24 Feb POSITIVE SPIN; BARGAIN HUNTING
Welcome to this week’s round up of insights and commentary, brought to you by Team Cannings.
POSITIVE SPIN
Twice a year, come results time, Australian CEOs front up to explain how their companies performed over the previous six months – and in some cases, what’s around the corner.
But as the Australian Financial Review noted this week, there often seems to be a bit of a gap between how CEOs describe their results – and reality.
For instance, BlueScope CEO Mark Vassella described the steel producer’s 64 per cent profit fall as “encouraging” while Latitude CEO Ahmed Fahour said the lender was “encouraged” by the “positive momentum” in the last six months of 2022, despite reporting a 77 per cent drop in profit.
Full marks for enthusiasm but in the end, investors, analysts and the media can read between the lines.
BARGAIN HUNTING
The busiest week of earnings season has proved that Aussies are searching for the best deals and cheaper alternatives as they tighten their purse strings amid rising inflation and interest rates.
Coles and Woolworths’ results showed customers are moving from eating out to eating in and putting more budget-friendly home brand products into their shopping trolleys.
Shaver Shop is also predicting a rise in demand for DIY alternatives as customers swap going to the barber or beauty salon for a pair of clippers, trimmers, and waxing strips.
But there’s one thing Australians aren’t cutting back on – comfy undies. Underwear maker Step One announced it’s back in the black in part due to the willingness of customers to pay for its popular “no chafing” undies. Its recent expansion into women’s underwear and the surprise success of its “eggplant” coloured garments also helped boost sales
FOUR IS THE NEW FIVE
Revenue gains, big drops in staff turnover and lower levels of worker burnout have convinced most companies participating in the largest-ever four-day workweek trial not to look back.
Of the 61 British organisations that took part in the trial, 56 said they would continue implementing four-day work weeks after the pilot ended, with 18 committing to a permanent shift.
Workers reported improvements in their sleep, stress levels, and their health and personal life, with almost all of the 3,000 or so participants voting to stick to the four days a week arrangement and about one in six saying no money would convince them to return to five days a week.
Feel free to share these updates with colleagues or friends. They can sign up here to receive our daily newsletter.