Select "yes" for those statements that accurately describe top priority issues that CEO Laurent Potdevin must address and "no" for those that do not. a. How to rejuvenate sales at lululemon's stores open at least one year and boost overall company profitability. (Click to select) :) b. How to change their existing strategy to a best-value strategy in order to attract a larger customer base. (Click to select) c. How fast and how far to expand lululemon's product offerings into additional sports apparel and recreational apparel categories. (Click to select) ) d. How rapidly and by what means to expand the distribution of lululemon products to foreign markets outside North America and in which countries/geographic regions should it concentrate its foreign expansion efforts. (Click to select) e. How to buy-out smaller and less financially attractive yoga apparel stores/designers. (Click to select) ) f. Should the company continue to rely on showrooms before opening retail outlets in geographic locations where the company has no prior market presence? (Click to select) ) g. Should the company localize its cross-country websites to account for differences in language, currency, culture? (Click to select) h. Should the company scale back its global expansion? (Click to select) Use the data in case Exhibit to support your answer. Use the financial ratios presented in Table 4.1 of Chapter 4 (pages 83-86) to help you diagnose Lululemon's financial performance. In addition to the financial ratios, you will also need to calculate compound average growth rates (CAGR) for certain financial measures. The formula for calculating CAGR (in percentage terms) is as follows: CAGR % = (ending value - beginning value] 1 - 1 x 100 (where n = the number of year-to-year or period-to-period changes) Select "true" or "false" for each of the following statements concerning the data in case Exhibit 1. a. Gross profit margins have declined every year since FY 2011 (declining from 56.9% to 48.4% in FY 2015). (Click to select) b. Net income as a percentage of sales (or return on sales) has declined every year since FY 2012, and also there were similar declines in returns on assets and return on equity. (Click to select) ) c. Inventory turnover, however, has increased significantly in the past two years from 4.04 in 2013 to 5.37 in 2014 to 5.71 in 2015. (Click to select) ) d. Average sales per company-owned stores open at least one year have increased every year since FY 2012; so have sales per gross square foot. (Click to select). e. Despite the falloff in sales at lululemon's stores, the company has remained profitable. But, clearly, work needs to be done to reverse the sales erosion per store. (Click to select) ) f. Free cash flows (Net cash provided by operating activities - Capital expenditures) at lululemon continue to decline - there is little cash flow internally. (Click to select) Select "yes" for those statements that accurately describe top priority issues that CEO Laurent Potdevin must address and "no" for those that do not. a. How to rejuvenate sales at lululemon's stores open at least one year and boost overall company profitability. (Click to select) :) b. How to change their existing strategy to a best-value strategy in order to attract a larger customer base. (Click to select) c. How fast and how far to expand lululemon's product offerings into additional sports apparel and recreational apparel categories. (Click to select) ) d. How rapidly and by what means to expand the distribution of lululemon products to foreign markets outside North America and in which countries/geographic regions should it concentrate its foreign expansion efforts. (Click to select) e. How to buy-out smaller and less financially attractive yoga apparel stores/designers. (Click to select) ) f. Should the company continue to rely on showrooms before opening retail outlets in geographic locations where the company has no prior market presence? (Click to select) ) g. Should the company localize its cross-country websites to account for differences in language, currency, culture? (Click to select) h. Should the company scale back its global expansion? (Click to select) Use the data in case Exhibit to support your answer. Use the financial ratios presented in Table 4.1 of Chapter 4 (pages 83-86) to help you diagnose Lululemon's financial performance. In addition to the financial ratios, you will also need to calculate compound average growth rates (CAGR) for certain financial measures. The formula for calculating CAGR (in percentage terms) is as follows: CAGR % = (ending value - beginning value] 1 - 1 x 100 (where n = the number of year-to-year or period-to-period changes) Select "true" or "false" for each of the following statements concerning the data in case Exhibit 1. a. Gross profit margins have declined every year since FY 2011 (declining from 56.9% to 48.4% in FY 2015). (Click to select) b. Net income as a percentage of sales (or return on sales) has declined every year since FY 2012, and also there were similar declines in returns on assets and return on equity. (Click to select) ) c. Inventory turnover, however, has increased significantly in the past two years from 4.04 in 2013 to 5.37 in 2014 to 5.71 in 2015. (Click to select) ) d. Average sales per company-owned stores open at least one year have increased every year since FY 2012; so have sales per gross square foot. (Click to select). e. Despite the falloff in sales at lululemon's stores, the company has remained profitable. But, clearly, work needs to be done to reverse the sales erosion per store. (Click to select) ) f. Free cash flows (Net cash provided by operating activities - Capital expenditures) at lululemon continue to decline - there is little cash flow internally. (Click to select)
