Lululemon Athletica reported Tuesday (Sept. 8) that direct-to-consumer (D2C) net revenue was $554.3 million for the second quarter, which concluded Aug. 2, marking a 155 percent rise from the same quarter last year, according to an announcement.
"We're pleased with our overall business results for the second quarter, as Lululemon increasingly lives into its Omni potential,” Lululemon CEO Calvin McDonald said in the announcement. “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."
Lululemon concluded Q2 with cash and cash equivalents of $523 million compared to $623.7 million at the conclusion of Q2 2019.
Each of the retailer’s retail locations in Europe, North America and select Asia Pacific nations were shuttered for a time in Q1. However, the retailer started opening its stores in those places again in Q2. The company reported that 492 of the 506 retail locations that it runs were open as of Aug. 2.
Lululemon reported 54.2 percent gross margin, marking an 80 basis point decrease compared to the same quarter last year. It also reported an operating margin of 13.8 percent, marking a fall of 520 basis points from Q2 2019.
As for its overall results, Lululemon reported adjusted diluted earnings per share of 74 cents on net revenue of $902.9 million for Q2 2020. The results exceeded analyst expectations of 55 cents of earnings on $842.5 million in revenue.
In June, Lululemon said D2C net revenue increased 68 percent for Q1 2020. The firm registered a 51.3 percent gross margin, which represented a 260 basis point decline compared to the same quarter in the past year.
"Our strong digital business demonstrates the strength of our guest connection and the long-term opportunity to create further Omni experiences going forward," McDonald said at the time.