Canadian athleisure brand, lululemon is leveraging its “omni potential,” as it posts positive business results for the second quarter of fiscal 2020, ended August 2, 2020. The brand’s direct to consumer net revenue was $554.3 million, an increase of 155% compared to the second quarter of fiscal 2019. lululemon’s direct to consumer net revenue represented 61.4% of total net revenue compared to 24.6% for the second quarter of fiscal 2019.
As people continued to shop online, amid COVID-19, as a first-of-its-kind move, lululemon had announced a flash sale for a limited period in July. Moreover, aligned to the market sentiments and a change in consumption pattern, lululemon also invested $500 million to buy an in-home fitness brand called MIRROR. In addition, throughout the lockdown period, lululemon stayed engaged with consumers by leveraging social media and apps to offer free exercise classes and encourage at-home workouts.
Meanwhile, lululemon’s net revenue from company-operated stores was $287.2 million, a decrease of 51% compared to the second quarter of fiscal 2019. This is a result of temporary store closures due to the COVID-19 pandemic. All of lululemon’s stores in North America, Europe and certain countries in Asia-Pacific were temporarily closed during the first quarter of fiscal 2020. lululemon began reopening its retail locations in these markets during the second quarter of fiscal 2020. As of August 2, 2020, 492 of its 506 company-operated stores were open.
Commenting on how lululemon is leveraging its “omni potential,” CEO Calvin McDonald said, “We’re pleased with our overall business results for the second quarter, as lululemon increasingly lives into its omni potential. As trends around the world are shifting to working and sweating from home with an increased focus on health and wellness, we believe 2020 is likely an inflection point for retail and for lululemon.”
The brand’s net revenue for the second quarter was $902.9 million, an increase of 2% compared to the second quarter of fiscal 2019. The company recorded gross profit was $489.5 million, an increase of 1% compared to the second quarter of fiscal 2019.
“We are cautiously optimistic with regard to the second half of the year as we continue to navigate the uncertain environment,” McDonald concluded.