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Annual Report | 2020 lululemon.com To our shareholders Board of Directors and Executive Officers 2020 was a year unlike any other—and it presented both challenges and • Omni guest experience. Our digital comps more than doubled for the full year, opportunities as world events shifted around us. enabling us to achieve our goal of doubling our e-commerce business from 2018 Board of Directors levels three years early. We pulled forward investments in our digital ecosystem and I am incredibly proud of how lululemon navigated the year. Our success was quickly rolled out new capabilities, including a digital educator service and online grounded in putting our collective first by providing pay protection for our Glenn Murphy Board Chair sweatlife tools. We introduced virtual waitlists, appointment shopping, and buy employees, supporting our Ambassadors, creating a hardship fund to support FIS Holdings, Founder and CEO online pickup at door and curbside to elevate the guest experience in our stores, our people, and honouring commitments to our landlords and vendors. and continued to expand with 30 net new stores. And MIRROR joined the lululemon David Mussafer Lead Director of the Board How we protected our teams reflects the unique culture and values of lululemon, family, increasing our total addressable market through its strong community focus. Advent International Corporation, Chairman and Managing Partner which separates us in our industry. Cutting costs may be easy in the short term, International expansion. International revenue grew 31% in 2020, a clear but investing in our teams, Ambassadors, and business partners demonstrates • demonstration of our brand’s ability to translate across geographies and cultures. Calvin McDonald Chief Executive Officer that our values truly matter. At 14% penetration, we are in the early days of our international growth opportunity— This guiding principle enabled us to remain agile and innovate over the course and remain on track to quadruple the business from 2018 levels by 2023. Looking Michael Casey Starbucks Corporation, Retired Executive Vice President, of the year. And I believe we will look back and view 2020 as a pivotal moment into the not-too-distant future, I can see a time when our international revenues are Chief Financial Officer and Chief Administrative Officer for lululemon, as we accelerated innovations and initiatives that will create on par with what we deliver in North America. additional opportunities for us into the future. Stephanie Ferris Fidelity National Information Services, Inc., Former Chief Operating Officer The Power of Impact This letter is an exciting opportunity to share a few highlights of the past year, We also saw how the stress and unknowns of COVID-19 took a toll on the wellbeing of Kourtney Gibson Loop Capital Markets, President as we delivered on our Power of Three growth strategy, completed the our communities, drawing attention to the need to be physically, mentally, and socially acquisition of MIRROR, and further strengthened our financial position. well. We conducted our first Global Wellbeing Report and surveyed people around the Kathryn Henry Strategic Advisor and Independent Consultant More than any single accomplishment, I am proud of how the results world, finding that only 29% of all respondents have a strong state of wellbeing, with demonstrate the strength of our product assortment and the connection younger generations experiencing the lowest wellbeing of all groups. I am determined Jon McNeill DVx Ventures, Chief Executive Officer to our guests, which enabled us to win and to gain market share, both for lululemon to help advocate for and support people in their pursuit of wellbeing, before and during the pandemic. with our unique experience in the Science of Feel, mindfulness, exercise and building Martha (Marti) Morfitt River Rock Partners Inc., Principal communities each playing a role. Looking ahead, we know lululemon is uniquely positioned and differentiated Tricia Glynn Advent International Corporation, Managing Director in the market, given people want to live a healthy and active lifestyle, demand We also released our first Impact Agenda to detail our strategies and plans related to technical products that perform above the competition, and are attracted product sustainability and equity for our people. Our dozen goals for the future include Emily White Anthos Capital, President to a brand that authentically connects with guests, our collective, and making 100% of our products with sustainable materials and end of use solutions by our communities. 2030, using 100% renewable electricity to power our operations by 2021, and achieving a 60% intensity reduction in carbon emissions across our global supply chain by These consumer behaviours will fuel our momentum well into the future, 2030 as well. and, in fact, lululemon is just getting started with our growth potential across channels, regions, genders, and activities. Importantly, we also accelerated programs to become a more inclusive and diverse Executive Officers company. Our approach is called IDEA – Inclusion, Diversity, Equity and Action – and In 2020, we remained focused on delivering on our Power of Three growth it started with us focusing on the systemic changes we need to make within lululemon Calvin McDonald Chief Executive Officer strategy to double our men’s business, double our digital business, and to truly reflect the diversity of the communities in which we serve. Our actions thus quadruple our international business by year end 2023. At the same time, far include expanding our IDEA team globally, establishing voluntary employee-led Meghan Frank Chief Financial Officer we recognized this was an important moment for lululemon to use our voice resource groups, and leveraging our brand and our voice to stand against hate and and brand to create positive change for our people and planet, which we discrimination around the world. Celeste Burgoyne President, Americas and Global Guest Innovation reference internally as the Power of Impact. Within each of these components of the Power of Impact, we recognize and take Michelle (Sun) Choe Chief Product Officer Consistent Performance seriously the near-term and long-term responsibilities we have to create and sustain The numbers in our Annual Report show the level of success we achieved. Total positive change, and we know the strength of our company performance allows Andre Maestrini EVP, International revenue grew by 11% to $4.4 billion—with 23% revenue growth in the second half us to do so. of the year. We also more than doubled our e-commerce business, and we ended Nicole (Nikki) Neuburger Chief Brand Officer the year with $1.2 billion in cash and no debt. Our Future In closing, I would like to express my deep gratitude to our global teams, our guests This is all the more impressive given there was no playbook to a year like 2020. and Ambassadors, our Board of Directors, and, to all of you, our shareholders. When the realities of COVID-19 became clear, our global leadership team quicky established three guiding principles: support our people, make balanced decisions, I couldn’t be more excited about the opportunities in front of us. We are in the early and continue to invest in the future. innings of our growth, as we continue to expand across geographies, categories, and Annual Meeting Investor inquiries should be directed to: channels. Our success over multiple years enables us to ask ourselves “how high is We invested in areas of the business where immediate opportunities existed, such as high” in terms of the future we will create. It will be exciting to see what our incredible The annual meeting will be held on Wednesday, By email: [email protected] our digital and technology platforms, and leaning into innovative programs such as team of leaders and people can accomplish. June 9, 2021 at 8:00 am, Pacific Time, via live webcast having our store Educators connect virtually and shop with our guests. And we looked By mail: lululemon athletica Investor Relations at www.virtualshareholdermeeting.com/lulu2021. into the future and welcomed MIRROR to the lululemon family, jumpstarting our move Thank you for your support and the confidence you have in all of us at lululemon. 1818 Cornwall Avenue, Vancouver, British Columbia into at-home fitness and extending our eco-system of how we serve guests. We will continue to work tirelessly to innovate together and inspire one another to Canada V6J 1C7 continue delivering for the many groups who form our expanding lululemon family. These guiding principles paid off, and we gained market share driven by both our men’s and women’s business, as indicated by our nearly one-point US retailer market Sincerely, Investor Information Independent Auditors share gain in fiscal year.* Shareholders are advised to review financial information and PricewaterhouseCoopers LLP The Power of Three other disclosures about lululemon contained in its 2020 Annual Despite all the potential distractions in 2020, I am proud of how our teams across Report on Form 10-K, Quarterly Reports on Form 10-Q, Proxy lululemon remained continually focused on our long-term growth drivers. Established Calvin McDonald Statement and other SEC filings, as well as press releases and Transfer Agent in 2019, the Power of Three guides our discussions and fuels our aspirations, and we Chief Executive Officer earnings announcements by accessing the Company’s website Computershare Trust Company, N.A. made considerable progress this year: at http://investor.lululemon.com/ or at www.sec.gov. • Product innovation. Guided by our Science of Feel innovation platform, we continued to raise the bar in our core Yoga, Run, Train, and On the Move categories, from relaunching our proprietary Everlux fabric in new styles, to expanding our Align franchise into tops, to offering some of our best *The NPD Group / Consumer Tracking Service / U.S. Adult Activewear market - retailer market share gain over the course of the fiscal year (Feb.

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