Company Earnings UpdateHanesBrands (HBI) 2Q18 Results: Misses on Earnings, Target Will Not Renew Champion Activewear Deal Coresight Research August 2, 2018 Executive Summary HanesBrands reported 2Q18 revenues of $1.72 billion, up 4.2% year over year and beating the $1.71 billion consensus estimate. Adjusted EPS of $0.45 was down from $0.53 in the year-ago quarter, slightly below the $0.46 consensus estimate and at the midpoint of the company’s $0.44–$0.46 guidance range. By segment, the international business performed best, with sales up 14.9% year over year, followed by global activewear, with sales up 12%, and global innerwear, with sales up 1%. HanesBrands reiterated its FY18 net sales guidance of $6.72–$6.82 billion, in line with the consensus estimate of $6.77 billion. The company expects full-year adjusted EPS of $1.72–$1.80, in line with the consensus estimate of $1.76. 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 CoverageColor Cosmetics Take a Backseat to Skincare, and Other Top Takeaways from Day One at Cosmoprof North America, Las Vegas Conference Coresight Research August 1, 2018 Executive SummaryThe Coresight Research team is in Las Vegas attending and presenting at Cosmoprof North America 2018 held from July 28 to 31. Coresight Research Founder and CEO, Deborah Weinswig is presenting on the panel, “Rise of Pop-ups, the Pop-Up Push.” Cosmoprof is the leading business-to-business (B2B) beauty trade show in North America, drawing over 33,000 attendees and 1,015 exhibitors from 39 countries. Here are our key takeaways. Functional skincare is the main focus at Cosmoprof 2018; there has been very little buzz about traditional color cosmetic products at the show. The clean and “free-from” beauty category is trending upward across skincare and haircare products. An anti-Amazon sentiment among brands seemed to pervade at the conference due to the presence of counterfeits and the lack of brand protection. Rainbow colors and hues have gone mainstream for hair. Haircare company Living Proof created the campaign, “No preconceived notions,” celebrating individuality, freedom of expression and uniqueness. 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 ReportJune 2018 US Retail Sales and Traffic: Steady Increase in YoY Total Retail Sales While Store Traffic Continues to Decline Coresight Research July 31, 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 US Monthly Retail Sales and Traffic Report reviews year-over-year changes in selected store-based metrics, including sales, traffic and conversion rates. Highlights from our June Retail Traffic report: On a year-over-year basis in June, total retail sales increased by 6.4%, according to the US Census Bureau .Retail sales increased by 0.3% month over month in June on a seasonally adjusted basis. Changes in store-based sales and traffic remained negative in June, while conversion rates and average transaction values were positive and return rates were flat, according to RetailNext. Retail traffic declined by 5% year over year during 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
Deep DiveDeep Dive: DX Quality Outlet and the Off-Price Retail Market Coresight Research July 31, 2018 Executive SummaryThis report focuses on DX Quality Outlet (DX), a still-small but fast-growing off-price retailer in China that operates dozens of pop-up stores in cities across the country. DX sits at the intersection of off-price retail and pop-up stores, and it is developing a mobile retail presence, both of which position it well to succeed in China for years to come. DX sells midmarket to upscale brands for 75%–85% off standard retail price. As of May 2018, DX had opened 38 pop-up stores and 13 permanent stores in China. The company has targeted 11,000 total pop-up-store days this year. The company is working on expanding its mobile retail presence, which will soon include a store on WeChat, China’s largest social media platform. The US off-price retail market could be ripe for disruption by an enterprising, mobile-focused company such as DX, while Europe’s underdeveloped off-price industry could be poised for expansion. 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 UpdateAmazon (AMZN) 2Q18 Results: Falls Short on Revenues but Beats on EPS Coresight Research July 31, 2018 Executive Summary Amazon reported 2Q18 EPS of $5.07, handily beating the $2.49 consensus estimate and up 1,166% year over year. Revenues were $52.9 billion, up 39.3% year over year but short of the consensus estimate of $53.45 billion. The Amazon Web Services (AWS) and North America segments drove growth, up 48.9% and 43.8% year over year, respectively. International revenues grew by 27.2%. Fulfillment expenses were $7.9 billion, up 53.8% year over year and exceeding revenue growth of 39.3% over the same period. Amazon guided for 3Q18 revenues of $54.0–$57.5 billion, up 23%–31%. The EPS consensus estimate for 3Q18 is $2.49. 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 ReportQuick Take: The Impact of Tariffs on US Retail Coresight Research July 31, 2018 Executive SummaryIn this report, we review the import tariffs imposed by the US and China and their implications on the US retail industry. Consumer goods were excluded from the tariffs the US imposed on Chinese imports until July 10, when US President Donald Trump announced another list of product categories, worth around $200 billion, to which tariffs will apply. This new list includes apparel. China accounted for 37% of US apparel imports and 56% of US footwear imports in 2017, according to the US Department of Commerce. There is a strong negative correlation between Chinese textile surplus and US textile jobs. In-demand brands look best positioned to pass on the costs of the new tariffs to consumers. 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 ReportJune 2018 Monthly Consumer Update: US, UK and China Coresight Research July 31, 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 Consumer Update rounds up key metrics that reflect consumer demand in the US, the UK and China. We focus on direct, leading indicators of the health of the consumer economy: wage growth, price changes and retail sales growth. Highlights from our June Consumer Update: In the US, gasoline prices jumped by 24.3% year over year in June, while retail sales (ex gasoline) continued to grow solidly. In the UK, retail sales posted robust growth and inflation eased. In China, calendar effects contributed to a slight strengthening of retail sales growth, although the medium-term trend remains one of a softening of retail growth. 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 ReportUS Back-to-School 2018 Retail Outlook: Shoppers Look Ready to Spend Coresight Research July 30, 2018 Executive Summary We expect US back-to-school sales to increase by 3.0%–4.0% this year. The economic backdrop for US back-to-school spending is strong. Positive economic indicators include a low unemployment rate, higher consumer sentiment, strong wage growth, higher housing prices, lower savings rates, total US retail increases and more tax-free shopping dates. Negative indicators include higher gas prices and slower growth in apparel as a portion of total retail sales. The National Retail Federation (NRF) takes a more pessimistic view than we do. It expects total back-to-school spending to fall short of last year’s spending by 1% to $82.8 billion in 2018, which will mark the third-highest-ever back-to-school spending level. Apparel and electronics are the two strongest categories in both back-to-school and back-to-college spending. E-commerce is set to make strong gains this year, with surveys finding a 10-percentage-point jump in shoppers opting to buy online. Most e-commerce back-to-school sales happen during the week, and brick-and-mortar stores see their most back-to-school shoppers on weekends. The busiest back-to-school shopping period is early August, followed closely by late July. Consumers are focused on finding discounts. Competition amongst retailers is growing, and retailers are seeking to draw customers through convenience. 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 July 27, 2018 Coresight Research July 27, 2018 Executive Summary This week’s note “From the Desk of Deborah Weinswig” discusses whether Amazon is a threat to off-price retailers. As the transpacific trade war officially gets under way, US retailers are rushing to fill inventories before additional tariffs are put on Chinese goods. Longer term, escalating tariffs could mean increased sourcing in South and Southeast Asia. British retailer Tesco is reportedly planning to launch a new chain of discount stores across the UK to compete with German cut-price retail rivals Aldi and Lidl. Chinese retail sales of consumer goods grew by 9% year over year in June, according to the National Bureau of Statistics of China. The later arrival of the Dragon Boat Festival this year accelerated growth in June. 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 30: Homebase Continues to Shut Stores Coresight Research July 27, 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 4,204 and the number of store openings is 2,239. Year to date in the UK, there have been 1,215 store closure announcements and 635 store opening announcements. Homebase will close its Exeter store by September. Tesco is set to take on Aldi and Lidl in discount retailing 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 UpdateUnder Armour (UAA) 2Q18 Results: Beats on Revenue and Continues SKU Rationalization Coresight Research July 27, 2018 Executive Summary Under Armour reported 2Q18 adjusted EPS of $(0.08), in line with the consensus estimate. Total revenues were $1.17 billion, beating the $1.15 billion consensus estimate and up 7.7% year over year. Apparel revenues rose by 10%, to $747 million, driven by strength in the training and running categories. Footwear revenues were up 15%, to $271 million, led by strength in the running and team sports categories. Under Armour reaffirmed its FY18 adjusted EPS guidance of $0.14–$0.19, versus the consensus estimate of $0.18. The company guided for revenues to increase by 3%–4%, reflecting expectations of a low- to mid-single-digit decline in North America and international growth of greater than 25%. 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 CoverageTariffs and the Fashion Industry: Key Takeaways from the CFDA’s Discussion Coresight Research July 27, 2018 Executive SummaryOn Wednesday, July 25, the Coresight Research team attended a discussion hosted by the Council of Fashion Designers of America (CFDA) on the impact of new US tariffs on Chinese-produced goods. Lisa Metcalfe, COO of Pam and Gela, and her husband, James Metcalfe, Senior Vice President of Production and Product Development at Alice and Olivia, walked the audience through how new tariffs could affect the fashion industry. Here, we share our key takeaways from the discussion. The new tariffs, announced earlier this July and expected to take effect later this year, are of particular interest to the fashion community: although fashion goods compose only 6% of incoming products to the US, they account for 51% of US incoming tax revenues. Options that may seem like quick fixes usually are not as straightforward as they seem. Changing production sites or looking into duty-savings initiatives and free trade zones are often more trouble than they are worth. The fashion industry should not be overly concerned about the new tariffs and enforcement strategy: they are more of an inconvenience than a disaster. It is simply important for companies and brands to keep themselves informed and not cut any corners. 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 UpdateL’Oreal (ENXTPA: OR) 1H18 Results: Confirming Resurgent Chinese Demand for Premium Products Coresight Research July 27, 2018 Executive Summary L’Oréal reported strong underlying growth of 6.6% in 1H18, though currency effects dampened reported numbers and, so, profit gains. Asia-Pacific sales jumped by 22.0% on a comparable basis and management noted strong demand for L’Oréal Luxe products in China. For FY18, analysts expect the company to grow revenues by 2.0%, to €26.5 billion. Consensus calls for a 3.3% increase in EBIT and a 7.6% increase in statutory pretax profit in FY18. 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 UpdateFacebook (FB) 2Q18 Results: Misses Revenue Estimates and Warns of Slower Growth Coresight Research July 27, 2018 Executive Summary Facebook reported 2Q18 diluted EPS of $1.74, beating the $1.72 consensus estimate by $0.02 and up 32% year over year. Revenues were $13.23 billion, up 42% year over year but missing the consensus estimate of $13.36 billion. Daily active users totaled 1.47 billion and monthly active users totaled 2.23 billion; both metrics were up 11% year over year. Capital expenditures were $3.46 billion, up 140% year over year. Revenue growth decelerated by seven percentage points quarter over quarter, and the company forecast that revenue growth will continue to slow by high single digits over the next two quarters. 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 UpdateCarrefour (ENXTPA: CA) 1H18 Results: Sales Disappoint, but Company Makes “Significant Advances” in Carrefour 2022 Plan Coresight Research July 27, 2018 Executive Summary Carrefour reported a 3.0% year-over-year decline in revenues in 1H18, disappointing analysts, who had been expecting a small increase in sales. However, adjusted operating income came in slightly ahead of the consensus estimate. Group comparable sales were up 0.7% in 1H18, with French comps broadly flat year over year. For FY18, analysts expect Carrefour’s revenues to fall by 0.3%, to €78.7 billion, and for its EBIT to decline by 7.3%, yielding an EBIT margin of 2.4%. 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
