After being cooped up at home throughout the covid pandemic, the desire to travel has never been stronger. People are itching to get out and explore the world once again.

For Airbnb, while the pandemic saw bookings for nights and experiences plunge over 70% year-over-year, the company has been able to pull off a dramatic recovery as it rapidly responded to the crisis with significant restructuring and strategic actions. From layoffs and hiring freezes to flexible booking policies and enhanced cleaning protocols, Airbnb wasted little time in taking necessary steps to ensure it had the best chance of emerging as a stronger company and regaining the confidence of travelers around the world.

In addition, when the pandemic hit, the company chose to focus on its most unique feature. It returned to its roots and the everyday people who host their homes and offer experiences, scaling back investments that did not directly support its core business of hosting. This decision has proved critical with people increasingly seeking local stays as the pandemic persisted, providing and distinct advantage that was ultimately a core driver in the company’s recovery.

Today, Airbnb continues as one of the largest travel companies in the world, with over six million listings in over 220 countries. Despite facing challenges from the pandemic, which had catastrophic impacts on competitors within the travel sector, Airbnb has continued to innovate and grow, expanding into new markets and introducing new products and services to continue its growth trajectory.


Born out of a need to make rent payments in San Francisco, Airbnb was founded in 2008 by Brian Chesky, Joe Gebbia, and Nathan Blecharczyk. The trio rented out air mattresses on their apartment floor during a conference and saw an opportunity for a new type of accommodation service. Beginning with the mattresses and couches in living rooms, it quickly grew in popularity as hosts began offering their homes, apartments, and spare rooms.

In 2009, the company raised $600,000 in seed funding, which helped them expand beyond San Francisco. And by 2011, Airbnb had listings in over 8,000 cities worldwide and had raised more than $100 million in funding. The company continued to expand, both geographically, by adding new offices and listing around the world, and by adding new features. The company’s technology has also evolved, with its first mobile app released ten years ago.

As the third wave of the covid pandemic began to ramp up, Airbnb went public in December 2020, raising $3.5 billion in one of the biggest IPOs of the year, valuing the company at $47 billion at the time.

As it has grown in size and popularity, Airbnb has faced increasing regulatory challenges from local governments and hotel associations ranging from concerns about driving up house prices to the need to ban parties in homes rented on the platform. In response, the company has made concerted efforts to work with some local governments and comply with regulations. In other cases such as with China, Russia, and Belarus, it has ceased operations.


Airbnb is currently led by co-founder Brian Chesky as the company’s chief executive officer. Chesky has been instrumental in driving Airbnb’s growth and expansion over the past decade and has guided it to become a community of over four million hosts who have welcomed more than one billion guests. He has even been recognized for his entrepreneurial achievements, including being named one of Time magazine’s 100 most influential people in the world.

Fellow co-founder Nathan Blecharczyk also continues to serve the company as its chief strategy officer. Blecharczyk has led the creation of Airbnb’s engineering, data science, payments, and performance marketing teams. His holistic understanding of the business, public policy, product, data, and Airbnb’s long-term stakeholder interests have seen him oversee several industry-first solutions including the Airbnb City Portal, which addresses the needs of cities relating to short-term rentals, along with the company’s reservation screening technology which is critical in identifying high-risk reservations.


In 15 years, the company has come a long way from mattresses in living rooms to a diverse offering that caters to the needs of various types of travelers including solos, couples, families, and business professionals across the spectrum from budget-conscious backpackers to luxury-seeking jet-setters. Beyond the traditional home-sharing service that allows hosts to rent out their entire home or just a spare room, unique stays now include everything from treehouses, yurts, and castles to provide travelers with a truly one-of-a-kind experience.

While at its core, it remains a platform that connects hosts and guests with authentic accommodations around the world, over the years it has launched several new verticals. Airbnb Experiences has made it possible for travelers to book activities and tours with locals, providing them with an opportunity to explore their destination in a unique and authentic way. The offering has a wide range of experiences available including cooking classes, photography tours, and outdoor adventures.

The addition of Airbnb Plus provided a new tier of accommodations, which offers a collection of high-quality, verified homes that have been inspected and approved by Airbnb. These homes deliver additional amenities and services to guests, such as high-quality linens and personal concierge services.

While in 2018, the company launched Airbnb for Work, which caters specifically to business travelers. This service provides business-friendly accommodations and travel management tools, making it easier for companies to manage their travel expenses and ensure their employees have a comfortable and productive travel experience.


Airbnb’s range of products and services has helped it become a popular alternative to traditional hotels. By providing travelers with unique and authentic experiences, the company has established itself as a leader in the travel industry. Furthermore, it has achieved this with the asset-light flexibility of a software company, coupled with a real-world footprint and scale exceeding the largest international hotel chains. Airbnb has also had the benefit of not incurring enormous labor costs, property maintenance, and heavy capital expenditures required by the traditional incumbents it has managed to disrupt. Despite delivering over 50% more revenue per year, Airbnb’s almost 7000-strong workforce is dwarfed by Marriott International’s more than 130,000 employees.

Airbnb has said it is focusing on three strategic priorities:
– Make hosting mainstream – by continuing to raise awareness around hosting, making it easier to get started, and providing better tools for hosts.
– Perfect the core service – based on feedback from guests and hosts, Airbnb will continue making a large number of upgrades to the service looking ahead, improving community support, making it easier to find the right home, and delivering greater value
– Expand beyond the core – by building a foundation for future products and services that will provide incremental growth for years to come

Efforts to deliver on these priorities are already well underway. In November, Airbnb Setup was introduced to make it easy for people to Airbnb their homes. Prospective hosts can now connect with existing Superhosts for free one-to-one guidance all the way through their first reservation. In addition, new hosts also can choose to have an experienced guest for their first booking and receive specialized support from Airbnb. Since the launch of the company’s “Airbnb It” campaign, the number of visitors to its host landing page has doubled. While the number of new active Hosts recruited with the help of Superhosts increased by more than 20% compared to pre-launch.

Also in 2022, Airbnb Categories were introduced, creating a new way of making millions of unique homes discoverable to guests who would have never known existed otherwise. The service is designed to help guests looking for a unique space to discover one-of-a-kind homes via categories organized into curated collections, with over 50 categories of homes chosen for their style, location, or nearby activities. And with more people taking longer trips than ever before, Airbnb also created Split Stays, an innovative new feature that splits a trip between two different homes. As a result, guests can find an average of 40% more listings when searching for longer stays.

While key in rebuilding the confidence of travelers around the world, AirCover is now providing comprehensive free protection for all guests and hosts across a range of issues. Guarantees now ensure that guests are covered in the event a host needs to cancel a booking, if a guest can’t check into their home, or they find their listing is not as advertised. While for hosts, a comprehensive verification system checks details such as name, address, government ID, and more to confirm the identity of guests. Airbnb will also reimburse for damage caused by guests to their homes and belongings or if a guest gets hurt or their belongings are damaged or stolen. In addition, a 24-hour Safety Line provides priority access to specially-trained safety agents in multiple languages.

Unlike many industry disruptors, Airbnb has also managed to deliver its most profitable performances to date, despite slashing its overall marketing investment as a percentage of revenue and shifting its marketing strategy to be more brand-driven and PR-led, and less dependent on search engine and performance marketing. Airbnb now looks at the role of marketing as one of “education” and not “to buy customers”. With the majority of Airbnb bookings coming from past guests, the strong retention has been a powerful driver of growth. Impressively, despite the shift, the company has still been able to introduce Airbnb to millions of new users since the covid pandemic and when combined with a leaner organizational structure, has positioned it well to navigate the challenges of the current macroeconomic climate.


Airbnb has well and truly emerged from the covid pandemic, delivering another record year in 2022 after revenue of $8.4 billion grew 40% year-over-year, as guest demand remained strong, and all regions saw significant growth with guests once again crossing borders and returning to new cities. The company also benefitted from strong supply growth, ending the year with 6.6 million global active listings, which is over 900,000 more than at the beginning of the year, excluding China. This growth was driven by the global network, where demand drives supply, as well as product innovations that continued to attract new hosts.

The company has also posted its highest-ever adjusted EBITDA ever at almost $3 billion, for more than a 50% year-on-year increase, which the company says demonstrates the continued strength of the business and discipline in managing the cost structure. Net income was $1.9 billion, also making 2022 Airbnb’s first profitable full year.

Looking ahead, management is forecasting to kick off FY23 with total revenue between $1.75 billion to $1.82 billion for the quarter, representing year-over-year growth of between 16% and 21%, after which it anticipates that seasonality in 2023 will be similar to 2022. Consensus estimates have full-year revenue expected at $9.6 billion, delivering double-digit year-over-year growth of 14%. Analysts are also expecting earnings per share to continue its upwards trajectory, increasing 22% year-over-year to $3.42, up from $2.79 in 2022.


The market for home-sharing and travel is highly competitive, with many major players vying for market share. Airbnb’s major competitors include other home-sharing platforms like Vrbo and HomeAway, as well as traditional hotel companies like Marriott and Hilton. Additionally, online travel agencies like and Expedia also compete with Airbnb for customers. While new entrants have emerged in the home-sharing market, such as Sonder and Lyric, which offer a more standardized and hotel-like experience. These players compete on factors including everything from pricing, customer experience, brand reputation, and the range and quality of offerings.

The covid pandemic had a significant impact on the industry and has created new market conditions. There is now a greater emphasis on health and safety measures with travelers being more concerned than ever about staying in clean and safe accommodations.

However, despite past noise regarding the transparency of Airbnb’s fees, an issue the company has addressed, Airbnb has a large and loyal customer base and global brand recognition. And when coupled with a focus on providing unique and authentic accommodations and experiences, give it a competitive advantage in the market.


From humble beginnings to a global industry leader, there is no denying Airbnb epitomizes an industry disruptor. Having recovered from the covid pandemic as a more efficient organization and continuing to benefit from more focused marketing and a new suite of innovations to keep new and current guests returning, it appears well-placed to build on its record performances.

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As the world shifts towards electric vehicles and autonomous driving, demand for advanced safety features and connectivity solutions within the automotive industry has surged.

Aptiv is a global technology company that specializes in developing advanced electrical architecture and integrated software solutions primarily serving the automotive sector.

Delivering end-to-end mobility solutions, that enable major manufacturers to transition to more electrified, software-defined vehicles, the company designs and manufactures vehicle components and provides electronic and active safety technology solutions to the global automotive markets. These solutions create both the software and hardware foundations for vehicle features and functionality, often providing the ‘brain’ and the ‘nervous system’ of increasingly complex vehicles, and enabling a new paradigm of integration for vehicles into their operating environments.

Aptiv’s products enable safer, greener, and more connected vehicles, and their technology is used by many of the world’s leading automotive manufacturers. With its primary markets including Europe, North America, and Asia, Aptiv now has a presence in more than 45 countries.

Heavily focused on growing and improving the profitability of its businesses, Aptiv is strategically focusing its portfolio on high-technology, high-growth spaces to create advanced solutions that provide greater functionality and enhance the overall driving experience, while meeting the evolving needs of the automotive industry.

In addition to key partnerships with industry leaders to develop new technologies and solutions, they are also expanding their geographic footprint by establishing a strong presence in emerging markets such as China, India, and Brazil.


Aptiv was originally established as General Motors’ Automotive Components Group in 1994, although along with several other divisions, GM renamed the group to Delphi Automotive Systems in 1995, as it specialized in the development of automotive electronics and electrical systems. The company focused on developing cutting-edge technologies such as advanced safety systems, airbags, and anti-lock brakes, as well as innovations in fuel injection and emissions control.

In 2017, Delphi spun off its powertrain division and renamed itself Aptiv. The newly independent company continued to focus on developing advanced auto systems and software solutions with a new wave of next-gen technologies such as collision avoidance and lane departure warning systems. As well as connectivity solutions that allow drivers to stay connected to the internet and other devices while on the road.

Over the years, Aptiv has acquired several related technology companies as part of its growth strategy, including KUM, HellermannTyton, and Movimento, among many more. These acquisitions have helped Aptiv to expand its product range, global reach, and market share in the automotive, aerospace, defense, and telecommunications markets. As the automotive industry shifts towards electric vehicles and self-driving cars, there is increasing importance on advanced driver assistance systems (ADAS) and autonomous driving technologies.


Chairman and chief executive officer, Kevin Clark, has been with Aptiv since 2010, initially serving as CFO of Delphi before becoming COO in 2014, and CEO in 2018. Under his leadership, Aptiv has focused on developing advanced electrical architecture and integrated software solutions for the automotive industry, as well as expanding its global reach. Before coming to Delphi, he was a founding partner of Liberty Lane Partners, a private equity investment firm focused on investing in and building and improving middle-market companies. Clark has also held several executive roles at Fisher Scientific International and Chrysler Corporation.

While Benjamin Lyon is senior vice president and chief technology officer of Aptiv, a relatively new position he has held since December 2022. Lyon has over two decades of experience in senior engineering, developing technology, commercializing products, and executing program launches at leading technology companies including Apple and Astra Space. He is now responsible for ensuring that Aptiv remains at the forefront of emerging and disruptive technology trends and prioritizing longer-term business model opportunities in mobility and adjacent markets.


As a leading provider of advanced electrical architecture and integrated software solutions for most of the world’s leading automotive manufacturers, Aptiv’s products help to make vehicles safer, greener, and more connected.

The product range includes a variety of technologies and solutions. These include advanced safety systems such as collision avoidance and lane departure warning systems, along with connectivity solutions that allow drivers to stay connected to the internet and other devices while on the road. In addition, autonomous driving technologies are helping to pave the way for the future of transportation and enabling self-driving cars to navigate roads safely and efficiently.

Aptiv’s products and services are organized into three core business units:
– Signal and Power Solutions,
– Advanced Safety and User Experience, and
– Autonomous Mobility.

The Signal and Power Solutions business unit provides electrical systems and components such as advanced wiring, electrical centers, and connectors that improve the efficiency and reliability of vehicles, while also reducing their environmental impact. The Advanced Safety and User Experience business unit provides technologies that improve the safety of vehicles and their passengers, while also making it more intuitive for drivers to interact with their vehicles. Finally, the Autonomous Mobility business unit is focused on developing everything from sensors and software to advanced computing platforms that enable vehicles to operate without a driver.

While it serves several of the world’s top-tier auto manufacturers, one of Aptiv’s major customers and a prime example of the company’s expertise in advanced electrical architecture and integrated software solutions, is BMW. Having worked with the German brand for many years, Aptiv provides an extensive range of ADAS, connectivity, and infotainment solutions including occupant sensing, night vision, blind spot detection, and gesture recognition, among many more.

Aptiv’s business is diversified across end markets, regions, customers, vehicle platforms, and products. Its customer base includes the 25 largest automotive original equipment manufacturers (OEM) in the world, and in 2022, 30% of its net sales came from the Asia Pacific region, which the company has identified as a key market likely to experience substantial long-term growth. In addition, in 2022, Aptiv’s products were found in 18 of the 20 top-selling vehicle models in both the U.S. and Europe and 12 of the 20 top-selling vehicle models in China.

The company has established a worldwide design and manufacturing footprint with a regional service model that enables it to efficiently and effectively serve global customers from the best-cost countries within each continent. This model makes it possible for Aptiv to engineer globally and execute regionally to serve the largest OEMs, which are seeking suppliers that can serve them on a worldwide basis. The large footprint also enables the company to adapt to the regional design variations that the global OEMs require, while also serving key growth markets.


In 2022, the automotive industry experienced increased global customer sales and production schedules, despite the ongoing adverse impacts of global supply chain disruptions and increased inflationary pressures. Global vehicle production increased by 5% from 2021 to 2022, albeit with variations across regions. And while OEM demand is tied to actual vehicle production, Aptiv has had the opportunity to grow through increasing product content per vehicle by further penetrating business with existing customers and in existing markets, gaining new customers, and increasing their presence in global markets.

Furthermore, with evolving entrants into the global transportation industry including mobility providers, electric vehicle developers, and smart cities, these new players are expected to provide additional markets for Aptiv’s advanced technologies. As a company with a global presence and advanced technology, engineering, manufacturing, and customer support capabilities, Aptiv is well-positioned to benefit from these opportunities.

Aptiv believes the automotive industry is being shaped by rapidly increasing consumer demand for new mobility solutions, and advanced technologies, including software-defined vehicles, and vehicle connectivity, as well as increasing government regulation related to vehicle safety, fuel efficiency, and emissions control. These societal demands have created three “mega-trends” that serve as the basis for the next wave of market-driven automotive technology advancement. The need to be “Safe,” “Green” and “Connected,” is driving higher growth in products that address these trends, when compared to growth in the automotive industry overall.

Consequently, Aptiv is aiming to continue developing leading-edge technology focused on addressing these trends, and apply that technology toward products with sustainable margins that enable its customers to produce distinctive market-leading products. To achieve this, the company is continuing to invest heavily in research and development, while also partnering with other companies to develop solutions. In addition, it sees an increasing need for full system optimization through next-gen hardware architectures, cloud-native software architectures, and edge-to-cloud platforms, while also expanding into relevant adjacent markets.


After a modest dip through the covid pandemic, Aptiv’s revenue has continued to improve and exceed 2019 highs. While global automotive production increased by only 5%, the company’s overall volumes increased far more impressively. For the year ended December 31, 2022, the company reported revenue of $17.5 billion, an increase of 12% from the prior year.

It also successfully created a competitive cost structure, while still growing product offerings aligned with the high-growth mega-trends, and re-aligning its manufacturing footprint into an efficient, low-cost regional service model, focused on increasing profit margins. Despite the volatility caused by the global supply chain disruptions throughout 2022, this overall lean cost structure, along with continued above-market sales growth in all regions, enabled Aptiv to achieve strong levels of operating income, while continuing to strategically invest in the future. As a result, for the full 2022 year, the company reported a net income of $531 million.

Looking ahead, management is forecasting to close out FY23 with total revenue of $18.8 billion to $19.3 billion, slightly more conservative than consensus expectations at $19.4 billion, which represents year-over-year growth of 11%. Analysts are also expecting full-year earnings per share to come in at $4.42, for a solid 30% improvement, up from $3.41 in 2022.


The automotive industry is highly competitive, with several major players vying for market share. As a leading provider of advanced electrical architecture and integrated software, Aptiv faces competition from some of the biggest automotive brands in the world including German giants, Bosch and Continental. Both of which have a broad range of products, like Aptiv, including everything from power systems, driver assistance systems, and electronic components.

While product quality, cost, and customer service are key competitive factors, as the automotive industry continues to evolve and new technologies emerge, companies that can develop and produce cutting-edge solutions will have a competitive advantage. As a result, Aptiv appears well-placed to continue its growth and success, thanks to its expertise in advanced technologies and its commitment to innovation.


The automotive industry is witnessing a surge in demand for advanced safety features and connectivity solutions as it moves towards electric vehicles and autonomous driving. Consequently, Aptiv’s products which enable safer, greener, and more connected vehicles, have allowed the company to successfully take advantage of these trends and put it on a long-term trajectory of continued growth.

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As people become increasingly health-conscious and active, the athletic footwear market continues to grow. Swiss performance apparel brand, ON, designs, manufactures, markets, and sells its own sports clothing and running shoes, and has carved out a unique premium niche by creating shoes that enhance the running and training experience.

ON’s core product line includes a variety of running shoes that utilize innovative technology to reduce impact and increase comfort. The brand offers a range of unique technology systems and materials providing everything from advanced shock absorbing capabilities, powerful take-offs, and smoother, effortless runs, to enhanced traction and grip whatever the terrain. The company even offers an innovative subscription service.

With a customer base made up of runners and fitness enthusiasts from around the world, the company has already built a strong presence in Europe and the United States, and is now also expanding into Asia and other emerging markets.

Currently in a high-growth stage, focused on broadening its global reach, ON continues to invest heavily in research and development, marketing, and new product offerings, as its growth strategy includes increasing brand awareness, expanding distribution channels, and developing new products that cater to the needs of its performance-seeking customers.


The ON story all started in the Swiss alps when retired athlete, Olivier Bernhard, wanted to create a running shoe with a totally new feel. Teaming up with Caspar Coppetti and David Allemann, also former professional athletes, their goal was to create the most high-performance shoe ever.

They had a vision to create a new type of running shoe that combined the benefits of natural running with the protection and comfort of traditional shoes. The trio inspired by their own experiences and needs as runners to create a product that would help reduce injuries and enhance performance, came up with the experience of “running on clouds” with cushioned landings and power take-offs.

ON’s first product was the CloudTec running shoe, which was launched in 2010. The shoe was an instant success, receiving positive reviews from runners and industry experts alike. The company quickly gained a following and began to expand its product range, introducing new models and styles of running shoes, as well as apparel and accessories.

In addition to expanding its product range, ON has also expanded its geographic reach, establishing offices in several countries, including the United States, Japan, and Australia, to support its international growth. It has also built a network of retail partners and distributors around the world.


Olivier Bernhard, a former three-time world duathlon champion and professional triathlete, brought his expertise as an athlete and engineer to ON. His experience in product development and design has been instrumental in the company’s success, as he was responsible for the initial shoe design.

With a background in branding and design, Caspar Coppetti, a former professional snowboarder and graphic designer, helped to create the company’s iconic logo, which features three curved lines representing the company’s core values of design, functionality, and technology. Coppetti also oversees ON’s marketing and brand strategy, working to build the company’s global presence and connect with customers around the world.

While David Allemann, a former professional footballer, has brought his experience in business and marketing to ON. He was responsible for securing the initial funding for the company and has played a key role in developing ON’s business strategy and building its international distribution network. Allemann is known for his innovative approach to business and his commitment to sustainability, which has helped the company establish itself as a leader in the global running shoe market.

Since its founding in 2010, ON has become one of the fastest-growing running shoe companies in the world, with its success due in large part to the vision and leadership of its co-founders, who continue to drive ON’s growth and innovation today.


ON offers a range of innovative and high-performance footwear, apparel, and accessories for athletes and people with an active lifestyle. Their products are designed to help users to perform at their best and to prevent injuries. With a focus on innovation and sustainability, the company has developed a strong following of fitness enthusiasts around the world.

One of ON’s most popular product lines is its running shoes. With a variety of styles and colors, the shoes are designed to provide the perfect balance of cushioning and support for runners of all levels. Every ON shoe includes CloudTec technology, which consists of individual “clouds” that cushion the foot, absorbing impact, reducing strain, and providing a smooth and stable ride.

Their shoe lines also feature a range of unique proprietary technologies including:
– Speedboard – which bends and flexes, converting the kinetic energy of each landing into a powerful take-off with more speed, for the same effort.
– Helion – a super foam for superior performance and smoother and more effortless runs
– Missiongrip – which gives enhanced traction with a carefully crafted grip-rubber compound that helps runners stick to the ground

While the company’s range of Cyclon recyclable running products uses bio-based, high-quality, and renewable materials to create a line of shoes and apparel designed to be recycled and transformed into new products. In September, the brand unveiled the first shoe made from carbon emissions, called Cloudprime, which was seen as a huge milestone, not only for ON, but for the whole sports industry as a move away from petroleum-based resources.

In addition to running shoes, ON also offers a range of apparel and accessories. Their apparel is designed to be comfortable and functional, with features such as moisture-wicking fabric and breathable materials. While accessories such as hats, gloves, and socks aim to help athletes stay comfortable and perform at their best.

ON’s products are used by a wide range of customers, including professional athletes and fitness enthusiasts. They are quickly becoming a brand favorite in the running and triathlon communities, and many high-profile athletes and teams including the Swiss Olympics and Red Bull Skydive teams, among many others, are choosing ON for their superior performance and innovative design. Their products are also popular among everyday athletes and people who are simply looking for comfortable and high-performance gear.

ON now has a global presence, with customers in over 60 countries around the world thanks to a strong e-commerce presence. The company’s online store features its full product offering and provides the ability to build valuable intelligence through direct conversations with customers. In addition, a network of retail partners includes sporting goods stores, specialty retailers, and department stores. While flagship stores are in major cities such as New York, Zurich, and Tokyo.


With innovative technology and strong brand positioning, ON has been proving itself a formidable challenger against incumbent giants like Nike and Adidas, not only attracting a loyal following, but experiencing significant top-line growth in the past few years. And the company is persevering with several strategies in place to continue this growth, including expanding its product line, investing in marketing and sales, and expanding into new markets.

New product lines are continuing to target shoes for a wider range of activities across trail running and outdoor endeavors, allowing ON to reach a broader audience and appeal to runners with different needs and preferences. While heavy investment in marketing and sales to expand its customer base, has seen the company partnering with influencers and high-profile athletes to promote its brand and products.

For expansion into new markets, ON has been growing its retail presence in key territories such as the US and China. There has been a particular focus on expanding its direct-to-consumer sales channels, specifically, investing in its e-commerce capabilities, and launching new online platforms such as a partnership with the WeChat e-commerce mini program in China. These initiatives are aiming to make it easier for customers to purchase its products directly from ON, while also making its products available to customers in new regions.

In addition, ON has been partnering with distributors and retailers to expand its touchpoints and reach new customer segments. Retail partners are carefully selected across wholesale channels including select third-party online-only platforms, based on their compatibility with ON’s premium brand, positioning in the market, and industry expertise.

Going forward, ON also plans to open a limited number of additional retail flagship stores in major metropolitan centers as well as athletic destinations, where it believes it can operate profitably and create further brand momentum.


Appealing to serious athletes, ON has experienced rapid success and impressive top-line revenue growth in recent years. The company’s net sales for the first nine months of 2022 reached CHF 855.4 million, up 60.3% compared to the same period in 2021, This performance was driven by strong growth in the wholesale channel of 55.6%, well supported by new product launches in 2022. While direct-to-consumer sales rose over 40%, and exceptional growth of 85.2% was achieved thanks to new accounts in the Asia-Pacific region.

In its latest quarter, ON also delivered a gross profit margin of 57.1%, and despite foreign exchange headwinds and temporary supply chain constraints, the company recorded a net income of CHF 20.6 million.

ON is raising its previous guidance by CHF 25 million and now expects net sales of CHF 1.125 billion for the full year 2022, marginally lower than consensus expectations which have the company hitting $1.22 billion in the year, for an impressive 57% year-over-year increase. While full-year earnings per share are forecasted to come in at $0.33, an enormous 126% improvement, up from $0.15 in 2021.


Operating in a market with fierce competition, ON is up against well-established global players like Nike, Adidas, Under Armour, Puma, and Reebok, which benefit from significant resources, mature supply chains, and ubiquitous brand recognition. However, the company’s strong focus on creating unique practical technology coupled with superior performance and quality have provided key competitive differentiators against the incumbents.

Furthermore, a key market development in recent years is a significantly increased importance of sustainability and eco-friendliness in consumer buying habits, for which its recycled lines and unique materials have specifically targeted.


ON has experienced significant success and rapid revenue growth in recent years due to its unique product offering and strong brand positioning evolving from its Swiss home. With the company continuing to expand its product line, customer segments, and geographic footprint, it appears well-placed to continue its rapid growth trajectory.

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Chinese electric vehicle maker, Li Auto, continues to make significant strides in its bid to secure a major portion of the Chinese EV market. In recent months, the company has launched and unveiled new models, further improved its sales and funding position, and is building new R&D and manufacturing bases, as well as secured key safety and sustainability ratings.

Following on from its original Li ONE vehicle, Li Auto began the first deliveries of its second model, the Li L9 full size extended-range electric SUV in August. Quickly followed by its Li ONE successor, the L8, a six-seat mid to large-size SUV, in November. Showing no signs of easing momentum, deliveries for the company’s next mid to large-size five-seat L7 SUV have just begun in February.

While the full impacts of the new models are yet to be seen, Li Auto’s sales have continued to grow in 2022 with total deliveries for the first nine months of the year blitzing 2021, after surging more than 57% to almost 87,000 units. The strong sales have been backed up by a $365 million capital raise which has been key in supporting continued investment to maintain the company’s vision of long-term sustainable success.

As it attempts to carve out a distinct premium market against the Chinese EV landscape, which is saturated by comparatively cheap low-speed electric vehicles, Li Auto is bolstering its credentials with standout luxury features and safety ratings.

The company is also building a semiconductor R&D and manufacturing base in the high-tech zone of Suzhou, which will focus on the in-house research and development efforts that will be directed comprehensively across products, platforms, and systems, with the long-term goal of growing into a world-class technology company.


Since its launch in 2015, Li Auto has seen rapid growth and has established itself as a leading player in the Chinese EV market. Despite a slow commercial start for the Li ONE initially, sales for the company exploded to more than $4.25 billion in 2021.

The company’s success has been driven thanks to established partnerships with several leading technology companies, including Huawei and Baidu, to integrate cutting-edge technologies into its vehicles. This has helped to differentiate itself from its competitors and appeals to tech-savvy consumers in China.

Li Auto has also made significant investments in charging infrastructure to support the widespread adoption of EVs in China, having established partnerships with several major charging networks, including State Grid and China Southern Power Grid, to build out a comprehensive charging network across the country.

The company’s relentless focus on producing premium EVs and its investments in R&D and technology are core to positioning it well for future growth. As it maintains ambitious targets of being the number one smart electric vehicle maker in China, seeking to obtain 20% market share with sales over 1.6 million units by 2025.


While founder Li Xiang continues to oversee the company as chief executive officer and chairman of the board, former executive director and president, Shen Yanan, tendered his resignation with Li Auto in December to focus on personal affairs. Chief engineer, Donghui Ma, was subsequently promoted to company president and appointed as a director. In addition, senior vice president, Yan Xie, was also promoted as the new chief technology officer.

Ma has served as the company’s chief engineer since 2015, before which he worked as dean of the research institute at SANY Heavy Vehicle Body Co. While Xie who has been the company’s senior vice president since July 2022, previously held several senior roles with industry giants including Huawei Technologies, Alibaba Group, and Intel.


Li Auto’s growing range of new models continues to target China’s middle- and high-income consumers who are looking for premium electric SUVs with longer-range capabilities. Having positioned itself as a luxury EV brand, offering vehicles with advanced features, comfortable interiors, and multiple trim options, the company’s latest models are aiming to not only maintain the latest technology developments, but provide customers with a range of vehicle size options.

First unveiled in June 2022, the Li L9 joined the Li Auto line-up as the new flagship smart SUV for families. Like the initial Li ONE, the six-seat, full-size vehicle, offers superior space and comfort for family users. The L9 is comparable in size to the Mercedes-Benz GLS and BMW X7, but with a price tag under $70k, it is less than half the price of the flagship SUVs from the two German luxury automakers. With a total power of 330 kW, a torque of 620 Nm, and an acceleration time of just 5.3 seconds from 0-100 km/h, it provides a significant performance boost over its predecessor. All while maintaining a CLTC range of 1,315 kilometers thanks to flagship range extension and chassis systems.

In addition, a suite of high-tech features includes the company’s self-developed autonomous driving system, Li AD Max, vehicle safety measures to protect every family passenger, and an innovative five-screen, three-dimensional interactive intelligent cockpit that aims to bring a new level of driving and entertainment experience. While a forward-facing LiDAR system of 128 lasers delivers the most comprehensive performance of any other vehicle LiDAR system on the market.

Soon after the L9 unveiling, the company announced its plans for another 6-seat SUV, the Li L8, which ultimately launched in September 2022 and is considered the replacement for the original Li ONE model. While just launched in February 2023, and based on the same size footprint as the L8, the Li L7, offers the company’s first 5-seat vehicle with one of the most spacious second-row seats in its class. The new additions also deliver improved performance over the Li ONE, albeit positioned below the flagship L9, while also allowing for multiple trim levels for the first time.

Li Auto’s footprint of retail stores has also grown significantly throughout 2022, increasing from 206 locations at the end of 2021 to 296 retail stores in 123 cities across China. In addition, 320 servicing centers and Li Auto-authorized body and paint shops are now operating in 222 cities.


Li Auto’s focus on offering premium electric vehicles with advanced technology and high-end features at competitive prices has proved key to its success to date. Its combination of high-capacity batteries, powerful motors, and advanced infotainment and safety systems has helped the company to differentiate itself from other EV manufacturers in the market. It has also helped attract a growing number of discerning customers who are looking for a premium electric vehicle. Its strategic partnerships with leading automotive suppliers and technology companies, in particular, battery manufacturers, have enabled it to develop high-capacity batteries that offer longer driving ranges than its competitors.

In addition to its strong focus on product development, Li Auto has also pursued an aggressive marketing strategy, leveraging social media, and other digital platforms to reach a broad and diverse audience. The company has also invested heavily in building a robust and efficient distribution network, which has helped to ensure that its vehicles are readily available to customers throughout China, as well as provide strong after-sales maintenance and support.

While it has been reported that China’s EV market is set to lose steam in 2023 as the government phases out cash subsidies, it is important to note that Li Auto won’t be affected by this specific policy headwind in a meaningful way. This is due to the company’s entire range of vehicles exceeding the maximum sale price of RMB300,000 required to qualify for subsidies.

The macroeconomic landscape for Li Auto also appears to be improving as the easing of the zero-covid policy in China may help fuel both delivery and sales growth in the near term.


While a covid pandemic resurgence and associated supply chain interruptions have been challenging for the industry, Li Auto has continued to drive a robust financial performance throughout 2022. In the first nine months of the year, the company has already hit $4.12 million in total revenue, just short of its full-year 2021 result.

While losses have surged to $324.5 million, the result continues to be due to the scale and pace of investments in research and development, expansion of its sales network, workforce, and marketing activities. In particular, R&D costs more than doubled to $253.6 million in the third quarter, while selling, general and administrative expenses increased by almost 48% due to a growing number of staff, as well as increased rental expenses associated with the expansion of the company’s sales network.

Looking ahead, for the final quarter of 2022, the company expects deliveries of vehicles to be between 45,000 and 48,000 vehicles, continuing growth with an increase of 27.8% to 36.3%. As a result, total revenues are expected to be between $2.32 billion and $2.47 billion, representing an increase of 55.4% to 65.8% from the fourth quarter of 2021.

However, for the full 2022 year, while consensus estimates have tempered in recent months, they are still marginally higher than the company’s forecast, with total sales still expected to end the year at $6.65 billion, for an impressive increase of 55%. Then improving a further 107% and 48% in 2023 and 2024 respectively. Furthermore, while earnings per share estimates are forecasted to contract to a loss of $0.02 following 2021’s surprise earnings of $0.13 per share, 2023 and 2024 predictions have the metric surging to $0.38 and $0.84 respectively.


While the company is in its growth phase both in regard to accelerating sales, as well as the rapid expansion of its network and manufacturing capacities, there will likely be no shortage of expenditures and R&D costs. However in the competitive EV landscape, with players like Tesla, NIO, and XPeng these will be critical to keeping the company’s line-up ahead of the competition and to remain relevant.

Considering all Chinese EV makers have been forced to deal with challenges like supply chain constraints and pandemic restrictions, it is encouraging to see Li Auto post much better delivery numbers than its key peers. Notably, the Li L9, which was introduced to the market in the middle of last year, and only started deliveries at the end of August, saw shipments surpass 10,000 units already by December.


Li Auto’s combination of premium products, strategic partnerships, and aggressive marketing has positioned the company well in the highly competitive Chinese EV market. Its concerted efforts to grow the company and commit to future innovation appear to be paying off, as demand for its new models remains strong.

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Americans love their chicken wings. Opinions as to how they should be prepared and served, can be pretty polarizing, so it is little wonder Wingstop gets a bit emotional about their food. The American multinational chain of aviation-themed restaurants specializing in chicken wings says it’s not in the wing business, it’s in the flavor business. And it’s been on a mission “to serve the world flavor” since it first opened shop almost 20 years ago.

Its restaurants offer a made-to-crave and cooked-to-order menu of chicken wings, boneless wings, chicken sandwiches, and tenders that come in bold, layered flavors that touch all of the senses. Also serving up fresh-cut fries, along with various dips and sides, the chain targets people who demand flavor in everything they do, because Wingstop is “more than a meal, it’s a flavor experience”.

Now operating and franchising a global network of restaurants, the company has become the largest fast-casual chicken wings-focused restaurant chain in the world, with close to 1,900 locations worldwide.

Yet with a vision to become a top 10 global restaurant brand, it is looking to grow to more than 4,000 restaurants across the United States and more than 3,000 internationally, whilst sustaining its extensive record of sales growth and maintaining best-in-class returns.


What began as a small buffalo-style chicken wing restaurant in Texas, quickly became a fan favorite when proprietary recipes, outstanding food, and superior customer service created a demand that could only be satisfied by more locations. As a result, the first franchised Wingstop location was opened in 1997, and within five years, the chain had served the world one billion chicken wings, becoming one of the fastest-growing brands in the restaurant industry.

In 2003, Wingstop was acquired by Gemini Investors, which sold it to Roark Capital Group in 2010, before going public in 2015. Yet despite the changes in ownership, the company continues an impressive run of almost two decades of sales growth.

And as it continues to attract top entrepreneurs and operators with the drive and passion to own their own business, the chain has secured numerous franchise industry awards, including Franchise Business Review’s “Top 30 Food and Beverage Franchises”, Fast Casual’s “Movers & Shakers”, QSR Magazine’s “The Industry’s 9 Best Franchise Deals”, and “The QSR Top 50” for limited-service restaurants in the U.S.


First joining Wingstop in 2014, Michael Skipworth has served as the company’s president and chief executive officer since March 2022, having previously held roles as COO and CFO. Bringing several years of company experience, Skipworth is now focusing on technological innovation as the chain’s digital sales continue to form a majority of transactions. Prior to Wingstop, he maintained senior roles at Cardinal Logistics and was part of the audit and assurance practice for KPMG.

Wingstop’s key leaders also include chief U.S. franchise operations officer, Marisa Carona, who has led key areas of the business including corporate strategy, ESG, training, and marketing, and who prior to joining Wingstop, led strategic initiatives at 7-Eleven. While recently appointed senior VP of U.S. development, Craig Sherwood, brings with him a wealth of experience from global franchised companies including Little Caesars, Sonic Drive-In, and Yum! Brands.


Catered to customers by “Wing Experts”, Wingstop’s numerous order options include eat-in, to-go, and delivery, along with individual, combo meals, and family packs that allow guests to choose the restaurant for any occasion, whether it is a quick snack or a party size order for a group occasion.

Classic wings, boneless wings, and tenders are always cooked to order and hand-sauced-and-tossed in a choice of 11 “bold and distinctive” flavors such as Garlic Parmesan, Lemon Pepper, Hickory Smoked BBQ, Atomic, Mango Habanero, Cajun, Louisiana Rub, and Spicy Korean Q, along with plain, mild, and hot.

The chicken menu is complemented by signature sides including fresh-cut, seasoned fries, and freshly-made ranch and blue cheese dips that are made in-house daily. With the chain proud of the fact that it never uses heat lamps or microwaves in the preparation of its food. Recently, the restaurant introduced chicken sandwiches which also come in all the flavors that the wings are available in.

Wingstop is one of the fastest-growing concepts in the U.S. with franchisees operating in almost 1,900 outlets in 44 states, along with seven countries across the globe. The chain has a relentless focus on ensuring that every franchise location meets the same quality and customer service benchmarks to preserve the consistency and reliability of the brand. Whilst keeping in with a strategy to grow existing franchisees, the company’s domestic franchise base had an average restaurant ownership of approximately six restaurants per franchisee and an average tenure of twelve years.

While agreements may vary, franchisees generally pay a franchise fee of $20,000 for each restaurant opened, and contracts typically provide for a 10-year initial term, with an opportunity to enter into further renewals. Each franchisee is also required to pay Wingstop a royalty of 6% of their gross sales net of discounts. In addition, each restaurant also contributes 5% of gross sales to fund marketing and advertising campaigns. These funds are primarily used to create advertising content and purchase digital and television advertising on a national level.


As Wingstop approaches a long-term target of more than 7,000 restaurants globally, company management remains focused on sustaining same-store sales growth through brand awareness, innovation, and investment in technology.

Franchisee contributions to its national advertising program were boosted to 5% at the beginning of 2022 to support elevated marketing spending and premium placements through an extensive range of social media and digital marketing channels. It is intended that this will allow Wingstop to target core customers and create top-of-mind consideration with relevant, impactful messaging.

The company is also making focused investments in customer relationship management and its digital platform, which will allow it to transition from the traditional promotion-based marketing approach to a digital platform-based strategy. Particularly, as digital sales continue to make up over 60% of total sales.

Maintaining best-in-class unit economics is a key priority as the operational simplicity of the restaurants translate into attractive financials at both franchised- and company-owned locations. Wingstop’s operating model targets a low average estimated initial investment of approximately $400,000, excluding real estate purchase or lease costs and pre-opening expenses. While its domestic average unit volume (AUV) which represents the average annual sales of all restaurants that have been open for a trailing 52-week period or longer, has grown consistently, reaching approximately $1.6 million in 2021. With the current strategic plans focusing on brand awareness, menu innovation, delivery improvements, data-driven marketing, and digital transformation, the company is targeting for this to increase further to $2 million in the near term.

In a restaurants second year of operation, the Wingstop targets a franchisee cash-on-cash return of more than 50%. Existing franchisees accounted for over 93% of restaurants opened in both 2020 and 2021, which the company believes underscores the financial appeal of the chain’s business model, which has helped drive the continued growth of the system.

With a significant opportunity to expand globally, Wingstop intends to put further efforts into increasing geographic penetration in both existing and new domestic markets, as well as international markets. This includes laying the groundwork for a global supply chain, along with creating a consistent digital presence, and maximizing the brand’s visibility. The company says it has a robust development pipeline with approximately 90% of domestic commitments for new stores coming from existing franchisees, demonstrating the strength of the restaurant’s business model and its positive franchisor-franchisee relationships.

Furthermore, based on a small real estate footprint, simplicity of operations, universal and broad appeal of chicken, along with the ability to customize a wide variety of flavors to local tastes, the restaurant operating model continues to translate well internationally, providing an immense opportunity to build on close to 200 international restaurants already located in six countries.


Keeping it on track to deliver its 19th consecutive year of domestic same-store sales growth, Wingstop delivered another strong quarter in its latest round of results. With 40 net new openings in the September 2022 quarter, total revenue for the period surged over 40% to $92.7 million, driven by both royalty revenue and franchise fees. Whilst the majority of the growth driven was by an increase in transactions, advertising fees also increased by $16.6 million due to the increase in the national advertising fund contribution rate to 5%.

Despite the boost in revenue, cost of sales only increased marginally in the quarter, driven by food, beverage, and packaging costs benefiting from a 43% decrease in the cost of bone-in chicken wings compared to the prior year. As a result, Wingstop also delivered a nearly 20% increase in net income year-on-year to $13.4 million.

Looking ahead, consensus estimates have the company closing out the full year with expected sales of $353.4 million representing year-over-year growth of over 25%. The company is forecasting another robust quarter, as it increased its earnings per share guidance to between $1.61 and $1.63, which is just short of consensus estimates at $1.65, representing 22% growth year-on-year.


In addition to the broader restaurant dining segment, competition in the quick-service-restaurant chicken space alone is fierce, with customers seeking high food quality, restaurant atmosphere, service speed, friendliness of staff, and value for money. Wingstop’s main competitors include giants like KFC, Chick-fil-A, and Popeye’s, along with many more like Church’s Chicken, Buffalo Wild Wings, Hurricane Grill & Wings, and Wings & Rings.

With a forward price-to-earnings ratio that is valued for growth, Wingstop’s key risk is the current macro landscape with rising inflation, increasing wage costs, and higher interest costs, which may impact margins if the current growth trajectory cannot be maintained.


Wingstop has delivered many years of growth and successful expansion even through difficult periods like the covid pandemic and the GFC. And while the company’s valuation is at a premium to the sector, the company’s future outlook gives it an enormous runway for further growth. Furthermore, with softening key chicken wing prices coupled with solid investments to taking advantage of digital sales channels, the company appears well-prepared to continue achieving the market-leading economics of its robust business model.

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Sporting brand ambassadors like the youngest surfer to ever win the US Open, a veteran of the Canadian snowboard circuit, and a 400-meter world record holder, among many other pro athletes, Lululemon Athletica has become a juggernaut as a designer, distributor, and retailer of its range of healthy lifestyle inspired athletic apparel and accessories.

With a steadfast focus on top quality, technically advanced products that offer unique innovations, the company’s assortment of apparel is marketed under the Lululemon brand and its “living the sweatlife” mantra. The range includes pants, shorts, tops, jackets and other gear that are designed for active athletic activities such as yoga, running, training, and other sweaty pursuits. Lululemon’s design and development team continuously seek out technically advanced fabrics, that offer a new feel and fit, and make it possible to craft innovative functional features for the company’s products.

The retailer sells its collections through a chain of hundreds of company-operated stores, outlets, and warehouse sales, along with a network of wholesale accounts that includes yoga studios, health clubs, and fitness centers. In addition, the company also uses temporary locations and maintains third-party licenses and supply arrangements with many international distributors. In recent years, online channels including mobile apps and the e-commerce website are also supporting direct-to-consumer demand.

Lululemon’s track record of innovation along with continued expansion into new product lines and geographies has produced an impressive record of consistent growth over the past two decades. While the company’s efforts to create excellent online and offline experiences for all customers have generated a loyal following. Building on this, the retailer is in the midst of a comprehensive strategic plan that began in 2021 that intends to double the size of the business by 2026.


Founded by Chip Wilson in Canada in 1998, Lululemon started as a design studio by day and a yoga studio by night, the company’s vision was to create more than a place where people could get gear to sweat in. It wanted to create a community hub where people could learn and discuss healthy living and mindfulness, while forming relationships with customers to understand what they are passionate about.

The company went public in 2007 after raising almost $330 million, and by 2013 it had made its third consecutive appearance on Fortune’s Fastest-Growing Companies list. A year later, Lululemon opened its first store in Europe, a flagship shop in London.

More than two decades since it began, Lululemon continues to focus on healthy living, mindfulness, and connecting with customers in its stores around the globe to continuously innovate its products. As the company believes the credibility of the brand and the authenticity of community experiences has been critical in creating a market beyond just athletes to those who pursue an active, mindful, and balanced life.


Joining Lululemon in 2018, Calvin McDonald is the current chief executive officer. The growth-oriented leader has an extensive history record helping large organizations scale and innovate how their brands engage with customers in stores, across digital channels, and from their homes. Previously, he served as president and CEO of Sephora Americas, a division of the LVMH group of luxury brands, before which he was president and CEO of Sears Canada, along with almost two decades at Loblaw Companies, the largest retailer in Canada.

Playing a critical role in leveraging innovative technology to transform Lululemon’s retail business and enhance guest experiences, Julie Averill has served as executive vice president and chief technology officer of the company since 2017. Prior to joining Lululemon, Averill served as the first-ever chief information officer of outdoor specialty retailer, REI, and she also spent over a decade at Nordstrom, where she held several key positions on the company’s IT leadership team.


Lululemon’s diverse line of apparel focuses on clothing that people can wear as they engage in fitness activities, although in addition to clothing, the company also sells accessories such as bags, socks, and yoga mats. And while the company’s products are mostly targeted at women who aim for a healthy lifestyle while balancing a busy life, it has expanded its reach by also bringing men and youth into its fold.

Complementing its apparel line, Lululemon acquired in-home fitness company MIRROR, in 2020. The interactive workout platform which features live and on-demand classes, bolstered the company’s digital offerings and brought immersive and personalized in-home mindfulness content to new and existing customers.

The bulk of Lululemon’s business is conducted through company-operated stores and direct-to-consumer channels with 600 stores that are located primarily on street locations, lifestyle centers, and malls, in 17 countries across the globe. In addition to being a venue to sell its products, the company utilizes them as a direct connection to customers to help build its brand and product line. Through a vertical retail strategy that allows Lululemon more control along the entire manufacturing and distribution process, coupled with its efforts to create this connection with customers, the retailer can collect and incorporate unique feedback into its design process to advance its product lines and differentiate from the competition.

The company also operates outlets and temporary locations to sell low-moving inventory and items from prior seasons at discounted prices. Wholesale accounts that include premium yoga studios, health clubs, and fitness centers offer an alternative distribution channel that is convenient for the core demographic and enhances the image of the brand. While license and supply arrangements take advantage of highly complementary partnerships in certain target markets like the Middle East and Mexico which grant partners the right to operate Lululemon-branded retail locations.


Underpinning Lululemon’s strategic objectives is its Power of Three x2 Growth Plan. Consisting of three key pillars which include product innovation, guest experience, and market expansion, the plan calls for a doubling of the business, taking revenue of $6.25 billion in 2021 to $12.5 billion by 2026.

To achieve this, Lululemon intends to double men’s, double direct-to-consumer, and quadruple international revenue relative to 2021. At the same time, the company’s women’s business, stores, and North American operations are all expected to grow by double digits. Although Lululemon’s largest customer group comes from its women’s range, representing 67% of revenue, it also designs a comprehensive men’s line which is growing rapidly as men discover the technical rigor and premium quality of the company’s range of products.

North America is currently Lululemon’s largest market by geographical split, representing 85% of its 2021 net revenue. However, the Power of Three plan has the company rapidly expanding internationally across China, the rest of Asia Pacific, and Europe. In the last year, the retailer opened 53 new company-operated stores, including 43 stores outside of North America. And in keeping with its connection to customers, it is approaching the expansion in these regions with a decentralized model, allowing for local community insight and consumer preferences to maintain its continuous innovation and efforts to broaden merchandise offerings.

These efforts are set to continue in 2022 with further expansion of apparel lines that will offer new styles including heat retention and reflective detailing to enable outdoor runs in cooler and low light conditions as the seasons shift. While additions to the company’s new hiking category will include heavier styles to protect against the elements during cold weather outings. The new lines are expected to open a broad new category for outdoor and cold weather solutions, bringing in a previously underserved segment.

Lululemon has also had an increasing focus on e-commerce given its convenience and potential to reach new customers beyond its physical locations, which has proved particularly effective in building brand awareness. Consequently, the company continues to evolve and integrate its digital and physical channels to create the best possible customer experience.


Despite challenges in the macro-environment for most retailers, Lululemon has managed to maintain incredible results across both its physical stores and its e-commerce sites. In the last 20 quarters, the company has beaten analyst earnings expectations an astonishing 19 times.

A strong financial performance was again delivered in the most recent second quarter of the 2023 financial year, where net revenue increased almost 30% to $1.9 billion. Furthermore, it achieved this growth without any discounts on its products, whilst also passing on costs to consumers, ultimately producing margins that improved by more than 56%.

As a result, gross profit increased 25% to $1.1 billion, while net income rose almost 40% to $289.5 million, maintaining an impressive run of significant year-on-year growth for the last six consecutive quarters.

The momentum appears to be showing no signs of stopping as the company expects revenue to hit almost $8 billion for the year, representing a three-year compound annual growth rate of approximately 26%.

Looking ahead, consensus estimates also have Lululemon closing out the full year with expected revenue of $7.93 billion representing year-over-year growth of 27%. While full-year earnings per share estimates for 2023 are also forecasted to improve by 27% to $9.90 per share, up from $7.79 at the year-end Jan 2022.


Competition in the athletic apparel industry is highly competitive and based principally on brand image and recognition as well as perceived product quality, innovation, style, distribution, and price. It includes increasing challenges from established companies that are expanding their production and marketing of performance products, as well as from frequent new entrants to the market. Lululemon is in direct competition with wholesalers and direct sellers of athletic apparel, such as Nike, Adidas, Under Armour, and Columbia Sportswear. It also competes with retailers who have expanded to include women’s athletic apparel including The Gap, Victoria’s Secret with its sport and lounge offering, and Urban Outfitters.

Yet the company believes that it successfully competes on the basis of its premium brand image and technical product innovation. Its ability to introduce new product innovations, combine function and fashion, and connect through in-store, online, and community experiences also sets it apart from the competition.


Lululemon’s commitment to listening to its customers and innovation for over two decades has created a strong brand that is fashionable, functional, and provides a distinctive experience that has driven customer loyalty and global growth. Despite consistently exceeding market expectations with impressive growth quarter after quarter, the company is only at the start of its life cycle, and has significant opportunities to expand its footprint which are being taken advantage of with a comprehensive strategic plan.

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