The fact that its products are proprietary along with its strong brand reputation allows lululemon to sell at very lucrative margins. Its gross margin of 56% equates to a markup over costs of 127%!
It now has 784 company-operated stores in 23 countries. The locations of the stores are 50% in the US, 20% China, 9% Canada, 15% in Asia Pacific, and 6% in Europe and the Middle East. Close to half of its revenue is now derived from online direct-to-consumer sales.