Posted on 11/18/2022 6:37:09 PM PST by DoodleBob
No, I believe you, the whole thing just appears to violate the rule that the consumer pays for everything.
I’ll bet the theft cost was above what they had predicted in their cost modeling for this year. So then it would come out of profit for this year. But NEXT year they would update their cost model to account for the $400M plus the increased cost of theft.
That works, because in FY22 you can say it came out of profits (which is what you want to tell the consumer), then make it back by making that same consumer pay for it next year. As long as everyone (all the other stores) has to update their cost models you don’t lose the competitive advantage.
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