When you clear a product you provide a certain amount per unit to protect retail margin, so halving the price likely means this was 50$ per unit that SPA had to contribute. These claims (along with faulty stock) are claimed after the sale is complete, so the retailer can accurately claim the correct number of units.
if SPA had say 5000 watches in the system, that could be 250K US for the clearance not to mention cost of returns. This would have come due recently.
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