Interesting there is revenue growth and cogs increase as well(as expected with growth and inflation). However, SG&A expense increased $1.6b in one year??? How did that happen. I can see people looking at this from a financial statement perspective they see this increase and this is the one line item the one "lever" they can pull. I can see where this company came up with the $2b target. It is sort of the easy way out. Cutting this line item can be a virus that impacts all the other line items.... we seen this happen to other companies. It is the spiral death. It is Corp greed. More more more. the cycle will continue. Nike stock has been on the incline for the last few years... record stock prices. But somehow they are suffering? sure there has been a little dip, but seriously let people build build the company. When you do a reorg like this then you are are in a rebuild for at least 2 years before you can start to build again. If you do a reorg every three years... when can you focus on shoes and apparel?
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I would love to see the contractor line item I bet that number is the number one driver…. Home much did they pay the consultants firms to slice and dice this company?
First off, I am almost certain to be on the list next week. That said, I couldn't disagree with you more. Uncontrolled spending on initiatives that aren't a priority cannot be justified. Just take a look at some of teams and the increase in headcount. It is completely out of control. Some teams have literally doubled in size and are producing very little additional value. These SDs must be very nervous right about now.
The thing is this company is not hurting it is making a large profit, it's not scraping pennies. This is a fear based decision. I can see if the company was suffering net loss of xxxx and this is the only way to save the company. But it isn't its just to squeeze every last EPS reporting to wallstreet.