Insight ReportAlibaba (BABA) 2Q19 Results: Strong Revenue Growth, Thanks to New Retail; Margins Still Squeezed Coresight Research November 6, 2018 Executive Summary Alibaba reported 2Q19 revenues of ¥85.1 billion, up 54% year over year. The company attributed the strong results to its New Retail initiatives, mainly its Hema fresh food grocery business, Tmall Import business and Intime Department Stores. Core commerce revenues reached ¥5 billion, up 56% year over year.International retail revenues were up 55% year over year, primarily driven by growth in revenues on the Lazada and AliExpress marketplaces. Cloud computing sales reached ¥5.7 billion, up 90% year over year, driven by solid growth in paying customers, as well as by higher-value-added products and services. Management revised its full-year revenue guidance down due to its decision to delay the monetization of inventory amid fluid macroeconomic conditions. Source: Company reports/Coresight Research 2Q19 Results Alibaba reported 2Q19 revenues of ¥85.1billion ($12.4 billion), up 54% year over year, largely driven by its New Retail initiatives, mainly its Hema fresh food grocery business, Tmall Import business and Intime Department Stores. The company’s operating margin continued to be squeezed, at15.9% in the quarter, due to heavy investments in local services, logistics, entertainment and international expansion. Non-GAAP diluted EPS was ¥9.60 ($1.40), up 12% year over year. Source: Company reports Core commerce: Core commerce revenues reached ¥72.5 billion ($10.6 billion), up 56% year over year. China retail revenues: Alibaba reported China retail revenues of ¥54.2 billion ($7.9 billion), up 37% year over year. The strong growth was largely driven by its New Retail initiatives, mainly its Hema fresh food grocery business, Tmall Import business and Intime Department Stores.The company’s number of annual active consumersreached601 million, reflecting an increase of25 million over the 12-month period ended June30, 2018. China wholesale revenues: Revenues for the China wholesale business were up 46% year over year, to ¥5 billion, primarily driven by an increase in the average revenue from paying members on the 1688.com platform. International retail revenues: International retail revenues increased by55% year over year, to ¥4.5 billion ($650 million), primarily driven by growth in revenues on the Lazada and AliExpress marketplaces. Cloud computing: Revenues from the cloud computing business in 2Q19 were ¥5.7 billion ($825 million), up90% year over year. The strong growth was primarily driven by an increase in the number of paying customers and by a shift toward higher-value-added products and services. Digital media and entertainment: This segment reported revenues of ¥5.9 billion ($865 million), up24% year over year.The growth was primarily driven by an increase in subscription revenues from Youku and an increase in revenues from mobile value-added services provided by UCWeb, such as game publishing and mobile search. New Retail Development Throughout the quarter, Alibaba made good progress on its New Retail initiatives: As of September 30, Alibaba operated 77 Hema Supermarket stores, most of them located in tier 1 and tier 2 cities. Hema stores in operation for more than 1.5 years are seeing more than 60% of total sales generated online. Alibaba investee and partner Sun Art is now able to fulfill online orders at more than 350 of its approximately 470 stores, after having connected these stores and their warehouse systems to Taobao’s fresh food and general merchandise delivery channel (Taoxianda). Consumers living within a three-kilometer radius of a connected Sun Art store can purchase groceries for on-demand delivery from the Taobao app. Outlook Alibaba revised its FY19 revenue guidance downward to ¥375–¥383 billion, reflecting a 4%–6% adjustment.The downward revision is due to the company’s decision, in light of fluid macroeconomic conditions, to delay in the near term the monetization of its incremental inventory generated from growing users and engagement on its China retail marketplaces. This document was generated for
Insight ReportUS Holiday 2018: The Social Media Impact Coresight Research November 5, 2018 Executive SummarySocial media platforms play an increasingly important role in influencing shopping decisions, and sites such as Facebook, Instagram and YouTube should be strong purchasing influencers this holiday season. As spending on social media advertising continues to rise, the most effective formats for influencing purchasing decisions appear to be mobile-focused content and video content and advertising. Although 58% of US consumers now say that social media influences their purchasing decisions, they continue to use social media platforms largely as a tool to find recommendations and discover and research products. Most consumers are still hesitant to make purchases directly through social media platforms. Facebook continues to dominate the social media sphere, including in advertising and brand content, but Instagram and YouTube may be better suited for targeting younger holiday shoppers. 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
Deep DiveHottest Holiday Toys 2018 Coresight Research November 5, 2018 Executive SummaryIn this report, we focus on the US and UK toy markets and outline some of the trends we think are going to influence toy gifting this holiday season. Six takeaways from the report worth noting are: In the first half of 2018, toy market revenues in the US were $7.9 billion, up 7% year over year. US toy market sales rose by just 1% in 2017 to $20.7 billion. In the UK, toy sales were down 2.8% in 2017 and generated £3.4 billion ($4.5 billion) in revenues. This holiday season, unicorn- and dinosaur-themed toys will dominate toy sales. Millennial parents are switching to throwback toys such as Little People, Barbie dolls, Hot Wheels and plush toys. Collectibles and entertainment licenses appear prominently on several retailers’ top-toys lists. 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
Insight ReportHanesBrands (HBI) 3Q18 Results – Strong Champion and International Sales Offset by Innerwear Weakness Coresight Research November 5, 2018 Executive Summary Sales at Champion and International rose 30% and 11%, respectively, offset by a 7% drop in sales of Innerwear, netting in a 2.7% 3Q sales gain; adjusted EPS declined 8.3% to $0.55. Consumer-Directed Channels grew sales 15% and represented 21%of total company sales in 3Q, or $388 million. HanesBrands updated and narrowed 2018 guidance. Projected net sales are $6,735–$6,775 million, versus $6,471 million in 2017; adjusted operating profit is$940–$955 million and adjusted EPS is$1.60–$1.73, which includes the $0.05 adverse effect of the Sears bankruptcy and $15 million in lost sales to Sears. 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 UpdateEstée Lauder (EL) 1Q19 Results: Company Beats Expectations and Raises Guidance Coresight Research November 5, 2018 Executive Summary Estée Lauder reported fiscal 1Q19 revenues of $3.52 billion, up 7.6% year over year and higher than the consensus estimate of $3.47 billion. Adjusted earnings per share (EPS) was $1.41, higher than the consensus estimate of $1.22 and higher than the EPS of $1.21 in the year ago period. Comparable sales were up 11% at Estée Lauder. For the second quarter, the company provided EPS guidance of $1.47–$1.50, compared to the consensus estimate of $1.63. Net sales are forecast to increase 4%–5%, compared to consensus estimate of 4.6%. For the full year, Estée Lauder raised its EPS guidance to $4.73–$4.82, up from $4.62–$4.71, compared to the consensus estimate of $4.77. The company provided revenue guidance of 4.5%, implying $12.75 billion. Please Login to read the full report. Not a member? To access this content for free, register for a free account. This document was generated for
Company Earnings UpdateClorox (CLX) Fiscal 1Q19 Results: Company Exceeds Expectations but Lowers Full Year Guidance Coresight Research November 5, 2018 Executive Summary Clorox reported 1Q19 revenues of $1.56 billion, up 4.2% year over year and beating the consensus estimate of $1.54 billion. EPS was $1.62, up 11% from the year ago quarter, above the consensus estimate of $1.58 and above last year’s EPS of $1.46. Three of the company’s four segments showed positive or flat sales growth. Cleaning sales grew by 2%, Household sales remained flat, Lifestyle sales grew by 26% and International sales decreased by 5%. Clorox maintained its full year sales growth guidance of 2%–4%. The company lowered its full year EPS guidance to $6.20–$6.40 from the previous $6.32–$6.52. Please Login to read the full report. Not a member? To access this content for free, register for a free account. This document was generated for
Company Earnings UpdateWayfair (W) 3Q18 Results: Mixed Results, Revenue Guidance in Line with Consensus Coresight Research November 5, 2018 Executive Summary Wayfair reported 3Q18 adjusted EPS of $(1.28), below the consensus estimate of $(1.09). Revenues were $1.71 billion, up 42.4% year over year and beating the consensus estimate of $1.67 billion. The fastest growing segment was International Direct Retail, which registered 57.5% revenue growth. Direct Retail revenue increased 41.2% year over year. The company guided for Q4 revenues of $1.92–$1.968 billion, in line with consensus estimate of $1.94 billion. Please Login to read the full report. Not a member? To access this content for free, register for a free account. This document was generated for
Insight ReportKroger 2018 Investor Conference: Alternative Profit Streams to Fuel Profit Growth Coresight Research November 5, 2018 Executive SummaryOn October 30, Kroger hosted its 2018 Investor Conference in Cincinnati, Ohio. The presentations focused on the company’s commitment to its Restock Kroger plan and highlighted the potential of alternative revenue streams. The four main themes of the conference were: Maintaining the Restock Kroger plan to grow the company’s operating profit to $400 million by 2020, mainly by focusing on the growth of alternative revenue streams. Meeting customer expectations by fostering the development of associates, implementing new technologies and following major trends. Continuing to grow private-label brands and strategic partnerships. Living the moral and ethical purpose of the company and furthering its sustainability and social efforts, including its “Zero Hunger, Zero Waste” plan. The day featured management presentations by Rodney McMullen, Chairman and CEO; Mike Schlotman, EVP and CFO; Mike Donnelly, EVP and COO; Yael Cosset, Group VP and Chief Digital Officer; Mary Ellen Adcock, Group VP, Retail Operations; Tim Massa, Group VP, Human Resources and Labor Relations; Jessica Adelman, Group VP, Corporate Affairs; and Stuart Aitken, Group VP. 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
Store TrackerWeekly Store Openings and Closures Tracker 2018, Week 44: Evans Cycles May Close Around 30 Stores Coresight Research November 2, 2018 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 (YTD) 2018, the number of US store closure announcements stands at 5,006 and the number of store openings is 2, Banana Republic is opening a Cos Bar shop-in-shop in San Francisco. YTD in the UK, there have been 1,314 store closure announcements and 777 store opening announcements. Evans Cycles may close around half of its UK stores after being bought out of administration by Sports Direct. 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
Analyst CornerWeinswig’s Weekly November 2, 2018 Coresight Research November 2, 2018 Executive SummaryNovember 2, 2018 This week’s note “From the Desk of Deborah Weinswig” discusses what we know about Amazon Fashion and whether Amazon is really the #1 apparel retailer in the US. Walmart’s warehouse club, Sam’s Club, is preparing to open the doors at a new Dallas-area store that will serve as a test-bed for the latest in retail technology. UK fashion chain Oasis has partnered with Sainsbury’s to open concessions in five of the latter’s supermarkets by next spring. Two of the stores will open by Christmas this year. Singapore’s largest retail group, Dairy Farm Singapore Group, and Singaporean electronic payment service Network for Electronic Transfers have entered into a collaboration that will enable customers to pay via WeChat Pay at more than 600 7-Eleven, Giant, Cold Storage and Guardian stores across the island starting November 1. Please Login to read the full report. Not a member? To access this content for free, register for a free account. This document was generated for
Insight ReportBeauty Briefings, Part 1: Clean Beauty Is the New “Free from” Frontier and Sales Are Expected to Nearly Double by 2024 Coresight Research November 1, 2018 Executive Summary Consumer demand for transparency in beauty product ingredients has spurred many companies to create “clean” formulations that are free of potentially toxic and/or synthetic ingredients such as parabens, sulfates, silicones, phthalates and fragrances. Global sales of natural and organic beauty products are expected to nearly double between 2016 and 2024, growing from $11 billion to $21.8 billion, according to Persistence Market Research. Developing markets present a particularly lucrative opportunity for brands and retailers selling beauty products that are “free from” unwanted ingredients. The clean-living trend is extending into beauty as consumers become increasingly conscious of what they eat and better educated about how certain ingredients may make them look and feel. Beauty brands and retailers of all sizes are jumping on the clean and transparent trends. In June 2018, Sephora launched its “Clean at Sephora” offering, which features more than 50 brands and 2,000 clean and natural products. 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
Insight ReportNext (LSE NXT) 3Q19 Trading Update Continued Weakness as Store Sales Fall Further Coresight Research November 1, 2018 Executive Summary British fashion retailer Next reported an increase of 1.3% in total full-price sales in the 12 weeks ended October 27. Next Online sales increased by 12.7% while sales in Retail declined 8.0%. The company maintained its earlier guidance for FY19 and expects total full-price sales to grow at 3.0% 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
Insight ReportGroceryshop 2018, Day 2: Hearing About Digitalization, Blockchain and the Future of Retail Coresight Research October 30, 2018 Executive SummaryThe Coresight Research team is in Las Vegas this week to participate in Groceryshop 2018, being held October 28–31. The event will cover the transformation of consumer packaged goods (CPG), grocery and related industries, and is being attended by more than 2,200 industry professionals and features over 150 speakers. In this report, we share our key takeaways from the second day of the conference, which include: Yael Cosset, Chief Digital Officer of Kroger,predicts that the future of retail will be more digitalized, collaborative and experimental. Curbside is digitizing brick-and-mortar grocery order fulfillment by connecting store operations and mobile commerce. Walmart and Microsoft believe that blockchain can provide a solution for food safety. Several presenters, including Instacart, say that online grocery retail is alive and thriving amidst changing consumer demands. Direct-to-consumer (DTC) men’s grooming brand Harry’s discusses the launch of its new shaving brand for women, its success at Walmart and Target, and sees opportunity for introducing new CPGbrands. 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
Insight ReportRetail-Tech Landscape Paris Coresight Research October 30, 2018 Executive SummaryCoresight Research’s Innovator Landscape features notable retail tech companies in Paris that are transforming key areas of the retail value chain. To view more of our Innovator Landscapes spotlighting innovative retail-tech start-ups that are disrupting the retail industry, click here. 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
Insight ReportNotes from the Coresight Research–InReality Webinar: How the In-Store Experience Affects Buyer Behavior Coresight Research October 30, 2018 Executive SummaryOn October 4, Coresight Research CEO and Founder Deborah Weinswig and InReality Director of Product Marketing David Adams cohosted a webinar called “How the In-Store Experience Affects Buyer Behavior.” Weinswig and Adams presented their views on the current state of the in-store experience, what is changing in brick-and-mortar retail and how to succeed in the new retail environment. Key takeaways from the webinar include: Strong macro indicators show a healthy retail environment, with consumer spending rising year over year. Physical retail is not dead, but bad retail is. Retailers must learn to engage their customers in-store with friction-free and interesting shopping experiences. With in-store sales still accounting for the majority of all retail sales, retailers and brands need to find a way to understand their unknown in-store shoppers. Technologies are available to help retailers understand their in-store shoppers, but companies have been slow to implement them fully. 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
