a. lululemon athletica inc. reported that its net revenue for fourth quarter 2011 increased 51.4% from US$245.4 million in the fourth quarter of fiscal 2010. Calculate the net revenue for fourth quarter 2011 (rounded to the nearest hundred thousand dollars).
b. Revenue from the direct-to-consumer channel, including e-commerce and phone sales, reached US$50.1 million for fourth quarter 2011. Calculate direct-to-consumer revenue as a percentage of total revenue for the period.
c. Calculate the rate of discount for each of the four clearance items listed under the “we made too much” link (rounded to 2 decimal places).
d. Assuming lululemon’s overhead is 30% of the regular selling price, and that the cost of the Women’s Wonder Under Pant is $36, determine
(1) The markup, the overhead, and the profit for this item sold at the regular selling price;
(2) The markup, the overhead, and the profit for this item sold at the clearance price.
The following items were recently discounted on the lululemon website:
Women’s Wunder Under Pant: $69.00 CAD (was $88.00)
Women’s Get Started Jacket: $49 CAD (was $118.00)
Men’s Cardio SS Tech Top: $24.00 CAD (was $58.00)
Men’s Performance Jacket: $44.00 CAD (was $88.00)