Over emphasis on quarterly earnings is bad for business
Tom Dougherty, CEO – Stealing Share
5 April 2013
They are short-term looks and can give you a false impression
Marketing campaigns and business models change at dizzying speeds. Problem is, many are scrapped before the true results are known. The culprit? Quarterly earnings.
“Thanks to quarterly earnings, long-term strategy and shareholders are often pitted against each another.”
Shareholders use quarterly earnings to judge advertising campaigns. That’s a mistake. Successful marketing moves should ultimately increase earnings, but one bad quarter doesn’t mean the strategy isn’t working.
Take JCPenney, for example. The retailer is in dire need of revitalization. Last year, the company unveiled its “square deal” initiative, which offered everyday low prices instead of coupons and other discounts. Once the first disappointing quarterly report came in, impatient shareholders stomped their feet and demanded a return to sales gimmicks.
Thanks to quarterly earnings, long-term strategy and shareholders are often pitted against each another. As a result, there is little chance to see big change.
ESPN+ Tom Dougherty, CEO - Stealing Share 23 January 2019 UFC sets the future of ESPN+ UFC fans are ushering in the future of streaming television, and ESPN+ is reaping the rewards. The streaming app collected more than a half million new subscribers after...
Great British Bake Off Tom Dougherty, CEO - Stealing Share 22 January 2019 Turn off Hell’s Kitchen, tune into The Great British Bake Off For years, my wife and I dawdled with lackluster cooking shows. Gordon Ramsey, whose brand now reeks of cliche, leads a litany...
Chevy ads Tom Dougherty, CEO - Stealing Share 21 January 2019 Toyota calls BS on Chevy ads Ha ha ha. It’s about time someone (other than me) called bullshit on the Chevy ads that are insipid at worst, outright deceiving at best.You know the series of ads. The...