Lululemon posted $1.45 billion in second-quarter earnings, a 61% rise from the same period last year, when the pandemic had shuttered much of its in-person retail.

The growth represents more than just a pandemic bounce back: Revenue was also up 64% from Q2 2019.

The apparel maker benefitted from in-person retail returning but sustained no loss to its e-commerce business. 

• Net revenue at Lululemon’s retail outlets grew 142% to $695.1 million. 
• Direct-to-consumer sales grew 4% on a constant-dollar basis to $597.4 million.
• Net income of $208 million was up 140% year-over-year and 66% from the same period in 2019.
• Revenue bested analyst predictions by around $110 million or 8%. 

After the report, Lululemon’s stock shot up by around 13% in extended trading.

CFO Meghan Frank lauded Lululemon’s growth while acknowledging that the pandemic is still affecting the company’s supply chain. The company predicted similar third quarter earnings of $1.4 billion to $1.43 billion.

Lululemon is also working to expand its athleisure offerings for men.

GameStop spent much of its fiscal second quarter pivoting toward e-commerce, inching toward profitability in the process.

The video game retailer earned $1.18 billion in the 13 weeks ending July 31, up 25.6% year-over-year, but down 7.8% from last quarter’s $1.28 billion. 

• GameStop lost $61.6 million in the quarter, compared to a $111.3 million loss in the same period last year, and a $66.8 million hit in Q1.
• The game retailer, which became synonymous with the meme stock craze earlier this year, is reportedly in talks with fellow meme stock company AMC on a potential partnership. GameStop and AMC’s stock prices are up 957% and 2259% respectively since the start of the year.
• GameStop raised $1.13 billion in June to help fuel its e-commerce pivot.

New chairman Ryan Cohen is looking to make the video game retailer the “Amazon of gaming,” and has added several former Amazon executives to key roles. GameStop is also hiring developers to build an NFT platform.

The company said that the Securities and Exchange Commission had requested documents related to its trading activity, but the probe was not expected to negatively impact revenue or operations.

The Big 12 Conference could add four more schools before it loses two to the Southeastern Conference.

Cincinnati and UCF officially applied for Big 12 conference membership on Wednesday, with multiple reports suggesting that BYU and Houston will follow. The moves could be approved by a vote as early as Friday.

UCF, Cincinnati, and Houston would be required to pay their current conference, the American Athletic Conference, an exit fee of $10 million and give the AAC 27 months notice, which means they could join the Big 12 by 2023 or 2024 at the latest.

The expansion could answer concerns that have arisen since Texas and Oklahoma were granted SEC membership in July, possibly leaving the Big 12 with eight teams come 2025. 

• Big 12 commissioner Bob Bowlsby said the conference’s TV revenue could be cut in half, with the remaining eight schools potentially missing out on $14 million each year.
• Reports hinted that Kansas and Iowa State were interested in moving to the Big Ten but those were shot down by the conference.

Bowlsby held discussions with the Pac-12 Conference about a merger but said the remaining members of the Big 12 believe it’s the “best opportunity to stay together and find solutions together.”

With the NFL allowing sports betting ads for the first time, operators could spend up to $1 billion on football advertising this season.

The stigma surrounding betting is gone, according to FanDuel marketing executive Andrew Sneyd. The company launched its first national ad campaign with the aim of becoming “the next iconic sports brand in America.”

The NFL has signed deals with seven sportsbook operators: FanDuel, Caesars, DraftKings, FOX Bet, BetMGM, PointsBet, and WynnBet. The league’s TV partners will be able to sell up to six gambling spots per game.

• Sports marketer Bob Dorfman predicts operators will spend between $500 million and $1 billion on football ads this year. 
• FanDuel, Caesars, and DraftKings spent $314.6 million on ads last year, up from $84.1 million in 2019, according to Kantar Media.
• Pro and college football could attract more than $20 billion in bets, per PlayUSA. 

A record 45.2 million Americans are expected to bet on the new NFL season, per the American Gaming Association, up 36% from last year.

The influx of cash is welcome for media companies that have lost billions during the pandemic. CBS sales executive Tony Taranto calls gaming the “most significant new category in a generation.”