Calculate the gross profit margin and profit margin

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Assignment

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


February 1, 2015

February 2, 2014

February 3, 2013

Net sales

$1,797,213

$1,591,188

$1,370,358

Cost of goods sold

883,033

751,112

607,532

Profit from operations

376,033

391,358

376,439

Profit

239,033

279,547

271,431

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.

Reference no: EM131797640

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