Press release
lululemon athletica inc. Announces First Quarter Fiscal 2020 Results
Revenue declined 17% to $652 million Diluted EPS of $0.22 for the first quarter VANCOUVER, British Columbia--(BUSINESS WIRE)-- lululemon athletica inc.
About this update from Lululemon Athletica Inc.
[{"type":"text","content":"\nRevenue declined 17% to $652 million\n\n\nDiluted EPS of $0.22 for the first quarter\n\n VANCOUVER, British Columbia--(BUSINESS WIRE)--\nlululemon athletica inc. (NASDAQ:LULU) today announced financial results for the first quarter of fiscal 2020.\n\n\nAs a result of the COVID-19 pandemic, all of the Company's stores in North America, Europe, and certain countries in Asia Pacific were closed for a significant portion of the quarter. Subsequent to May 3, 2020, the Company began reopening its retail locations in these markets in line with the guidance from local authorities. As of June 10, 2020, 295 of its company-operated stores were open.\n\n\nFor the first quarter ended May 3, 2020:\n\n\n\nNet revenue was $652.0 million, a decrease of 17% compared to the first quarter of fiscal 2019. On a constant dollar basis, net revenue decreased 16%.\n\n\nDirect to consumer net revenue increased 68%, or increased 70% on a constant dollar basis.\n\n\nDirect to consumer net revenue represented 54.0% of total net revenue compared to 26.8% for the first quarter of fiscal 2019.\n\n\nGross profit was $334.4 million, a decrease of 21% compared to the first quarter of fiscal 2019.\n\n\nGross margin was 51.3%, a decrease of 260 basis points compared to the first quarter of fiscal 2019.\n\n\nIncome from operations was $32.8 million, a decrease of 75% compared to the first quarter of fiscal 2019.\n\n\nOperating margin was 5.0%, a decrease of 1,150 basis points compared to the first quarter of fiscal 2019.\n\n\nIncome tax expense was $5.3 million compared to $34.6 million in the first quarter of fiscal 2019 and the effective tax rate was 15.6% compared to 26.4% for the first quarter of fiscal 2019.\n\n\nDiluted earnings per share were $0.22 compared to $0.74 in the first quarter of fiscal 2019.\n\n\nThe Company repurchased 0.4 million shares of its own common stock at an average cost of $172.68 per share.\n\n\n\nThe Company ended the first quarter of fiscal 2020 with $823.0 million in cash and cash equivalents and the capacity under its committed revolving credit facility was $398.2 million. The Company had $576.2 million in cash and cash equivalents at the end of the first quarter of fiscal 2019. Inventories at the end of the first quarter of fiscal 2020 increased 41% to $625.8 million compared to $443.0 million at the end of the first quarter of fi...