June 14, 2017

Gross Margin Comps

A business can handle negative top-line comps if gross margin dollars are increasing. Here's the comp segment table for our business.


Gross margin comps look better than top-line sales/demand comps look ... but the last five months demonstrate a 4% - 5% drop in gross margin comps. This business is struggling due to merchandising strategy changes (and marketing problems with new + reactivated buyers - problems independent of merchandising strategy changes).

You are running these simple diagnostics on your business, right?


-

No comments:

Post a Comment

Note: Only a member of this blog may post a comment.

Subscribe to: Post Comments (Atom)

Please Read This

You are capable of excellence like this ( click here ).  Notice that the stuff that adds up to excellence here is largely tactical ... but a...

  • The MineThatData E-Mail Analytics And Data Mining Challenge
    It is time to find a few smart individuals in the world of e-mail analytics and data mining! And honestly, what follows is a dataset that y...
  • An Example
    Say you manage a paid search program. Last month you spent $100,000 and the following happened. Cost = $100,000. Clicks = 200,000. Co...
  • Profit
    Two weeks ago I ran a poll on Twitter, asking if users calculated the profitability of their marketing efforts. 32% said "no"...