Market Overview

Companies That Blame The Weather For Earnings Misses

Coca-Cola (NYSE: KO) is so much more refreshing on a sunny day, wouldn't you say?

La-Z-Boy (NYSE: LZB) chairs are more comfortable when the sky is clear, are they not?

And when the temperature rises, consumers can't resist shopping at Target (NYSE: TGT).

That is more or less the claim of these and numerous other publicly-traded firms, who argue that bad or unexpected weather can lead to missed earnings. This suggests that great, summer weather should ensure their earnings are absolutely perfect.

But do you believe it? Can companies honestly claim that the weather is responsible for disappointing earnings results? Click through the slideshow and judge for yourself.

Disclosure: At the time of this writing, Louis Bedigian had no position in the equities mentioned in this slideshow.

Posted-In: American ApparelEarnings News Psychology Retail Sales Management Tech General Best of Benzinga

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    Ford

    Ford

    You might think that consumers would be interested in buying a new Explorer (with four-wheel drive) when the weather is at its worst.

    That wasn't the case.

    Ford (NYSE: F) blamed the weather for a 7.1 percent decline in January sales.

    Image Source: Wikimedia Commons

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    Wal-Mart

    Wal-Mart

    No one wants to go shopping in the cold!

    But wait -- do consumers really want to shop when it's warm and sunny outside?

    According to Wal-Mart (NYSE: WMT), consumers prefer the latter.

    The retailer blamed the weather (among other things) for its disappointing Q4 results.

    Image Source: Wikimedia Commons

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    Coke

    Coke

    No one says, "Jinx, you owe me a Coke!" when it's minus 10 degrees outside.

    Consumers might drink a lot of Coke when it's cold, but they drink even more during the warm summer months.

    This is why the company blamed the weather last summer when it reported its lower-than-expected Q2 results.

    At the time, Coke's CEO described the weather as being "cold and wet."

    One can only imagine what he must be thinking about the winter that followed.

    Image Source: Wikimedia Commons

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    La-Z-Boy

    La-Z-Boy

    When it's cold outside, humans run into the house, plop on the couch and watch Netflix.

    In the animal kingdom, they call this "hibernating."

    If any company could benefit from the human's hibernation period, it should be La-Z-Boy, right?

    Apparently not.

    La-Z-Boy is one of many companies that recently blamed the weather for its earnings miss.

    Image Source: Wikimedia Commons

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    Lowe's

    Lowe's

    Coke wasn't the only one to get in on the "it's too cold!" bandwagon last spring.

    Lowe's (NYSE: LOW) did the same thing.

    Image Source: Wikimedia Commons

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    UPS

    UPS

    Now here's a company that can justifiably say that the weather is a problem.

    UPS (NYSE: UPS) recently said that weather events "weighed on results" in December.

    How could they not? Snow inevitably leads to shipping problems.

    In addition to possible delays (which might lead to customer refunds/credits), customers are less likely to mail packages when the weather is bad enough to keep them from leaving the house.

    Image Source: Wikimedia Commons

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    Target

    Target

    If you thought that Wal-Mart was the only big-box retailer willing to complain about the weather, think again!

    Target (NYSE: TGT) has done the same.

    Image Source: Wikimedia Commons

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    American Apparel

    American Apparel

    Everyone needs clothes. Even nudists have to go the store every once in a while, and they can't do that in the buff.

    Regardless, companies like American Apparel (NYSE: APP) have blamed the weather for disappointing results.

    If the weather is truly an issue, it might be time for American Apparel to start producing warmer sweaters.

    Image Source: Wikimedia Commons

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