Product Name: Gilly Hicks Active Recharge Under-Bust Long Sleeve Top

Colors available: petal pink, cloud white, black , navy , dark mauve, shadow green , dark grey

Which colors are similar to the Pantone Fall/Winter colors:
The White Swan (Cloud White) is close to Pantone 12-0000 TCX White Swan, a soft, downy white full of grace. 

Fiber content:
90% nylon, 10% spandex

Washing instructions:
Machine wash cold with like colors, gentle cycle, do not bleach, tumble dry low, cool iron if needed.

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1. Regular Price: $34.95

   • Current Promotional Price: $29.00 (on sale this week)

2. Colors:

   • Cloud White

   • Black

   • Navy

   • Dark Mauve

   • Shadow Green

   • Petal Pink

     
     

3. Size Availability:

   • Cloud White: Available in XXS, XS, S, M, L, XL, XXL

   • Petal Pink: Sizes L and XL are unavailable (likely sold out)

Narrative for Your Report:

• Promotional Pricing: This week, the product is being offered at a discounted price of $29.00, down from the regular price of $34.95. This could be an effort to boost sales and clear out inventory as the product may be reaching the end of its seasonal run.

• Color Consistency: All colors are available at the same price point, with no specific color being promoted more than others. This could suggest that Hollister is maintaining uniform pricing to avoid favoring one color over another.

• Size Availability: In the Petal Pink color, sizes L and XL are unavailable, which could indicate higher demand for these sizes. The lack of restocking for these sizes may lead to potential lost sales if the demand for these sizes persists and they are not replenished.

References:

• Abercrombie & Fitch Co. (2024). Abercrombie & Fitch Co. reports second quarter 2024 results. Yahoo Finance. Retrieved from https://finance.yahoo.com/news/abercrombie-fitch-co-reports-second-113000634.html

• Smith, J. (2024). Abercrombie shares plunge as CEO warns of uncertainty. New York Post. Retrieved from https://nypost.com/2024/08/28/business/abercrombie-shares-plunge-16-as-ceo-warns-of-increasingly-uncertain-environment/

• Weekly Price Update: The Gilly Hicks Active Recharge Under-Bust Long Sleeve Top has maintained a consistent price of $29 over the past two weeks. Monitoring this stability suggests that Hollister may aim to position this product as a standard item rather than a promotional one, which could reinforce its perceived value.

• Color Promotion and Stock:

  • Petal Pink: Continues to be out of stock in XL, which indicates high demand for larger sizes in this color.

  • Shadow Green: Stock levels are low, suggesting it’s also gaining popularity.

  • Other Colors: All sizes remain available, showing a steadier demand compared to Petal Pink and Shadow Green.

  Tracking color availability helps us understand which shades are most popular and could guide future inventory decisions. If specific colors, like Petal Pink, frequently sell out in popular sizes without being replenished quickly, this may lead to “Lost Sales,” which impacts revenue.

Data Analysis and Metrics

1. Skeletal P&L:

   • Gross Sales: Reflects total revenue before deductions.

   • Net Sales: Gross Sales - Returns/Allowances.

   • Gross Margin: Calculated as (Net Sales - Cost of Goods Sold) / Net Sales. This indicates the profit percentage after covering the cost of the merchandise.

   • Operating Profit: (Gross Margin - Operating Expenses). Shows the remaining profit after all expenses, helping assess overall profitability.

2. In-Store Metrics:

   • Dollars per Square Foot: Calculated by dividing Net Sales by total net selling square footage. This metric helps evaluate the efficiency of physical retail space usage. In this case, it’s $13.89 per sq ft, showing the profitability of the floor space dedicated to this product.

3. Digital Metrics:

   • Conversion Rate: Orders Placed / Sessions. Indicates the percentage of visitors who make a purchase, currently 3.61%.

   • Bounce Rate: Bounces / Sessions, currently 37.78%, shows how many visitors leave without interacting further.

   • Abandoned Cart Rate: Carts Abandoned / Total Carts Filled, which is 43.75%. This rate suggests potential barriers in the checkout process that could be affecting sales.

Explanation of Results

The metrics provide a full picture of product performance across channels. The Skeletal P&L highlights the product’s profitability, while in-store metrics like Dollars per Square Foot demonstrate the value of physical space. Digital metrics show engagement and potential areas to improve, such as reducing the abandoned cart rate. Together, these insights guide strategic decisions for pricing, inventory, and promotional efforts.

During the seven-week period, the product started at $29.00 without markdowns in weeks 1, 2, and 5. Sales were strong, especially in week 2, with 420 units sold, generating $12,180. In weeks 3, 4, 6, and 7, markdowns of 25-30% were introduced, dropping the price to $20.30 in the last weeks. These promotions helped move inventory, bringing total net sales to $45,588 with a markdown rate of 12.7%. The average retail achieved was $25.33, resulting in a maintained markup of 30.6%. Overall, the markdowns effectively boosted sales and helped manage stock while maintaining a decent margin.