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.
© 2017 Benzinga.com. Benzinga does not provide investment advice. All rights reserved.
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.
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.
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?
La-Z-Boy is one of many companies that recently blamed the weather for its earnings miss.
Now here's a company that can justifiably say that the weather is a problem.
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.
Everyone needs clothes. Even nudists have to go the store every once in a while, and they can't do that in the buff.
If the weather is truly an issue, it might be time for American Apparel to start producing warmer sweaters.
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