http://www.kulr8.com/story/30496958/cabelas-employees-say-managers-confirm-store-will-close-jan-1
14 replies (most recent on top)
Wall Street does not like negative comp sales. Yes, you're still making money of course but it's not a positive reflection on the profitability of the company long term.
My head hurts. I'm done with this discussion.
A store can be negative comping and still be profitable.... Comp means sales compared to last year. Your sales can be less than last year and you can still make money. Look at Cabelas earnings. They are down in sales yet still profitable. It's not that hard to figure out.
Has any manager firmly said there is no chance that BP is buying us? The omission of saying no we are not getting bought is apparent. They say the Billings story is a lie, but are they dancing around a buy-out?
Use your head and think... TO COMP. What does that phrase mean? Does a store need to be AT OR ABOVE COMP to be profitable? Seriously think for a minute, I'll wait for your answers...
Yes, if you're bringing in $100 a week. If you're making $326 million a quarter, down 4% is over $13 million dollars. You do that for 4 consecutive quarters and that's a miss of over $52 million dollars. And to Wall Street a miss is a miss.
If you were getting $100 a week and it dropped 4% you would still be getting $96/week. You can still make a profit.
US Comp store sales were down 3.3%, and consolidated stores 4.2%. So unless I'm missing something, every store couldn't be profitable.
It was said on the earnings call that every store in the company is profitable. That's pretty solid. Some huge retailers can't make that claim. If the company got sold the shareholders would know. It's a junk rumor.
How can a news outlet like KULR report a story if it is a bunch of bunk? In the case of any publicity is good publicity, this does not improve anything. We've heard of shops that close down overnight and the employees come the next day to work only to see the place padlocked. Likewise, we all know if an employee is to get the boot, it happens swift and in a no nonsense manner. So, you gotta wonder how an inside "leak" gets shot down as fiction by all our managers. Employees holding a grudge go to KULR and make up a story? I will not be surprised if something goes down with a an acquisition or merger. Supposedly we will be kept in the loop, but that most likely will be after a deal is signed and released to the news the same day, if a deal does happen.
Stores haven't been turning a BIG enough profit in years.
I would think (if these rumors are true) you'll start seeing managers jump ship quickly (it is interesting that we're being visited by District & Regional this week, hmmmm)
Maybe the smaller stores or ones that are in close proximity of each other. Not all stores would be closing, not all people would lose jobs. My plan is just to wait it out.
Even if there WAS a buyout...they're not going to close down stores, unless the store isn't turning a profit.
We all know how rumors are spread....not believing this yet.