Glossary
Sell-through rate
The share of the stock you had that sold in a period: units sold divided by the units you started with plus the units received.
Formula
Sell-through rate = units sold ÷ (opening stock + units received) × 100
Worked example
A jacket starts the month with 120 units and receives 80 more. It sells 90. Its sell-through for the month is 90 ÷ (120 + 80) = 45%.
In fashion, footwear and sportswear
Read it by size as well as by style. A style at 45% can hide M and L at 80% and XS at 10%, which is a reorder and a markdown in the same line.
Where it misleads
Count units net of returns, or a style that comes back a lot looks like a winner. Compare like with like: a line in its third week and a line in its twelfth will never match.