Gina Goetter’s Post

While we were all locked down during the pandemic, parents spent serious money on toys and games to keep their kids (and sometimes ourselves) occupied! Now that inflation is hitting household budgets, that spending has slowed dramatically and toymakers like Hasbro are focusing on way to reduce costs. In this article from the Wall Street Journal, their CFO, Gina Goetter, discusses how they have reduced inventory to free up capital, and instituted "zero-based" budgeting to challenge every line item in their financial plan. How has your firm reacted? What techniques for reducing expenses have worked and what has not? Have you kept all those efforts "in-house" or have you considered bringing in outside resources to assist? Love to hear your comments and observations!

SEG's third quarter 2024 results have been announced and here are some of the Company’s recent highlights: - Signed a license agreement with The Dead Rabbit to brand The Rooftop at Pier 17 food & beverage operations during the Company’s holiday and winter programming beginning November 2024. - Extended the Company’s programming agreement with Live Nation Entertainment for five years, effective January 1, 2025, for The Rooftop at Pier 17, the Company’s one-of-a-kind live music experience with panoramic views of some of New York City’s most iconic landmarks. - Reported a net loss of ($32.5) million, or ($5.89) per basic and diluted share attributable to common stockholders, compared with a net loss of ($736.2) million, or ($133.31) per basic and diluted share attributable to common stockholders for the third quarter of 2023. “We are excited to embark on a new chapter following our recent public listing and successful rights offering. These key milestones position us to focus on long-term value creation as we implement innovative strategies across our portfolio intended to enhance operational efficiencies and strengthen cash flow,” said Anton Nikodemus, Chairman, President and Chief Executive Officer of Seaport Entertainment Group. Read more about the Company’s performance and strategic vision below.

📊 LIFO Liquidation and Its Impact on Gross Profit – A Practical Example Recently, I worked through a scenario related to LIFO (Last-In, First-Out) liquidation, and I thought it would be useful to share. This case involved Reliable Fans, Inc. (RF), a hypothetical company selling high-quality fans, which uses the LIFO method and a periodic inventory system. The Question: What amount of RF’s 2018 gross profit is due to LIFO liquidation? The Solution: RF sold 13,000 fans in 2018 but only purchased 12,000 units that year. This means 1,000 units were taken from older, cheaper inventory purchased in 2015 at $100 per fan, which caused LIFO liquidation. If RF had purchased 13,000 fans in 2018 at the current cost of $115 per fan, the cost of goods sold (COGS) would have been $1,495,000. As a result, the gross profit would have been $1,300,000. However, because LIFO liquidation allowed RF to sell 1,000 fans at the lower 2015 cost, the company’s actual reported gross profit was $1,315,000. The gross profit due to LIFO liquidation was $15,000 ($1,315,000 reported gross profit minus $1,300,000 gross profit without liquidation). You can also calculate this by multiplying the number of units liquidated (1,000 units) by the difference between the replacement cost ($115) and the historical purchase cost ($100), which gives us $15,000. Understanding LIFO liquidation is crucial for financial analysis, especially when companies use older, cheaper inventory to inflate their gross profits temporarily. Key Takeaway: LIFO liquidation can temporarily boost gross profit by utilizing older inventory with lower costs, but it’s important to recognize this when analyzing a company’s financial health. #LIFO #Accounting #Finance #FinancialAnalysis #COGS #InventoryManagement #LIFOLiquidation #GrossProfit #CFAPrep #LinkedInLearning #CorporateFinance #CostAccounting #FinancialStatementAnalysis

I couldn't be more proud of the entire Light & Wonder and SciPlay family! The performance over the past 2 years has been amazing to be apart of and it all started with forming an unbreakable culture. Starting a vision and turning it into reality is what continues to drive us each day, but of course we always want more :) Here's to doing it again in 2024 and beyond!! - Gaming revenue increased to $496 million, up 13% compared to the prior year period, primarily driven by another quarter of robust Gaming machine sales growth, which increased 31% globally, coupled with continued strong momentum in Gaming operations. - SciPlay revenue rose to $204 million, a 12% increase from the prior year period, breaking a quarterly revenue record for the sixth consecutive quarter, driven by the core social casino business, which once again delivered strong payer metrics and outpaced the market and gained share. - iGaming revenue increased 13% to $70 million reflecting continued growth momentum in the U.S. and international markets.

This success story should be a blueprint for any business looking to upgrade its financial performance. Utz had its back to the wall and decided to evolve. A great turnaround story and an example of our advice to adapt or die. https://lnkd.in/eAfJyfws #paletzadvisor

Qlik Did you know that LEGO almost went under in the early 2000s? At the time, the company was on the verge of bankruptcy, accumulating $800 million in debt by 2003 and losing hundreds of millions of dollars annually. The company had over expanded into areas outside its core business, such as theme parks and clothing lines, while also increasing the complexity of its product lines by doubling the number of unique brick types. Additionally, LEGO faced intense competition from video games and cheaper copycat products, leading to a loss of market share. Fast forward to today, and it is the world’s largest toy company, quadrupling revenues in less than a decade; in the first half of 2024, their revenue jumped 13%. What are some of the key strategies they adopted to achieve such a spectacular turnaround? https://lnkd.in/eMUrWWM6? …more

Capcom has announced a revision to its full-year earnings forecast for the fiscal year ending March 31, 2024. Previously pegged at ¥140 billion ($892 million), the new forecast stands at ¥152.4 billion ($971 million), reflecting a notable 9% increase. This upward adjustment is attributed to the strong performance of Capcom's digital content business. Despite Dragon’s Dogma 2 launching just ten days before the fiscal year's end, its impact has been substantial, prompting the company to highlight its favorable performance in the revision. Within a week of its release, Dragon’s Dogma 2 achieved global sales of 2.5 million units, underscoring its significant contribution to Capcom's financial outlook. Moreover, Capcom recognized the commendable performance of Street Fighter 6. Additionally, the publisher acknowledged the growth in sales of catalog titles, which predominantly comprise past titles from major series, driven by their enduring popularity. Consequently, Capcom anticipates that earnings for this segment will surpass their initial projections.

Suffering from success? Make good products, too good that you never have to buy again, Stocks fall, File bankruptcy :) They say to never lose your mom's Tupperware, but sadly, the company's about to lose its financial footing since it just filed for Chapter 11 bankruptcy protection. A legal process that helps businesses reorganize their debts while staying operational on Tuesday (September 17) due to plummeting demand and financial losses. The company reported assets ranging between $500 million and $1 billion, while its liabilities could be as high as $10 billion. Its financial troubles were exacerbated by post-pandemic increases in material, labor, and freight costs as per Bloomberg. Tupperware has been struggling to revitalize its business for approximately four years, following six consecutive quarters of declining sales beginning in the third quarter of 2021. Rising inflation has further impacted its low and middle-income customer base. P.S. - So, Are innovation and sustainability the only way to be relevant in such markets?

Cash ≠ Crash. Tune in soon for expert advice from our live panel discussion on financing your DTC brand. Avoid cash flow pitfalls and keep your business thriving! 6PM EST 👇

It’s the middle of strategic planning season. Our team and I travel from coast to coast helping credit unions craft their strategies, and there is always a key place to start: what is the status of your current initiatives? We like to put those into four categories: ✅ What should you stop? ✅ What should you slow down? ✅ What should you speed up? ✅ And what should you stay the course on? You might need to hit the brakes or just slow down like a NASCAR driver when the yellow flag appears. Conversely, some strategies that have been on the back burner may need to move forward quickly. And in some cases, you might just need to stay the course. In other words, not all current strategic initiatives are the same. Have the courage to review what is working, what is not working and where you need to pivot. Strategic planning is a process...not a date on the calendar. Make sure part of your process is doing a deep dive analysis into what is happening now. #strategicplanning #planning #strategy #creditunions