It's true that sales can be affected when the seasons and the calendar don't fall exactly right for some companies. Summer, for instance, is a key selling time for Pepsi, and Labor Day marks its end. Here's what PepsiCo said in its filing:
Volume performance in North America was negatively impacted by approximately 1 percentage point due to a calendar shift related to the Labor Day holiday.
Pepsi's sales were the usual story in Q3: Not great.
"Organic" (like-for-like) revenue grew 5%, but the sale of some business units led to an overall sales decline of 5% to $16.6 billion.
PEP's food and snacks business is relatively healthy, but its Pepsi soda and Gatorade sales in North America have been in a long, slow decline.
In Q3, they saw a volume decline of 3%, a net sales decline of 7% and an operating profit collapse of 16%. A large part of that was due to the sale of a Mexican drinks business. But there was also a volume decline of 2% for soda sales ? PepsiCo's flagship brand ? and a 7% decline in non-soda drinks. The latter was led by "a high-single-digit decline" in Gatorade, which until recently had been a turnaround success story at the company.
So why is this all the fault of Labor Day?
A PepsiCo spokesperson tell us that it's due to the unions who control its shipping operations and a quirk in the company's fiscal calendar. Last year, PEP's Q3 ran from June 12 to Sept. 3, so Labor Day ? which was Sept. 5 that year ? fell outside the quarter. This year, PEP's Q3 ran from June 17 through Sept. 8, and the Sept. 3 Labor day fell within the quarter.
Pepsi's "unions don't work on Labor Day, so we don't ship on that day," a spokesperson tells us. This "lost" Labor Day then wipes 1% off North American sales.
Related:
Source: http://www.businessinsider.com/pepsi-blames-labor-day-for-sales-decline-2012-10
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