Assignment
Lululemon athletica inc. reported the following information (dollars in US thousands) for the three fiscal years ended:
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February 1, 2015
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February 2, 2014
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February 3, 2013
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Net sales
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$1,797,213
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$1,591,188
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$1,370,358
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Cost of goods sold
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883,033
|
751,112
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607,532
|
|
Profit from operations
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376,033
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391,358
|
376,439
|
|
Profit
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239,033
|
279,547
|
271,431
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Calculate the gross profit margin and profit margin for lululemon for each of the three years. (Round answers to 1 decimal place, e.g. 52.7%.)
Recalculate profit margin using profit from operations as opposed to profit. (Round answers to 1 decimal place, e.g. 52.7%.)
Comment on whether the ratios improved or weakened over the three years.