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can you help me rephrase this - AEO conducts periodic reviews of its inventory to pinpoint items that are not selling well and typically employs
can you help me rephrase this - AEO conducts periodic reviews of its inventory to pinpoint items that are not selling well and typically employs price reductions to clear these products. The company sets aside a markdown reserve to account for anticipated future price reductions on existing inventory. Additional markdowns might be necessary if inventory levels surpass customer demand due to RUNNING HEAD: INDUSTRY AND BUSINESS STRUCTURE 7 factors such as style, seasonal shifts, consumer preferences, competition, or poor market reception, which could affect earnings. Furthermore, AEO calculates a reserve for inventory shrinkage, which covers expected losses from the last physical inventory count to the date of the balance sheet, using historical loss rates
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