Comparable store sales, or " atore ," are also referred to as " same-store sales " or "identical-store sales. However, this information will be useless if it store sale alone used as a salr number. To make any sense of this figure, an analyst will compare it to sales generated over the previous quarter of the same accounting year or check this out previous accounting year.
If comparable store sales are up from a previous period, it is a sign that the retail company is moving in the right direction. An increase store sale alone of childrens clothing range store sales could be interpreted to mean that the retailer is effective in retaining store sale alone customers and might be better off focusing qlone its existing locations and worrying less about expansion.
Sustained negative same-store sales over several quarters or even years may be an indicator that the retailer is in trouble. Comparable store sales store sale alone typically expressed as a percentage of an increase or decrease in revenue. This example shows how you store sale alone calculate the change in comparable store sales from one year to the previous year.
By comparing sales across different periods, company management and investors can determine how well a retail store is doing. A negative number shows declining same-store sales, while a positive number shows increasing same-store stpre. Negative or positive same-store sales might be due to increasing store sale alone falling prices or a change in the number of customers who frequent the stores.
Dale for Fundamental Analysis, store sale alone. Your Money. Personal Finance. Your Practice. Popular Courses. What Are Comparable Store Sales? Analysts use comparable store sales as a measure of sales growth to evaluate how established stores have performed over time compared to new stores. A negative comparative store sales number shows a company's sales store sale alone declining, store sale alone a positive number shows store sale alone are increasing.
Find the net sales figures for each of the years and Subtract any revenue related to stores closed during store sale alone past two years from the net sales earned in Revenue related to stores closed during the past two years should also be subtracted from revenue.
Subtract any revenue sleepy clothing sale to stores opened during the past two years from the total revenue generated in to arrive at the store sale alone comparable store sales for Like 3 above, revenue related to stores opened during the past two years should be subtracted from revenue to arrive at the total comparable store sales for Subtract total comparable store sales in from total comparable store sales in This is the absolute dollar change in same-store revenues, which may be negative or positive.
Finally, divide the absolute dollar change in comparable store sales by the alnoe comparable store revenues in This amount, expressed as a percentage, shows the change in comparable store sales. Compare Accounts. The offers that appear in this table are from partnerships from which Investopedia receives compensation. Store sale alone Terms Same-Store Sales Same-store sales measures the sales of a company's existing stores that have operated for more than store sale alone year, excluding sales of new stores.
Like-for-Like Sales Like-for-like sales shows the growth or decline of established stores or products with similar characteristics and historical sales periods of operation. Comps Definition "Comps" refers to the comparison of similar businesses, sales, or properties to quantify performance or value, such as comparing a retailer's single-store sales to those of a comparable store, or a home to similar homes.
Sequential Growth Sequential growth is the measure of a company's financial performance in a recent period compared to those of the period immediately preceding it. Partner Links. Related Articles. Top Stocks Starbucks vs. Financial Analysis How do operating income and revenue differ? Fundamental Analysis Analyzing Retail Stocks.