Company Earnings UpdateAmazon (NASDAQ: AMZN) 4Q18 Results: Beats Consensus Estimates, Guidance Below Consensus Coresight Research February 4, 2019 Executive Summary Amazon.com reported 4Q18 EPS of $6.04, beating the $5.65 consensus estimate and up 61% year over year. Revenues were $72.43 billion, up 19.7% year over year and beating the consensus estimate of $57.1 billion. Amazon Web Services (AWS) was the fastest-growing segment by far, growing 45.3%. North American revenues grew 18.3% and international revenues grew 15.5%. 1Q19 guidance was for revenues of $56-$60 billion (up 10%–18% year over year), below the consensus estimate of $60.8 billion, and operating income of $2.3-3.3 billion, up from $1.9 billion in 1Q18. This document was generated for
Flash ReportAmericans Fall Out of Love with Valentine’s Day — But Those Celebrating Are Set to Spend More than Ever Coresight Research February 4, 2019 Executive Summary Total Valentine’s Day spending in the U.S. is expected to reach $20.7 billion this year, a 5% increase from $19.6 billion in 2018, according to an annual survey released by the National Retail Federation (NRF) and Prosper Insights & Analytics. Gifting trends on Valentine’s Day have changed substantially over the past decade, resulting in fewer people celebrating this year — but those who do will spend more. People in the age group 35-44 are expected to be the highest net spenders. This document was generated for
Insight ReportRevised Foreign Direct Investment Policy to Rejig the E-Commerce Playing Field in India Coresight Research February 1, 2019 Executive SummaryA revised Foreign Direct Investment (FDI) policy for e-commerce came into effect in India on February 1, 2019. Retailers with significant international investment, such as Flipkart and Amazon’s Indian entity, have been rather apprehensive in the run up to its implementation, and with good reason. In this report, we outline key aspects of the revised policy and what it means to retailers and consumers in India. E-commerce marketplace operators cannot mandate exclusivity — i.e. they cannot ask sellers to sell particular products exclusively on their platforms. If an e-commerce marketplace has an equity stake in a retailer, that retailer cannot sell its products on the marketplace. A marketplace operator and its group companies that provide services, such as logistics and warehousing, need to provide them on the standardized terms to vendors. 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
Market Navigators/Market OutlookSector Overview: US Apparel Specialty Retailers — Collaborations Are the New Normal Coresight Research February 1, 2019 Executive SummaryEach of our Sector Overview reports provides an essential briefing on a sector or market. In this report, we review the U.S. apparel specialty sector. In 2018, U.S. apparel and footwear specialty retailers’ industry sales totaled $197 billion, according to Euromonitor International, and its analysts forecast sector sales to increase at a compound annual growth rate (CAGR) of 3.3% to 2023, to reach $232 billion. Brands and retailers are collaborating with other brands and retailers to reach new audiences and to drive sales. A Glossy survey in December 2018 reported that 38% of brand executives saw collaborations as the greatest marketing opportunity in 2019. Sportswear and athleisure will continue to drive apparel and footwear sales in 2019, as they did in 2018. Specialty retailers are entering new markets, expanding into and investing in China to establish physical and digital presences. We predict the plus-size market and lingerie categories will continue to see positive disruption from new market entrants. And we expect specialty retailers to further explore marketplace partnerships and collaborations, and look for opportunities to expand into China and India. 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
Event CoverageWorld Bank Sees Slowing Productivity and Social Inclusion As Key Challenges for High-Growth East Asia Countries Coresight Research February 1, 2019 Executive SummaryOn January 31, 2019, the Coresight Research team attended the launch event for a report titled A Resurgent East Asia, which was co-organized by the World Bank Group and the Hong Kong University of Science and Technology. Key insights include: Developing East Asia was the fastest-growing region in terms of annual GDP growth between 1991 and 2016. The “East Asian Development Model” helped these countries achieve this growth. Now, developing East Asian countries face challenges such as slowing productivity growth, social inclusion and rising demands on state institutions. Developing East Asian countries need to proactively address these challenges. This document was generated for
Event CoverageInsights from the 2019 WeChat Pro Conference: Boosting Mini Apps and Personalizing Red Envelopes Coresight Research February 1, 2019 Executive SummaryThe WeChat Pro Conference is an annual event organized by Tencent to share experience and ideas for digital startups, entrepreneurs, investors, students and academics. At this year’s conference, Allen Zhang, the creator of WeChat, made an unusual appearance, speaking at length about his design philosophy and future WeChat trends. The Coresight Research team offers these insights: WeChat says it did not intend to be a disrupter: The evolution occurred naturally. WeChat mini apps empower partner companies to more easily reach WeChat users, and the company is looking to improve functions such as search, evaluation and reminder. New features to send Chinese New Year hong bao (red envelopes) will enable greater personalization. This document was generated for
Analyst CornerWEINSWIG’S WEEKLY FEBRUARY 1, 2019 Coresight Research February 1, 2019 Executive SummaryFeb. 1, 2019 This week’s note “From the Desk of Deborah Weinswig” discusses how retail robots are being deployed not only in warehouses, but on store floors and in neighborhood streets. Google Trends data signal that U.S. retail sales, a key economic indicator that’s been delayed by the government shutdown, probably remained healthy in December along with household consumption. German supermarket chain Lidl has partnered with Italian delivery firm Supermercato24 to provide Lidl customers in Italy with one-hour delivery service. K-beauty startup Memebox announced it has completed a $35 million series D funding round led by Johnson & Johnson Development Corp. The e-commerce platform has now raised $190 million in total. This document was generated for
Store TrackerWeekly Store Openings and Closures Tracker 2019, Week 5: Things Remembered on Verge of Bankruptcy, Williams-Sonoma May Close 80 Stores Coresight Research February 1, 2019 Executive SummaryCoresight Research tracks store closures, openings and bankruptcies for a select group of retailers in the US and the UK. Our Weekly Store Tracker focuses on department stores and specialty retail stores, including, but not limited to, those selling softlines, hardlines, consumer electronics, groceries and furniture. Click here to view our full collection of Weekly US and UK Store Trackers. Highlights from this week’s Store Tracker: Year to date in 2019, U.S. retailers have announced 1,678 store closures and 1,399 store openings. Williams-Sonoma has closed two stores in Reston Town Center in Virginia. Things Remembered is preparing for bankruptcy filing. Year to date in 2019, U.K. retailers have announced 221 store closures and 305 store openings. Missguided is closing its store in Westfield Stratford City. 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 UpdateAlibaba (NYSE: BABA) 3Q19 Results: Solid Growth Driven by Core Commerce and Cloud Segments Coresight Research February 1, 2019 Executive Summary Alibaba reported 3Q19 revenues of ¥117.3 billion ($17.1 billion), up 41% year over year as its China retail marketplaces and cloud business performed well. 3Q19 revenues missed the consensus estimate of ¥119.4 billion while non-GAAP diluted EPS of ¥12.19 beat the consensus estimate of ¥11.21. Management remains vigilant of China’s uncertain economy, so will seek development in new areas and pursue global expansion to sustain growth. This document was generated for
Company Earnings UpdateTractor Supply Company (NASDAQ: TSCO) 4Q18 Results: Beats Consensus Estimates, Guidance in Line with Consensus Coresight Research February 1, 2019 Executive Summary Tractor Supply reported 4Q18 EPS of $1.11, up 27.6% and beating the $1.09 consensus estimate. Revenues were $2.13 billion, up 9.2% and ahead of the $2.10 billion consensus estimate. Comps were 5.7%, beating the 3.7% consensus estimate, comprising a 3.0% increase in average ticket and a 2.6% increase in transaction count. The company guided for 2019 revenues of $8.31–$8.46 (up 5–7%) and in line with the $8.42 billion consensus estimate, for comps of 2–4% and EPS of $4.60–$4.75 (up 7–10%), in line with consensus of $4.71. This document was generated for
Company Earnings UpdateH&M (STO: HM-B) FY18 Results: Logistics Upgrade Proves a Drag on Profits Coresight Research February 1, 2019 Executive Summary H&M reported FY18 net sales were up 3% in local currencies, with an improvement to 6% in 4Q18. EPS was down 21.9% year over year in fiscal 2018, slightly missing the consensus of SEK7.8 recorded by StreetAccount, due to higher selling and administrative costs. In FY19, H&M plans to open 335 new stores, of which around 240 will be under the H&M banner. It plans to close 160 stores. This document was generated for
Company Earnings UpdateLVMH (ENXTPA: MC) FY18 Results: Fashion and Leather Goods Set the Pace Coresight Research February 1, 2019 Executive Summary LVMH FY18 sales rose 9.8% to €46.83 billion in FY18; currency rates adversely impacted FY18 sales (400) bps. Fashion and leather goods set the sales pace, achieving 15% organic growth in FY18; the Louis Vuitton brand surpassed €10 billion annually. EPS rose 5% to €12.61 in FY18. This document was generated for
Insight ReportUS Holiday Comparable Sales Update: Department Stores See a Slowing Trend While a Number of Specialty Retailers Shine Coresight Research January 31, 2019 Executive SummaryThis report reviews the latest holiday-period comparable sales growth reported by major U.S. retailers. It is an update to our report of January 15. Retailers that reported holiday sales since we published our first update did not change the picture a great deal. Department stores continued to post varied figures, though the general trend was one of slowing underlying growth. A number of specialty retailers performed well. Comparable sales at department store retailer Nordstrom weakened sequentially to 1.3% over the holiday period, compared to 2.3% growth in the previous quarter. Specialty retailers such as Aritzia reported comparable sales growth of 12.9% in fiscal 3Q19, beating the consensus of 8.9%; Ascena Retail reported holiday comparable sales growth of 3%, in line with the previous quarter. Specialty retailer Vince posted direct-to-consumer same-store sales growth of 8.2% in the nine-week period ended January 5. Click here to read Coresight’s coverage on US holiday retail and gain key retail insights for 2019 and prior years. 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 UpdateeBay (NASDAQ: EBAY) 4Q18 and FY18 Results: Steady Growth, More Returns for Shareholders Coresight Research January 31, 2019 Executive Summary eBay recorded revenues of $2.9 billion and gross merchandise volume (GMV) of $24.6 billion, up 6.3% and 1%, respectively, year over year in 4Q18. FY18 revenues were $10.7 billion, up 8% with GMV recorded at $95 billion, up 7%. The company will distribute a quarterly dividend of $0.14 per share and continue to repurchase shares to return capital to shareholders. This document was generated for
Market Navigators/Market OutlookSector Overview: North American Food Retailers — Cross-Channel Retailing Is Emerging as the Dominant Model Coresight Research January 31, 2019 Executive SummaryEach of our Sector Overview reports provides an essential briefing on a sector or market. This report focuses on U.S. grocery retailers: Despite ultralow food-price inflation, sales at grocery retailers and spending on food and beverages grew solidly across 2018, with each measure tracking at 3% or more year over year. Kroger’s partnership with Ocado is notable not only because it demonstrates the scale of Kroger’s commitment to grocery e-commerce, but also because it looks set to take Kroger into home delivery in a major way. In recent years, the U.S. online grocery market has been inching toward an in-store collection model. We think Amazon’s grocery banners, Amazon Go and Whole Foods Market, would need to shift their positioning on price and proposition in order to capture meaningful shares of full-basket grocery shops from mass-market grocery rivals. Our proprietary shopper profiles show that mass merchandisers’ shoppers skew younger and that Target attracts notably younger grocery shoppers. Amazon online grocery shoppers have a strikingly similar age and affluence profile to Whole Foods shoppers. 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
