Lululemon Athletica Inc. (NASDAQ: LULU) announced financial results for the first quarter of fiscal 2020. The athletic apparel and accessories retailer has indicated that as a result of the COVID-19 pandemic, the Company has taken actions to close retail locations and to reduce operating hours, and it continues to monitor the situation and work closely with local authorities to prioritize the safety of its people and guests. In February 2020, the Company temporarily closed all of it retail locations in Mainland China. All of these locations have since reopened. In March 2020, it temporarily closed all of its retail locations in North America, Europe, and certain countries in Asia Pacific. 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.
As a result of the pandemic and the measures taken to fight it, the Company’s net 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%. Gross profit was $334.4 million, a decrease of 21% compared to the first quarter of fiscal 2019.
Direct to consumer net revenue increased 68%, or increased 70% on a constant dollar basis. Direct to consumer net revenue represented 54.0% of total net revenue compared to 26.8% for the first quarter of fiscal 2019.
Calvin McDonald, Chief Executive Officer commented: “I’m proud of how lululemon has navigated these unexpected and unprecedented times. We are learning more every day about our guests – how they enjoy interacting with us online and what makes them comfortable as stores reopen.” McDonald continued: “Our strong digital business demonstrates the strength of our guest connection and the long-term opportunity to create further Omni experiences going forward.”