Replies to post #105308 on Savvy Trades and Investments

[rado]

I don't know what it means. I've never heard that language before.

I would have guessed they could be buying more inventory as a just in case, but I don't see how going from high inventory to low inventory would hurt gross margins. I would think the opposite.

I saw that their inventory was rising the last few years. Maybe they were not selling their inventory unless they got a good margin on it, worried that if they sold the inventory, then they couldn't buy new inventory because of supply chain shortages. Now that the supply chain shortages seem to be improving they want to sell their higher levels of inventory down, but they won't be getting great margins on those sales because they are selling alot into the market.