Company Earnings UpdateHudson’s Bay Company (TSX: HBC) 1Q19: Mixed Results, Focus on North America and Strategy at Saks OFF 5TH Coresight Research June 14, 2019 Executive Summary Hudson’s Bay Company (HBC) reported 1Q19 revenues of C$2.12 billion, down 3.3% year over year and above the consensus estimate of C$2.00 billion. The company reported adjusted 1Q19 EPS of C$1.15, up from C$(0.72) in the year-ago period. For the quarter, comparable sales were up 0.3%. By banner, Saks Fifth Avenue comps were up 2.4%, Hudson’s Bay comps decreased 4.3%, and comparable sales at Saks OFF 5TH increased 4.4%. The company did not offer 2Q19 or full year guidance. Management expects its cash flow position to remain unchanged, cash flow negative and close to flat. This document was generated for
Company Earnings UpdateLululemon (NASDAQ: LULU) 1Q19 Results: Company Beats Expectations, Raises Guidance and Expands BOPIS Offering Coresight Research June 14, 2019 Executive Summary Lululemon’s 1Q19 revenues grew 20.4% year over year to $782.3 million, beating the StreetAccount estimate of $756.1 million. The company reported 1Q19 EPS of $0.74, up 34.5% from the year-ago period, ahead of the consensus estimate of $0.70. For the first quarter, the company saw consolidated comparable sales growth of 16% on a constant-dollar basis, compared to the consensus estimate of 11.5%, and beating the company’s guidance of low-double digits. For FY19, the company raised guidance and now expects revenues of $3.73-3.77 billion and EPS of $4.51-4.58, versus the prior guidance of $3.70-3.74 billion in revenues and EPS of $4.48-4.55. This document was generated for
Company Earnings UpdateRH (NYSE: RH) 1Q19 Results: Strong Revenues Inspire Raised Guidance Coresight Research June 14, 2019 Executive Summary RH reported 1Q19 revenues of $598.4 million, up 7.4% year over year and beating the $583.7 million consensus estimate. Adjusted EPS was $1.85, comfortably beating the $1.53 consensus estimate. The company raised 2019 guidance on the back of this strong performance, guiding for 2019 adjusted net revenues of $2.64-2.66 billion, an increase of 5-6%, and adjusted EPS of $8.76-9.27, an increase of 4-10%. This document was generated for
Company Earnings UpdateTesco (LSE: TSCO) 1Q20 Trading Update: UK Comps Decelerate, Central Europe Sales Continue to Slide Coresight Research June 14, 2019 Executive Summary Tesco reported 1Q20 group sales of £13.98 billion, up 0.4% at constant exchange rates and as reported. Group comps were below consensus. The company’s UK same-store sales grew 0.4%, compared to 1.7% growth in the previous quarter and missing the consensus of 0.8%. Declining sales in Poland, store closures, fewer trading days and cooler weather across the region negatively impacted Central Europe sales. This document was generated for
Insight ReportCleantech and Retail: Technology Offers Solutions for Some of Retail’s Most Vexing Sustainability Problems Coresight Research June 13, 2019 Executive Summary“Cleantech,” or clean technology, makes use of renewable materials and energy sources, reduces the use of natural resources, and cuts or eliminates emissions and waste. Cleantech can help solve sustainability challenges at various stages in the retail supply chain: Increasingly, consumers expect brands and retailers to be responsible for products upstream to raw material origin, and technologies such as blockchain can improve traceability. Logistics is emerging as a key aspect of the sustainability equation. How a retailer imports and distributes merchandise can have a major impact on greenhouse gas emissions. Energy is the fourth-largest in-store operating cost for retailers after labor, rent and marketing. Packaging is coming under increased scrutiny from consumers, regulators and environmental groups who are looking for more environmentally friendly designs. 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 UpdateInditex (BME: ITX) 1Q19 Results: Mixed Results, Expands into New Markets Online and In-Store Coresight Research June 13, 2019 Executive Summary Industria de Diseño Textil, S.A. (Inditex) reported 1Q19 revenues of €5.93 billion, lower than the consensus estimate of €09 billion and up 4.8% from the year-ago period. The company reported earnings per share (EPS) of €0.24, up 10.3% from the year-ago period of €0.21, and even with the consensus estimate. Comparable store sales increased 5.0% in the quarter, beating the consensus estimate of 4.0%. Management projects comparable sales growth of 4%-6% in FY2019. This document was generated for
Company Earnings UpdateBoohoo Group (LSE: BOO) 1Q20 Update: Beats on Revenue, Maintains FY20 Outlook Coresight Research June 13, 2019 Executive Summary Boohoo Group reported 1Q20 total sales of £254.3 million, up 39% year over year at constant exchange rates and as reported, and beating the consensus estimate of £253.7 million recorded by StreetAccount. The group’s gross margin marginally contracted 20 basis points to 55.0%. For FY20, the Group maintained its previous guidance of revenue growth in the range of 25% to 30% and an adjusted EBITDA margin of around 10%. This document was generated for
Insight ReportSupply Chain Briefing: Blockchain Brings Traceability and Product Authenticity to the Supply Chain Coresight Research June 13, 2019 Executive SummaryIn our weekly series Supply Chain Briefing, 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 blockchain, a distributed ledger technology used in supply chain across a variety of industries. The blockchain supply chain market is estimated to grow from $145.0 million in 2018 to $3.31 billion by 2023, according to market research firm MarketsandMarkets. Brands from different industries use blockchain technology to enhance transparency and traceability along the supply chains. Blockchain has applications across the retail and consumer goods industries. Below, we illustrate the seven major components of a retail supply chain, and some of the technologies that can support processes at various stages – from product design to end consumer. 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 UpdateCanada Goose (NYSE: GOOS) 4Q19 Results: Grows Revenues 25%; Guides for Growth of at Least 20% in FY20 Coresight Research June 12, 2019 Executive Summary Canada Goose reported adjusted EPS of C$0.09 for 4Q19, beating the consensus estimate of C$0.05, and revenues of C$156.2 million, missing the consensus estimate of C$157.5 million. Gross margin was 65.6%, up 290 basis points year over year. Gross profit increased to C$102.4 million from C$78.2 million. For FY20, the company guided for at least 20% revenue growth and 25% adjusted EPS growth. This document was generated for
Company Earnings UpdateVF Corporation (NYSE: VFC) 4Q19 Results: Spins Off Kontoor Brands, Adjusts Outlook Coresight Research June 12, 2019 Executive Summary VF Corp. total revenues were $3.21 billion, up 5.5% year over year (9% at constant currency), in line with the consensus estimate. Adjusted EPS declined 10.4% to $0.60, beating the $0.58 consensus estimate. Gross margin expanded 30 basis points to 51.1%, including a 70-bps negative impact from the spin-off of Kontoor Brands. For FY20, management guided for revenue growth of 5–6% and adjusted EPS growth of 15–17%. This document was generated for
Event CoverageICSC RECon 2019: Five Ways to Reinvent Brick-and-Mortar Retail Coresight Research June 12, 2019 Executive SummaryThe Coresight Research team attended and participated in the International Council of Shopping Centers (ICSC) 2019 RECon event, in Las Vegas, May 19-22. These are some of the highlights: The mall is not dead, just being reincarnated as landlords look for creative ways to reinvent the mall experience to draw in customers – and beat back the trend of rising store closures. Retail investment in artificial intelligence (AI) is now greater than that of the banking sector, and AI will become retailers’ go-to technology to strip friction from brick-and-mortar retail. We continue to see the gamification of retail, as consumers respond more positively to interactive experiences. This document was generated for
Flash ReportHudson’s Bay Company Reviewing Proposal to Go Private, Announces Sale of German Operations for $1.5 Billion Coresight Research June 12, 2019 Executive SummaryOn June 10, 2019, Hudson’s Bay Company (HBC) announced that its board of directors had formed a special committee of independent directors to review a shareholder proposal to privatize the company. HBC also announced it had entered into an agreement to sell its real estate and retail operations in Germany for $1.5 billion (€1 billion). HBC formed a special committee of independent directors to review a proposal from HBC shareholders to privatize the company at a price of C$9.45 per share, or approximately $1.28 billion as of the company’s closing price on June 7, 2019, a 48% premium. HBC announced it entered into an agreement to sell its stake in its German real estate joint venture and retail joint venture for $1.5 billion. As part of the transaction, HBC will assume ownership of the Netherlands retail business. The proceeds will be used to strengthen HBC’s balance sheet and to fully repay the company’s term loan of $436 million. These two announcements come on the heels of the company’s recent press releases regarding Lord & Taylor: On May 6, 2019, HBC reported the company was reviewing strategic alternatives for department store Lord & Taylor, including a possible sale or merger. On February 11, 2019, Hudson’s Bay closed the sale of the building for its New York City Lord & Taylor flagship store on Fifth Avenue for a total transaction value of $850 million (C$1.1 billion). This document was generated for
Insight ReportChina’s Midyear 6.18 Shopping Festival: E-Commerce Platforms Report a Strong Start Coresight Research June 12, 2019 Executive SummaryThe 6.18 festival, created by JD.com, has grown in recent years to become a major midyear e-commerce event in China, with other e-commerce platforms also joining in and offering discounts — this includes rival Alibaba-owned Tmall and Taobao. Despite its name, the 6.18 shopping festival is not only one day (June 18): JD.com kicked off the 6.18 a pre-sales period from May 24 to May 31, and the festival will end on June 20. JD.com has partnered with various social media platforms, such as short video platforms TikTok and Kuaishou, to attract young consumers. Alibaba platforms such as Taobao and Tmall have also rolled out various initiatives to enhance customer engagement, including offering around 1.5 million new products, many of which were developed using Tmall data. 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 DiveReality Technology in Retail Coresight Research June 12, 2019 Executive SummaryReality technology — also defined as immersive technology — describes the platforms that use digital technology to emulate physical objects and real-life experiences and comprises virtual reality (VR), augmented reality (AR) and mixed reality (MR). In this report we: Define the different types of reality technology platforms and describe the potential for their application in retail. Show how retailers are collaborating with technology firms and startups to implement reality technology in commercial operations. Describe how the application of reality technology is changing the way consumers shop by introducing new ways for retailers to engage with them and enrich the shopping journey with tools that can inform shoppers’ decision-making process. Show how retailers, including Macy’s and Amazon, have introduced reality technology to give customers virtual “try before you buy” services and new ways to shop. We describe how retailers are expected to accelerate the adoption of reality technology into operations thanks to the introduction of next generation 5G mobile communication that is expected to be able to support numerous more advanced uses of reality technology. 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 ReportUnilever to Acquire Skincare Brand Tatcha for a Reported $500 Million Coresight Research June 11, 2019 Executive SummaryUnilever has signed an agreement to acquire the prestige skincare brand Tatcha. Unilever reportedly paid almost $500 million for the brand. Tatcha was founded in 2009 by Victoria Tsai in San Francisco with an innovation center in Japan known as the Tatcha Institute. The brand is reportedly on track to bring in $100 million in net sales in 2019. The brand has become a cult favorite by introducing Japanese skincare to the world. Its products have become popular at retailers such as Sephora. At a reported $500 million, the deal marks the biggest acquisition by Unilever since it acquired Dollar Shave Club for $1 billion in 2016. The acquisition will support Unilever’s expansion of its prestige beauty segment. The Tatcha acquisition represents a meaningful strengthening of Unilever’s offering in prestige, natural beauty, further nudging the balance of the company’s beauty and personal care offering away from midmarket toiletries. This document was generated for
