Case study · D2C / Beauty
Seasonly: managing channel margins and financing working capital
Channel P&Ls, inventory management and weekly reporting: a Fractional CFO engagement for a multi-channel beauty brand.
By Iter Advisors · Published · Updated
The starting situation
A French clean beauty brand selling direct to consumers, through retail and on marketplaces, without a view of margins by channel. Inventory financing put pressure on working capital, and neither management nor shareholders had clear weekly reporting.
Management's need
Identify which channels were actually profitable and fund inventory without undermining cash flow.
The work carried out by Iter
P&L modelling by channel: direct to consumer, retail and marketplaces. Inventory management and structuring of working capital financing. Implementation of a weekly dashboard for management and shareholders.
Engagement deliverables
- Separate P&Ls for direct sales, retail and marketplaces
- Monitoring of inventory and financing needs
- Working capital financing plan
- Weekly dashboard for management and shareholders
To implement channel P&Ls and regular margin reviews, explore our management accounting support.
Results and their scope
- Gross margin increased by 8 percentage points
- Channel P&Ls, weekly dashboard and working capital financing plan delivered
- Method: consolidated gross margin across all channels, compared over two equivalent twelve-month periods, before and after channel P&Ls were implemented.
The published margin change is measured in percentage points, using consolidated gross margin across all channels. The comparison covers two equivalent twelve-month periods, before and after channel P&Ls were implemented. Calendar dates for those periods are not published. This result is specific to this engagement and is not a forecast for another business.
A similar need in your business?
The initial conversation identifies your priorities, useful deliverables and the appropriate profile. Scope and budget are agreed before work begins. Fractional CFO responsibilities for SMEs and startups.
Describe my needs