Q O Crafting & Executing Strategy: The Quest for Competitive Advantage: Concepts and C... Aa except per share data) Fiscal Year Fiscal Year Fiscal Year Fiscal Year Fiscal Year 2019 2018 2017 2016 2015 Selected Income (Ending (Ending (Ending (Ending Ending Statement Data Feb. 2, 2020) Feb. 3, 2019) Jan.28,2018) Jan 29, 2017) Jan. 31, 2016) Net revenues $3,979.3 $3,288.3 $2,649.2 $2,344.4 $2,060.5 Cost of goods sold 1,755.9 1,472.0 1,250.4 1,144.7 1,063.4 Gross profit 2,223.4 1,816.3 1,398.8 1, 199.6 997.2 Selling, general, and administrative expenses ,334.3 1, 1 10.5 904.3 778.5 628.1 Operating profit 889.1 705.8 456.0 421.2 369.1 Net profit (loss) $ 645.6 483.8 258.7 $ 303.4 266.0 Foreign currency translation adjustment (7.8) 73.9) 8.6 36.7 (64.8) Comprehensive income $ 637.8 $ 409.9 $ 317.2 $ 340.1 $ 201.3 Earnings per share-basic $ 4.95 $ 3.63 $ 1.90 tA 2.21 $ 1.90 -diluted $ 4.93 $ 3.61 1.90 2.21 1.89 Balance Sheet Data Cash and cash equivalents $1,093.5 881.3 $ 990.5 734.8 $ 5 Inventories 518.5 404.8 329.6 298.4 284.0 Total assets 3,281.4 2,084.7 1,998.5 1,657.5 1,314.1 Stockholders' equity 1,952.2 1,446.0 1, 597.0 1,360.0 1,027.5 Cash Flow and Other Data Net cash provided by operating activities $ 669.3 $ 742.8 $ 489.3 $ 385.1 $ 298.7 Capital expenditures 283. 225.8 157.9 149.5 143.5 Store Data Number of corporate-owned stores open at end of period 491 440 404 406 363 Sales per gross square foot at corporate-owned stores open at least one full year 1,657 $ 1,579 $ 1,554 $ 1,521 $ 1,541 Average sales at corporate- owned stores open at least one year $5.18 million $4.78 million $4.68 million $4.47 million $4.57 million Source: Company 10-K reports for fiscal years 2015, 2016, 2017, 2018, and 2019. EXHIBIT 2 lululemon athletica's Revenues and Income from Operations, by Business Segment, page C-72 Pg. C-72 Geographic Region, and Product Category. Fiscal Years 2015-2019 (dollars in millions) Fiscal Year Fiscal Year Fiscal Year Fiscal Year Fiscal Year 2019 2018 2017 2016 2015 (Ending (Ending (Ending (Ending (Ending Feb. 2, Feb. 3 28, C-71 Jan 29, Jan. 31 Revenues by Business Seament 20201 2019 2017 2016) VAa 8 Q O Crafting & Executing Strategy: The Quest for Competitive Advantage: Concepts and C... page C-12 ry. U-IL Geographic Region, and Product Category. Fiscal Years 2015-2019 (dollars in millions) Fiscal Year Fiscal Year Fiscal Year Fiscal Year Fiscal Year 2019 2018 2017 2016 2015 (Ending (Ending (Ending (Ending (Ending Feb. 2, Feb. 3, Jan.28, Jan 29, Jan. 31 Revenues by Business Segment 2020) 2019) 2018) 2017 2016) Corporate-owned stores $2,501.1 $2, 126.4 $1,837.1 $ 1,704.4 $1,516.3 Direct-to-consumer (e-commerce sales) 1, 137.8 858.9 577.6 453.3 401.5 All other channels 340.4 303.1 234.5 186.7 142.7 Total $3,979.3 $3,288.3 $2,649.2 $2,344.4 $2,060.5 Percentage Distribution of Revenues by Business Segment Corporate owned stores 62.9% 64.7% 69.3% 72.7% 73.6% Direct-to-consumer (e-commerce sales) 28.6% 26. 1% 21.8% 19.3% 19.5% 8.5%% 9.2% 8.9% 3.0% 6.9% All other channels Total 100.0% 100.0% 100.0% 100.0% 100.0% Income from Operations (before general corporate expenses), by Business Segment Corporate owned stores $ 689.3 575.5 464.3 415.6 $ 346.8 Direct-to-consumer (e-commerce sales) 482.4 354.1 224.1 186.2 166.4 All other channels* 72.6 62.6 35.6 22.3 5.8 Total Income from Operations (before general corporate expenses $ 1,244.3 $ 992.2 $ 724.0 $ 624.1 $ 519.0 Revenues by Geographic Region United States $2,854.4 $2,363.4 $1,911.8 $1,726.1 $1,508.8 649. 565.1 191.8 447.2 416.5 Canada Outside of North America 475.8 359.8 245.6 171.1 135.2 Total $3,979.3 $3,288.3 $2,649.2 $2,344.4 $2,060.5 Percentage Distribution of Revenues by Geographic Region United States 71.7% 71.9% 72.2% 73.6% 73.2% Canada 16.3% 17.2% 18.6% 19.1% 20.2% Outside of North America 12.0% 10.9% 9.2% 7.3% 6.6% Total 100.0% 100.0% 100.0% 100.0% 100.0% Revenues by Product Category Women's products $2,791.0 $2,352.8 $1,892.6 Not reported Not reported Men's products 933.8 694.9 526.5 Not reported Not reported Other categories 254.5 240. 0.0 Not reported Not reported C-72 VEnter years below with most recent on the left Top 5 Ratios Apply to any business Gross Profit Margin = gross profit /sales Operating Profit Margin = op profit /sales Net Profit Margin = net income /sa|es Percentage of sales: expense (as available, eg SG&A, R&D) /sales Current ratio = current assets/current liabilities Quick ratio = current assets - inventory/ current liabilities Other useful ratios Debt to total assets ratio = Total debt/total assets Debt to equity ratio = Total debt/total stockholders' equity Days of inventory = (inventory / cost of _goods sold) X365 Return on assets (total capital) = Net income / total assets Return on equity = Net income/ Total shareholder's equity Conclusions (from a minimum of four ratios): Start by conrming total revenue and income in most recent year Top Trends Enter most recent year Apply to any business Growth rate (sales) = (present-past)/past Growth rate (profit) = (present-past)/past CAGR Sales (specify timeframe: CAGR Profit (specify timeframe: CAGR (enter another important value such as net income, operating income, total revenues, & timeframe) Formula: CAGR = ((Ending Value/ Beginning Value) (1/Number of Years))_ 1 BA II Calculator - PV, FV , n solve for 1/yr (Set sign of PV to "-") Conclusions (from a minimum of two trends)