Insight ReportCoresight Research Countdown to 11.11 Series, #5: Tmall Genie AI Festival; Hema Supermarkets Coresight Research August 23, 2018 Executive SummaryStarted by Alibaba in 2009, 11.11, also known as Double 11 or Singles’ Day, which takes place on November 11, 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 Tmall Genie AI Festival held August 20–23, a promotional event for home appliances. Many brands including Midea, AUX, Galanz and Little Swan participated in this promotion. This week, we review developments at Alibaba Group’s Hema supermarket chain. Hema is the most tangible example of New Retail, with consumers able to use the Hema app to order groceries or prepared food, with the option of home delivery. Alibaba currently has 46 Hema stores in 13 cities across the country as April 28, 2018, according to company data. Hema said it would add 30 locations in Beijing by the end of this year, aiming for a total of 35 stores in the capital. Alibaba’s Hema has a number of competitors in the New Retail landscape. Super Species, opened by the Tencent-invested Yonghui Supermarket, is the major competitor, with 44 physical stores opened across China, second to Hema’s 46 stores, as of June 11, 2018, according to Sohu. 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 UpdateTJX (TJX) Fiscal 2Q19 Results: Company Beats Expectations and Raises Guidance Coresight Research August 22, 2018 Executive Summary TJX reported fiscal 2Q19 revenues of $9.3 billion, up 11.6% year over year and above the consensus estimate of $9.0 billion. Diluted EPS was $1.17, up 37.6% from the year-ago quarter and above the consensus estimate of $1.05. Comparable sales increased 6.0% in the quarter compared with a 3.0% increase in the year-ago quarter and above the consensus estimate of 2.1%. TJX raised its diluted earnings per share (EPS) guidance to $1.18–$1.20 for the third quarter, up from $1.02–$1.04, compared to the consensus estimate of $1.23. For the full year, the company raised its EPS guidance to $4.83–$4.88 from $4.75–$4.83. The consensus estimate is for $4.86. 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 UpdateKohl’s (KSS) 2Q18 Results: Beats Consensus Estimates and Raises EPS Guidance Coresight Research August 22, 2018 Executive Summary Kohl’s reported 2Q18 EPS of $1.76, beating the consensus estimate of $1.64 and up 42.1% year over year. Revenues were $4.57 billion, up 4.0% year over year and beating the consensus estimate of $4.27 billion. Comps were 3.1%, beating the consensus estimate of 2.6%. The company raised guidance for adjusted EPS of $5.15–$5.55 from $5.05–$4.50 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
Deep DiveDeep Dive: European Discount Retailers in the US – Reviewing Three Key Players’ Strategies Coresight Research August 22, 2018 Executive SummaryIn this report, we look at three ultralow-price European retailers that have expanded into the US market: Primark, Aldi and Lidl. Here, we examine their market entry strategies and the adaptations they have made in order to operate in an unfamiliar market. Primark has taken a highly cautious approach to US expansion, and it has already downsized three of its stores, suggesting that not all efforts have yielded the results it hoped for. However, its global strategy of focusing international openings on glossy, high-traffic flagships aligns with the limited number of store openings we have seen so far in the US. Aldi has been highly successful in the US market, but it has built its reputation in the US over four decades. It is now leveraging that accumulated brand awareness and shopper trust with an aggressive expansion plan that is apparently designed in part to undercut Lidl’s move into the US. Lidl has clearly faced challenges in the US market. What is notable is that these difficulties have come despite a significant softening of its discount proposition for American shoppers. It now appears to be reverting to a more traditional small-store discount format while seeking to drive traffic by opening stores in shopping centers. Worldwide, Lidl has been a tremendously successful grocery discounter, and it has built much of that success on the kind of flexibility it has shown in its approach to US markets. We expect Lidl to continue to adjust its proposition as necessary to win share of the US grocery market over the long term. 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 Coverage“Purchase-Activated Fulfilment” Is the Next Generation of Manufacturing, Plus Our Top-Ten Takeaways from MAGIC Las Vegas 2018 Coresight Research August 21, 2018 Executive SummaryThe Coresight Research team attended MAGIC Las Vegas 2018, one of the most comprehensive trade shows covering men’s, women’s and children’s apparel, accessories and footwear, held August 12–15. Here are our key takeaways from the event: “Purchase-activated fulfilment” is the next generation of manufacturing. Microfactories are not just for on-demand production; they are being used in the sample room. com, the company’s B2B platform, helps individuals to find and source products globally, at all price ranges. The footwear market has returned to growth, fueled by the “sport leisure” and “fashion” categories. Innovative alternative materials are driving footwear designs. 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 UpdateEstée Lauder (EL) Fiscal 4Q18 Results: Beats Estimates and Guides for Continued Above-Market Growth Coresight Research August 21, 2018 Executive Summary Estée Lauder reported fiscal 4Q18 adjusted EPS of $0.61, beating consensus by a nickel and up 19.9% year over year. Revenues were $3.30 billion, up 14.1% year over year and beating the consensus estimate of $3.25 billion. Skin Care remained the fastest-growing major segment, growing 29% as reported and benefiting from strength in Europe, the Middle East and Africa, travel retail and China. For the next fiscal year, the company expects adjusted net sales to grow 7%–8%, ahead of the 5%–6% growth expected for the global prestige beauty market, and for adjusted EPS of $4.62–$4.71. 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 ReportCVS and Walgreens — Head to Head Coresight Research August 20, 2018 Executive Summary CVS Health and Walgreens Boots Alliance are the two largest pharmacy companies in the US. They each posted over $100 billion in revenues in 2017, and both operate more than 9,000 stores worldwide. The growth of the retail pharmacy market in the US has slowed in recent years, and is potentially poised for disruption by new entrants such as Amazon. Walgreens Boots Alliance has strengthened its position in the retail pharmacy industry, expanding its presence abroad and further increasing its market share in the US. CVS Health has widened its range of pharmacy-related service offerings, increasing its presence in pharmacy benefits management, specialty pharmacy and long-term care pharmacy. Both companies are aware of the changing consumption landscape, and the potential for disruption in their industry. Each has established both a mobile and online platform for managing prescriptions and purchasing products, as well as pharmacy delivery services. 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 ReportJuly 2018 UK Retail Sales: Solid Growth Sustained; Online Sales Remain Robust Coresight Research August 20, 2018 Executive SummaryCoresight Research’s monthly reports keep you up to date on US and UK retail sales, US retail traffic and in-store metrics, selected US retailers’ same-store sales and key global consumer indicators. Click here to view our full collection of Monthly Reports. Our monthly UK Retail Sales Report reviews the latest sector data published by the Office for National Statistics (ONS). Highlights from our July UK Retail Sales Report: The UK retail sector enjoyed robust volume growth in July, with sales up 4.0% year over year in real terms. Total value retail sales surged by 5.1% year over year, with health and beauty specialists and Internet pure plays posting strong performances. The Office for National Statistics (ONS) reported that total shop-price inflation eased to 1.0% in July from 1.4% in June. 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 UpdateTencent (0700.HK) 2Q18 Results: Slowed Revenue Growth with Gaming in Decline Coresight Research August 20, 2018 Executive Summary Tencent reported 2Q18 revenues of ¥73.7 billion ($11.1 billion), up 30.2% year over year. Non-GAAP diluted EPS was ¥2.06, an increase of 19.8% year over year. The results were largely driven by payment-related services, digital content subscriptions and sales, social and others advertising, and smartphone games. Value-added services (VAS) revenues, which accounted for 57% of total revenues, increased by 14.3% year over year. The increase was mainly driven by digital content services, while online games revenues staggered. Online advertising revenues were up 39.0% year over year to ¥14.1 billion, due to an expanded advertiser base boosting advertising fill rates in Weixin Moments and Mini Programs, higher cost per click for the mobile advertising network and enhanced traffic and monetization for the QQ KanDian news feed. 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 Aug 17, 2018 Coresight Research August 17, 2018 Executive SummaryAugust 17, 2018 This week’s note “From the Desk of Deborah Weinswig” discusses how athleisure and sneaker culture are changing mainstream fashion. The National Retail Federation raised its US retail sales forecast for 2018. The trade body now expects retail sales, excluding automobiles, gasoline stations and restaurants, to rise by a minimum of 4.5% over 2017. Retailer Sports Direct has agreed to take over all of House of Fraser’s stores and stock, as well as its brand name, for £90 million ($115 million). Chinese online grocery delivery company Dada-JD Daojia announced that it has raised $500 million from Walmart and JD.com in its latest round of funding. 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 33: Casper Sleep to Open 200 Stores in the Next Three Years Coresight Research August 17, 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 4,379 and the number of store openings is 2,367. US Store Openings: Casper Sleep is opening 200 stores in the next three years. BCBG Max Azria opened a new store in Soho, New York City. JCPenney plans to open 500 baby shops starting August 30. US Bankruptcies and Mergers: Samuels Jewelers has filed for bankruptcy. Albertsons and Rite Aid have cancelled a $24 billion merger plan. Year to date in the UK, there have been 1,196 store closure announcements and 657 store opening announcements. UK Store Closures: Homebase plans to close 42 stores. Seven Marks & Spencer clothing stores will close this Saturday. UK Store Openings: B&M plans to open at least 45 net new stores this financial year. Acuitis will open 40 practices in two years. Screwfix opened 10 stores in the first quarter of 2018. 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 UpdateWalmart (WMT) Fiscal 2Q19 Results: Beats on Revenues, Comps and EPS; Raises Guidance Coresight Research August 17, 2018 Executive Summary Walmart reported fiscal 2Q19 adjusted EPS of $1.29, up 19.4% from $1.08 in the year-ago quarter and beating the $1.22 consensus estimate. Total revenues were $128.0 billion, up 3.8% year over year and ahead of the consensus estimate of $126.0 billion. US comp sales increased by 4.5%, ahead of the 2.4% consensus estimate, on greater than 2% increases in both traffic and ticket. E-commerce accelerated to 40% growth. Walmart raised FY19 sales growth guidance to about 2.0% from up 1.5%–2.0% and raised adjusted EPS guidance to $4.90–$5.05 from $4.75–$5.00 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 CoverageThe Fanny Pack Is Back and Other Top Takeaways from MAGIC Las Vegas 2018 Coresight Research August 17, 2018 Executive SummaryThis week, the Coresight Research team is attending MAGIC Las Vegas 2018, one of the most comprehensive trade shows covering men’s, women’s and children’s apparel, accessories and footwear. Here are our key takeaways from the second day of the event: Alibaba launched “Source Now” on Alibaba.com as a way for individuals to quickly locate product suppliers by simply uploading a photograph. The fanny pack, which gained popularity in the 1990s, is back on trend. There is a market opportunity for upcycling vintage fashions—where vintage apparel is elevated into customized vintage looks or used as the inspiration for new brand lines. Color, sequins and rainbow stripes were trending across women’s apparel exhibitors. Dadagonia, or “dadcore” is a trend that is gaining popularity, where consumers are dressing in an unfashionable way intentionally as a rebellion against traditional fashion. 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 UpdateNordstrom (JWN) Fiscal 2Q18 Results: Company Beats Expectations and Raises Guidance Coresight Research August 17, 2018 Executive Summary Nordstrom reported fiscal 2Q18 revenues of $4.07 billion, up 7.2% year over year and above the consensus estimate of $3.90 billion. Diluted EPS was $0.95, up 46.2%% from the year-ago quarter and above the consensus estimate of $0.84. Nordstrom reported fiscal 2Q18 revenues of $4.07 billion, up 7.2% year over year and above the consensus estimate of $3.90 billion. Diluted EPS was $0.95, up 46.2%% from the year-ago quarter and above the consensus estimate of $0.84. Nordstrom raised its full-year earnings guidance per share and now expects adjusted EPS of $3.50–$3.65, compared to the consensus estimate of $3.44, up from the previous guidance, $3.35–$3.55. For the full year, the company expects total net sales to be $15.40–$15.50 billion, an increase from $15.20–$15.40 billion. The consensus estimate is $15.74 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 UpdateMacy’s (M) 2Q18 Results: Beats on Revenues, EPS and Comps, Raises Guidance Coresight Research August 17, 2018 Executive Summary Macy’s reported 2Q18 adjusted EPS of $0.70, beating the $0.51 consensus estimate. Revenues were $5.57 billion, down 1.1% year over year but beating the consensus estimate of $5.55 billion. Comps increased 0.5%, comprising flat comps from owned stores plus comps of 0.5% from licensed departments, beating the consensus of a decline of 0.9%. Macy’s raised its full-year guidance for EPS to a range of $3.95–$4.15 (from $3.75–$3.95 previously) and for revenues to flat to 0.7% (from down 1% to up 0.5% 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
