Flash ReportClothing Rental Upstart Le Tote to Acquire Iconic Century-old Brand Lord + Taylor from HBC for $100 Million Coresight Research August 28, 2019 Executive SummaryOn August 28, 2019, Hudson’s Bay Company and Le Tote, a fashion rental subscription service, announced that they have entered into a $100 million agreement for Le Tote to acquire Lord + Taylor. Le Tote will acquire the Lord + Taylor brand and related intellectual property while assuming operations of 38 stores, Lord + Taylor’s digital channels and the associated inventory. HBC will receive an equity stake in Le Tote, two seats on the company’s board and certain rights as a minority shareholder. The transaction is expected to close before the start of the 2019 holiday season, subject to satisfaction or waiver of closing conditions. If committed financing has not been obtained within 45 days following signing, HBC has the right to terminate the agreement. Le Tote expects that its proprietary technology, data and innovation combined with Lord + Taylor’s traditional store footprint, e-commerce presence and merchandise selection will offer customers a new experience in the mid-market segment. This deal represents a watershed moment in many regards: Retailers have struggled to keep up with the digital revolution and innovative new business models such as subscription models and rental services. Conventional retailers that successfully integrate omnichannel and new business models into their operations continue to flourish and open new stores, while those who do not, struggle. This document was generated for
Flash ReportShoppers Flock to Costco’s First China Store, Forcing It to Close Early Coresight Research August 28, 2019 Executive SummaryOn August 27, Costco opened its first store in China, in the Minhang district of Shanghai. The Coresight Research team visited on opening day and saw the store gain huge traffic, forcing it to shut early due to overcrowding. Costco gained heavy traffic and customer flows: lines were formed before opening; consumers had to wait three hours for parking; average check-out time was about two hours. From August 28, Costco is introducing traffic control in the store. Costco sold 160,000 membership cards on opening day. Members enjoy benefits including full refund of membership cancellation, free return and 90-day return of electronics. Food and consumables are the most popular area to shop, with products priced around 10-20% lower than market prices. This document was generated for
Flash ReportPitney Bowes to Sell Software Solutions Business to Syncsort for $700 Million in Cash, Reduces Guidance from Divestiture and Tariffs Coresight Research August 28, 2019 Executive SummaryOn August 26, 2019, Pitney Bowes announced a definitive agreement to sell its Software Solutions business to Syncsort for $700 million in cash. Syncsort, located in Pearl River, NY, is a global software company specializing in big data, high-speed sorting products, and data integration software and services, including Hadoop, for platforms including Windows, UNIX, Linux, and mainframes. The divestiture will enable the company to part with a non-core, lower-margin business and enable management to focus on its core shipping, mailing and related financial services businesses. Pitney Bowes expects the divestiture to be earnings neutral in the 12 months following the closing of the transaction. Due to the divestiture and the impact of a higher level of tariffs, the company now expects 2019 revenue growth of 1-2% (down from 1-3%) and adjusted EPS of $0.65-0.75 (down from $0.90-1.05) The transaction is expected to close by the end of the calendar year. This document was generated for
Deep DiveSilver Consumers in Europe, 2019 Coresight Research August 28, 2019 Executive SummaryIn this report, we examine the size and growth of the senior population in Europe, and analyze key population and spending data in the UK. In western Europe and southern Europe, one-fifth of the population was 65 or above in 2018. Countries in northern Europe and eastern Europe have younger populations compared to their western and southern counterparts. The 65+ population in the UK stood at 12 million in 2018 and will reach 15 million by 2030. In 2018, UK seniors spent just 74% of the average UK consumer household spend. Silver consumers in the UK devote more of their spending to shopping than other age groups. Already a subscriber? Log in You are currently viewing a preview of this report. Please select an access option to view the full report. Hide Options - Show Options + Get unlimited access to all our research with one of our subscription plans. View Subscription Plans or Contact us to purchase this report. Contact us ✕ This document was generated for
Flash ReportTarget Announces Major Collaboration Deal with Disney Coresight Research August 28, 2019 Executive SummaryThe Walt Disney Company (Disney) has announced plans to team up with Target to open “shop-in-shops” in select Target stores, selling over 450 Disney products. 25 Target locations will have Disney shop-in-shops by October 4, 2019. Products from the Disney shop-in-shop will also be available on Target’s website and mobile app. Coresight Research expects to see more partnerships such as this in the future. This document was generated for
Flash ReportCisco Announces Intention to Acquire Cloud Data Predictive Analytics Company CloudCherry Coresight Research August 28, 2019 Executive SummaryOn August 27, Cisco announced its intention to acquire cloud data-analytics company CloudCherry for an undisclosed figure. The acquisition is expected to close during Cisco’s fiscal 1Q20, which ends in October. CloudCherry provides predictive analytics, rich customer journey mapping and sophisticated survey capabilities to contact centers operating in the cloud or on-premises. The acquisition would provide cloud-based predictive analytics to Cisco’s technology offering for call centers, which should enable the company to offer better service and enhance its customer experience. This document was generated for
Insight ReportNew Retail Briefing: Alibaba Boosts User Engagement through Weitao and 88VIP Coresight Research August 27, 2019 Executive Summary“New Retail” is a model for integrating online retail, offline retail and logistics across a single value chain powered by data and technology. In this biweekly series, we cover important developments in New Retail in China and beyond. Here’s what’s happening: Alibaba upgraded its content tool Weitao to boost user engagement on the Taobao and Tmall platforms. Alibaba expanded membership benefits for its paid loyalty program 88VIP. JD.com now lets users order tailor-made clothes on its Jingzao platform. Already a subscriber? Log in You are currently viewing a preview of this report. Please select an access option to view the full report. Hide Options - Show Options + Get unlimited access to all our research with one of our subscription plans. View Subscription Plans or Contact us to purchase this report. Contact us ✕ This document was generated for
Deep DiveBeauty Wellness Coresight Research August 27, 2019 Executive SummaryIn this report, we analyze the global beauty wellness market. The global beauty market is evolving as the definition of beauty comes to be viewed holistically – from the inside out, creating opportunities for new entrants. The new era of beauty includes health, wellness, self-care and edible beauty products. Consumers are turning to solution-based beauty products, also known as dermo-cosmetics. L’Oréal reported its Active Cosmetics division (dermo-cosmetics) “outperformed the market in every country and on every continent, particularly in the US and Asia” In 2018. Athletic brands and retailers such as Lululemon are expanding into beauty and wellness with their own self-care products. Prevention and skin protection are now beauty values. Consumers are increasingly turning to skin care routines that prevent sun damage, protect from pollution and premature aging. According to the NPD Group, the prestige beauty market saw a 29% increase in spending on skincare products with SPF last year. Consumers are eating powders, supplements and other edibles for healthier skin. Already a subscriber? Log in You are currently viewing a preview of this report. Please select an access option to view the full report. Hide Options - Show Options + Get unlimited access to all our research with one of our subscription plans. View Subscription Plans or Contact us to purchase this report. Contact us ✕ This document was generated for
Company Earnings UpdateFoot Locker (NYSE: FL) 2Q19 Results: Misses Consensus Estimates, Maintains Guidance Coresight Research August 27, 2019 Executive Summary Foot Locker 2Q19 revenues were $1.77 billion, down 0.4% year over year and below the consensus estimate of $1.82 billion. The company reported 2Q19 adjusted EPS of $0.66, down 12% from the year-ago period and below the consensus estimate of $0.67. Comparable sales increased 0.8% for the quarter, lower than the consensus estimate of 3.1%. Management affirmed its earnings per share guidance of growth in high-single digits, compared to the consensus estimate of 4.7%. Foot Locker expects SG&A to be up 10 to 30 basis points. This document was generated for
Question of the WeekWhat Are the Key Differences Between Radio Frequency Identification (RFID) and Near Field Communication (NFC)? Coresight Research August 26, 2019 QUESTION OF THE WEEK: What Are the Key Differences Between Radio Frequency Identification (RFID) and Near Field Communication (NFC)? A key difference between RFID and NFC is that RFID tags can only transmit data, while NFC tags can both send and receive information. Additionally, RFID tags can receive signals within a range of a few meters, but NFC’s range is limited to a few centimeters. This document was generated for
Insight ReportJuly 2019 Monthly Consumer Update: US, UK and China Coresight Research August 23, 2019 Executive SummaryCoresight Research’s monthly reports keep you up to date on US and UK retail sales, US retail traffic and in-store metrics, selected US retailers’ same-store sales and key global consumer indicators. Click here to view our full collection of Monthly Reports. Each month, we analyze key metrics that reflect consumer demand in the US, the UK and China. In these updates, we focus on direct, leading indicators of the health of the consumer economy: wage growth, price changes and retail sales growth. In July: US wage growth continued to comfortably outpace inflation. Retail sales growth strengthened. UK retail sales growth moderated. Inflation in food and automotive fuel slowed. China retail sales growth slowed to 7.6% with apparel and cosmetic sales growth softening year over year. Already a subscriber? Log in You are currently viewing a preview of this report. Please select an access option to view the full report. Hide Options - Show Options + Get unlimited access to all our research with one of our subscription plans. View Subscription Plans or Contact us to purchase this report. Contact us ✕ This document was generated for
Company Earnings UpdateRoss Stores, Inc. (NYSE: ROST) 2Q19 Results: Delivers Respectable Gains and Plans to Open 42 Stores in 3Q Coresight Research August 23, 2019 Executive Summary Ross Stores 2Q19 revenues were $3.78 billion, lower than the consensus estimate of $3.96 billion and up 6.5% year over year. The company reported 2Q19 adjusted EPS of $1.14, higher than the consensus estimate of $1.11 and up from $1.04 last year. Comparable sales were up 3%, especially impressive given last year’s strong quarterly comparison of 5%. The company raised 2019 full year EPS guidance to $4.41-4.50, up from $4.26, compared to the consensus estimate of $4.52. The company expects third quarter earnings per share to be $0.92-0.96, up from $0.91 in the prior year and compared to the consensus estimate of $1.00. This document was generated for
Company Earnings UpdateDick’s (NYSE: DKS): 2Q19 Results: Revenues Up, Beats Consensus, Replaced Hunt Category with Localized Content in 135 Stores Coresight Research August 23, 2019 Executive Summary Dick’s reported fiscal 2Q19 revenues of $2.26 billion, beating the consensus estimate of $2.21 billion, and up 3.8% year over year. The company reported 2Q19 earnings per share (EPS) of $1.26, higher than the consensus estimate of $1.21 and higher than the year ago period. Consolidated same store sales were 3.2%, driven by an increase in average ticket and transactions and beating the consensus estimate of 0.9%. The company raised its fiscal 2019 diluted EPS guidance to $3.30-3.45 from prior guidance of $3.20-3.40. This document was generated for
Company Earnings UpdateGap Inc. (NYSE: GPS) 2Q19 Results: Sales Miss, Reiterates Adjusted EPS and Comps Guidance Coresight Research August 23, 2019 Executive Summary Gap reported fiscal 2Q19 revenues of $4.0 billion, down 2.0% year over year, slightly missing the consensus estimate. Adjusted earnings per share (EPS) were $0.63, down 17.1% from the year-ago period, but ahead of the consensus estimate of $0.53. Comparable sales declined 4.0% versus the consensus estimate of a 3.0% decrease, and versus a year-ago 2.0% comp increase. For the full fiscal year, the company lowered its EPS guidance to the range of $1.88-2.08, down from $2.04-2.14. The company reiterated its adjusted EPS guidance of $2.05-2.15 and continues to expect comps to decline by low single digits for fiscal 2019. This document was generated for
Company Earnings UpdateBJ’s Wholesale Club (NYSE: BJ) 2Q19 Results: Comps in Line But Revenues Miss Consensus Estimates; Margins Improve Coresight Research August 23, 2019 Executive Summary BJ’s Wholesale Club reported 1Q19 adjusted EPS of $0.39, up 27.1% and beating the consensus estimate $0.37. Revenues were $3.35 billion, up 1.2% but below the $3.39 billion consensus estimate. Comp sales excluding gasoline were up 1.6% from last year and in line with the consensus estimate. The company maintains FY19 guidance of net sales of $12.9-13.2 billion and a net income of $200-212 million. This document was generated for
