http://www.morningstar.com/earnings/53195254-lululemon-athletica-inc-lulu-q1-2013.aspx

Lululemon Athletica Inc LULU
Q1 2013 Earnings Call Transcript

Transcript Call Date 06/10/2013

Operator: Ladies and gentlemen, and thank you for standing by. Welcome to the lululemon athletica First Quarter 2013 Results Conference Call. At this time, all participants are in a listen-only mode. Later, we will conduct a question-and-answer session and instructions will follow at that time. As a reminder, today's conference may be recorded.

It's now my pleasure to turn the floor over to (Teresa). Please go ahead.

Unidentified Company Speaker: Good morning afternoon, everybody, and thank you for joining us on our first quarter 2013 conference call. A copy of today's press release is available in the Investor Relations section of our website at lululemon.com or furnished on Form 8-K with the SEC and available on the Commission's website at sec.gov.

Shortly after we end this afternoon, a recording of today's call will be available as a replay for 30 days, also available on the website. Hosting our call today is Christine Day, lululemon's CEO and John Currie, our CFO.

We would like to remind everyone of course that statements contained on this call which are not historical facts may be deemed to constitute forward-looking statements within the meaning of the Private Securities Litigation Reform Act of 1995. Actual results might differ materially from those projected in such statements due to a number of risks and uncertainties, all of which are described in the Company's filings with the SEC. We have about one hour for today's call, so when we get to the Q&A, if you'd please limit yourself to one question at a time to give others the opportunity to also have their questions addressed.

With that, I'll turn the call over to Christine.

Christine Day - CEO: Good afternoon everyone and thanks for joining us today to talk about our first quarter results. Today we're joining you from Chicago where we're holding our AGM and Board meeting this week. Before we get into discussing the quarter, I would like to speak to the announcement we made today about my decision to step down from my CEO role here at lululemon.

For me personally being a part of lululemon over the past five and a half years has been an incredible journey. I am proud of building a world-class team that has produced one of the best growth brand and profit stories in retail. The plans have been laid for the next five years and a vision for the next ten. I feel that the timing is now right to bring in the next CEO candidate, who will drive that 10-year vision. The Board has formed a search committee and is executing its CEO succession plan. While I will continue to lead the team until a successor is named to ensure a smooth transition, in keep with our efforts to be open and transparent we are announcing this today, so that the Board can openly search for the next CEO. Now let’s talk about the business.

In a way, the past quarter has been one of the most important in our company’s history. While we regret that we had a quality issues with our black Luon, we are proud of the organization’s ability to get Luon delivered back into our stores within 90 days of having pulled it from our line, all the while keeping our guest happy and engaged with the brand. While we certainly understood the important of quality control and running a tight sourcing operation, and we’re working on upgrading our infrastructure and control, the silver lining to this crisis was to big leap forward in our transition to owning our own technical standards and expertise.

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