Lululemon Athletica inc., for the second quarter ended August 2, 2020 reported net revenues of 902.9 million dollars, an increase of 2 percent, while on a constant dollar basis, net revenue increased 3 percent. The company said in a statement that company-operated stores net revenue was 287.2 million dollars, a decrease of 51 percent, while direct to consumer net revenue was 554.3 million dollars, an increase of 155 percent compared to the second quarter of fiscal 2019. On constant dollar basis, direct to consumer net revenue increased 157 percent.
Commenting on the second quarter trading, Calvin McDonald, CEO of Lululemon stated: “We’re pleased with our overall business results for the second quarter, as Lululemon increasingly lives into its omni potential. We are cautiously optimistic with regard to the second half of the year as we continue to navigate the uncertain environment.”
Gross profit for the quarter was 489.5 million dollars, an increase of 1 percent compared to the second quarter of fiscal 2019 and gross margin was 54.2 percent, a decrease of 80 basis points. The company added that diluted earnings per share were 66 cents compared to 96 cents in the second quarter of fiscal 2019, while adjusted diluted earnings per share were 74 cents for the second quarter of fiscal 2020.
As a result of the Covid-19 pandemic, all of the company’s stores in North America, Europe, and certain countries in Asia Pacific were temporarily closed during the first quarter of fiscal 2020. The company began reopening its retail locations in these markets during the second quarter of fiscal 2020. As of August 2, 2020, the company said, 492 of its 506 company-operated stores were open.