Unlike some of the brands that are improving their profits with price increase, others are reporting losses from heavy discounts. The latest in that line up:
- Sears reported 55% drop in profit and almost 10% drop in revenue from heavy discounting
- Limited Brands reported almost 90% drop in profits and 8.7% drop in revenues, once again due to gross margin erosion from huge markdowns.
It is probably time to start a list of those who are showing profit increase from price increase and those who are losing profit from discounting.