Lululemon's Comeback Takes Shape in Revenue, Profit Forecasts

Lululemon has raised its revenue and profit projections after surpassing sales forecasts in the second quarter, marking a significant comeback. Despite past challenges, including leadership issues and brand perception, the company has shown strong performance with increased same-store and e-commerce sales. Lululemon's gross margins are notably higher than competitors like Nike and Under Armour, aligning more with companies in the S&P 500. The brand's success is attributed to its high-tech gear and strong pricing power, with consumers willing to pay a premium. Lululemon's strategic focus on its own stores and online sales has bolstered its market position.

What significant change did Lululemon make in its financial projections?

• They decided to not release any projections.

• They maintained their previous projections.

• They lowered their revenue projections.

• They raised their full year revenue and profit projections.

How did Lululemon's recent gross margins compare to those of Nike and Under Armour?

• Lululemon did not disclose their gross margins.

• Lululemon's gross margins were higher.

• Lululemon's gross margins were the same.

• Lululemon's gross margins were lower.

What is one reason for Lululemon's strong profitability?

• They have high-tech gear with strong pricing power.

• They sell low-cost products.

• They have reduced their online presence.

• They rely heavily on department store sales.

How has Lululemon's brand perception changed over time?

• It has become less known.

• It shifted from being a detriment to a positive.

• It has remained unchanged.

• It has always been positive.

What strategy is Lululemon using to boost its e-commerce sales?

• Pushing more products online through their own stores.

• Increasing presence in department stores.

• Focusing solely on physical store sales.

• Reducing online product offerings.