MCViewPoint

Opinion from a Libertarian ViewPoint

Posts Tagged ‘margins’

Best Buy Crashes As Margins Slide Due To “Organized Retail Theft” | ZeroHedge

Posted by M. C. on November 24, 2021

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

https://www.zerohedge.com/markets/best-buy-crashes-margins-slide-due-organized-retail-theft

Tyler Durden's Photoby Tyler Durden

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.

Be seeing you

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Four things only libertarians can see about COVID-19

Posted by M. C. on April 7, 2020

What is unseen are the variety of harms that occur because people have been denied freedom of association and movement.

Second, don’t overlook the harm caused by government actors.

No matter the doomsday scenario, it’s hard to imagine a single governor (or president) outsmarting millions of people.

The Principle of Human Respect is a natural, cause-and-effect relationship. If I rob you at gunpoint, your happiness decreases. Social harmony and prosperity are diminished too.

https://www.theadvocates.org/2020/03/four-things-only-libertarians-can-see-about-covid-19/

A new form of political correctness has spread, like a virus, across the fruited plain. Libertarians are taking heat – getting angry responses for criticizing governors who have used the spread of COVID-19 to issue edicts that shutter businesses and impose martial law-like schemes.

coronavirus covid-19 libertarians politics

Still, libertarians find they cannot keep quiet. Their philosophy of self-government is forged in an understanding of consequences. Libertarians are the only members of society who can see – even foresee – the following four things about the State’s edicts and regulations…

The seen and the unseen

First, libertarians can visualize the Unseen.

What is seen is that which is obvious to us. In the present case, it’s easy for us to see the way the virus is spreading and how the healthcare system is overrun in Italy.

What is unseen are the variety of harms that occur because people have been denied freedom of association and movement. Politicians are using wartime powers and preening before TV cameras. There will be short-term and long-term effects stemming from their actions. Nearly everyone, especially the regime media, is overlooking these costs.

The proper way to analyze this situation is to take all of the effects into account.

Libertarians are just like you; they’re sheltering and practicing physical distance. But let’s be clear, not everyone has that luxury. There’s no way that a governor could anticipate, let alone solve all of these sticky issues. Edicts are “one size fits all.” Each person understands their unique situation better than a politician in a distant capitol could. There are many scenarios to consider. Here’s a sampling…

  • Right now, families are trapped in a home with an abuser. Perhaps the abuser’s workday was a time of relief, or the victim’s school or work was an escape path to safety.
  • Suicides will increase during the crisis.
  • Addiction will worsen because the sense of purpose or even mere interruption that occupational work provides has been stolen away.
  • Businesses that were operating on a thin margin will fold, crushing dreams, resulting in unemployment, and even reducing supply. Supply reductions will fuel price increases for all of us.

Notice State failures

Second, don’t overlook the harm caused by government actors. For example, Donald Trump’s aides were afraid to give their reelection-minded boss any bad news until it was too late. And the sudden, jarring, gubernatorial edicts have caused fear, uncertainty, and doubt – provoking shortages.

In a libertarian world, reliable tests would already be for sale! And if the tests were universally available, the crisis would’ve been far smaller and Americans would be back to work.

There are two reasons tests are not already on the market.

  1. Political suppression of information. If they had gotten the signal earlier, then entrepreneurs, inventors, and existing businesses would’ve started delivering tests by now. We know there was sufficient time because a handful of U.S. Senators were briefed in January. After seeing the impending crisis, they sold off their stocks.
  2. Ironically, regulations are supposed to make us safer. What they do instead is create barriers which increase delays and costs. Frequently, the innovator realizes that no action is profitable, choosing not to invent (another unseen effect). The FDA has been in the way of tests getting to market.

Wisdom of the crowd

Third, self-government is the best solution to the Knowledge Problem. No matter the doomsday scenario, it’s hard to imagine a single governor (or president) outsmarting millions of people.

No matter how brilliant the governor and his or her advisors are, he or she lacks the capacity to win a problem-solving contest against tens of millions of people.

Worse, political acts are prone to cause injuries (which tend to be unseen and unreported). The miracle of “stuff” arriving on our store shelves involves millions of micro-decisions. Sudden edicts have replaced that. Shortages result because the governor deploys unanticipated force. Consider…

Restaurants who planned menus suddenly have too much food. Grocery stores, who thought people would be at restaurants, find that they have new customers instead. The restaurant owner takes a bath.

Even with nearly-empty shelves, stores need to make sure they don’t over-order in response. Grocers know these effects are temporary, but they don’t know when they will end. They don’t want to end up like the restaurants, stuck with too much stock on hand. Uncertainty prevails. Shortages will remain a problem until governors back out of the equation.

Human respect

Fourth and most important of all, is the matter of Human Respect. The libertarian uniquely recognizes that everyone seeks happiness and that no one person can make everyone happy.

The Principle of Human Respect is a natural, cause-and-effect relationship. If I rob you at gunpoint, your happiness decreases. Social harmony and prosperity are diminished too.

Since this is a principle, even governors cannot violate it. Bans and edicts are ultimately enforced by armed men and women. These are not acts of persuasion; they are threats to achieve a desired result. When anyone, be they a criminal or your governor, coerces another human being, they never increase happiness. And in the present situation, the bans have obviously decreased social peace and material prosperity.

The damage to prosperity is already so obvious that no one is contesting it.

And before the governors started acting, we had peaceful cooperation. Most people were already practicing physical distancing. We also witnessed allegedly greedy corporations voluntarily sacrificing many millions of dollars. To prevent the spread of COVID-19 the NCAA closed events to the public. Then, the NBA suspended its season and Disney closed its parks. Like falling dominoes, tons of businesses followed.

AFTER that, governors forced the holdouts to close. Libertarians began raising important questions like the four you’ve just reviewed. They’re getting accused of wanting to clog hospitals and increase the death toll. Therefore, consider the role politicians are playing. Are their acts increasing harmony or did they introduce new divisions into our society?

Be seeing you

 

 

 

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