Skip to content
 
If you can read this, either the style sheet didn't load or you have an older browser that doesn't support style sheets. Try clearing your browser cache and refreshing the page.

(Reuters)   CVS beats earnings on less business. Wait, what?   (reuters.com) divider line
    More: Followup, Health insurance, Health care, Medicine, CVS Health Corp, Insurance, Chief executive officer, Remainder, Executive officer  
•       •       •

229 clicks; posted to Business » on 05 Aug 2020 at 10:08 AM (6 weeks ago)   |   Favorite    |   share:  Share on Twitter share via Email Share on Facebook



16 Comments     (+0 »)
 
View Voting Results: Smartest and Funniest
 
2020-08-05 9:25:20 AM  
The key was cutting employee pay and getting them used to eating insanely long receipts instead of food.
 
2020-08-05 9:35:22 AM  
The key was cutting the receipt length form 9 feet to 3 feet.
 
2020-08-05 9:39:57 AM  
The key was paying employees in expired drugs.
 
2020-08-05 10:12:43 AM  

Walker: The key was cutting the receipt length form 9 feet to 3 feet.


The long receipts came in handy during the toilet paper shortage, earning them undying customer loyalty.
 
2020-08-05 10:15:34 AM  
The key was selling a box of 20 masks for $30 and 16oz of hand sanitizer for $20.
 
2020-08-05 10:17:41 AM  

Arkanaut: Walker: The key was cutting the receipt length form 9 feet to 3 feet.

The long receipts came in handy during the toilet paper shortage, earning them undying customer loyalty.


Now consider your post and mine in tandem.  Ewww.
 
2020-08-05 10:20:52 AM  
Was Subby under the impression that the analysis who created the earnings estimates were completely unaware of the pandemic/shutdown/economy?
 
2020-08-05 10:23:24 AM  
Well, less shoppers, less shoplifters...
 
2020-08-05 10:24:03 AM  

Diogenes: Arkanaut: Walker: The key was cutting the receipt length form 9 feet to 3 feet.

The long receipts came in handy during the toilet paper shortage, earning them undying customer loyalty.

Now consider your post and mine in tandem.  Ewww.


You are a bad man.
 
2020-08-05 11:04:10 AM  

Arkanaut: Diogenes: Arkanaut: Walker: The key was cutting the receipt length form 9 feet to 3 feet.

The long receipts came in handy during the toilet paper shortage, earning them undying customer loyalty.

Now consider your post and mine in tandem.  Ewww.

You are a bad man.


But you're considering them out of context, since there was that other report about the employees eating the receipts.

So... receipts are shorter, receipts are used as toilet paper, receipts are eaten by employees, it's the circle of human-centipede life.

/gets e-mail receipts, thank goodness
 
2020-08-05 11:29:33 AM  
Checking their 10-Q, Q2 revenue is up YoY 2.9%, dunno where Subby is getting this less business stuff from.

Earnings were higher primarily because of lower benefit costs paid out by their insurance subsidiary Aetna. It's all in their earnings presentations.
 
2020-08-05 11:58:32 AM  
yes of course there is a golden mean to be found that has the best busy/costs/return ratio you can get to.

only a foll assumes that more business is always just that much more profit.
But that is not true as many businesses will have a curve of costs that goes up more ass we try to process more business in the same amount of time or try to run the business as open for more hours in the day.

Overhead costs can show up that we don't see as long as volume of busy is below a certain threshold.
keeping service levels at a minimum can begin to cost more in labor, as more people(larger volume) can require more labor rather than scale linearly.

EXAMPLE:
A restaurant that has volume X can do fine without a host. The busers and wait staff can handle it at
X customers / Y employees
and the service level is upheld.
But if we keep adding more volume at some point we need a whole new staff potion called the Host.
We still had to add waitstaff and buser for the extra volume, but it now is enojugh we just need a special new labor overhead to deal that we previously did not, in order to keep the service minimum up to par.

So yes there is a golden ratio to be found for volume/costs and just adding more and more, will not necessarily increase or maintain our margin we might cut into a bit.

The up side to that in the market is, competition is the worst cost of all, so better to take a lower margin and soak all the business in the area than a better margin at lower volume but then have to eat the costs of competition which could cut into the margin much worse.

But yeah when we just flatly measure the profit, there is a best ratio of overhead/returns to be found, though that may not always be the best to have guide the choices all the time.
 
2020-08-05 12:25:13 PM  
CVS is a lot more than a corner retail store.
 
2020-08-05 12:28:27 PM  

Diogenes: The key was cutting employee pay and getting them used to eating insanely long receipts instead of food.


As an employee, I wish I could say this was far from the truth. Payroll has been cut HORRIBLY across the chain to the point most people are working alone +50% of the time.

But we beat earnings expectations so yay. I'm sure we'll get a pizza party out of it.
 
2020-08-05 1:23:49 PM  
The key was doubling their prices for over the counter drugs

I walked out of a store a couple of weeks back
 
2020-08-06 9:46:14 AM  

Jacobin: The key was doubling their prices for over the counter drugs

I walked out of a store a couple of weeks back


All chain pharmacies are a rip off. Even the store brand items are double the price of Walmart/Target/local grocery store. But people are lazy I guess or have more money than sense.
 
Displayed 16 of 16 comments

View Voting Results: Smartest and Funniest

This thread is closed to new comments.

Continue Farking




On Twitter



  1. Links are submitted by members of the Fark community.

  2. When community members submit a link, they also write a custom headline for the story.

  3. Other Farkers comment on the links. This is the number of comments. Click here to read them.

  4. Click here to submit a link.