Aug. 27 at 11:53 AM
$LESL Here is why it makes sense that management is being honest on their plan not to close stores:
Caveat: Could they close ~20 stores? yes, probably
using 2024 10K numbers and 1000 store fronts
1. At
$1.3B in revenue each store brings in
$1.3M/store
2. SG&A was ~
$420M at a high estimate of 70% for store related expenses which include
payroll, rent, utilities, depreciation etc) comes in at ~
$300M
Cost of Merch an Serv sold:
$853M
at 10% for cost of goods sold, store rent, utilities, taxes is
$85M
Depreciation at
$33M so at an estimated 60% is
$20M
so 85+20M is 105M
300+105 = 405M
There for each store cost on average about
$405K
3. with 1.3M in revenue - 400K in cost leaves about
$900K in Margin per store (about 70%)
