Lululemon Athletica Inc. detailed a range of actions and initiatives to support its employees as COVID-19 continues to impact the business, including pay protection for workers and the reduction of leadership team salaries.
The company is committed to supporting its people while continuing to invest in its Power of Three growth strategy.
Understanding the COVID-19 pandemic may continue for the foreseeable future, stores in North America, Europe, Malaysia, Australia, and New Zealand will remain closed until they can safely reopen. In addition, the company has made the decision to continue pay protection for its employees through June 1, whether stores reopen or remain closed.
“At Lululemon, our people are our top priority. These decisions enable us to support our teams and immediate business priorities while balancing what is required to plan for the recovery and growth to follow,” said Calvin McDonald, CEO. “We’re making the right commitments now as we navigate what’s ahead for the future.”
In addition, for the next three months, the company’s senior leadership team will reduce their salaries by 20 percent, and the board of directors will forgo their cash retainer. These funds will go towards the newly established We Stand Together Fund to help Lululemon employees facing COVID-19 related hardships.
These measures are in addition to the previously announced actions at Lululemon, including actively managing the company’s expense structure, capital investment, and store opening and remodel projects. The company has also made the decision to temporarily pause its share repurchase program.
Lululemon’s website and mobile app remain operational across all regions. The company will continue to monitor the evolving COVID-19 situation and provide additional updates as necessary.
Photo courtesy Lululemon
