Activewear and clothing company lululemon athletica (NASDAQ: LULU) posted its second-quarter results today, exceeding analyst consensus expectations in both revenue and earnings per share. Analysts expected adjusted EPS of $0.56, with actual earnings of $0.74 delivering a 32% positive surprise. The company's revenue was also a pleasant surprise at a rise of approximately 6.6%, registering at $902.94 million rather than analyst expectations of $847.38 million. Not only did Lululemon outstrip predictions, but its results also actually included year-over-year growth in net revenue despite the continuing negative fallout of the COVID-19 pandemic into Q2 2020. Net revenue rose roughly 3%. However, its net income of $86.8 million plunged 30.5% year over year. Adjusted EPS cannot be directly compared to 2019's figure, which was calculated on a diluted basis rather than adjusted diluted; diluted EPS as reported under generally accepted accounting principles (GAAP) shrank by 31.2%. Image source: Getty Images The COVID-19 economic downturn eroded Lululemon's cash reserves somewhat while prompting it to take on more debt. Its cash and cash equivalents figure of $522.9 million shows a 16% drop from 2019's $623.7 million. Total current liabilities climbed slightly more than 38% to $763.3 million. CEO Calvin McDonald spoke of the near future from a "cautiously optimistic" viewpoint, saying that since "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." The company is not providing detailed guidance at this time. Lululemon ended the day's trading down 3.21% despite its revenue and EPS beats. However, some downward correction might be expected after last week's record-making high stock price, which peaked above $398. 10 stocks we like better than Lululemon AthleticaWhen investing geniuses David and Tom Gardner have a stock tip, it can pay to listen. After all, the newsletter they have run for over a decade, Motley Fool Stock Advisor, has tripled the market.* David and Tom just revealed what they believe are the ten best stocks for investors to buy right now... and Lululemon Athletica wasn't one of them! That's right -- they think these 10 stocks are even better buys. See the 10 stocks *Stock Advisor returns as of August 1, 2020 Rhian Hunt has no position in any of the stocks mentioned. The Motley Fool owns shares of and recommends Lululemon Athletica. The Motley Fool has a disclosure policy.Source