Alibaba Love Story; CVS Gets the Last Hacking Laugh; Holiday Retail Shaming

Like you expected anything different?

Image courtesy of Stuart Miles/FreeDigitalPhotos.net

Image courtesy of Stuart Miles/FreeDigitalPhotos.net

Chinese e-commerce giant Alibaba dished out its very first earnings report since going public and surprised NO ONE! Revenue was up an insanely impressive 54% to $2.74 billion even though analysts only expected a “modest” $2.61 billion figure. Net income for the company was up 16% to $485 million which, incidentally, was not as much as hoped. But hey, that’s literally the price you pay to become a record-setting $25 billion IPO. If you recall, Alibaba (BABA) began trading at $68 per share when it made its Wall Street debut back in September. But if you’d like to purchase some shares today, you’re going to have whip out over $104 per share. I bet your kicking yourself over that one, huh? Alibaba’s active buyers are up 52% to 307 million users while the number of its mobile monthly users doubled. Yes. Doubled. No major IPO success story (or quarter) would be complete without bringing a little Hollywood glamour into the mix. Which is precisely why Alibaba Chairman, Jack Ma, has been kicking it in La La Land recently.

And they said it couldn’t be done…

Image courtesy of Mister GC/FreeDigitalPhotos.net

Image courtesy of Mister GC/FreeDigitalPhotos.net

CVS can take a non-emphysemic sigh of relief now that its earnings came out. The company’s idea to kick the tobacco habit from its shelves in close to 8,00 stores did not prove to be a fiscal disaster after all. On the contrary, the company posted better than expected earnings – across the board! Ha! Who says tobacco always wins? Actually I don’t know if anybody has ever said that…but moving on. True the company did take a bit of a hit over its initiative to pull smoking products from its shelves but revenue still went up. In fact, it was up by 10% and $35 billion – $250 million more than analysts’ predictions. But it gets even better. Retail sales were up over 3% to about $16.7 billion. It turns out that CVS got a little boost from Americans covered under ACA and Medicaid. But the big boost came from (drumroll please…) prescription drugs. Oh the irony…out with tobacco and in with prescription drugs.

Attention K-Mart shoppers…

Image courtesy of cooldesign/FreeDigitalPhotos.net

Image courtesy of cooldesign/FreeDigitalPhotos.net

Now you can get your Black Friday game on the day before. Which is, of course, Thanksgiving. In fact, if you are so jonesing for a shopping fix wile most people have yet to wake up and defrost their poultry, take comfort in knowing that you can mosey on over to you local K-Mart, which will be conveniently opening its doors at 6:00 am, and staying open until (Black)Friday November 28 at midnight. Warms the heart, no? While a slew of retailers have decided to begin the Black Friday chaos/fun/sales before most Americans even digest their Turkey, there’s a whole group of companies that have shunned the practice of opening on the national holiday and have taken to retail-shaming their fellow retailers. Why there’s even a page dedicated to the cause appropriately called Boycott Black Thursday. K-Mart insists that employees who work Thanksgiving day are doing so voluntarily for “holiday pay.” Even though K-Mart and other stores are opening earlier to beef up sales, oddly enough, last year K-Mart sales actually fell during the holiday season after instituting this new “working-holiday” tradition.

 

Converse: Back the Chuck Off!; BofA Bummer; Whole Foods: I’ll Give That Tomato a 6

Chuck it…

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Converse, the force behind one of the most iconic shoes ever, not to mention my favorite pair of kicks, is heading to the courts. The legal courts, that is. The Massachusettes-based shoe company, a subsidiary of Nike, is suing 31 other companies for trademark infringement which basically means those companies have allegedly been ripping off the way cool, timeless design that has found their way onto famous feet since 1908. The company has reportedly spent hundreds of millions of dollars promoting the shoe and, in my most humble opinion, if there were/is such a thing as a shoe hall of fame, then Chuck Taylors ought to be inducted in to it. Just saying. Among the companies being sued are Wal-Mart, K-Mart and Skechers, not to mention Ralph Lauren and Tory Burch. I might add that I wear my Chuck Taylors regularly except I don’t think that’s going to help bolster Converse’s case. Converse is also filing a complaint with the International Trade Commission hoping to prevent counterfeit look-alikes from making their way onto our shores.

Hind quarters…

Image courtesy of digitalart/FreeDigitalPhotos.net

Image courtesy of digitalart/FreeDigitalPhotos.net

BofA has surely had better quarters. The second largest bank (by assets, mind you) had a net income of $168 million losing $0.01 per share. A year ago at this time BofA earned $0.20 per share on $2.2 billion. Ah well, the past is in the past. But at least it’s not as bad as the $0.09 loss per share predicted by analysts. BofA can thank Uncle Sam for its quarterly losses as BofA had to shell out about $16.65 billion to the DOJ in settlement fees for the bank’s prominent, unappreciated role in the 2008 financial crisis and all those awful mortgages.

On a scale of 1 to 10…

Image courtesy of Pixomar/FreeDigitalPhotos.net

Image courtesy of Pixomar/FreeDigitalPhotos.net

Whole Foods is getting in on the ratings game.  Next time you stop in at one of their 400 plus stores, check to see if that head of lettuce falls under the “good,” “better,” or “best” category. Yes, your produce will now be categorized because the organic wholesaler wants you to know to what degree your chosen produce is affected by pesky pesticide and less than pleasing farming methods. Other factors that will be taken into consideration when scoring your produce include the amount of energy and water used. Indeed, several environmental factors can and will directly impact the score of that apricot you’ve been eyeing. No word yet if those environmental impacts will have an “impact” on your wallet but Whole Foods might also want to consider a scoring system for the price of its produce and flowers. For instance, it could rate its merchandise as “cheap,” “expensive,” and “I’m about to blow half my paycheck on a pineapple.”