Comps

AAA

DEFINITION of 'Comps'

A buzzword that refers to a retail firm's comparable same-store sales. Comps compare the degree of revenue growth/decline that a firm's stores achieve relative to their sales in previous years. Sales numbers from stores that have been operating for more than a full year are used in the comparison.

The metric can be used by investors to help determine what portion of new sales has come from sales growth and what portion from the opening of new stores. Comps are usually released by companies on a monthly basis.

Also known as "comparable same-store sales."

INVESTOPEDIA EXPLAINS 'Comps'

For example, if XYZ Corp.'s comps for May 2007 are up 10%, this means that each of XYZ's stores, on average, earned 10% more revenue than during May 2006.

Analysts typically like to hear that a firm's comps are rising each period, because this is a good indication that the firm's consumers are willing to pay more for goods compared to the previous period and/or to come to the store more often (and spend more or less the same amount). The key is that the firm is seeing an increase in revenue without resorting to opening new stores.

RELATED TERMS
  1. Door Crasher

    A low-priced item of limited quantity typically offered on special, ...
  2. Comparable Store Sales

    The amount of revenue a retail location generated in the most ...
  3. Market Cannibalization

    The negative impact of a company's new product on the sales performance ...
  4. Net Sales

    The amount of sales generated by a company after the deduction ...
  5. Sales Per Share

    A ratio that computes the total revenue earned per share over ...
  6. Same-Store Sales

    A statistic used in retail industry analysis that compares the ...
Related Articles
  1. Choosing The Winners In The Click-And-Mortar ...
    Investing

    Choosing The Winners In The Click-And-Mortar ...

  2. Consumer Spending As A Market Indicator
    Markets

    Consumer Spending As A Market Indicator

  3. How To Use Price-To-Sales Ratios To ...
    Markets

    How To Use Price-To-Sales Ratios To ...

  4. Analyzing Retail Stocks
    Fundamental Analysis

    Analyzing Retail Stocks

comments powered by Disqus
Hot Definitions
  1. Letter Of Credit

    A letter from a bank guaranteeing that a buyer's payment to a seller will be received on time and for the correct amount. ...
  2. Due Diligence - DD

    1. An investigation or audit of a potential investment. Due diligence serves to confirm all material facts in regards to ...
  3. Certificate Of Deposit - CD

    A savings certificate entitling the bearer to receive interest. A CD bears a maturity date, a specified fixed interest rate ...
  4. Days Sales Of Inventory - DSI

    A financial measure of a company's performance that gives investors an idea of how long it takes a company to turn its inventory ...
  5. Accounts Payable - AP

    An accounting entry that represents an entity's obligation to pay off a short-term debt to its creditors. The accounts payable ...
  6. Ratio Analysis

    Quantitative analysis of information contained in a company’s financial statements. Ratio analysis is based on line items ...
Trading Center