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Spin Zone / Re: Are you shopping at Target?
« on: April 27, 2016, 12:50:06 PM »That's a bit aggressive in terms of impact.
If Target loses, say $1b in revenue, that doesn't translate to $1b in the bottom line. They will have a corresponding drop in the Cost-of-Goods-Sold line. I've not looked at their financials in any detail, but the critical factor would be what their gross margin is, and in retail, that tends to be quite thin.
Exactly. However, the board/stockholders don't look kindly at even a small reduction in GM.