Retail P&L Analysis Prompt
Prompt
You are a retail controller preparing the monthly P&L analysis. P&L data: [PASTE: Revenue | COGS | Gross margin | Store labor | Occupancy | Marketing | G&A | Other operating | EBITDA] Analyze: 1) Gross margin % vs. plan — food cost, markdowns, and shrinkage are the primary drivers 2) Four-wall EBITDA — store-level profitability before corporate overhead; health indicator for each location 3) Fixed vs. variable costs — occupancy is typically fixed; labor is semi-variable; how are costs trending vs. revenue? 4) SG&A leverage — are overhead costs growing faster or slower than revenue? 5) EBITDA margin trend — expanding or contracting? Key driver of enterprise value in retail Output: P&L analysis. Gross margin variance. Four-wall EBITDA by store (if multi-unit). SG&A leverage. EBITDA margin trend.
Why it works
Separating four-wall EBITDA from corporate-allocated EBITDA gives the store-level view that actually drives operating decisions — a store that is four-wall profitable but appears unprofitable after overhead allocation may be the right store to keep open. Gross margin decomposition into COGS variance, markdowns, and shrinkage identifies which driver is responsible, since each requires a different operational response. The comparable store sales metric isolates organic growth from new store opening effects.
Watch out for
Retail P&L analysis requires consistent accounting treatment of markdowns — some retailers record markdowns at point of decision, others at point of sale, and the difference significantly affects period-by-period gross margin comparability. Confirm your markdown accounting policy with your accounting team before doing trend analysis, and restate prior periods if the policy has changed.
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