A merchant's guide to reading a public company earnings transcript. What to look for from each leader. How to gain valuable merchant intel on company and even apply to your category of responsibility. Mech/ Merchandise /Revenue/Gross Profit/Margin/Dollars/Data/Ecommerce/Omnichannel/Retail

1. How to Read Retail
Earnings Transcript
Joan Braatz
Vice President Merchandising

2. Earnings Transcript
W h a t a M e rc h a nt C a n L e a r n
• Financial Performance by QTR
• Corporate Strategic Priorities
• Capital Expenditures
• Industry Perspective
• Strategic Product Launches
• Analyst Inquiry
2

3. Opening Remarks from CEO
• Introduction to high level performance metrics
o Net Sales + Comp Store Sales
o Operating Profit
o EPS (earnings per share)
• Discussion of headwinds or tailwinds from marketplace/pandemic
• Introduction of new senior leaders within organization
• Business update on company strategic priorities

4. FR
Update from President / Chief Merchant
A f te r C EO o p e n in g state m e nt s
Deep Dive into Performance
• Explanation of KPI’s tied to strategy
oTop performing categories
oNoteworthy brand highlights
oNew customer acquisition
• E-commerce + omnichannel
• Loyalty programs
Merchandise Strategies
• New customer acquisition
• Sustainability + Wellness programs
• Promotional campaigns
• Private and proprietary brand growth
• Merchandise margin improvement
• Inventory management
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5. FR
CFO / EVP Store Op’s
A f te r P re si d e nt / C h i ef Me rc h a nt
• Expand on KPI reporting
oSG&A
oTax rates
oGAAP earnings
oCash & Cash equivalents
• Cap Ex spending updates
• Report store opening/closure/remodel
• Reinforce Strategic Priorities
• Provide updates on technology
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6. Questions & Answers
A n a l yst s

7. FR
What you can learn
Q u e sti on s fro m a n a l yst s
• Inquiries on KPI’s that require further
explanation (usually margin)
• Inventory levels
• Customer segmentation
• Omni-channel efforts
• Recovery in stores
• Macro trends in market
• Categories underperforming
• Expectations for future QTR
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8. Merchant Intel
B e st P ra ct i ce s f ro m key l e a r n i ngs
• Track corporate strategic priorities
• Monitor under & over performing categories
• Note merchandise callouts
• Study new brand launches
• Investigate new store ideas
• Examine promotional campaigns + pricing
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9. Thank You.
Joan Braatz, Vice President Merchandising
braatzjoan@gmail.com
www.joanbraatz.com
214-733-9677