Where Have All the PC’s Gone?; Chipotle Ready for Big Return; Lego’s New Policy is Awesome

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PC’s did not have a very merry Christmas. Or fiscal quarter for that matter. In fact, this marks the fifth consecutive quarter of disappointing PC sales. For the fourth quarter, those sales tanked by a very un-jolly 8.3%. We’re talking Lenovo, HP and Dell. But it was Acer that did the absolute worst with a 15% decline for all of 2015. Shipments of PC’s, for the first time since 2008, fell under 300 million to a very disappointing 276.2 million, more than a 10% decline since 2014. There’s just too much competition from tablet and smartphones that consumers don’t feel the need the rush to upgrade their machines. However, analysts seem to think that sales will pick up later in the year as Windows 10 gets commercialized. The one bright spot, according to the International Data Corporation, were “detachable” PC’s that seem to be all the rage right now. That segment of the industry posted some impressive growth. But then it gets weird. You see Apple, seen as a premium brand in the United States and Europe, actually saw growth – 3% for the quarter and 6% for the year – selling 20.7 million machines. It’s weird, if only because Lenovo, HP and Dell still sold more computers separately than Apple did. So it’s all a matter of perspective, I suppose.

All wrapped up?

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All is not lost for Chipotle after analysts decided that the chain has the potential to get its mojo back. Apparently, none of those analysts suffered from any food-borne illnesses from eating at Chipotle. That may or may not have had to do with why shares of the company rose the most today in more than 5 months. In fact, despite the fact that Chipotle is still slightly reeling from its relatively recent food safety crisis, the chain has plans to open up more than a couple of hundred new restaurants in the coming year. Execs say that the company is implementing new food safety protocols and believe it will make Chipotle an industry leader when it comes to food safety. Go Chipotle! The restaurant chain took a heady 15% sales hit in the fourth quarter following a multi-state E.Coli outbreak at several of its locations. As a result, the company expects to see negative sales posted until at least 2017.  However, shares today went up as high as $432.30 Bear in mind that the company experienced a major 40% slump from the high it hit back in August to the tune of $757. 77 and lost about $10 billion of its market value. There are currently several lawsuits against the chain over its past food-safety practices. But hey, good news: Chipotle execs say that the CDC is just about done with its own investigation into the food chain. Yay. Just don’t confuse that with the separate federal investigation of Chipotle following a norovirus outbreak in California.

Everything is awesome…

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Chinese artist Ai Weiwei will now get to play with all the Lego his political artwork requires. The fuss all started when Weiwei requested a large bulk order for some artwork. It was intended for an exhibition in Australia featuring 20 portraits of pro-freedom figures – to be done in Lego. But Lego wouldn’t allow him to order the amount of bricks needed for the “art” because, at the time, Lego’s policy stipulated that it did not endorse the use of its plastic bricks for projects that carry a “political agenda.” Never mind that my own father is convinced that The Lego Movie had a major political agenda subtly woven into the script. But we’ll leave it at that. In any case, when Ai Weiwei aired his grievance with the toymaker, supporters in several countries began sending in their own Lego stockpiles to the artist. Weiwei ended up using plastic bricks from a Chinese company that were similar to Legos and considerably cheaper too. Lego decided to change its policy and will officially forego asking details about such projects. However, artists must clearly display that Lego does not support or endorse the theme, message  or politics of the Lego artwork in question. Voila!

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Everything Really Is Awesome for Lego; Southwest Gets Grounded; Target’s Earnings Hit and Miss;

Everything is awesome…

Image courtesy of ArtJSan/FreeDigitalPhotos.net

Image courtesy of ArtJSan/FreeDigitalPhotos.net

The Lego Movie movie might have been very rudely snubbed at this year’s Oscars but that didn’t stop Lego CEO Joergen Vig Knudstorp from belting out the hit tune “Everything Is Awesome” to reporters recently.  That’s because for him everything really is awesome. The privately held Danish company released its yearly earnings report and the consensus is that Lego is in demand. My basement, however, could have told you that. Demand in China, Russia, France, etc is only getting stronger and this year’s release of “The Lego Movie,” which earned a staggering $468 million, helped propel that awesome demand precipitously upward. Lego’s profits were 15% higher this year hitting about $1 billion. I can truly say I contributed considerably to that figure. Revenue for the company came in at $4.3 billion and move over Mattel because Lego has become the number one toy company in the world. There’s also a Lego Movie sequel in the works set to be directed by Rob Schrab with a 2018 release date. But if the Oscars snubs Lego again, it’ll have to answer to the forces of Ninjago, not to mention Batman,  whose Lego movies are set to be released in 2016 and 2017.

Yeah…that could be a problem…

Image courtesy of Master isolated images/FreeDigitalPhotos.net

Image courtesy of Master isolated images/FreeDigitalPhotos.net

Everything is not awesome over at Southwest as the airline had to ground 20% of it’s fleet. In case you were wondering that is about 128 of its planes. Apparently Southwest missed inspections and immediately notified safety regulators, according to an airline spokesperson. How very diligent of them. Eighty flights bore the brunt of this gaffe but fear not intrepid traveler, as the FAA and Southwest have figured out a way to get those flights up into our friendly skies until all the aircraft can get properly inspected. How very reassuring.  In case you were still wondering, the part of the aircraft that requires immediate inspection on all these airplanes is the backup hydraulic system. It helps control the aircraft…in the event of a  main system failure. Awesome. The bulk of inspections ought to be completed by now and if you happen to be on one of the few remaining aircraft that have yet to be inspected? Well, then have a nice flight.

Oh Canada!

Image courtesy of Bill Longshaw/FreeDigitalPhotos.net

Image courtesy of Bill Longshaw/FreeDigitalPhotos.net

Target reported its earnings this week and the good news is that it lost $2.6 billion. That amounted to a loss of $4.10 per share. It’s good news because it’s a one-time loss from closing up shop, literally, on its disastrous foray into our neighbor to the north. But if you take into account that Canada is now officially off the Target grid, then you can calculate that the mega-retailer actually pulled in $1.50 a share. Which is really great news because analysts only thought that the retailer would gain about $1.46 per share. So you see, there is a bright side here. Somewhere. Sort of. Listen it’s not Canada’s fault. Canadians are really lovely people. Some of my best friends are Canadian. But they just didn’t appreciate all those empty shelves at their 133 stores, not to mention some annoying pricing discrepancies – among other issues, mind you. But back on our turf, Target’s sales increased to $21.8 billion – almost $2 billion more than last year, Canadian failure and all.

Hail to Retail, Janet Yellen’s In the Hot Seat and Lego’s Leg Up

A tale of retail….

Courtesy of digitalart/FreeDigitalPhotos.net

Courtesy of digitalart/FreeDigitalPhotos.net

I’m guessing you did a lot of shopping in the last few months, huh?  No? Not you? Well somebody around you did.  Actually a lot of people around you did. A lot. Retail stocks shot up beating forecasters expectations.  Companies like Sears and JC Penney, which took some big hits in recent months, rebounded with better than expected earnings.  And Best Buy?  It’s like whoa! Up 7% as I write this. Sadly you weren’t feeling the love for Chico’s.  What’s that all about? It was the glaring exception to this upward trend whose shares dipped an unflattering 8% after disappointing earnings.  Yikes.

Everything’s coming up chilly…

Photo courtesy ponsulak/FreeDigitalPhotos.net

Photo courtesy ponsulak/FreeDigitalPhotos.net

Arguably one of Wall Street’s biggest It people, Janet Yellen, took center stage today before the Senate and yes, she is a sensible central banker. Phew. Glad we got that out of the way.  And she thinks just like you do when you were surveyed by the consumer index, which, btw,  speaks volumes to both of yours intellect – namely that the economy is recovering. But darn be that chilly weather, she says, that keeps messing everything up (though it’s difficult to say just how much) – from the economy right on down to my very own driveway. Among her other important statements (none of which included anything about my driveway) she repeated the Fed’s promise to keep interest rates low as long as unemployment is still above 6.5%.  Does that make the situation a win/win or a no win?  Well that depends, I suppose on whether or not you are gainfully employed.

Go Go Lego…

Courtesy of ArtJSan/FreeDigitalPhotos.net

Courtesy of ArtJSan/FreeDigitalPhotos.net

If you still haven’t seen The Lego Movie you’re missing out. But Lego’s not too worried.  While the toy flick stayed #1 at the box office for the last three weeks and continues to pull in some impressive digits worldwide, it’s their other brands like Chima and Lego Friends that has this toymaker pulling in about $4.65 billion in 2013.  And while those numbers are nothing to sneeze at (yes, that ended in a preposition and ironically I did just sneeze )  it’s still second to Mattel with its $7.1 billion worth of Barbies and Fisher Price line.