PLAY EARNINGS
PLAY is a SHORT; like others in the industry, the company was over earning in 2021
Shares are trading +14.8% today following PLAY's 4Q21 print yesterday in which revenue of $343.1M missed by (5.9%) and EPS of $0.52 was ($0.09) below consensus. Comps were (6.8%) vs. 2019 (2.6%) when excluding 14 stores located in markets with vaccine mandates. The market was long past the fact that this company is still looking for a CEO and looking past the 4Q21 miss and focused on the Q1 to date sales trend. Management mentioned on the call, eight weeks into Q1, the first three weeks SSS (8.3%), following five weeks +13%.
Are people viewing the positive momentum as evidence the Omicron impact faded as sustainable?
Management thinks so by saying this on the earnings call; So you can really fully understand that other than the Omicron, this business is on fire and just the beginning of it. We've got so many things that we've talked about on other calls that we're starting to shape to drive demand. So we're excited about where we are today, and we're excited about the prospects for the future. So I think with that incremental guidance, you guys could better understand what's going on inside the business and how we were significantly impacted by the Omicron that's now behind us; you can understand why we feel so good about where we're going as a company.
The company did not provide 2022 guidance, and when asked about 1Q22, the company declined, despite the quarter being nearly over.
Gopuff Focuses on Profitability
GoPuff Plans Hundreds of Layoffs to Cut $40 Million in Costs - DASH is a SHORT
The Information reports that GoPuff is preparing to lay off hundreds of employees, or around 3% of its global workforce. The cuts are part of an effort to reduce annual headcount costs by at least $40 million, said another person briefed about the move. The company employs roughly 15,000 workers following a hiring freeze earlier this month and the resignations of several key executives. Does this move show that the company is looking to rein in expenses as investors increasingly favor companies with lower cash burn under challenging times? This is a net positive for DASH, but concerns still linger about their spending on growth-related initiatives and future profitability.
