I think Bob Iger took his first retirement (his second is coming up) just as the shit was hitting the fan.
Iger reminds me of Jack Welch, of GE fame, in many ways. I believe that Iger also ran his team into the ground just like Welch did to his team. I wouldn't be surprised if meeting the numbers at all cost was pervasive throughout Disney's organization. When meeting the numbers is the be-all and end-all, people do just about ANYTHING to make their numbers, so that they will not be called out. I can not imagine the stress on their CFO in such an environment. Interestingly, she recently retired after only a short period since Iger returned.
It is also interesting how everything is shifting around now. Layoffs have begun. Divisions are up for sale. In general, lots of shifts are being made. Their financials are like swimming in a pool that someone dumped a bunch of dirt in. You can't see a damn thing. Dennis Kozlowski of Tyco International fame was excellent at roiling the waters. If you keep throwing dirt in the pool, no one can see anything going on in the pool!
Consider Disney's financial releases. While they have a lot of "stuff" and long earnings releases (the current one is 19 pages!), you've got to wonder if it's intended to keep you confused versus informed. If you can't dazzle someone with brilliance, baffle them with bullshit. While they are in different businesses, compare Disney's financial releases to Costco's or Apple's. Costco's and Apple's are simple, clear and straightforward.
Jack, I mean Bob, retired during the second quarter of 2020. The board announced his successor, Bob Chapek, in February 2020 which was half way through Disney's second quarter
If we look closely, sales jumped in 2019 with their foray into streaming, but started to suffer going into 2020. Granted, it was into COVID times, They bottomed in the 3rd quarter of 2020. Interestingly, this was Bob Chapek's first full quarter as CEO. Can you say "Fall Guy!" Chapek managed to improve sales nicely (QtoQ) through fiscal 2021. Gross margin plunged in the 2nd quarter of 2020 (Iger passed the baton to Chapek in the middle of the quarter.). Chapek took the "bad cards" and suffered through two bad quarters of GM, but then improved GM. From the 3rd quarter of 2019 forward, net income was getting pounded. Granted, this was BEFORE covid and under Iger's reign! The 3rd quarter of 2020, Chapek's first quarter in the drivers seat, he got stuck with the worst hand anyone could hold. Net income dived like a Japanese Zero
If you look at Disney's numbers, its all there. You just have to triangulate it. I'd say Chapek was the fall guy. After he took all the hits, Iger stepped back in for the glory. But, the cards are really bad now and Iger has already played that trick. Unfortunately, his team is likely worn out from running on highly caffeinated coffee, "getting it done" and "making those numbers". Well... there is always roiling the waters. Dennis Kozlowski might be able to provide some really good tips on pool maintenance!
Be smart, be aware, be well-read and be successful.
