Cost Basis – After Hours http://after-hours.org/ Mon, 13 Sep 2021 14:18:27 +0000 en-US hourly 1 https://wordpress.org/?v=5.8 https://after-hours.org/wp-content/uploads/2021/07/icon-1-150x150.png Cost Basis – After Hours http://after-hours.org/ 32 32 Can Kroger compensate for his margin headwinds? – RetailWire https://after-hours.org/can-kroger-compensate-for-his-margin-headwinds-retailwire/ Mon, 13 Sep 2021 14:03:45 +0000 https://after-hours.org/can-kroger-compensate-for-his-margin-headwinds-retailwire/ Sep 13, 2021 Kroger’s shares fell nearly eight percent on Friday after the grocer reported that second quarter gross margins were lower than expected due to higher food prices, theft and supply chain costs. On the bright side, the supermarket chain has raised its annual profit forecast, with sales exceeding expectations. Same-store sales fell 0.6% […]]]>

Sep 13, 2021

Kroger’s shares fell nearly eight percent on Friday after the grocer reported that second quarter gross margins were lower than expected due to higher food prices, theft and supply chain costs.

On the bright side, the supermarket chain has raised its annual profit forecast, with sales exceeding expectations. Same-store sales fell 0.6% from the 14.6% gain triggered by the pandemic a year ago. CEO Rodney McMullen told analysts, “Home eating trends remain persistent. “

Gross margins, however, were down 60 basis points from the 2020 quarter and 120 basis points from the first quarter.

The chain’s higher shrinkage, which reflects about a quarter of the margin impact, is believed to be due to organized crime.

The chain said it lost another quarter of its margin due to the same increase in warehouse and transportation costs faced by other retailers. Kroger is securing the increased shipping capacity and increasing warehouse retention programs to offset these expected cost pressures that are expected to be temporary. Supply chain spending is expected to remain high in the second half of the year.

Finally, Kroger saw a rise in inflation in some categories during the second half of the quarter. Officials reiterated that they expect inflation for the full year to be higher than initially envisioned in its business plan for 2021. For the second half of the year, inflation is expected to decline. between 2% and 3%.

“We continue to invest in pricing where we think it makes sense,” said CFO Gary Millerchip. “Sometimes it can be in areas where we see inflation, sometimes it can be where we invest because we think it is the right thing to do to retain our long term customers and others. places through our personalization strategies. “

In a note, JP Morgan analyst Ken Goldman said he believed the price elasticity was moderate enough for Kroger to raise prices more broadly to offset various cost pressures.

Mr McMullen said Kroger has proven that he can operate successfully in “low or negative inflation and high inflation”, with the ideal rate being between three and four percent. He said: “So far the costs are mostly passed on in an organized fashion.”

DISCUSSION QUESTIONS: How much room does Kroger have in the current climate to raise prices to offset cost pressures? What advice do you have for driving unusually high operating costs?

Braintrust

“It’s not about how much he should raise prices, but understanding which items he should raise prices in and which he should continue to invest in.”

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Camas-Washougal Fire Department looking for financing solutions https://after-hours.org/camas-washougal-fire-department-looking-for-financing-solutions/ Sat, 11 Sep 2021 21:46:46 +0000 https://after-hours.org/camas-washougal-fire-department-looking-for-financing-solutions/ CAMAS – Consultants hired by the city of Camas in May to review the 9-year-old merger of the Camas and Washougal fire departments say they hope to present an analysis of the service as well as “sustainable and fair” alternatives to officials by the government. the end of the year. Merina + CO, based in […]]]>

CAMAS – Consultants hired by the city of Camas in May to review the 9-year-old merger of the Camas and Washougal fire departments say they hope to present an analysis of the service as well as “sustainable and fair” alternatives to officials by the government. the end of the year.

Merina + CO, based in Tualatin, Ore., Will meet with stakeholders, conduct a streamlined analysis of the decade-long partnership that formed the Camas-Washougal Fire Department in December 2013, and develop recommendations for the future. fire and emergency medical services in the Camas-Washougal Sector.

Camas City Council unanimously approved the $ 94,770 contract with Merina + CO on May 17.

Municipal leaders in Camas and Washougal said they hope the consultants find a solution that allows the fire department to meet the growth and increased needs of the community without putting most of the financial strain on a single one. jurisdiction.

“The cost-sharing formula that forms the basis of the CWFD merger has created friction in the partnership and has at times threatened its continuation,” CWFD Fire Chief Nick Swinhart told city councilors in May. . “Both cities have expressed frustration over their inability to fund the necessary growth of the fire department. “

“We think the deal has been very good for both cities,” added the fire chief, “but there have been a few hurdles down the road, especially with regard to the cost-sharing formula that is going to be. There are concerns on both sides, in both cities.

Under the 10-year deal that merged the two fire departments in 2013, Camas agreed to be the primary funding body, paying around 60% of the department’s costs, while Washougal would pay 40% of the costs. .

Officials from both cities began questioning the merger in 2018, after Camas city councilors agreed to add four new firefighter stations to the city’s 2019-2020 budget. Although most Washougal councilors agreed the fire department was understaffed and the positions were needed, Washougal officials said their city simply couldn’t afford to pay 40 percent of new hires. .

The problem arose again in 2020, after Camas executives again said they were considering adding four more firefighters to the list in the 2021-22 budget.

Washougal City Manager David Scott told the Post-Record in 2020 that Washougal city councilors “generally recognized the need for more staff” at the CWFD but are struggling to find revenue to cover the share. of Washougal for new hires.

“Our problem right now is an inability to pay for staffing levels beyond the staffing profile identified in the (interlocal agreement), not a reluctance,” Scott said in 2020, adding that Washougal should probably turn to his constituents to find “sustainable, long-term income” in order to pay more firefighters.

On Tuesday, Moody told Camas board members that his team would assess the department’s current situation as well as proposed alternatives using criteria to make the department more equitable and sustainable.

“We think they need to be balanced,” Moody said. “One does not win out over the other. If it’s sustainable, but not seen as fair, well, it’s still not fair. If it’s fair, but only lasts a year or two, that doesn’t solve our problem either.


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Robinhood rolls out recurring crypto buying feature at no cost https://after-hours.org/robinhood-rolls-out-recurring-crypto-buying-feature-at-no-cost/ Thu, 09 Sep 2021 04:27:18 +0000 https://after-hours.org/robinhood-rolls-out-recurring-crypto-buying-feature-at-no-cost/ The Robinhood retail platform has rolled out a new recurring crypto investing feature for users who want to convert the average dollar cost (DCA) of a coin. Given that DOGE accounts for 62% of Robinhood’s crypto services revenue, this move could result in a constant flow of small buyers for the memecoin. The company announced […]]]>

The Robinhood retail platform has rolled out a new recurring crypto investing feature for users who want to convert the average dollar cost (DCA) of a coin. Given that DOGE accounts for 62% of Robinhood’s crypto services revenue, this move could result in a constant flow of small buyers for the memecoin.

The company announced the launch of the new feature on September 8, and users can set up recurring investments in multiple crypto assets on a daily, weekly, bi-weekly, or monthly basis.

The minimum purchase amount is $ 1, with the company promoting the feature as an easy way to DCA into the crypto markets without paying a fee.

“If you place an order and spend $ 100 to buy Bitcoin, you will get $ 100 of Bitcoin. Period, ”Robinhood said.

Related: PayPal reportedly looking to take on Robinhood with stock trading

According to the platform’s website, recurring crypto orders will generally be processed between 2:30 p.m. and 4:00 p.m. ET (6:30 p.m.-8:00 p.m. UTC). Robinhood also states that users can receive less crypto than their set purchase amount during times of market volatility, but the difference will be refunded in fiat once the transaction is completed.

The service is currently not available to customers based in New York.

Crypto-based retailing gained popularity on the platform in 2021. According to Robinhood’s second quarter report, crypto trading services generated $ 233 million in the quarter and accounted for 41% of its total revenues of $ 565 million. In comparison, the company generated a total of $ 5 million in revenue from crypto trading for all of 2020.