Flash ReportJCPenney Chairman and CEO Marvin R. Ellison to Leave for Lowe’s Coresight Research May 23, 2018 Executive Summary JCPenney’s Chairman and CEO Marvin R. Ellison has been appointed President and CEO of Lowe’s, effective July 2. Ellison will leave JCPenney on June 1. Ellison previously spent 12 years at Lowe’s biggest home-improvement rival, Home Depot. 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 DiveSubscription Commerce Update – Disruptors Face Disruption Coresight Research May 22, 2018 Executive SummarySubscription services continue to capture billions of dollars that would otherwise go to conventional retailers. However, we are now seeing some US subscription commerce disruptors face disruption themselves. We estimate that in 2018, US consumers will spend around $1.9 billion on beauty and personal care subscription services and around $3 billion on online meal kit services. Facing increased competition and high marketing costs, some of the biggest subscription firms, such as Blue Apron, are facing challenges in terms of growth and profitability, while others, such as HelloFresh, remain loss-making. Amazon Subscribe & Save is one of the most popular subscription services, and a hybrid retail/subscription model, such as this, looks the most sustainable. It means customers who want to cancel a subscription can do so while still shopping with the same retailer, and for the company, the enhanced scale provides opportunities to leverage fixed costs. 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) 1Q18 Results: Strong Revenue Growth Driven by Gaming; WeChat MAU Surpass 1 Billion Coresight Research May 21, 2018 Executive Summary Tencent reported 1Q18 revenues of ¥73.5 billion ($11.7 billion), up 48% year over year. Non-GAAP diluted EPS was ¥1.92, an increase of 28.2% year over year. The solid results were largely driven by gaming and online advertising. Value-added services (VAS) revenues, which accounted for over 60% of total revenues, increased by 33.5% year over year. The increase was mainly driven by strong growth from smartphone games. Online advertising revenues were up 55% year over year to ¥10.7 billion, thanks to an expanded advertiser base boosting advertising fill rates in Weixin Moments and higher cost per click for the mobile advertising network. 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) 1Q18 Results: Misses on Comps, Raises EPS Guidance Range Coresight Research May 21, 2018 Executive Summary Nordstrom reported 1Q18 EPS of $0.51, up 37.2% year over year and beating the $0.43 consensus estimate. Total revenues were $3.56 billion, up 6.2% and beating the $3.45 billion consensus estimate. Comparable sales were up 0.6%, below the 1.1% consensus estimate but above the 0.8% decline reported in the year-ago quarter. The company raised the low end of its EPS guidance range; it now expects FY18 EPS of $3.35–$3.55, up from $3.30–$3.55 previously and versus the consensus estimate of $3.43. The company reiterated its net sales and comp 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
Company Earnings UpdateWalmart (WMT) Fiscal 1Q19 Results: Net Sales Beat Expectations, Guidance Affected by Portfolio Repositioning Coresight Research May 18, 2018 Executive Summary Walmart reported fiscal 1Q19 net sales of $121.6 billion, up 4.4% year over year and beating the $119.3 billion consensus estimate. US comps increased by 2.1% in the quarter. Adjusted EPS was $1.14, beating the $1.12 consensus estimate. Walmart US’s net sales were $77.7 billion, up 3.1% year over year. Walmart International reported net sales of $30.3 billion, up 11.7% year over year, and Sam’s Club reported net sales of $13.6 billion, down 2.7% year over year. Walmart is repositioning its portfolio of businesses, including by investing in Flipkart, which Walmart expects to negatively impactful-year EPS by approximately $0.25–$0.30. 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 20: Rockport Group Files for Chapter 11 Bankruptcy Protection Coresight Research May 18, 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 3,889 and the number of store openings is 1,789. Footwear maker The Rockport Group has filed for Chapter 11 bankruptcy protection. Sears is exploring the sale of its Kenmore brand, as well as its Home Improvement Products, Home Services and Parts Direct businesses, to ESL Investments, a hedge fund led by Sears CEO Eddie Lampert. Year to date in the UK, there have been 416 store closure announcements and 524 store opening announcements. Mothercare announced a plan to close 50 stores. 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 UpdateMacy’s (M) 1Q18 Results: Company Beats Estimates, Raises Full Year Guidance Coresight Research May 18, 2018 Executive Summary Macy’s reported 1Q18 adjusted EPS of $0.42 and total revenues of $5,541 million, exceeding analysts’ estimates. Comparable sales were up 3.9% on an owned basis and up 4.2% on an owned-plus-licensed basis. Strong consumer and international tourist spending and progress in the execution of the company’s strategic objectives contributed to the positive quarterly performance. Management raised its guidance for FY18, and now expects adjusted EPS of $3.75–$3.95 and a 1.0%–2.0% increase in comps on an owned-plus-licensed basis. 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 UpdateJCPenney (JCP) 1Q18 Results: New Sales Negatively Impacted by Store Closures, Company Results Below Estimates Coresight Research May 18, 2018 Executive Summary JCPenney reported 1Q18 net sales of $2.58 billion, down 4.3% year over year and below the $2.62 billion consensus estimate. Comparable sales were up 0.2% for the period. Store closures in FY17 and unseasonal weather during the first quarter negatively impacted results. Adjusted EPS was $(0.25), versus the $(0.24) consensus estimate and up from $(0.60) in the year-ago quarter. The company revised its full-year guidance and now expects comparable sales growth of 0.0%–2.0% and adjusted EPS of $(0.07)–$0.13, compared with the consensus estimate of $0.17. 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 ReportApril 2018 US Same-Store Sales Coresight Research May 18, 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 US Same-Store Sales Report reviews comparable sales metrics reported by Costco, Buckle and Cato. Highlights from our April US Same-Store Sales report: Same-store sales for Costco saw an acceleration in April versus the same period last year. Cato and Buckle continued to report negative comps for the month. Costco and L Brands beat estimates. Mass-merchant Costco saw comps increase by 10.9% year over year in April versus the 8.3% consensus estimate. Hardlines were up by the high single digits year over year, with better-performing departments including office, tires and majors. L Brands reported flat comps overall in April.Victoria’s Secret’s comps were down 2% and Bath & Body Works’ comps were up 6%. 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: The Mall Is Not Dead, Part 3 – Five Predictions for Five Years Out Coresight Research May 17, 2018 Executive SummaryWe conclude our Mall Is Not Dead series by looking ahead to the future of the shopping mall in the US. Over the coming years, many malls will reshape their offerings by moving away from a focus on apparel stores clustered around department store anchors toward more diverse networks that include nonapparel retailers, leisure and entertainment tenants, event and pop-up spaces, and business service providers. Here, we look ahead five years to 2023, and explore the impact that major changes in consumer demand and retail channels will likely have on US malls. We predict that: More than 1,000 department stores will probably close between 2017 and 2023, reducing total sector store numbers by one-fifth. Consumers will continue to grow their spending on experiences at the expense of retail purchases.We expect consumers to be redirecting an additional $78 billion to discretionary services at the expense of discretionary goods by 2023. Online apparel sales will more than double between 2017 and 2023. This means an additional $73 billion of apparel purchases will switch from stores to e-commerce by 2023. By 2023, millennials’ spending power will have grown to reflect their maturity. We estimate that US millennial households will wield more than $5 trillion in consumer spending in five years. Retail alternatives will also chip away at traditional channels. By 2023, US shoppers will be spending an estimated $17 billion on online meal kits, beauty and personal care subscriptions, and online apparel resale and rental. 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 CoverageDemand for Natural Products and Experiences Drives Beauty Growth: Top Takeaways from the WWD Beauty CEO Summit 2018 Coresight Research May 17, 2018 Executive SummaryOur top takeaways from the WWD Beauty CEO Summit 2018 include: Target is catering to shopper demand for transparency in beauty ingredients as well as for startup brands and locally adapted ranges. Consumer-goods giant Procter & Gamble is among those getting serious about natural beauty products. Australian beauty retailer Mecca Brands puts great emphasis on experiences, and its Meccaland beauty festival drove conversion and social-media engagement. 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 UpdateHome Depot (HD) 1Q18 Results: Beats on EPS, Misses on Revenues and Same-Store Sales Coresight Research May 16, 2018 Executive Summary Home Depot reported 1Q18 EPS of $2.08, up from $1.67 in the year-ago quarter and ahead of the $2.05 consensus estimate. Total revenues were $24.95 billion, up 4.4% year over year but below the $25.17 billion consensus estimate. Total comps rose by 4.2% during the quarter, missing the 5.5% consensus estimate. Comps for US stores were up 3.9%. Comp growth was driven by a 5.8% increase in average ticket spend, which was partially offset by a 1.5% decline in customer transactions. Home Depot reaffirmed its FY18 EPS guidance of $9.31, reflecting 28% growth, while the consensus estimate calls for EPS of $9.43. The company expects revenue growth of 6.7%, reflecting comp growth of 5.0%. The consensus estimate calls for revenue growth of 6.8% and comp growth of 5.2%. 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 ReportApril 2018 US Retail Sales Coresight Research May 16, 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 US Retail Sales Report reviews the latest sector data published by the US Census Bureau. Highlights from our April US Retail Sales Report: According to the US Census Bureau, total US retail sales increased by 0.3% month over month in April on a seasonally adjusted basis, marking the second month of growth after a revised 0.8% advance in March. The April results were inline with economists’ expectations. Nine of 13 major retail categories saw month-over-month increases in sales. Apparel and accessories stores led sales growth, with an increase of 1.4%. On a year-over-year basis in April, total retail sales increased by 4.7% and retail sales excluding autos increased by 4.8%. Following a sluggish first quarter, during which consumer spending grew at its slowest pace in nearly five years, spending is picking up, likely due to a recent increase in gasoline prices. Economists remain confident that consumer spending will continue to be strong, citing the recent tax cuts,a healthy labor market and broader economic growth as drivers. 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 Gas Prices See a Double-Digit Increase, but Discretionary Spending Looks Solid Coresight Research May 15, 2018 Executive Summary US gas prices are seeing a double-digit increase year over year, threatening to pressure consumers’ disposable incomes. However, consumer sentiment and retail sales have so far held up, as tax reforms and solid economic growth provide an otherwise-benign environment. We remain bullish on the prospects for US retail in 2018. We expect total retail sales excluding automobiles and gasoline to rise by around 4.4% to $3.6 trillion. 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 Gas Prices See a Double-Digit Increase, but Discretionary Spending Looks Solid Coresight Research May 15, 2018 Executive Summary US gas prices are seeing a double-digit increase year over year, threatening to pressure consumers’ disposable incomes. Traditionally, higher gas prices have prompted a weakening in discretionary retail sales growth. However, we have not seen this pattern in recent months. Consumer sentiment and retail sales have so far held up, as tax reforms and solid economic growth provide an otherwise-benign environment. We remain bullish on the prospects for US retail in 2018. We expect total retail sales excluding automobiles and gasoline to rise by around 4.4% to $3.6 trillion. 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
