Inflationary factors such as increases in the cost of our product and overhead costs may adversely affect our operating results. In fiscal 2014 , our effective tax rate was 37. This is the break-even point, i. This is possible because of the alternatives that are available to them in the market. Footwear and accessories are a good option for the company. The higher the disposable income, the more will be the consumer spend and vice versa. The lack of preparedness was evident from the fact that the company had no planned way of responding to media queries in the time of crisis.
We are also required to pay a quarterly commitment fee of 10 basis points on the unused portion of the facility. Hence the first-name basis, hence asking about the needs. In other words, Lululemon has big plans for China. The financial situation of the company is recognized with the help of these ratios. New store openings in fiscal 2013 included three stores in Canada, including one ivivva branded store, 36 stores in the United States, including three ivivva branded stores, two stores in Australia, and two stores in New Zealand; and Direct to Consumer. The investor, himself, was interested in short selling his Lululemon shares. The 2007 to 2013 tax years remain subject to examination by Canadian tax authorities.
Their website has become a high traffic destination for clients worldwide. The social media channel has just reached and is great for branding and impulsive decisions. In the ordinary course of business, we are involved in legal proceedings regarding contractual and employment relationships and a variety of other matters. The following discussion and analysis should be read in conjunction with our consolidated financial statements and the related notes included elsewhere in this Annual Report on Form 10-K. All forward-looking statements in this report are made as of the date hereof, based on information available to us as of the date hereof, and we assume no obligation to update any forward-looking statement. Our products also include silver and natural fibers, including cotton. But that would move them away from their core branding decisions and those are sacred.
After using the vendor, lululemon increased attendance to local events by 25%, grew revenue from marketing campaigns by 10% to 15% and increased site visits by 50%. We use our best estimates and judgment based on available evidence in conducting the impairment testing. To ensure adequate inventory supply, we must forecast inventory needs and place orders with our manufacturers based on our estimates of future demand for particular products. We believe our distribution infrastructure will be sufficient to accommodate our expected store growth and expanded product offerings over the next several years. Some Lululemon stores have a blackboard where customers can leave suggestions or they share it with the staff. Selling, general and administrative expenses consist of all operating costs not otherwise included in cost of goods sold. The assumptions used to calculate the fair value of options granted are evaluated and revised, as necessary, to reflect market conditions and the Company's historical experience.
The company even focused on men Warnica, 2013. Advances in computer capabilities, new technological discoveries or other developments may result in the technology used by us to protect transaction or other data being breached or compromised. The VitaSea crisis This crisis the company faced in 2007, amply demonstrated how the absence of a proper risk management plan can affect a company. The continued turnover of senior management and the loss of key members of our executive team could have a negative impact on our ability to manage and grow our business effectively. Our team is comprised of dedicated athletes and users of our products who embody our design philosophy and dedication to premium quality.
Sinceshe and her family have recently relocated to Chicago, Bethany stays in contact withher family and friends in her native Lafayette, La. In connection with our expansion efforts we may encounter obstacles we did not face in North America, including cultural and linguistic differences, differences in regulatory environments, labor practices and market practices, difficulties in keeping abreast of market, business and technical developments and foreign guests' tastes and preferences. The special voting stock and the registrant's common stock generally vote together as a single class on all matters on which the common stock is entitled to vote. Going narrow also means eliminating a broader segment of the market. The decrease in income from operations was a result of an increase in selling, general and administration expenses, relative to the increase in net revenue, partially offset by an increase in gross margin.
Hence the photos are high quality, professional and highlighting the design features — perfect for saving them in a lookbook for the next Lululemon haul. Amazing idea, but the execution is even better. It promoted the therapeutic effects of VitaSea without testing the validity of its claim independently. As a result, our current and future competitors are able to manufacture and sell products with performance characteristics, fabrics and styling similar to our products. We periodically review our inventories and make provisions as necessary to appropriately value obsolete and damaged goods. We continue to employ our other segment strategy to increase interest in our product in markets we have not otherwise entered with corporate-owned stores. The program promotes brand visibility through the community.
Borrowings under the uncommitted credit facilities are made on a when-and-as-needed basis at the discretion of the Company. Diluted earnings per share is calculated by dividing net income available to common stockholders for the period by the diluted weighted-average number of common shares outstanding during the period. This will widen its consumer base, including younger females. As a reminder, Lululemon has a very healthy margin profit on clothes. We purchased the Columbus, Ohio distribution center in fiscal 2013 and it commenced operations during fiscal 2014. As you are going to find out, Lululemon took branding extremely seriously. In select markets, the company is offering a range of benefits for a fixed annual fee.
And if you solve email, you have a permanent communication with your customer Looking at Lululemon, their emails are nothing special. Please note that additional risks not presently known to us or that we currently deem immaterial could also impair our business and operations. Rather than customizing the products for local markets, the company reaches the customers by applying the theme of positivity and fitness. We have indemnification agreements with certain of our current and former officers and directors that may require us, among other things, to indemnify such current or former officers and directors against certain liabilities that may arise by reason of their status or service as directors or officers and to advance their expenses incurred as a result of any proceeding against them as to which they could be indemnified. Comparable store sales have decreased, primarily as the result of lower conversion rates and lower units purchased per transaction. Even when you are shopping at a lululemon store the salesperson would be interested in talking about yoga rather than just focusing on selling the product. That should keep earnings growing faster than revenue.
In the results we found that 43percent of our respondents had heard of the brand lululemon. Successful infringement claims against us could result in significant monetary liability or prevent us from selling some of our products. Our competitors may be able to achieve and maintain brand awareness and market share more quickly and effectively than we can. Further, the Company may not be able to obtain adequate insurance to protect it from these types of litigation matters or extraordinary business losses. A formalised agreement uniting all the channels would ensure less conflict between all parties. Confirms VitaSea Fabric Contents and Testing Process. Our business is subject to significant pressure on pricing and costs caused by many factors, including intense competition, constrained sourcing capacity and related inflationary pressure, pressure from consumers to reduce the prices we charge for our products and changes in consumer demand.