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Lululemon Q2 tops expectations; ‘cautiously optimistic’ about remainder of year

Lululemon reported a better-than-expected second quarter as consumers flocked to its website and its stores reopened. 

The yoga and workout wear retailer’s adjusted earnings per share were $0. 74 for the quarter ended Aug. 2. Analysts had forecast earnings per share of $0.55.

Net revenue rose 2% to $902.9 million, easily topping the $842.5 million analysts expected. 

[Further reading: Lululemon to acquire start-up for $500 million]

Company-operated stores net revenue was $287.2 million, a decrease of 51% compared to the second quarter of fiscal 2019. Direct-to-consumer net revenue jumped 155% to $554.3 million. It represented 61.4% of total revenue, compared to 24.6% last year.

"We're pleased with our overall business results for the second quarter, as Lululemon increasingly lives into its omni potential,” said CEO Calvin McDonald. “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." 

McDonald continued: "We are cautiously optimistic with regard to the second half of the year as we continue to navigate the uncertain environment."

Lululemon ended the quarter with 506 stores.

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