Lululemon’s Huge 72% EPS Growth in Q1 2018
As we saw in the previous part of this series, Lululemon Athletica (LULU) had a healthy top-line growth in the first quarter, driven by an impressive increase in comps. Its gross margin improved 370 basis points to 53.1% of sales during the quarter. Behind this improvement was a 120-basis-point increase in product margins, driven by a favorable product mix, a fall in product costs, and lower markdowns compared to Q1 2017.