Flash ReportAmazon’s Bid to Acquire Whole Foods Gains FTC Approval Coresight Research August 24, 2017 Executive Summary On June 16, Amazon announced the signing of a definitive agreement to acquire Whole Foods Market for $13.7 billion in cash. On Wednesday, the Whole Foods shareholders approved the deal, which was followed later in the day by official approval from the Federal Trade Commission (FTC). The regulator announced it “decided not to pursue this matter further,” discontinuing any further investigation into the deal, and deeming that the merger does not substantially lessen competition in the market. The transaction is expected to close by the end of 2017 as originally anticipated. 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 UpdateWilliam Sonoma (WSM) 2Q17 Results: Beats on EPS and Reiterates Guidance Coresight Research August 24, 2017 Executive Summary Williams-Sonoma reported 2Q17 EPS of $0.61, up 5.6% from $0.58 in the year-ago quarter and beating the consensus estimate by two cents. Revenues were $1.20 billion, up 3.7% year over year and in line with the consensus estimate. Comps increased by 2.8%, slightly ahead of the 2.7% consensus estimate and up from 0.6% in the year-ago quarter. West Elm comps increased by 10.1%. The company reiterated its 2017 guidance for revenues of $5.17–$5.27 billion and adjusted EPS of $3.45–$3.65. 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) 2Q17 Results: Misses on EPS and Revenue, Sees Strong Comp Momentum Coresight Research August 24, 2017 Executive Summary Lowe’s reported 2Q17 adjusted EPS of $1.57, up from $1.37 in the year-ago period and missing the $1.62 consensus estimate. The company reported revenue of $19.50 billion, which was below the $19.55 billion consensus estimate but up 6.8% from the year-ago quarter. Comps were up 4.5% year over year, driven by improved transaction growth of 0.9% and a 3.6% increase in average ticket. The US home improvement business was up 4.6%, with positive comps reported in 13 out of 14 regions in all product categories. The company lowered its FY17 EPS guidance again, and now expects EPS of $4.20–$4.30 versus prior guidance of $4.30 and the consensus estimate of $4.62. The company reaffirmed its FY17 revenue guidance of a 5% increase. Lowe’s expects full-year comp growth of 3.5% versus the 3.3% 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
Deep DiveThe US Cannabis Industry and the New Green Economy— a Fast-Growing Industry Facing Regulatory Concerns Coresight Research August 24, 2017 Executive SummaryThe legal cannabis industry in the US is rapidly expanding and is expected to grow even faster in the next few years as recreational use of marijuana becomes legal in more states. This report: Provides an overview of the size and growth of the legal cannabis industry in the US and highlights the threats to the industry’s growth due to legal ambiguities. Examines the impact of the legal cannabis industry on the economies of the states that have already legalized recreational marijuana, using Colorado as an example. Provides an overview of the competitive environment within the US legal cannabis industry, highlighting the opportunities and threats that companies operating in the sector might encounter, and lists examples of cannabis startups. 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 UpdateDSW (DSW) 2Q17 Results: Beats on EPS and Revenue, Maintains Guidance Coresight Research August 24, 2017 Executive Summary DSW reported 2Q17 adjusted EPS of $0.38, ahead of the $0.29 consensus estimate and up 8.6% from the year-ago period. Total revenues were $680.4 million, up 3.3% year over year and beating the $666.1 million consensus estimate. Comparable-store sales were up 0.6%, which was better than the 2.2% decline analysts had expected and the 1.2% decline recorded in the year-ago quarter. DSW segment comp sales were up 0.6%; the increase was partially offset by a 0.1% decline by the Affiliated Business Group (ABG) segment. The company did not update its prior EPS guidance of $1.45–$1.55 for FY17. The consensus calls for EPS of $1.44.FY17 guidance calls for revenue growth of 3.0%–4.0% and for comp growth to be flat year over 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
Flash ReportMacy’s Names New President, Announces Restructuring Coresight Research August 22, 2017 Executive Summary On August 21 after the market close, Macy’s announced the appointment of Hal Lawton as President, effective September 8. Lawton will be responsible for the Macy’s brand, including merchandising, marketing, stores, operations, technology, and consumer insights and analytics. Lawton was previously SVP of eBay North America. He will report to CEO Jeff Gennette. Separately, the company announced a restructuring of its merchandising operations to consolidate three functions—merchandising, planning and private brands—into a single merchandising function, led by Jeff Kantor. The restructuring is expected to save $30 million on an annual basis, including $5 million, or $0.01 per share, in the fourth quarter, which is additive to guidance announced on August 10 of adjusted EPS of $3.37–$3.62. 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 Clone Wars: Amazon Go–Type Stores Already Open for Business in China Coresight Research August 22, 2017 Executive Summary Unstaffed stores have been around since the late 1800s, and automats (cafeterias where customers bought items from vending machines) were commonplace in New York City until the last one closed in 1991. While Amazon received a huge amount of attention when it first uploaded a video of its unstaffed Amazon Go store to YouTube last December, other retailers have been working on this concept and have opened similar types of stores in China and other countries. BingoBox appears to be the early leader, currently operating eight stores and targeting 5,000 by the end of the year. Customers can make purchases with WeChat or Alipay at the stores. Alibaba recently opened a Tao Cafe format that runs on purchases made on the company’s Taobao consumer-to-consumer platform. Moby Mart, another unstaffed store, runs on solar power and is currently undergoing testing in Shanghai. These stores use a variety of technologies such as facial, image and voice recognition that have not been combined before, and Amazon Go and BingoBox have suffered technical glitches. The companies are likely to overcome these difficulties soon, though, and the stores could become a big hit with smartphone-armed consumers who dislike waiting in line in traditional 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 UpdateAlibaba (BABA) 1Q FY18 Results: Beats on Earnings, Expanding Global Footprint Coresight Research August 21, 2017 Executive Summary Alibaba reported 1Q FY18 revenue of ¥50.2 billion, up 56% year over year, and beat the consensus estimate by 4.8%. The company attributed the strong results to a steady increase in revenues from its core commerce segment, as well as the strong growth in emerging businesses, including cloud computing, digital media and entertainment. Core commerce revenues reached ¥43.0 billion, up 58% year over year. China retail and wholesale together contributed 76% of total revenues. International retail revenues were up 136% year over year, primarily driven by increasing revenues from AliExpress and Lazada. Management emphasized that international expansion will be its long-term core strategy. Cloud computing sales reached ¥2.4 billion, up 96% year over year, driven by robust growth in paying customers, as well as an improving revenue mix of higher valued-added services. The number of paying customers of the cloud computing business reached the 1 million milestone, up 75% on a year-over-year basis. Alibaba reiterated its FY18 revenue growth guidance range of 45%–49%. The company remains optimistic about the growth prospects for fiscal year 2018, driven primarily by robust growth of the core business and cloud computing. 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: Channel Shifts in US Beauty Retailing—Sephora, Ulta and Amazon Coresight Research August 19, 2017 Executive Summary Survey data and company results suggest that growth in the US beauty market has been polarized, with lower-price retailers and beauty specialist stores having won share. Millennials’ frugal shopping habits and desire for quality experiences look to be driving this trend. Survey data from Prosper Insights & Analytics suggest that Walmart and Target have grown their beauty shopper numbers in recent years. Sephora and Ulta have grown fast, too. Surveys show that Amazon is the fifth-most-popular retailer for skincare and cosmetics and the top online destination for beauty. A key lesson for beauty retailers is one that applies across a number of sectors in which rivals are competing with Amazon: either cultivate a convincing category specialty or focus on low prices. 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 UpdateRoss Stores (ROST) 2Q17 Results: Beats Estimates and Raises Guidance Coresight Research August 18, 2017 Executive Summary Ross Stores reported 2Q17 EPS of $0.82, up 15.3% from $0.71 in the year-ago quarter and beating the $0.77 consensus estimate. Revenues were $3.43 billion, up 7.9% year over year and beating the consensus estimate of $3.37 billion. Comp sales increased by 4%, ahead of the 2.0% consensus estimate and following 4% comps in the year-ago quarter. The company guided for comp growth of 1%–2% for 3Q17 and 4Q17. Ross Stores raised its full-year EPS guidance to $3.16–$3.23, up from $3.07–$3.17 previously and representing a 12%–14% increase year over 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
Analyst CornerWeekly Insights Aug 18, 2017 Coresight Research August 18, 2017 Executive Summary This week’s note “From the Desk of Deborah Weinswig” discusses the FGRT team’s recent visit to the Magic trade show in Las Vegas, Nevada. In July, US retail sales rose by 0.6% month over month, versus an expected 0.4% increase. The increase was the largest monthly gain since December 2016. Fashion e-commerce retailer ASOS has launched a visual search feature on its iOS app that allows users to take a photo or screenshot of a garment or fashion accessory and have the app show items similar to what they are trying to find. British supermarket giant Tesco is to roll out interactive digital kiosks that allow customers to browse and select products, and then operate a ticket system for staff to assist with further information and queries. 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 2Q18 Results: Beats Consensus and Raises Guidance Coresight Research August 18, 2017 Executive Summary Walmart reported fiscal 2Q18 adjusted EPS of $1.08, up from $1.07 in the year-ago quarter and beating the $1.07 consensus estimate. Total revenues were $123.4 billion, up 2.1% year over year and beating the consensus estimate of $122.8 billion. US comp sales increased by 1.8%, in line with the consensus estimate, on a 1.3% increase in traffic. E-commerce sales and gross merchandise value (GMV) increased by 60% and 67%, respectively, mostly from organic growth. The $0.94 midpoint of the company’s fiscal 3Q18 EPS guidance of $0.90–$0.98 is lower than the $0.97 consensus estimate. Walmart narrowed its FY18 EPS guidance range upward to $4.30–$4.40 versus $4.20–$4.40 previously and versus the consensus estimate of $4.36. 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 ReportInfographic: China’s Online Fashion Recommerce Market—Part 1: The Next Frontier for E-Commerce Coresight Research August 18, 2017 Executive SummaryThis infographic on China’s Fashion Recommerce Market includes: Market penetration for China vs US Market share for key players Key factors driving market growth Challenges for China’s online fashion recommerce platforms Click here to view our full report: China’s Online Fashion Recommerce Market—Part 1: The Next Frontier for E-Commerce In addition, you may be interested in the next report in this series: China’s Online Fashion Recommerce Market—Part 2 China’s Top Online Fashion Recommerce Platforms 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
Market Navigators/Market OutlookChina’s Online Fashion Recommerce Market—Part 1: The Next Frontier for E-Commerce Coresight Research August 18, 2017 Executive Summary China’s online luxury fashion recommerce market is in a nascent phase—with a penetration rate of less than 5% compared to 10%–15% in the US—and is growing rapidly. Established e-commerce platforms such as Alibaba and 58.com dominate the online recommerce market in China. They are all-in-one platforms that offer a wide range of product categories including fashion. The platforms are typically horizontally integrated, combining payment, community and marketing features. Growth is being further fueled by an increasing number of startups and the significant funds being raised. Young millennials and Generation Zers are driving the growth of China’s fashion recommerce market. Younger consumers are keen for options that offer a better price-quality value proposition and are willing to shrug off concerns about the hygiene of pre-owned clothing that previous generations harbored. Recommerce platforms for both fashion items and general merchandise, have deployed tactics such as live broadcasting by cewebrities, collaborating with brands, using big data analytics, opening physical showrooms and providing value-added 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
Company Earnings UpdateTencent (0700.HK) 2Q17 Results: Strong Beat on Both Top and Bottom Line, Driven by Strong Performance of Gaming and WeChat Coresight Research August 18, 2017 Executive Summary Tencent reported 2Q17 revenues of ¥56.6 billion, up 58.6% year over year. Non-GAAP diluted EPS was ¥1.72, largely driven by gaming and Weixin (WeChat). Value-added services (VAS) revenues, which accounted for 65% of total revenue, increased by 43.3% year over year, mainly driven by strong revenue growth in both PC games and smartphone games. Advertising revenues were up 55.4% year over year, due to strong growth from media ads and the strong performance of Weixin (WeChat) Moments and WeChat Official Accounts. Other revenues surged 177.5% year over year, driven by mobile payment and cloud services. The payment business for commercial transactions has increased rapidly, driven by strengthened cooperations with channel partners, especially Meituan-Dianping, to expand the offline merchant base. 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
