Lululemon Athletica Inc. is paying its employees even as its stores remain shuttered amid the COVID-19 pandemic.
The athletic apparel retailer said it will continue to pay its employees through 1 June, whether stores re-open or remain closed. The move comes as many department store and specialty retailers, from Macy’s to Gap to Bed Bath & Beyond, have furloughed store employees. (Lululemon also has paid all its April rent to landlords, reported CNBC.)
For the next three months, Lululemon’s top executives will take a 20 per cent pay cut, and the board will forgo its cash retainer. The money will go towards Lululemon’s newly-established We Stand Together Fund to help employees facing COVID-19 related hardships.
The new 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 paused its share repurchase program temporarily.
“At Lululemon, our people are our top priority,” said Calvin McDonald, CEO. “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. We’re making the right commitments now as we navigate what’s ahead for the future.”
