Higher SG&A Costs Hitting Retailers


It’s time for retailers to trim payroll, turn the lights down and eliminate supply-chain inefficiencies.

Retailers are getting pummeled by higher selling, general and administrative costs, according to an analysis by WWD of publicly traded mass, off-price and specialty apparel companies. Of the 33 retailers analyzed, 18 posted higher SG&A-to-sales ratios in the most recent quarter over the prior year. By channel, 10 of those companies were specialty retailers such as Abercrombie & Fitch, New York & Company Inc., Urban Outfitters and Pacific Sunwear of California Inc.

Within the 18 retailers that showed higher SG&A to sales costs, nine posted changes of more than 100 basis points, which is a red flag to investors who prefer not to see triple-digit changes. More tolerable increases would be between 10 and 50 basis points.

SG&A line items include things such as employee payroll and pensions as well as commissions. Other items include…

View original post 615 mots de plus


Laisser un commentaire

Choisissez une méthode de connexion pour poster votre commentaire:

Logo WordPress.com

Vous commentez à l'aide de votre compte WordPress.com. Déconnexion /  Changer )

Photo Google+

Vous commentez à l'aide de votre compte Google+. Déconnexion /  Changer )

Image Twitter

Vous commentez à l'aide de votre compte Twitter. Déconnexion /  Changer )

Photo Facebook

Vous commentez à l'aide de votre compte Facebook. Déconnexion /  Changer )


Connexion à %s