January 23, 2019 Company Earnings Update Register for Free Access Carrefour (ENXTPA: CA) 4Q18 Update: Latin America Picks Up the Slack as France Is Hit by DisruptionCarrefour reported group comparable sales excluding automotive fuel were up 1.9% year over year in 4Q18, versus 2.1% growth in 3Q18 and ahead of the consensus estimate of 1.0% recorded by StreetAccount. Performance in France was weak and growth was driven by Latin America. Total sales at actual exchange rates were down 2.3% year over year, impacted by currency effects.
January 21, 2019 Company Earnings Update Register for Free Access VF Corp (VFC) 3Q19 Results: Raises Guidance as Active Segment Propels GainsVF Corp. reported adjusted fiscal 3Q19 EPS of $1.31, up from $1.01 in the year-ago quarter and above the $1.10 consensus estimate. Total revenues were $3.94 billion, up 8.0% year over year (10% at constant currency). Excluding Kontoor Brands (scheduled to be spun off at the end of April), revenues rose 12%. By segment, Outdoor revenues rose 11% to $1.61 billion; Active revenues increased 16% to $1.14 billion; Work segment revenues rose 9% to $62.6 million and Jeans revenues declined 27% to $67.8 million. By channel, direct-to-consumer (DTC) rose 9%, Digital (within DTC) rose 21% and Wholesale increased 6%. By region, Asia Pacific sales rose 16%, led by China, up 23%; followed by a 9% gain in the U.S., 7% in the Americas (non-U.S.) and 4% in EMEA.
January 18, 2019 Company Earnings Update Register for Free Access Primark (LSE: ABF) 1Q19 Trading Update: Store Expansion Lifts SalesPrimark increased its revenues 4% year over year, at both constant currency and actual exchange rates. This was below the consensus estimate of 5.5% constant-currency growth recorded by StreetAccount. Sales growth was driven by an increase in the retail selling space partially offset by a modest decline in same-store sales. Operating margins improved due to lower purchasing costs (led by a weaker U.S. dollar) and better stock management, the company did not provide figures. U.K. sales grew 1% year over year, which ABF claimed was ahead of the overall U.K. apparel market. The company pointed to positive U.K. comparable sales in September and October, a weak November and a December that exceeded its expectations.
January 18, 2019 Company Earnings Update Register for Free Access Casino Group (ENXTPA: CO) 4Q18 Update: French Protests Drag on Sales GrowthCasino Group reported that group comparable sales excluding automotive fuel were up 3.6% year over year in 4Q18, versus the 3.3% rate reported for 3Q18 and just shy of the 3.7% consensus estimate recorded by StreetAccount. Total group sales were up 0.2% year over year.
January 16, 2019 Company Earnings Update Register for Free Access Boohoo (LON: BOO) 3Q19 Trading Update: Sales Surge Prompts Raise in Full-Year Revenue GuidanceFor the four months ended December 31, U.K. sales grew 33% year over year, to £180.0 million. At constant currency, rest of Europe sales increased by 54% year over year to £44.4 million, U.S. sales increased 80% to £70.4 million, and rest of world sales increased 32% year over year to £33.4 million.
January 15, 2019 Insight Report Premium New Retail Briefing #1: JD.com and Alibaba RestructureOn December 21, 2018, JD.com announced it would restructure its operations with JD Mall, the company’s main revenue-generating unit. JD Mall will be divided into three business departments, including serving customers; business support services; and, infrastructure control and risk management. JD.com said in its announcement that the new structure will enable it to better focus on customers. JD Mall’s restructuring also aims to diversify its management team and assuage investors that Liu Qiangdong, JD’s founder and CEO, is not the only person driving decision-making at the company.
January 14, 2019 Flash Report Register for Free Access Alibaba Strengthens Its Presence in Digitalization Consulting with A100 Partnership ProgramAlibaba has grown from simple online marketplace to a digital commerce powerhouse, with operations in sales, marketing, product delivery, supply chain, logistics and data analytics — pretty much the whole nine yards. At an event in Hangzhou, the company announced the launch of a new collaborative program called A100.
January 11, 2019 Company Earnings Update Register for Free Access Tesco (LSE: TSCO) 3Q19 and Christmas Update: Strongest U.K. Christmas Growth for a DecadeTesco, the U.K.’s biggest grocery retailer, reported results for 3Q19 (ended November 24, 2018), and the subsequent six-week Christmas period (ended January 5). For the core six-week Christmas period, Tesco grew comparable sales in its U.K. operations by 2.2%, above the consensus estimate of 1.4% from StreetAccount. The company said it outperformed the market in volume and value terms and versus the market “in all key categories: food, clothing and general merchandise.”
January 11, 2019 Company Earnings Update Register for Free Access Seven & i (TSE: 3382) 9M19 Results: Struggling at Home, Silver Lining in Overseas Convenience StoresJapan-based retailer Seven & i reported net sales of ¥4,110.6 billion for the nine months ended November 30, 2018, up 15.8% year over year. Operating income came in at ¥304.3 billion, up 2.9% year over year. Gross margin on net sales decreased by 200 basis points to 19.6% and operating margin fell by 60 basis points to 6.0%. Diluted EPS was ¥176.53, up 4.7% year over year. Below, we outline the performance of convenience store operations, superstore Ito-Yokado, food supermarket York-Benimaru and department store Sogo & Seibu.
January 11, 2019 Company Earnings Update Register for Free Access Marks & Spencer (LSE: MKS) 3Q19 Update: A Weak Quarter for Food and Clothing AlikeOn the management call, CEO Steve Rowe noted that the third quarter was “challenging.” He said that “market conditions were tough, particularly in November when footfall and online visits both dropped significantly,” he said. Rowe said the sales growth was in line with the company’s expectations and was “steady” in the first half. The company reduced inventory volumes, resulting in 25% less stock going into the December sale. Rowe pointed to an increase in sales of entry-level clothing products, saying “customers are looking for value, and we’re providing that.” The company lowered prices on 227 food products and stripped out “complex and confusing” promotions.
January 11, 2019 Company Earnings Update Register for Free Access B&M (LSE: BME) 3Q19 Trading Update: UK Growth Is Hit by a Tough NovemberB&M U.K reported a 1.6% decline in comparable sales, below the 0.9% growth in first half and missing the Street Account consensus of a 0.2% decline. After what the company called a “difficult November,” December B&M U.K. comps strengthened to 1.2%, while U.K. same-store cash gross margin was down in November but bounced back in December. Group sales grew 12.1% year over year to £1.09 billion, slightly above the consensus of £1.08 billion, while total U.K. sales grew 4.5% year over year to £874.5 million. B&M’s Jawoll chain in Germany grew revenues 5.5% at constant currency, while its Heron Foods chain in the U.K. grew revenues 12.6%.
January 10, 2019 Company Earnings Update Register for Free Access Sainsbury’s (LSE: SBRY) 3Q19 Trading Update: Lower Holiday Promotions Weigh on Top LineDespite the declines, CEO Mike Coupe believes grocery was “solid,” general merchandise outperformed the market and that clothing “performed well” in the quarter. General merchandise sales grew “strongly” over the “key Christmas weeks” (unspecified) and outperformed the market over the quarter — but sales declined in the quarter due to cautious spending by consumers and the company’s decision to reduce promotional activity around Black Friday.
January 9, 2019 Company Earnings Update Register for Free Access Morrisons (LSE: MRW) Holiday Trading Update: Wholesale Drives Growth; Retail Sales Impacted by Uncertainty£700 million of annualized wholesale supply sales expected ahead of initial end-2018 guidance. £1billion of annualized wholesale sales expected “in due course.” Further £4 million of incremental profit from wholesale, services, interest and online. In the second half, management expects lower costs of both Morrisons.com expansion and accelerated wholesale supply. Net debt will remain at a low level, consistent with the company’s capital discipline and the principles of capital allocation.
January 9, 2019 Event Presentation Premium Understanding the Asian Retail Market (CES)This presentation describes Coresight’s CORE framework for AI in retail plus eight things we can learn from China.
January 8, 2019 Market Navigators/Market Outlook Premium Sector Overview: European Retail — Germany’s Shoppers Cut BackApparently alarmed by world events such as Brexit and tariff wars, and in a context of slowly climbing inflation, German consumers have retrenched their discretionary spending.
