The document provides definitions and formulas for key retail math terms used in open-to-buy planning including net sales, gross margin, markdown, sales percentage change from last year, open-to-buy, stock-to-sales ratio, cost of goods sold, turnover, initial markup percentage, and average stock. It is authored by Joan Braatz, Vice President of Merchandising, and includes her contact information.

1. Retail Math 101
for Open to Buy
Joan Braatz
Vice President Merchandising

2. NET SALES =
GROSS SALES
- RETURNS

3. = GROSS MARGIN
NET SALES
- COGS

4. MARKDOWN =
ORIGINAL RETAIL
- DISCOUNT RETAIL

5. = SALES +/- %
TY SALES – LY SALES
LY SALES
x100

6. OTB =
PLAN PURCHASE
- ON ORDER

7. = SS RATIO
RETAIL STOCK
NET SALES

8. COGS =
+ BILLED COST
+ TRANSPORTATION
+ WORKROOM
– CASH DISCOUNT

9. = TURNOVER
NET SALES
AVG STOCK

10. IMU% = RETAIL - COST
RETAIL

11. = AVG STOCK
SUM BOM+EOM
# OF MONTHS

12. Thank You
12
3
Reach Me
Joan Braatz
Vice President Merchandising
Retail | B2C | B2B
braatzjoan@gmail.com
214-733-9677
https://www.linkedin.com/in/joanbraatz/
https://joanbraatz.com/