MOM – Month-over-Month

What does MOM (Month-over-Month) signify in terms of analyzing business performance?

Month-over-Month (MOM) is a term used to describe the change in a specific metric or value as it compares from one month to the next. It provides a clear snapshot of short-term trends or performance variations over a 30-day period. In the realm of sneaker reselling, MOM analysis can be critical. For instance, a sneaker reseller might track sales, profits, or inventory levels on a MOM basis to understand the immediate impact of a new product launch, marketing campaign, or a seasonal trend. By comparing data in this way, sneaker resellers can get a sense of whether their business is growing, stagnating, or declining over a short time frame. To calculate the MOM percentage change, you subtract last month's figure from this month's figure, then divide the result by last month's figure, and finally multiply by 100. For example, if a reseller sold 50 pairs of sneakers in June and 60 pairs in July, the MOM growth in sales would be 20%. A positive MOM percentage indicates growth, while a negative one signals a decline. Using MOM metrics helps sneaker resellers make quicker business decisions, respond to market shifts, and adjust strategies in a timely manner. It's a way to keep a close eye on the pulse of their business, ensuring they're aware of any sudden changes that could affect their profitability or market position.