Inventory –Initial inventory Units on shelf at beginning of season (1,919)

Inventory –Replenishment/total inventory Within the season (weeks 3-17 out of 20), an additional 3,573 units are received, based on reorders, totaling 5,492

Inventory –Average Inventory Shelf stock was 1230 units on average, during the season –Inventory Turns Total offering/ average inventory 5492/1230 = 4.47

Sales –96.5% of the units offered were sold during season –3.5% of goods will be liquidated at season’s end –84.9% of units sold at initial retail price (sell through)

In Stock –On the average, over the entire season, 97.3% of the SKU’s were in stock –Before 1 st markdown, in stock percentage was 99.8%

Lost Sales –Over the entire season, 2.1% of customers left empty-handed –Nearly all customers found an item to purchase up until the 1 st markdown (.0% lost sales)

Service Level –97% of customers found their first choice SKU in stock for the whole season –This is not a customer service variable

Revenues –$131,042 sales generated from customer sales –$1554 generated from liquidation (jobbing off) –Total revenue is $132,596 –Revenue/unit is $132,596/5,492 or $24.14

Costs –Wholesale cost of goods was $68,648 –Additional procurement costs were incurred Ordering, handling, shipping, carrying, overhead

Margins –Gross margin Total revenue (NS) – COGS –132,596 – 68,648 = 63,949 –GM/Sq. Foot Ratio of GM to sales floor space –63,049/1500 sq. ft. = $42.03

Margins –% Gross margin GM/NS (total revenue) –63949/132,596 = 48.2% –% of GM potential Potential is GM$ obtained if all units sold at initial retail

Margins –Adjusted GM GM – procurement costs –63,949 – 14,041 = 49,908

Margins –GMROI GM/Average Inventory $ at cost Average Inventory at cost = average inventory * unit cost –1,230 * $12.50 = $15,375 $63,949/$15,375 = 4.16 GMROI

Margins –GMROISL Since we were only in stock 97.3% of the time, GMROI is adjusted 4.16 *.973 = 4.05