Merchandising
The inventory turnover ratio measures how many times a business sells and replaces its stock in a year. You calculate it by dividing cost of goods sold by average inventory at cost. For apparel, a higher inventory turnover ratio usually means fresher product, fewer markdowns, and less cash tied up…
Sell-through rate is the share of inventory you actually sold during a set period. For example, if you received 1,000 units of a jacket and sold 600 by the end of the season, your sell-through rate is 60%. Most fashion brands aim for 60–80% over a season. Below 50%, a…
