Price Range | |
Number of Options, Outstanding (in shares) | shares | 866 |
Weighted-Average Exercise Price, Outstanding (in dollars per share) | $ 230.78 |
Weighted-Average Remaining Life, Outstanding | 4 years 2 months 12 days |
Number of Options, Exercisable (in shares) | shares | 395 |
Weighted-Average Exercise Price, Exercisable (in dollars per share) | $ 156.64 |
Weighted-Average Remaining Life, Exercisable | 3 years 1 month 6 days |
Intrinsic value, Outstanding | $ | $ 81,280 |
Intrinsic value, Exercisable | $ | $ 61,050 |
Exercise Price Range One | |
Share-based Compensation, Shares Authorized under Stock Option Plans, Exercise Price Range | |
Range of Exercise Prices Lower Range Limit (in dollars per share) | $ 2.78 |
Range of Exercise Prices Upper Limit (in dollars per share) | $ 155.97 |
Number of Options, Outstanding (in shares) | shares | 173 |
Weighted-Average Exercise Price, Outstanding (in dollars per share) | $ 98.43 |
Weighted-Average Remaining Life, Outstanding | 2 years 1 month 6 days |
Number of Options, Exercisable (in shares) | shares | 173 |
Weighted-Average Exercise Price, Exercisable (in dollars per share) | $ 98.43 |
Weighted-Average Remaining Life, Exercisable | 2 years 1 month 6 days |
Exercise Price Range Two | |
Share-based Compensation, Shares Authorized under Stock Option Plans, Exercise Price Range | |
Range of Exercise Prices Lower Range Limit (in dollars per share) | $ 167.54 |
Range of Exercise Prices Upper Limit (in dollars per share) | $ 174.52 |
Number of Options, Outstanding (in shares) | shares | 170 |
Weighted-Average Exercise Price, Outstanding (in dollars per share) | $ 167.78 |
Weighted-Average Remaining Life, Outstanding | 3 years 2 months 12 days |
Number of Options, Exercisable (in shares) | shares | 111 |
Weighted-Average Exercise Price, Exercisable (in dollars per share) | $ 167.76 |
Weighted-Average Remaining Life, Exercisable | 3 years 2 months 12 days |
Exercise Price Range Three | |
Share-based Compensation, Shares Authorized under Stock Option Plans, Exercise Price Range | |
Range of Exercise Prices Lower Range Limit (in dollars per share) | $ 188.84 |
Range of Exercise Prices Upper Limit (in dollars per share) | $ 296.36 |
Number of Options, Outstanding (in shares) | shares | 161 |
Weighted-Average Exercise Price, Outstanding (in dollars per share) | $ 189.55 |
Weighted-Average Remaining Life, Outstanding | 4 years 2 months 12 days |
Number of Options, Exercisable (in shares) | shares | 69 |
Weighted-Average Exercise Price, Exercisable (in dollars per share) | $ 189.61 |
Weighted-Average Remaining Life, Exercisable | 4 years 2 months 12 days |
Exercise Price Range Four | |
Share-based Compensation, Shares Authorized under Stock Option Plans, Exercise Price Range | |
Range of Exercise Prices Lower Range Limit (in dollars per share) | $ 306.71 |
Range of Exercise Prices Upper Limit (in dollars per share) | $ 326.39 |
Number of Options, Outstanding (in shares) | shares | 179 |
Weighted-Average Exercise Price, Outstanding (in dollars per share) | $ 307.53 |
Weighted-Average Remaining Life, Outstanding | 5 years 3 months 18 days |
Number of Options, Exercisable (in shares) | shares | 38 |
Weighted-Average Exercise Price, Exercisable (in dollars per share) | $ 307.48 |
Weighted-Average Remaining Life, Exercisable | 5 years 1 month 6 days |
Exercise Price Range Five | |
Share-based Compensation, Shares Authorized under Stock Option Plans, Exercise Price Range | |
Range of Exercise Prices Lower Range Limit (in dollars per share) | $ 327.22 |
Range of Exercise Prices Upper Limit (in dollars per share) | $ 426.44 |
Number of Options, Outstanding (in shares) | shares | 183 |
Weighted-Average Exercise Price, Outstanding (in dollars per share) | $ 375.52 |
Weighted-Average Remaining Life, Outstanding | 6 years 1 month 6 days |
Number of Options, Exercisable (in shares) | shares | 4 |
Weighted-Average Exercise Price, Exercisable (in dollars per share) | $ 362.50 |
Weighted-Average Remaining Life, Exercisable | 5 years 3 months 18 days |
Stock-Based Compensation and _7
Stock-Based Compensation and Benefit Plans - Summary of Intrinsic Value of Options and Full Awards (Details) - USD ($) $ in Thousands | 12 Months Ended | ||
Jan. 29, 2023 | Jan. 30, 2022 | Jan. 31, 2021 | |
Share-based Compensation Arrangement by Share-based Payment Award [Line Items] | |||
Stock options | $ 19,906 | $ 46,761 | $ 37,022 |
Total | 96,005 | 153,600 | 114,621 |
Performance-Based Restricted Stock Units | |||
Share-based Compensation Arrangement by Share-based Payment Award [Line Items] | |||
Full awards, vested | 37,672 | 52,495 | 32,384 |
Restricted Shares | |||
Share-based Compensation Arrangement by Share-based Payment Award [Line Items] | |||
Full awards, vested | 1,152 | 1,364 | 2,115 |
Restricted Stock Units | |||
Share-based Compensation Arrangement by Share-based Payment Award [Line Items] | |||
Full awards, vested | 37,275 | 47,042 | 37,791 |
Restricted Stock Units (Liability Accounting) | |||
Share-based Compensation Arrangement by Share-based Payment Award [Line Items] | |||
Full awards, vested | $ 0 | $ 5,938 | $ 5,309 |
Fair Value Measurement (Details
Fair Value Measurement (Details) - USD ($) $ in Thousands | Jan. 29, 2023 | Jan. 30, 2022 |
Fair Value, Assets and Liabilities Measured on Recurring and Nonrecurring Basis [Line Items] | ||
Derivative Asset, Statement of Financial Position [Extensible Enumeration] | Prepaid expenses and other current assets | Prepaid expenses and other current assets |
Forward currency contract assets | $ 16,707 | $ 19,077 |
Derivative Liability, Statement of Financial Position [Extensible Enumeration] | Other current liabilities | Other current liabilities |
Forward currency contract liabilities | $ 25,625 | $ 18,985 |
Level 1 | ||
Fair Value, Assets and Liabilities Measured on Recurring and Nonrecurring Basis [Line Items] | ||
Forward currency contract assets | 0 | 0 |
Forward currency contract liabilities | 0 | 0 |
Level 2 | ||
Fair Value, Assets and Liabilities Measured on Recurring and Nonrecurring Basis [Line Items] | ||
Forward currency contract assets | 16,707 | 19,077 |
Forward currency contract liabilities | 25,625 | 18,985 |
Level 3 | ||
Fair Value, Assets and Liabilities Measured on Recurring and Nonrecurring Basis [Line Items] | ||
Forward currency contract assets | 0 | 0 |
Forward currency contract liabilities | 0 | 0 |
Cash and cash equivalents | Money market funds | ||
Fair Value, Assets and Liabilities Measured on Recurring and Nonrecurring Basis [Line Items] | ||
Cash and cash equivalents | 568,000 | 38,475 |
Cash and cash equivalents | Term deposits | ||
Fair Value, Assets and Liabilities Measured on Recurring and Nonrecurring Basis [Line Items] | ||
Cash and cash equivalents | 8 | 318,698 |
Cash and cash equivalents | Level 1 | Money market funds | ||
Fair Value, Assets and Liabilities Measured on Recurring and Nonrecurring Basis [Line Items] | ||
Cash and cash equivalents | 568,000 | 38,475 |
Cash and cash equivalents | Level 1 | Term deposits | ||
Fair Value, Assets and Liabilities Measured on Recurring and Nonrecurring Basis [Line Items] | ||
Cash and cash equivalents | 0 | 0 |
Cash and cash equivalents | Level 2 | Money market funds | ||
Fair Value, Assets and Liabilities Measured on Recurring and Nonrecurring Basis [Line Items] | ||
Cash and cash equivalents | 0 | 0 |
Cash and cash equivalents | Level 2 | Term deposits | ||
Fair Value, Assets and Liabilities Measured on Recurring and Nonrecurring Basis [Line Items] | ||
Cash and cash equivalents | 8 | 318,698 |
Cash and cash equivalents | Level 3 | Money market funds | ||
Fair Value, Assets and Liabilities Measured on Recurring and Nonrecurring Basis [Line Items] | ||
Cash and cash equivalents | 0 | 0 |
Cash and cash equivalents | Level 3 | Term deposits | ||
Fair Value, Assets and Liabilities Measured on Recurring and Nonrecurring Basis [Line Items] | ||
Cash and cash equivalents | $ 0 | $ 0 |
Derivative Financial Instrume_3
Derivative Financial Instruments - Quantitative Disclosures about Derivative Financial Instruments (Details) - USD ($) $ in Thousands | 12 Months Ended | ||
Jan. 29, 2023 | Jan. 30, 2022 | Jan. 31, 2021 | |
Derivatives, Fair Value [Line Items] | |||
Derivative assets | $ 16,700 | ||
Derivative liabilities | 25,600 | ||
Foreign Exchange Forward | |||
Derivatives, Fair Value [Line Items] | |||
Assets | 16,707 | $ 19,077 | |
Liabilities | 25,625 | 18,985 | |
Gains (losses) recognized in selling, general and administrative expenses: | |||
Net foreign exchange and derivative losses | (7,535) | (8,363) | $ (3,104) |
Foreign Exchange Forward | Designated as Hedging Instrument | |||
Derivatives, Fair Value [Line Items] | |||
Gross Notional | 1,070,000 | 1,502,000 | |
Assets | 0 | 18,468 | |
Liabilities | 17,211 | 0 | |
Gains (losses) recognized in net investment hedge gains (losses): | |||
Derivatives designated as net investment hedges | 12,125 | 13,177 | (34,289) |
Gains (losses) recognized in selling, general and administrative expenses: | |||
Net foreign exchange and derivative losses | 4,410 | 11,511 | (26,053) |
Foreign Exchange Forward | Not Designated as Hedging Instrument | |||
Derivatives, Fair Value [Line Items] | |||
Gross Notional | 1,605,284 | 1,597,878 | |
Assets | 16,707 | 609 | |
Liabilities | 8,414 | 18,985 | |
Gains (losses) recognized in selling, general and administrative expenses: | |||
Net foreign exchange and derivative losses | $ (11,945) | $ (19,874) | $ 22,949 |
Leases - Narrative (Details)
Leases - Narrative (Details) $ in Millions | Jan. 29, 2023 USD ($) |
Lessee, Lease, Description [Line Items] | |
Operating leases signed but not yet commenced | $ 632 |
Minimum | |
Lessee, Lease, Description [Line Items] | |
Lease term | 2 years |
Maximum | |
Lessee, Lease, Description [Line Items] | |
Lease term | 15 years |
Leases - Lease Cost (Details)
Leases - Lease Cost (Details) - USD ($) $ in Thousands | 12 Months Ended | ||
Jan. 29, 2023 | Jan. 30, 2022 | Jan. 31, 2021 | |
Net lease expense: | |||
Operating lease expense | $ 245,767 | $ 215,549 | $ 193,498 |
Short-term lease expense | 16,790 | 12,366 | 11,721 |
Variable lease expense | 114,441 | 90,852 | 60,991 |
Net lease cost | $ 376,998 | $ 318,767 | $ 266,210 |
Leases - Lease Maturities (Deta
Leases - Lease Maturities (Details) - USD ($) $ in Thousands | Jan. 29, 2023 | Jan. 30, 2022 |
Leases [Abstract] | ||
2023 | $ 238,343 | |
2024 | 265,787 | |
2025 | 197,934 | |
2026 | 143,603 | |
2027 | 117,639 | |
Thereafter | 210,718 | |
Future minimum lease payments | 1,174,024 | |
Impact of discounting | (103,690) | |
Present value of lease liabilities | 1,070,334 | |
Current lease liabilities | 207,972 | $ 188,996 |
Non-current lease liabilities | $ 862,362 | $ 692,056 |
Leases - Supplemental Lease Inf
Leases - Supplemental Lease Information (Details) | Jan. 29, 2023 |
Leases [Abstract] | |
Weighted-average remaining lease term | 5 years 7 months 20 days |
Weighted-average discount rate | 3.10% |
Income Taxes - Company's Curren
Income Taxes - Company's Current and Deferred Taxes from Federal, State and Foreign Sources (Detail) - USD ($) $ in Thousands | 12 Months Ended | ||
Jan. 29, 2023 | Jan. 30, 2022 | Jan. 31, 2021 | |
Income (loss) before income tax expense | |||
Domestic | $ (98,764) | $ 204,350 | $ 122,573 |
Foreign | 1,431,335 | 1,129,519 | 696,777 |
Income before income tax expense | 1,332,571 | 1,333,869 | 819,350 |
Current income tax expense | |||
Federal | 34,752 | 25,701 | 70 |
State | 33,369 | 17,608 | 10,439 |
Foreign | 400,250 | 322,105 | 185,803 |
Total current | 468,371 | 365,414 | 196,312 |
Deferred income tax expense (recovery) | |||
Federal | 8,932 | 5,858 | 19,754 |
State | 2,363 | 1,045 | 5,923 |
Foreign | (1,895) | (13,770) | 8,448 |
Total deferred | 9,400 | (6,867) | 34,125 |
Provision for income taxes | $ 477,771 | $ 358,547 | $ 230,437 |
Income Taxes - Total Tax Adjust
Income Taxes - Total Tax Adjustments (Details) - USD ($) $ in Thousands | 3 Months Ended | 12 Months Ended | |||
Jan. 29, 2023 | Jul. 31, 2022 | Jan. 29, 2023 | Jan. 30, 2022 | Jan. 31, 2021 | |
Income Tax Disclosure [Abstract] | |||||
Impairment of goodwill and other assets | $ (28,171) | $ 0 | $ 0 | ||
Gain on disposal of assets | $ 1,661 | 0 | 0 | ||
Acquisition-related expenses | $ 0 | (1,417) | (3,133) | ||
Total tax adjustments | $ (26,510) | $ (1,417) | $ (3,133) |
Income Taxes - Narrative (Detai
Income Taxes - Narrative (Detail) - USD ($) $ in Millions | 12 Months Ended | ||
Jan. 29, 2023 | Jan. 30, 2022 | Jan. 31, 2021 | |
Entity Location [Line Items] | |||
Net (increase) decrease in valuation allowance | $ 2.1 | $ 3.7 | $ (0.8) |
Foreign | |||
Entity Location [Line Items] | |||
Operating loss carryforwards | 8.2 | ||
Canadian Subsidiary | |||
Entity Location [Line Items] | |||
Investments in subsidiaries | 2,400 | ||
Investments in subsidiaries, indefinitely reinvested | 1,300 | ||
Deferred tax liability, investment in subsidiaries | 20.2 | ||
Unrecognized deferred tax liability on indefinitely reinvested amount | 72.2 | ||
Other Foreign Subsidiaries | |||
Entity Location [Line Items] | |||
Undistributed earnings of foreign subsidiaries | 323 | ||
Non-US | |||
Entity Location [Line Items] | |||
Cash and cash equivalents | $ 470.6 |
Income Taxes - Effective Tax Ra
Income Taxes - Effective Tax Rate Reconciliation (Details) | 12 Months Ended | ||
Jan. 29, 2023 | Jan. 30, 2022 | Jan. 31, 2021 | |
Income Tax Disclosure [Abstract] | |||
Federal income tax at statutory rate | 21% | 21% | 21% |
Foreign tax rate differentials | 6.80% | 5% | 4.60% |
U.S. state taxes | (0.40%) | 0.80% | 0.80% |
Non-deductible compensation expense | 0.70% | 0.70% | 2.10% |
Excess tax benefits from stock-based compensation | (0.50%) | (0.90%) | (0.80%) |
Impairment of goodwill and other assets and gain on disposal of assets | 7.80% | 0% | 0% |
Permanent and other | 0.50% | 0.30% | 0.40% |
Effective tax rate | 35.90% | 26.90% | 28.10% |
Income Taxes - Tax Effects of T
Income Taxes - Tax Effects of Temporary Differences of Deferred Tax Assets and Deferred Tax Liabilities (Detail) - USD ($) $ in Thousands | Jan. 29, 2023 | Jan. 30, 2022 |
Deferred income tax assets: | ||
Net operating loss carryforwards | $ 2,312 | $ 6,686 |
Inventories | 43,471 | 16,326 |
Intangible assets, net | 778 | 873 |
Non-current lease liabilities | 216,495 | 173,700 |
Stock-based compensation | 16,093 | 10,739 |
Accrued bonuses | 13,647 | 7,830 |
Unredeemed gift card liability | 12,877 | 9,804 |
Foreign tax credits | 1,909 | 2,003 |
Other | 6,958 | 10,116 |
Deferred income tax assets | 314,540 | 238,077 |
Valuation allowance | (743) | (2,804) |
Deferred income tax assets, net of valuation allowance | 313,797 | 235,273 |
Deferred income tax liabilities: | ||
Property and equipment, net | (142,516) | (104,498) |
Intangible assets, net | (5,224) | (17,669) |
Right-of-use lease assets | (192,221) | (154,634) |
Other | (22,518) | (5,733) |
Deferred income tax liabilities | (362,479) | (282,534) |
Net deferred income tax liabilities | (48,682) | (47,261) |
Deferred income tax assets | 6,402 | 6,091 |
Deferred income tax liabilities | $ (55,084) | $ (53,352) |
Earnings Per Share - Computatio
Earnings Per Share - Computation of Basic and Diluted Earning Per Share (Details) - USD ($) $ / shares in Units, shares in Thousands, $ in Thousands | 12 Months Ended | ||
Jan. 29, 2023 | Jan. 30, 2022 | Jan. 31, 2021 | |
Earnings Per Share [Abstract] | |||
Net income | $ 854,800 | $ 975,322 | $ 588,913 |
Basic weighted-average number of shares outstanding (in shares) | 127,666 | 129,768 | 130,289 |
Assumed conversion of dilutive stock options and awards (in shares) | 351 | 527 | 582 |
Diluted weighted-average number of shares outstanding (in shares) | 128,017 | 130,295 | 130,871 |
Basic earnings per share (in dollars per share) | $ 6.70 | $ 7.52 | $ 4.52 |
Diluted earnings per share (in dollars per share) | $ 6.68 | $ 7.49 | $ 4.50 |
Earnings Per Share - Narrative
Earnings Per Share - Narrative (Details) - USD ($) $ in Thousands | 2 Months Ended | 12 Months Ended | ||||||||
Mar. 22, 2023 | Jan. 29, 2023 | Jan. 30, 2022 | Jan. 31, 2021 | Mar. 23, 2022 | Oct. 01, 2021 | Sep. 30, 2021 | Dec. 01, 2020 | Nov. 30, 2020 | Jan. 31, 2019 | |
Subsequent Event [Line Items] | ||||||||||
Antidilutive securities excluded (in shares) | 43,500 | 36,000 | 30,800 | |||||||
Amount authorized under repurchase program | $ 1,000,000 | $ 641,200 | $ 141,200 | $ 500,000 | $ 263,600 | $ 500,000 | ||||
Remaining value of shares available to be repurchased | $ 743,800 | |||||||||
Repurchase of common stock (in shares) | 1,400,000 | 2,200,000 | 400,000 | |||||||
Repurchase of common stock | $ 444,001 | $ 812,602 | $ 63,663 | |||||||
Subsequent Event | ||||||||||
Subsequent Event [Line Items] | ||||||||||
Repurchase of common stock (in shares) | 200,000 | |||||||||
Repurchase of common stock | $ 49,600 |
Commitments and Contingencies -
Commitments and Contingencies - Narrative (Detail) | Jan. 29, 2023 location |
Loss Contingencies [Line Items] | |
Number of licensed stores | 26 |
Mexico | |
Loss Contingencies [Line Items] | |
Number of licensed stores | 12 |
United Arab Emirates | |
Loss Contingencies [Line Items] | |
Number of licensed stores | 7 |
Qatar | |
Loss Contingencies [Line Items] | |
Number of licensed stores | 3 |
Saudi Arabia | |
Loss Contingencies [Line Items] | |
Number of licensed stores | 3 |
Kuwait | |
Loss Contingencies [Line Items] | |
Number of licensed stores | 1 |
Commitments and Contingencies_2
Commitments and Contingencies - Contractual Arrangements (Detail) $ in Thousands | Jan. 29, 2023 USD ($) |
Contractual Obligation, Fiscal Year Maturity [Abstract] | |
One-time transition tax payable | $ 38,073 |
2023 | 9,518 |
2024 | 12,691 |
2025 | 15,864 |
2026 | 0 |
2027 | 0 |
Thereafter | $ 0 |
Supplemental Cash Flow Inform_3
Supplemental Cash Flow Information (Detail) - USD ($) $ in Thousands | 12 Months Ended | ||
Jan. 29, 2023 | Jan. 30, 2022 | Jan. 31, 2021 | |
Supplemental Cash Flow Information [Abstract] | |||
Cash paid for income taxes | $ 502,136 | $ 245,213 | $ 260,886 |
Cash paid for amounts included in the measurement of lease liabilities | 242,758 | 215,157 | 180,536 |
Leased assets obtained in exchange for new operating lease liabilities | 450,787 | 287,008 | 178,504 |
Interest paid | $ 116 | $ 12 | $ 110 |
Segmented Information - Detaile
Segmented Information - Detailed Segments Information (Detail) | 3 Months Ended | 12 Months Ended | ||
Jan. 29, 2023 USD ($) | Jan. 29, 2023 USD ($) segment | Jan. 30, 2022 USD ($) | Jan. 31, 2021 USD ($) | |
Segment Reporting [Abstract] | ||||
Number of reportable segments | segment | 2 | |||
Net revenue | ||||
Net revenue | $ 8,110,518,000 | $ 6,256,617,000 | $ 4,401,879,000 | |
Segmented income from operations: | ||||
Segmented income from operations | 2,660,688,000 | 2,021,514,000 | 1,252,196,000 | |
General corporate expenses | 862,867,000 | 637,983,000 | 397,208,000 | |
Obsolescence provision | $ 62,928,000 | 62,900,000 | 0 | 0 |
Amortization of intangible assets | 8,752,000 | 8,782,000 | 5,160,000 | |
Impairment of goodwill and other assets | $ 407,913,000 | 407,913,000 | 0 | 0 |
Acquisition-related expenses | 0 | 41,394,000 | 29,842,000 | |
Gain on disposal of assets | 10,180,000 | 0 | 0 | |
Income from operations | 1,328,408,000 | 1,333,355,000 | 819,986,000 | |
Other income (expense), net | 4,163,000 | 514,000 | (636,000) | |
Income before income tax expense | 1,332,571,000 | 1,333,869,000 | 819,350,000 | |
Capital expenditures: | ||||
Capital expenditures | 638,657,000 | 394,502,000 | 229,226,000 | |
Depreciation and amortization: | ||||
Depreciation and amortization | 291,791,000 | 224,206,000 | 185,478,000 | |
MIRROR | ||||
Segmented income from operations: | ||||
Amortization of intangible assets | 8,700,000 | 8,700,000 | ||
Company-operated stores | ||||
Net revenue | ||||
Net revenue | 3,648,127,000 | 2,821,497,000 | 1,658,807,000 | |
Segmented income from operations: | ||||
Segmented income from operations | 991,067,000 | 727,735,000 | 212,592,000 | |
Direct to consumer | ||||
Net revenue | ||||
Net revenue | 3,699,791,000 | 2,777,944,000 | 2,284,068,000 | |
Segmented income from operations: | ||||
Segmented income from operations | 1,562,538,000 | 1,216,496,000 | 1,029,102,000 | |
Other | ||||
Net revenue | ||||
Net revenue | 762,600,000 | 657,176,000 | 459,004,000 | |
Segmented income from operations: | ||||
Segmented income from operations | 107,083,000 | 77,283,000 | 10,502,000 | |
Operating Segments | Company-operated stores | ||||
Capital expenditures: | ||||
Capital expenditures | 303,697,000 | 189,629,000 | 134,203,000 | |
Depreciation and amortization: | ||||
Depreciation and amortization | 132,715,000 | 116,107,000 | 100,776,000 | |
Operating Segments | Direct to consumer | ||||
Capital expenditures: | ||||
Capital expenditures | 57,086,000 | 81,679,000 | 37,245,000 | |
Depreciation and amortization: | ||||
Depreciation and amortization | 36,128,000 | 29,877,000 | 14,847,000 | |
Corporate and other | ||||
Capital expenditures: | ||||
Capital expenditures | 277,874,000 | 123,194,000 | 57,778,000 | |
Depreciation and amortization: | ||||
Depreciation and amortization | $ 122,948,000 | $ 78,222,000 | $ 69,855,000 |
Segmented Information - Long-Li
Segmented Information - Long-Lived Assets of Geographic Areas (Detail) - USD ($) $ in Thousands | Jan. 29, 2023 | Jan. 30, 2022 |
Other categories | ||
Property and equipment, net | $ 1,269,614 | $ 927,710 |
United States | ||
Other categories | ||
Property and equipment, net | 671,212 | 418,317 |
Canada | ||
Other categories | ||
Property and equipment, net | 431,349 | 392,192 |
Rest of world | ||
Other categories | ||
Property and equipment, net | $ 167,053 | $ 117,201 |
Net Revenue by Category and G_3
Net Revenue by Category and Geography (Details) - USD ($) $ in Thousands | 12 Months Ended | ||
Jan. 29, 2023 | Jan. 30, 2022 | Jan. 31, 2021 | |
Revenue, Major Customer [Line Items] | |||
Net revenue | $ 8,110,518 | $ 6,256,617 | $ 4,401,879 |
Women's product | |||
Revenue, Major Customer [Line Items] | |||
Revenue | 5,259,803 | 4,171,762 | 3,049,906 |
Men's product | |||
Revenue, Major Customer [Line Items] | |||
Revenue | 1,956,602 | 1,535,850 | 953,183 |
Other categories | |||
Revenue, Major Customer [Line Items] | |||
Revenue | 894,113 | 549,005 | 398,790 |
United States | |||
Revenue, Major Customer [Line Items] | |||
Revenue | 5,654,343 | 4,345,687 | 3,105,133 |
Canada | |||
Revenue, Major Customer [Line Items] | |||
Revenue | 1,163,111 | 954,219 | 672,607 |
People's Republic of China | |||
Revenue, Major Customer [Line Items] | |||
Revenue | 681,633 | 520,372 | 297,690 |
Rest of world | |||
Revenue, Major Customer [Line Items] | |||
Revenue | $ 611,431 | $ 436,339 | $ 326,449 |