RE:A Statistical Outlook for Q1 of 2023 At cost with an average 53% gross margin, the $138 million in Finished goods Inventory entering Q2 of
2023 can supply nearly $300 million in Retail sales.
Q2 sales were $205 million in 2022, so there would still be sufficient Inventory entering Q3 of 2023 to cover $100 million in Q3 sales.
So, by judicious inventory curation, Management have lots of room to vary the amount of new Inventory that needs to be produced each quarter......a few million lower means higher gross margins and a few millions more for earnings for that quarter.
This is how Q2 and Q3 are so profitable whereas lots of costs are dumped into Q4 making Q4 a much poorer quarter .