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Lululemon expects better margins to boost profit this year

Canadian retailer Lululemon Athletica Inc reported a higher-than-expected quarterly profit on Wednesday, helped by strong sales during the holiday shopping period. The company said it expected improved margins and sales to drive its earnings growth this year.

Lululemon, known for its upscale yoga-wear, said it planned to improve margins by reining in costs through a shift to ocean freight from air freight and planning orders better to ensure fewer cancellations.

It reported gross margin of 50.3 percent for the fourth quarter ended on 31 Jan., up from 46.9 percent in the previous quarter.

(Source: CNBC)