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Retailers Withholding Figures from Investors?

April 17th, 2008 @ 9:28 am

3 Comments

Categories: Client Relationships, Ethics, Personal Conduct, Polls

Tags: Investor, Financial Accounting, Finance, William Baker

Monthly sales figures and annual profit forecasts have long been a staple of the information train that retailers supply to investors and Wall Street. But now many large companies - including Starbucks, Macy’s, J.C. Penney and CVS - are backing off on one or both of these practices, arguing that the figures confuse investors and can lead to short-term decision-making, according to an article in the New York Times.

There is nothing illegal about the decision, but many analysts and investors are crying foul. Who’s right here? The investors who want information that can allow them to turn on a dime in this unstable economy, or the companies who want to stress the long term?

Retailers or Investors?

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  •  
    1

    Graphicsman

    04/22/08 | Report as spam

    the informed sell

    "Confusing" to the investors, or "too informative"... are they trying to shape their investors, or make their company present better? I say if your numbers are too "confusing" to investors, it's not your job to omit them, just be happy with investors who are able to comprehend, or hire a translator to be able to sell shares to the investors who aren't "getting it".

  •  
    2

    psoucheray@...

    04/22/08 | Report as spam

    RE: Retailers Withholding Figures from Investors?

    Companies have a wonderfully fine line they have to walk, between their in-store consumers and the investors. The reality of the marketplace, especially now, and the diversification that results is such that retailers are bound to have find that the specifics of their performance are nuanced by many different factors. Investors either have to trust that management understands its market, or they have to be ready to work with the system to make things work. It's not always about the almighty, friggin' dollar.

  •  
    3

    mebsss

    04/25/08 | Report as spam

    RE: Retailers Withholding Figures from Investors?

    This attitude is further evidence of nonethical behavior. All that is legal isn't right. Are we headed in the direction that a little deception won't hurt. Withholding information that will lead to an informed decision isn't acceptable in the healthcare industry and should not be in any business.

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