Non-GAAP diluted EPS increased 39.1% year-over-year to $4.55Īdjusted EBITDA increased 35.7% year-over-year to $312 million Net income of $199 million and net income per diluted share of $3.69, year-over-year increases of 71.6% and 70.8%, respectively In this case, we estimated this retailer could increase revenue by 5%.or $3.1 million in sales, with $2 million in margin.īy providing a centralized, data-driven markdown structure, we can free harried merchandisers like yourself to devote more time to your most important role-looking ahead at next season and choosing attractive new merchandise that ideally never appears on the clearance rack at all.Net sales of $1,436 million year-over-year increase of 26.9% While any vendor is quick to throw together a demo or pilot, what we at Zebra/antuit.ai do for retailers is demonstrate how to increase strategic control of pricing decisions-creating far more green dots than blue-to easily win over any skeptical CFO. What might all those benefits be worth-ROI as well as better allocation of resources? Would we be more confident in decisions and results when we’re stuck in an overstock situation, and need a clear and quick path out of it? Would we feel better that we’re not just slashing everything when trying to exit the season? What if we could get a better grasp of what those items are and be more knowledgeable as we’re making changes? What if we could stop taking discounts that aren’t moving inventory? What would be the advantages of eliminating a significant percentage of the blues? When we can simplify these numbers visually, we can help lay the groundwork for a compelling business case and answer commonly asked qualifying questions: Those stray blue dots at the far reaches of the chart may as well have been determined by a dart board. They’re reliant upon inadequate tools-piecing together sell-through rates and price adjustments via cumbersome spreadsheets-without the benefit of real data to guide their decisions. Even those who don’t consider this the “least glamorous” part of their job aren’t born number-crunchers. How do so many of the dots wind up in the triangles? Particularly among fashion retailers, markdowns are left to various individual buyers and merchandisers. Both resulted in direct losses of net revenue. These represent markdowns that either weren’t attractive enough to accelerate slow-selling items or unnecessarily deep discounts that ate away at margins. The particularly troubling aspect of this chart is the number of dots that trend within the red triangles. Hypothetically, markdowns shouldn’t stray too far from a diagonal trendline-discounts should not be unnecessarily too low, nor too steep, to spur optimized sell-through. Every green dot represents a single markdown-priced item. This first chart illustrates the correlation between markdowns and sell-through in a “perfect world” scenario. We worked from a data set of the company’s actual markdown history over the course of a year-over 12,700 items spanning seven departments, totaling $63 million in markdown sales. We can help support a compelling business case by presenting the data visually, as we did for the women’s wear division of a large North American retailer. Phil, the crucial first step to finding help is acknowledging you need help.īut when those point people in turn make their case internally for adopting our solutions, others within the company may need a bit more convincing-namely the CFO or other senior management, who tend to pre-judge every new idea strictly in terms of short-term return on investment (ROI). But without a unified, data-driven markdown strategy, they’re often the first to concede their haphazard, decentralized markdowns are “a mess.” They’re eternally striving for that ideal markdown “sweet spot” for every SKU, accelerating sell-through while preserving-if not squandering-margin. When retailers come to us to look at our AI-driven lifecycle pricing solutions, the first people we talk with-the “point people” responsible for overseeing pricing decisions-are usually quick to grasp the real benefits.
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