hey guys
I have a grill about net income and gross profit.
How gross income and net return are likely to be affected when a company add a new line beside their traditional silhouette?

Not a tax inconceivable.

But to answer your question, it could go either way. Merely adding a product course does not assure success of the line or an improvement of net profit. If Microsoft came out with a cortege of perfumes, it would probably fail miserably.

Bostonian In MO | Sep 12, 2008

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NEW YORK — Aeropostale Inc. said Thursday that its fourth-ninety days net income sank by two-thirds as its expenses rose, while its revenue floor.

The teen clothing and accessories seller, which is based in New York, announced a weaker foresight for the current quarter weaker than analysts had expected. Its stock hew down after hours.

Aeropostale's net income fell to $26.1 million, or 32 cents per ration, for the period that ended Jan. 28. That was down from $83.8 million, or 95 cents per allotment, a year earlier.

The money the company spent to buy, transport and supplies its clothes increased 13 percent to consume more than three-fourths of its returns, compared with 65 percent a year earlier. It also said sales at stores activate at least a year, a key indicator because it excludes the short-term impacts of stores foothold or closing, fell 9 percent for the quarter.

Its revenue fell 4 percent to $808.4 million.

Excluding one-chance items such as a $9.

Source: CBS News

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