Company Earnings UpdateGUESS (GES) 2Q18 Results: Beats on EPS and Raises Guidance Coresight Research August 31, 2018 Executive Summary Guess reported 2Q18 adjusted EPS of $0.36, up from $0.19 from the year-ago period and ahead of the $0.32 consensus estimate. Revenues were $645.9 million, up 13.7% year over year and below the $650.6 million consensus estimate. Comps for the Americas region were up 3.0%, beating the 1.9% consensus estimate. Revenues were driven by continued momentum in Europe and Asia. Guess raised FY19 guidance and now expects EPS of $0.94–$1.03, up from previous guidance of $0.88–$0.99 and the consensus of $0.99. The company expects revenue growth of 9.0%–9.5%, up from previous guidance of 8.5%–9.5%, implying $2.58–$2.59 billion, and above the $2.57 billion consensus estimate. 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 UpdateDICK’S Sporting Goods (DKS) Fiscal 2Q19 Results: Beats on EPS, Misses on Comps, Raises EPS Guidance Coresight Research August 31, 2018 Executive Summary DICK’S reported fiscal 2Q19 EPS of $1.20, up 24.4% from adjusted EPS of $0.96 a year ago and beating the $1.04 consensus estimate. Revenues were $2.18 billion, up 1.0% year over year but below the $2.24 billion consensus estimate .Comps declined by 4.0%, adjusted for the calendar shift, missing the consensus estimate of a 0.7% decline. E-commerce sales grew by 12%. The company raised its annual EPS guidance to $3.02–$3.20 from $2.92–$3.12 previously, compared to consensus estimate of $3.08, as well as reaffirmed comp guidance of flat to a low single-digit decline versus consensus of (0.7) %. 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 ReportCoresight Research Countdown to 11.11 Series, #6: Smart Cleaning Festival; Sa Sa Partners with Taobao to Create New Retail Model Innovation Coresight Research August 30, 2018 Executive SummaryAlibaba’s 11.11, also known as Double 11 or Singles’ Day, takes place on November 11 and has grown to become the world’s largest 24-hour online sale. This report series covers the various shopping festivals and developments in New Retail that are taking place through to November 11. Alibaba’s most recent shopping event was the Smart Cleaning Festival held August 28–29, a promotional event for electronic appliances. Many brands including Midea, Haier, Xiaomi, Supor, Panasonic and Philips participated in this promotion. Hong Kong cosmetics retailer Sa Sa is collaborating with Taobao to create a New Retail operation model combining online and offline. One of its New Retail features is that consumers can watch the live streaming of product demonstrations and purchase the product at the same time. Alibaba has worked with hypermarket chain RT-Mart to digitally transform RT-Mart’s operation using New Retail technology. Alibaba has a 36% stake in RT-Mart’s holding company Sun Art. Through this New Retail makeover, an RT-Mart store in Shanghai has seen online orders climb to 5,000 a day at its peak compared to nearly zero prior to the collaboration. 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 UpdateAmerican Eagle Outfitters (AEO) Fiscal 2Q18 Results: Company Beats Expectations, Raises Guidance Coresight Research August 30, 2018 Executive Summary American Eagle Outfitters reported fiscal 2Q18 revenues of $965 million, up 14.2% year over year and beating the $938 million estimate. Adjusted EPS was $0.34, beating the consensus estimate of $0.31 and up significantly from adjusted EPS of $0.19 from the year-ago quarter. Comparable sales were up 9.0% year over year, compared to the consensus estimate of 6.4% and a 2% comp sales increase from the year ago quarter. This is the 14th consecutive quarter of positive comp sales. The company raised its EPS guidance for 3Q18 to $0.45–$0.47 from $0.27–$0.29, versus consensus of $0.49. The company now expects comps to be in the high-single digits compared to consensus at 3.2% and total revenue growth in the mid-single digits. 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
Deep DiveThe Cannabis Industry and the New Green Economy Update: Consolidation and Maturity a Threat to Smaller Businesses Despite the Market Growing Fast Coresight Research August 29, 2018 Executive SummaryThe fast-growing cannabis industry continues to offer business opportunities, but the first signs of maturity and consolidation are appearing. In this report, we provide an overview of the regulated cannabis market in the US and Canada. Key findings include: Legal recreational cannabis sales in the US are expected to increase 80% to $4.2–$5.1 billion in 2018, according to Marijuana Business Daily, but the first signs of maturity are starting to materialize in pioneer states such as Colorado. The recent legalization of cannabis for recreational use in California should be the main driver for the industry in the US. The California market for recreational cannabis is forecast to grow by 79% in 2018 to $1.4 billion, according to New Frontier Data. The market in Canada, which is opening up to legal recreational use, is expected to reach $1.7 billion in 2019. The regulatory environment in Canada enable cannabis companies to grow more than their US counterparts. Firms including Canopy Growth and Aurora Cannabis are multi-billion-dollar public companies pursuing consolidation strategies. We are seeing increased consolidation in both the US and Canada cannabis industry and this is likely to threaten the survival of smaller companies trying to make their mark. 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 ReportThe Fall of the House of Fraser: A Timeline Coresight Research August 28, 2018 Executive SummaryIn this report, we briefly outline the failure of House of Fraser under the ownership of Sanpower and note the key events that led to its recent acquisition by Mike Ashley’s Sports Direct. Mike Ashley, owner of Sports Direct, acquired House of Fraser for £90 million on August 10, 2018. House of Fraser’s total liabilities amounted to £836 million in the year ended January 2017. House of Fraser was acquired by Sanpower in 2014, and shortly thereafter sales growth softened and then turned negative. Sanpower’s first cash injection came only in late 2017. Ashley has pledged to keep 47 of 59 existing stores open. 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 (FL) 2Q18 Results: Beats on EPS, Misses on Comps Coresight Research August 27, 2018 Executive Summary Foot Locker reported 2Q18 adjusted EPS of $0.75, up from $0.62 a year ago and ahead of the $0.70 consensus estimate. Revenues were $1.78 billion, up 4.8% year over year and above the $1.76 billion consensus estimate. Comps increased by 0.5%, in-line with company guidance but below the 0.7% consensus estimate. By channel, comp sales at stores declined by 0.8%, more than offset by a 9.3% increase in online comps. Management did not update guidance; Foot Locker expects FY18 comps to be flat to up by low single digits, versus the consensus estimate of up 1.0%. 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
Market Navigators/Market OutlookCategory Outlook: Male Beauty Market Growing in China Coresight Research August 27, 2018 Executive SummaryChina’s male grooming market is performing well and is projected to continue to grow quickly. Urban Chinese men, particularly millennials, are increasingly image-conscious, and they spend more time and money on grooming than do male consumers in other demographics. We think that many grooming and beauty brands will further target Chinese male consumers to drive revenue growth in the coming years. Euromonitor International estimates that male grooming category sales in China will post strong year-over-year growth of 6.8% in 2018 and reach ¥14,220 million ($2,084 million). Urban Chinese men spend more time grooming themselves for different occasions than do those living in other areas, and millennial men, in particular, are showing a willingness to invest in beauty products: urban male millennials in China spent an average of ¥194 ($28) per month on beauty products over the past year, according to Prosper Insights & Analytics. Grooming and beauty brands have been developing different marketing campaigns to target the specific needs of male consumers in China. For example, L’Occitane has hired Asian pop idol Luhan as its brand ambassador. 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 (BABA) 1Q19 Results: Strong Revenue Growth, Although Margins Are Squeezed Coresight Research August 27, 2018 Executive Summary Alibaba reported 1Q19 revenues of ¥80.9 billion, up 61% year over year. The company attributed the strong results to robust revenue growth from its China retail business, the consolidation of Cainiao Network and Ele.me, as well as a near-doubling of revenues in the Alibaba Cloud business. Core commerce revenues reached ¥69.2 billion, up 61% year over year. International retail revenues were up 64% year over year, primarily driven by the growth in revenues on the two marketplaces, Lazada and AliExpress. Cloud computing sales reached ¥4.7 billion, up 93% year over year, driven by solid growth in paying customers, as well as higher value-added products and services. Management did not provide full-year guidance. 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
Analyst CornerWeinswig’s Weekly August 24, 2018 Coresight Research August 24, 2018 Executive Summary This week’s note “From the Desk of Deborah Weinswig” discusses how customer acquisition and fulfillment costs affect online pure plays’ profitability. E-commerce accounted for an estimated 13.3% of US retail sales in the second quarter. US online retailers generated $120.45 billion in sales during the quarter, a 15.4% increase year over year. London-based luxury online marketplace Farfetch announced plans to list on the New York Stock Exchange and said that it has filed a registration statement with the US Securities and Exchange Commission. Chinese online parenting firm Babytree Group is planning to raise up to $1 billion in a Hong Kong IPO in October this year. 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
Event CoverageEfficacy is the Backbone of Today’s Beauty Brand, and Other Takeaways from Fashion Group International’s The Making of a Beauty Entrepreneur Panel Coresight Research August 24, 2018 Executive SummaryThis week, the Coresight Research team attended Fashion Group International’s “Getting to Market: The Making of a Beauty Entrepreneur” panel in New York City. The event was sponsored by Cosmoprof North America and was the second in the Making of a Beauty Entrepreneur series. The panel featured five beauty industry leaders who shared their expertise on brands, and their views on the beauty consumer. Here, we share our top takeaways from the event. Efficacy is the most important component of a beauty brand today. Storytelling only works if a brand has soul. Cost per click is getting so expensive that it makes sense for brands to invest in brick and mortar. 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 UpdateLowe’s (LOW) 2Q18 Results: Strong Quarter, Lowers Guidance After Orchard Supply Exit Coresight Research August 24, 2018 Executive Summary Lowe’s reported 2Q18 adjusted EPS of $2.07, up from $1.57 from the year-ago quarter and ahead of the $2.02 consensus estimate. Net sales were $20.89 billion, up 7.1% year over year and beating the $20.77 billion consensus estimate. Comps increased by 5.2%, driven by a 4.5% increase in average ticket, 0.6% increase in total transitions and positive in-store and online traffic numbers. Comp sales for the US were up 5.3%. Lowe’s lowered its full-year guidance, citing the negative impact of closing 99 Orchard Supply Hardware stores and reducing lower-performing inventory. The company now expects EPS of $4.50–$4.60, with comps increasing 3.0%, from EPS of $5.40–$5.50 and comps increasing 3.5% previously. 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
Store TrackerWeekly Store Openings and Closures Tracker 2018, Week 34: Lowe’s to Close Orchard Supply Stores; House of Fraser London Flagship to Remain Open Coresight Research August 24, 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 2018, the number of US store closure announcements stands at 4,478 and the number of store openings is 2,372. Lowe’s plans to permanently close all 99 Orchard Supply Hardware stores by the end of year. Best Buy is acquiring GreatCall Inc. for $800 million. Year to date in the UK, there have been 1,195 store closure announcements and 692 store opening announcements. House of Fraser’s London flagship store will remain open, reversing a previous plan to close the store. 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 ReportUrban Outfitters (URBN) Fiscal 2Q19 Results: Beats on EPS, Revenue and Comps Coresight Research August 23, 2018 Executive Summary Urban Outfitters reported fiscal 2Q19 EPS of $0.84, up from $0.44 in the year-ago quarter and above the $0.76 consensus estimate. Total revenues were $992.5 million, up 13.7% year over year and above the $977.0 million consensus estimate. Same-store sales increased by 13% during the quarter, beating the 11.2% consensus estimate. Comps were driven by double-digit growth in online sales, increases in store traffic, average order value and units per transaction across all three brands. Urban Outfitters did not provide quantitative guidance for FY19. The company plans to open 17 new stores during the fiscal year and anticipates that the digital channel will remain a strong sales growth driver. 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 UpdateTarget (TGT) 2Q18 Results: Beats Consensus Estimates and Raises Guidance Coresight Research August 23, 2018 Executive Summary Target reported 2Q18 adjusted EPS of $1.47, beating the consensus estimate of $1.40. Revenues were $17.78 billion, up by 6.9% year over year and beating the consensus estimate of $17.31 billion. In-store comps were up by 4.5%, beating the 4.0% consensus estimate. Total comps increased by 6.4%, driven by 41% growth in digital sales. The company raised 2018 guidance for adjusted EPS to $5.30–$5.50, up from $5.15–$5.45 previously. Target now expects a low-single-digit increase in comps, compared to initial guidance of sales growth in the low-to-mid single digits. 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
