Lululemon athletica inc. reported the following information (in US$ thousands) for the three fiscal years ended:

Instructions

a. Calculate the gross profi t margin and profi t margin for lululemon for each of the three years.

b. Recalculate profit margin using profit from operations as opposed to profit.

c. Comment on whether the ratios improved or weakened over the three years.

Transcribed Image Text:

Net sales Cost of goods sold Profit from operations Profit January 28, 2018 $2,649,181 1,250,391 456,001 258,662 January 29, 2017 $2,344,392 1,144,775 421,152 303,381 January 31, 2016 $2,060,523 1,063,357 369,076 266,047