do the simple math!! company had almost 2500 more employees this month versus last year. assuming total annual cost with all fringes of $45,000 per person is $113mm of incremental annual expenses or $9.4mm per month. this means monthly sales have to be up $19mm (use 51% gross margin) just to cover the expenses. monthly sales were up $18.3mm. didnt get there. and by the way, i am not including any new store expenses, increased distribution costs, etc. here comes the margin squeeze!
grants interest rate observer just put out nice piece talking about how overvalued this thing is. makes nice mention about insiders selling $15.3mm of stock last year versus buying $404,000 this year. sorry to burst your bubble truth_in_nyc!!!!!!!!!!!!! now who do you trust??????????????
There won't be a problem covering the additional labor expense, they've taken away bonus' to district managers that don't show an increase in pre-tax profit, so if a district had profits in Q4 2012 of $100K he/she earned a very nice bonus, now in Q4 of 2013 that district only had profits of $99,999 it wasn't growth, so he/she makes ZERO BONUS, the company still got it's $99,999 but paid no bonus...BRILLIANT!!
I eagerly await the release of officer earnings and see if they were deprived of any bonus'
The turnover rate of employees at Fastenal is a huge number. Add in a store in every one horse town and where will the growth come from? They need to get prepared for the coming attack from Amazon Supply.
So you have $3.3 $billion a year in sales, which is respectable, but the $13 $billion market cap is simply too high for a now low growth public company. This is a giant disconnect and will resolve at some point.