“Once I went to Europe for a period of time, and turn rates had dropped from 8.3 to 5-something, and yet my buyers had bought $4 million in inventory.”
Upon returning, Kelly says he looked at his open-to-buy and then told his buyers to cancel every order by the end of the next day. Meeting with vendors, the buyers did.
“[The buyers] had to swallow a big pill,” says Kelly. “But in my case, I paid off three-quarters of a million dollars in debt at the end of Christmas, having over $3.5 million in the bank, and at that time, prime [interest] was 21 percent.”