Posted on 11/23/2021 10:54:55 AM PST by blam
Liberal socialist utopias such as California are a blessing for deadbeat klepto hobos from around the world thanks to the state’s lack of prosecution of shoplifting, but the same policies are becoming a major headache for nationwide retailers such as Best Buy which this morning reported that despite beating on the top and bottom line (revenues of $11.9 billion vs expectations of $11.7BN, EPS of $2.08, beating est of $1.96), its margins missed, echoing the same margin crunch theme that emerged recently with big box retailers such as Walmart.
Gross margin fell 0.1% to 23.5%, Best Buy said, missing the 23.6% average of analyst estimates compiled by Bloomberg, while the decline in the core U.S. operation was steeper. The company also reported a 10% drop in domestic online revenue as more shoppers returned to stores.
But besides the usual margin-crushing suspects of frayed supply chains and deep discounts as a result of stepped-up promotional activity and a drag tied to its new TotalTech membership program, the company brought up the reason why Democrats are looking at far more losses in the coming months as a reason for the margin drop: organized theft.
“We are seeing more and more particularly organized retail crime,” Chief Executive Officer Corie Barry said on a conference call with analysts. “You can see that pressure in our financials, and more importantly, frankly, you can see that pressure with our associates. It’s traumatizing.”
Oppressed dude shoving a cell phone down his pants as reparations for white devils enslaving his ancestors.
Best Buy’s unexpected struggle to shore up gross margin comes after the recent stock surge boosted Wall Street’s expectations. That’s why today’s sharp return to reality sent BBY shares plunging as much as 17% to $115.01 in New York trading — the biggest intraday plunge since the covid crash on March 18, 2020.
Hilariously, Best Buy had advanced 38% this year through Monday, attaining record levels and outpacing the 28% gain of an S&P 500 index of consumer discretionary companies. Because while BBY channel checkers were right and traffic was indeed off the charts; alas most of that foot was courtesy of thieves.
This was just posted. Two posts down from this one
When that guy steals from Best Buy, he steals from you and I.
Good time to buy BBY stock I guess.
Glad you are on top of people posting articles 5 minutes apart. Think of the mayhem that would ensue if this continued.
The 17% drop still left half this years gain in value.
While the organized theft aspect of the report is telling, I don’t think the news is specifically bad for Best Buy. I can see their response tending more to closing of stores where data shows more of the organized theft is occurring. That will help profit margins even if revenue drops due to those store closings.
BB like the defunct Circuit City makes a lot of it’s money selling product warranties, Circuit Cities warranties generated about 90% of it’s profit at one time. So if it’s going out the door they ain’t selling no warranties.
Another nail on the coffins of the CA retailers.....and in urban retailers elsewhere as well.
Also a great time fora shareholder initiative regarding closing stores in High crime areas.
It fits with our country’s decline...
The kind of kid who at 2:59 reminded the teacher that she forgot to give out the homework assignment.
I saw a guy fill his grocery cart to the top and roll on out of the store a few days ago. Probably $200 worth of food. Nobody went after him. Nice desert area in So Cal.
It had to be organized. I mean, do you know how hard it was to smuggle that 64” OLED out?
We are all going to pay for this.
This is just another Democrat politician giveaway and the rest of us get to pay for it.
Since we’re leaving up two thread on this I’ll post it in both:
Best Buy joined the anti-Trump group StopHateForProfit.
Best Buy cut off donations to Republicans who support Trump.
Best Buy opposed Georgia’s much needed voting reform bill.
Best Buy employees and PAC’s donated more than twice as much to democrats in 2020, including more than 4X more to Joe Biden than to Trump.
Best Buy’s CEO signed an open letter in support of DACA.
Best Buy is spending $44 million on diversity, inclusion and community efforts.
Best Buy wants 1 of 3 new corporate hires to be “people of color”, AKA choosing race over merit.
Best Buy supports the Council of American Islamic Relations, which funds Muslim terrorist groups.
Best Buy will be buried in the plot right next to Circuit City. News at 11.
The Best Buy closest to me down in Albuquerque always has a cop car out front. Always. Not responding, but as a deterrent. I guess they pay extra for that, but who knows?
Best Buy has been rebranded to become Best Steal.
Target and Best Buy have free TVs during riots.
The car probably doesn’t run. Otherwise it would have been stolen by now.
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