Profits and Markups in the Fashion Industry

Buying clothes is fun, but there is a lot more to it than meets the eye.  What about the effects it has on retailers before and after discounts.  Do retailers make profits when you have a discount to that certain product?  I found it interesting in this article the basic costing formula for ready to wear apparel which is total of all raw materials x 2 equals wholesale price and wholesale price x 2 equals suggested retail price.  You always need to provide the suggested retail price because this gives all of your retailers the same opportunity to sell the goods at the same price. It puts all of your customers on a fair playing field so that no one undercuts another.  Sometimes retailers make a profit yet it's not a healthy profit margin.  It's really interesting how finance comes into fashion and clothing.  I always thought buying clothes was just like it sounds, yet there is a lot of things happening behind the scenes which makes it possible for us to even buy their products.

What's the best way retailers can achieve a healthy profit margin?