Outsourcing is precisely what enables that type of margin. Why do you think everybody does it? Wages in China or Guatemala vs. the U.S. C'mon! GO LYJN!
I disagree with your outlook on the profit margin. I am quite certain that LYJN made a large potload of money off its Wal-Mart and Claires' sales. Why LYJN keeps that a secret is the disturbing part of the equation to me.