Press release
lululemon athletica inc. Announces Second Quarter Fiscal 2020 Results
Revenue increased 2% to $903 million Diluted EPS of $0.66, Adjusted EPS of $0.74 VANCOUVER, British Columbia--(BUSINESS WIRE)-- lululemon athletica inc.
About this update from Lululemon Athletica Inc.
[{"type":"text","content":"\nRevenue increased 2% to $903 million\nDiluted EPS of $0.66, Adjusted EPS of $0.74\n\n VANCOUVER, British Columbia--(BUSINESS WIRE)--\nlululemon athletica inc. (NASDAQ:LULU) today announced financial results for the second quarter of fiscal 2020.\n\n\nThe summary below provides both GAAP and adjusted non-GAAP financial measures. The adjusted financial measures exclude certain costs incurred in connection with the acquisition of MIRROR, and the related tax effects.\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 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, 492 of its 506 company-operated stores were open.\n\n\nFor the second quarter ended August 2, 2020:\n\n\n\nNet revenue was $902.9 million, an increase of 2% compared to the second quarter of fiscal 2019. On a constant dollar basis, net revenue increased 3%.\n\n\nCompany-operated stores net revenue was $287.2 million, a decrease of 51% compared to the second quarter of fiscal 2019.\n\n\nDirect to consumer net revenue was $554.3 million, an increase of 155% compared to the second quarter of fiscal 2019. On constant dollar basis, direct to consumer net revenue increased 157%.\n\n\nDirect to consumer net revenue represented 61.4% of total net revenue compared to 24.6% for the second quarter of fiscal 2019.\n\n\nGross profit was $489.5 million, an increase of 1% compared to the second quarter of fiscal 2019.\n\n\nGross margin was 54.2%, a decrease of 80 basis points compared to the second quarter of fiscal 2019.\n\n\nIncome from operations was $124.4 million, a decrease of 26% compared to the second quarter of fiscal 2019. Adjusted income from operations decreased by 19% to $135.9 million.\n\n\nOperating margin was 13.8%, a decrease of 520 basis points compared to the second quarter of fiscal 2019. Adjusted operating margin was 15.0%, a decrease of 400 basis points.\n\n\nIncome tax expense was $37.3 million compared to $44.8 million in the second quarter of fiscal 2019 and the effective tax rate was 30.0% compared to 26.4% for the second quarter of fiscal 2019. The adjusted effective tax rate was 28.9% for the second quarter of fiscal 2020.\n\n\nDil...