There has been a lot of talk about retailers’ second-quarter earnings this week, from Walmart Inc.’s best sales in a decade to Macy’s Inc.’s share price slide to J.C. Penney Co. Inc.’s disastrous turn.
However, the closely watched quarterly earnings season that has been a requirement for publicly traded companies in the U.S. since the Thirties could end up a thing of the past.
President Trump took to Twitter on Friday to announce he had asked the U.S. Securities and Exchange Commission to explore altering the reporting schedule to become biannual.
“In speaking with some of the world’s top business leaders I asked what it is that would make business (jobs) even better in the U.S. Stop quarterly reporting & go to a six month system,” said one. That would allow greater flexibility & save money. I have asked the SEC to study!” he tweeted Friday morning.
When pushed for further explanation by reporters, Trump clarified that he would like to see companies report twice a year, according to CNBC, adding that the idea was sparked by Indra Nooyi, the outgoing chief executive officer of PepsiCo, who told him that biannual reporting would improve growth.
“And I thought of it and it made sense to me, because you know we are not thinking far enough out,” Trump said. “We’ve been accused of that for a long time, this country. So we’re looking at that very, very seriously. We’re looking at twice a year instead of four times a year.”
If this materializes, the U.S. will not be the first country to make such a move. The European Commission did something similar four years ago.