Bad Performance Had Shown Downgrading Sales - ELASTICITY

The Padini Concept Store ( PCS ) recently showed a bad performance compared with recent past years. They were expecting a better performance due to later on Chinese New Year that fell on 10 Feb 2013 as compared to 23 January last year. PCS earnings fall by consequently downgrading their stocks to sell them with a lower price. They have used a bad strategy in lowering down prices. By using promotioning skills to attract their customers, this shows an increase in elastic demand strategy to get a better revenue. 

Driven by an additional three Padini Concept Stores and four Brands Outlet stores, revenue has been added to their sales forecast and their full-year revenue would be below the original revenue forecast of PCS. Gross profit margin contracted partially due to the noticeable shift in consumer preferences towards its cheaper Brands Outlet.
 After slowing down the opening of new Brands Outlet, they note that the gurney paragon in Penang are very convenient from its existing store in Plaza Gurney.

Next, they lowered their gross profit margin assumption as well as revising down their revenue by 5 % across the brands outlets.

Resources: http://www.investopedia.com/terms/e/elasticity.asp
                     http://www.investopedia.com/university/economics/economics4.asp