BTC gross margin
- Gross margin down 80bps
- 260bps impact of lower prices
- Pricing and promotions
- LPYL impact 150bps
- 180bps recovered through better buying, manufacturing efficiencies and mix
Notes
Gross margin was down 80 basis points in the year.
Lower prices and the promotional programme reduced gross margin in the year by 260 basis points. Within this, the effect of Lower Prices You’ll Love was 150 basis points.
The effect of the lower prices was offset by improved sourcing and sales mix including new product launches. Manufacturing efficiencies contributed to lowering the cost of own goods and include benefits achieved by the Getting in Shape programme.
