Understanding LFL (Like-for-Like) in Google Finance

When analyzing retail companies or businesses with multiple locations, Like-for-Like (LFL) sales, also sometimes called same-store sales (SSS), is a crucial metric. While Google Finance provides access to a wealth of financial data, it’s important to understand how LFL figures fit into the broader context of company performance and what limitations exist regarding its direct availability on the platform.

What is Like-for-Like Sales?

LFL sales measure the growth in revenue generated by stores or businesses that have been open for a specific period, typically at least one year. This metric isolates the organic growth of the business, excluding the impact of newly opened stores or closed locations. By focusing on stores that have been consistently operating, LFL provides a clearer picture of how effectively a company is performing at its existing locations. Factors influencing LFL sales include:

• Marketing campaigns: Successful promotions can drive increased traffic and sales.
• Product offerings: Introduction of popular new products or successful inventory management.
• Pricing strategies: Adjustments in pricing relative to competitors can affect demand.
• Customer service: Positive customer experiences contribute to repeat business.
• Economic conditions: Overall economic health and consumer spending habits impact sales.
• Competition: The competitive landscape in the geographic area.

Why is LFL Important?

LFL sales offer several key benefits for investors and analysts:

• Gauging organic growth: LFL eliminates the distortion of new store openings, allowing for a more accurate assessment of the underlying health of the business.
• Performance comparison: LFL facilitates comparisons between companies in the same industry, providing a standardized measure of sales performance.
• Identifying trends: Tracking LFL sales over time helps identify positive or negative trends in customer behavior and store performance.
• Operational effectiveness: LFL reflects the effectiveness of a company’s strategies in driving sales at existing locations.

LFL and Google Finance

Unfortunately, Google Finance doesn’t typically display LFL sales figures directly as a readily available data point in its standardized financial reports. You won’t find a dedicated “LFL Sales” field within the key statistics or income statement summaries.

Where to find LFL Data:

• Company Filings (SEC): The most reliable source of LFL information is the company’s official filings with the Securities and Exchange Commission (SEC), particularly the 10-K (annual report) and 10-Q (quarterly report). These reports often include a detailed discussion and analysis of LFL sales performance.
• Earnings Calls Transcripts: During earnings calls, company executives frequently discuss LFL sales and provide context for the figures. Transcripts of these calls are often available on financial news websites or through investor relations sections of the company’s website.
• Financial News Articles: Financial news outlets like Bloomberg, Reuters, and the Wall Street Journal often report on LFL sales figures when companies announce their earnings.
• Analyst Reports: Equity research analysts who cover specific companies will typically analyze and report on LFL sales performance in their reports. Access to these reports may require a subscription.

Using Google Finance for Related Data:

While Google Finance doesn’t provide LFL directly, you can use it to access related financial information that can help you analyze LFL. This includes:

• Revenue: Track the overall revenue trends of the company. A significant increase in revenue without a corresponding increase in LFL might suggest that growth is primarily driven by new store openings, not improved performance at existing locations.
• Historical Stock Prices: Observe how the stock price reacts to earnings announcements. Unexpected LFL results, positive or negative, can significantly impact the stock price.
• Financial News: Monitor news articles related to the company, as these articles may report on LFL performance.

Conclusion

LFL sales are a vital indicator of a retail company’s organic growth and operational effectiveness. While Google Finance doesn’t directly present LFL data, it serves as a valuable tool for accessing related financial information and news. To obtain LFL figures, investors should consult company filings, earnings call transcripts, and financial news reports. By combining insights from Google Finance with other data sources, you can gain a more comprehensive understanding of a company’s LFL performance and its overall financial health.