The Inventory Write-Down

Finance will record a $4.2 million inventory write-down this quarter. The bulk relates to last year's seasonal line that did not clear shelves at projected pace.

The adjustment will appear on the income statement under cost of goods sold. Our adjusted margins will drop 140 basis points for the reporting period.

The CFO has scripted investor talking points emphasizing the issue is contained and does not recur. Auditors reviewed and accepted our methodology without modification.

Operations is tightening forecasting: a new weekly demand-planning cadence, a rolling 12-week forecast, and tighter purchase order discipline across categories.