Revenue increased22% to$1.1billion

Comparable sales increased 19%, or 18% on a constant dollarbasis

Diluted EPS of$1.10, Adjusted EPS of$1.16

VANCOUVER, British Columbia--(BUSINESSWIRE)--Dec. 10, 2020--

lululemon athleticainc. (NASDAQ:LULU) today announced financial results for the third quarter of fiscal 2020.For the third quarter of fiscal 2020, compared to the third quarter of fiscal 2019:

Net revenue increased 22% to$1.1 billion;Net revenue increased 19% inNorth America, and increased 45%internationally

Direct to consumer net revenue increased 94%

Direct to consumer net revenue represented 42.8% of total net revenue compared to 26.9% for the third quarter of fiscal2019

Gross profit increased 24% to$627.4million

gross margin increased 100 basis points to 56.1%Income from operations increased 17% to$204.9 million.

Operating margin decreased 90 basis points to 18.3%.

The Company opened nine net new company-operated stores during the quarter, ending with 515 stores.

COVID-19 Pandemic and fiscal 2020 outlook:As a result of the COVID-19 pandemic,all ofthe Company's retail locations inNorth America,Europe, and certain countries inAsia Pacificwere 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 and almost all locations were open during the third quarter of fiscal 2020.Subsequent toNovember 1, 2020, while almost all of the Company's retail locations have remained open, it has experienced some temporary closures and is currently operating with tighter capacity restrictions in certain markets.

Describeeach ofthethree genericbusinessstrategies thata clothing company maypursueto develop and maintainasustainable competitiveadvantage with its targetcustomers.Explainthebusinessstrategyor strategiesthatyou believelululemon athletica inc.usesand provideone or more arguments orexamplesto supportyour answer.