Comparable Store Sales
Categories: Metrics, Company Valuation, Investing, Managed Funds
Comparable store sales reports use a previous store's sales report to project future store sales figures of the same store. “We did this then, so we should do it again.”
And this metric is a biggie for Wall Street People who track and invest in retail stores. The yarn runs something like: “Store A had a sales total of $100,000 last month, so we project that Store A will achieve a sales total of $102,000 next month, as it continues its up-two-percent-a-month pattern.”
For that reason, comparable store sales is also called same store sales. It can also be used to project sales figures from store to store within a franchise, or in chain stores situations.
Cookie cutter establishments in similar circumstances produce, well...the same number of cookies. What else would you expect?