Retail returns: the sale that has to stay sold
Target, Ulta and Nike show why expected refunds, returned inventory and the cost of keeping a sale need separate tests.
Articles About NIKE (NKE - NYSE) Stock
Inventory write-downs reduce profit. They do not release cash.
A lower inventory value can arrive before any goods are sold. Nike, Gap and lululemon filings help separate the accounting charge from cash collection.
Nike’s direct sales fell. What does the checkout choice cost?
Nike’s direct and wholesale sales moved at different speeds. Its accounts, alongside DICK’S and lululemon, show why choosing a channel does not settle the margin question.
Retail profit is not cash: three different tests in Walmart, Nike and Target’s accounts
Walmart’s investment bill, Nike’s working capital and Target’s supplier balances show why profit, operating cash and cash after investment answer different questions.
A 50% markup is a 33⅓% margin. The discount changes both.
The difference between markup and gross margin starts with the denominator. A small worked example shows why a discount can cut gross profit much faster than sales.