Company Earnings UpdateUnilever (LSE: ULVR) 1H19 Results: Beauty and Personal Care, Home Care Segment Shine; Food and Refreshment Sales Decline; FY19 Sales Guidance Unchanged Coresight Research July 26, 2019 Executive Summary Unilever reported revenue of €26.13 billion, slightly above the consensus of €26.06 billion and down 0.9% year over year. The beauty and personal care and home care segments showed positive growth, while food and refreshment sales declined. The company expects FY19 organic sales to be in the lower end of the 3-5% growth range. This document was generated for
Company Earnings UpdateDiebold Nixdorf (NYSE: DBD) 2Q19 Results: Surprise Adjusted Profit, Raises Revenue Guidance Based on Solid Transformation Progress Coresight Research July 26, 2019 Executive Summary Diebold Nixdorf reported 2Q19 revenues of $1.15 billion, up 4.0% as reported, up 8.0% in constant currency and beating the $1.07 billion consensus estimate. Adjusted EPS was $0.06, above $(0.22) in the year-ago quarter and beating the $(0.15) consensus estimate. Revenue in the company’s Americas banking segment grew 13.3% year over year, driven by a 55.1% increase in product revenue. Revenue from retail products grew 5.3%. The company raised 2019 revenue guidance to $4.5 billion (down 2% over the same period last year) from $4.4-4.5 billion and reiterated adjusted EBITDA guidance of $380-420 million (up 15-27% over the same period last year). This document was generated for
Flash ReportSalesforce to Partner with Alibaba to Offer Its CRM Platform in China Coresight Research July 26, 2019 Executive SummaryOn July 24, 2019, Salesforce announced a strategic partnership with Alibaba. Alibaba will become the exclusive provider of Salesforce to customers in Mainland China, Hong Kong, Macau and Taiwan. Salesforce will also become the exclusive enterprise CRM product suite sold by Alibaba. The agreement encompasses Salesforce’s CRM platform, including Sales Cloud, Service Cloud, Commerce Cloud, and Salesforce Platform for customers in mainland China, Hong Kong, Macau and Taiwan. The agreement notably does not cover Salesforce’s Marketing Cloud. Salesforce’s offerings will run on the Alibaba Cloud service platform. Salesforce commented that Alibaba’s advanced, secure infrastructure and knowledge of these markets will empower its global customers with a solution that meets local business needs. China tech giants Baidu and Tencent offer their own CRM platforms. This document was generated for
Company Earnings UpdateAlphabet (NASDAQ: GOOGL) 2Q19 Results: Beats Consensus Estimates as Growth Accelerates Coresight Research July 26, 2019 Executive Summary Alphabet (the parent company of Google) reported 2Q19 revenues of $38.94 billion, up 19.3% year over year and above the $38.15 billion consensus estimate. Adjusted EPS was $14.21, up 20.9% year over year and beating the $11.10 consensus estimate. Mobile search, YouTube and Cloud were the key growth drivers in the quarter. Google did not offer guidance but mentioned currency headwinds, ongoing strength from applying machine learnings on its sites, strength in cloud and a positive reception for its Pixel 3a smartphone. This document was generated for
Analyst CornerWEINSWIG’S WEEKLY JULY 26 2019 Coresight Research July 26, 2019 Executive Summary This week’s note “From the Desk of Deborah Weinswig” looks at Alibaba’s move into the US B2B market. GNC announced it will close 700-900 stores, mostly in malls, where around 28% of its stores are located. The supplements retailer reported US and Canada second quarter revenues fell 8% as same-store sales slid 4.6%. German fashion retailer Gerry Weber will close all its UK stores by the end of October. The announcement comes as part of its parent company’s restructuring plan initiated in January. Ikea plans to start selling in Mumbai, its second location in India in less than a year. Ikea will first offer online sales in Mumbai and later open small stores, pick up centers and customer service centers across the city, to be followed by increased online offerings. This document was generated for
Deep DiveCasualization Drives Growth in the US Menswear Market Coresight Research July 25, 2019 Executive SummaryIn this report, we analyze the US men’s clothing market. Growth in the $88.8 billion US menswear market is being driven by demand for more casual apparel items. Reflecting this, suits are expected to be the slowest-growing of all menswear categories over the five years from 2018. Athletic menswear brands are taking market share from traditional menswear brands. The top three athletic brands, Nike, Adidas and Under Armour, gained a combined 2.0% market share over five years while traditional retailers Ralph Lauren and Levi’s lost a combined 1.7%. Demand for denim is growing and the category is expected to grow to $9.0 billion by 2023, to the benefit of both new and traditional players. Levi’s is overwhelmingly the top menswear denim brand, holding around one-quarter of the market in 2018. Premium activewear brands are trying to move into the “white space” in a menswear market that remains underserved for high-quality performance brands focused on functionality, materials, quality and connecting with consumers. Younger streetwear enthusiasts spend five times more per month for streetwear over non-streetwear. Consumers value exclusivity, community and status. 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 UpdateVF Corp (NYSE: VFC) 1Q20 Results: Revenue and EPS Growth Boosts Guidance for FY20 Coresight Research July 25, 2019 Executive Summary Total revenues were $2.27 billion, up 6% year over year (9% at constant currency), ahead of the consensus estimate. Adjusted EPS increased 61% to $0.30, beating the $0.29 consensus estimate. Adjusted gross margin expanded 120 bps to 54.4%. The company adjusted its outlook for 2020 to revenue growth of 6% to $11.8 billion and adjusted EPS growth of 15-17% to $3.32-3.37. This document was generated for
Company Earnings UpdateB&M (LSE: BME) 1Q20 Trading Update: Store Expansion and Strong Comps Drive Sales Coresight Research July 25, 2019 Executive Summary B&M reported 1Q20 group sales of £967.7 million up 21.4% year over year as reported and on a constant-currency basis, and ahead of the consensus estimate of £934.5 million recorded by StreetAccount. The company grew its UK B&M banner revenues 13.8% year over year to £738.9 million. UK B&M comparable sales growth was 3.9%, beating the consensus estimate of 3.5%. B&M plans to open 50 new B&M UK banner stores and close five stores in fiscal 2020. It also expects to open between 15 and 20 Heron Foods stores, net, in the fiscal year. This document was generated for
Company Earnings UpdateLoblaw (TSX: L) 2Q19 Results: Food Growth Softens Coresight Research July 25, 2019 Executive Summary In 2Q19, ended June 15, Loblaw reported a meaningful weakening of comparable sales growth in its food segment. Food retail comp growth of 0.6% compared to 2.0% in the prior quarter and was well below company-measured food-price inflation of 3.6%. Drug retail comp growth strengthened to 4.0% in 2Q19, from 2.2% in the prior quarter. Management maintained FY19 guidance for positive same-store sales and a stable gross margin in the retail segment. This document was generated for
Insight ReportSupply Chain Briefing: Digital Twins Bring Visibility and Speed to the Supply Chain Coresight Research July 25, 2019 Executive SummaryIn our weekly Supply Chain Briefing series, we discuss how technology is transforming the various stages of the retail supply chain, including product design, demand forecasting, manufacturing, logistics, warehousing, last-mile delivery and sales. This report discusses digital twins, an emerging technology that can help companies make better decisions and predictions. Digital twins can improve supply chain through enhanced visibility, predictive maintenance and lower cost. Consumer goods and retail companies are tapping into the technology: The market for digital twin technology will be worth $20 billion by 2025, according to research and consulting firm Global Market Insights. 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 UpdateKimberly-Clark (NYSE: KMB) 2Q19 Results: In-line Sales, Beats on EPS; Company Raises Fiscal 2019 EPS Guidance Coresight Research July 25, 2019 Executive Summary Kimberly-Clark reported net sales of $4.6 billion for the second quarter of 2019, a decrease of 0.2% compared to the same period last year and roughly in line with consensus estimates recorded by StreetAccount. Organic sales were up 5% versus last year, beating the consensus of 3.2% growth. The personal care segment recorded net sales of $2.3 billion, with the operating margin expanding 79 basis points to 21.2%. The consumer tissue segment recorded net sales of $1.5 billion, with the operating margin expanding 95 basis points to 15%. The K-C Professional segment reported net sales of $821 million, with the operating margin expanding 57 bps to 19.7%. Kimberly-Clark raised its fiscal 2019 adjusted earnings per share guidance to $6.65 to $6.80, compared to the prior guidance of $6.50 to $6.70. This document was generated for
Deep DiveApparel Resale Goes Mainstream Coresight Research July 24, 2019 Executive SummaryRecommerce and thrift shopping are going mainstream as consumers increasingly seek out value (both economic and ethics-based), clothing that expresses individuality and that is Instagrammable. Consumers are on both sides of the transaction, donating and consigning as well as purchasing. The desire to simplify and de-clutter is contributing to these forms of commerce. To reduce the environmental impact of fast fashion on the globe, many consumers are opting for circularity and reduced waste. This eco-mindfulness leads to consumers feeling good about their purchase decisions. Sustainable fashion, ethically produced, designed and ultimately repaired and/or resold is changing the purchase consideration set. Buy better (quality), keep longer and put back into circulation via consigning or donating for others to use. Product lifetime value can increase. Rcommerce is providing consumers the choice of lightly used authenticated designer merchandise at about 80% off the retail full price, attracting first-time luxury shoppers. In tandem with the success of off-price retailers, recommerce is growing more rapidly than retail overall as consumers seek sharp pricing and a treasure hunt experience. 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 UpdateAvery Dennison (NYSE: AVY) 2Q19 Results: Mixed Results, Tougher Year than Expected but Annual EPS Target on Track Coresight Research July 24, 2019 Executive Summary Avery Dennison reported 2Q19 revenues of $1.80 billion, down 3.2% year over year and slightly below the $1.83 billion consensus estimate. Adjusted EPS was $1.72, up 4.0% year over year and beating the consensus estimate by four cents. Adjusted organic growth was 1.6%. Revenues in the company’s label and graphic materials business declined 4.1%, and revenues in the retail branding and information solutions segment grew 0.4% year over year. The company reaffirmed and tightened its 2019 adjusted EPS guidance range to $6.50-6.65 from $6.45-6.70 (up 7-10%). This document was generated for
Flash ReportAlibaba Opens Its B2B Platform to US Businesses Coresight Research July 23, 2019 Executive Summary On July 23, Alibaba announced it will open its business-to-business (B2B) e-commerce platform, Alibaba.com, to US small business to sell globally. The global B2B e-commerce market is $23.9 trillion, six times larger than B2C e-commerce, according to the US International Trade Commission. Alibaba.com will co-sponsor a national tour of local “Build Up” events to support small and medium-sized businesses. This document was generated for
Deep Dive2019 Retail Trends Midyear Update Coresight Research July 23, 2019 Executive SummaryIn January, we identified what we thought would be the top trends to watch for 2019 in our 10 Retail Trends for 2019: Get Ready for Retail Reinvention. At midyear, we look at the five trends we’ve seen made the most impact so far – and identify two new trends we think will be significant in the coming months. The five global retail trends we’ve seen make the most impact in the first half of the year are: Cities will see more spectacular retail from a new generation of flagship stores. “Fast Retail” will be marked by shorter leases, more shared spaces and more short-term stores. Technology will continue to strip friction from brick-and-mortar retail. More consumers will seek out environmentally and socially engaged brands. Consumers will look for more inclusive offerings, impacting the apparel and luxury markets. Two trends we expect to see play out in the second half of 2019 and into 2020 are: Legacy retailers will continue to seek out partnerships. Marketplace giants’ shopping festivals will continue to add spectacle and scale. 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
