Deep DiveDeep Dive: Adapting to Changing Media Consumption and the Digital Channel’s Influence on Retail Coresight Research August 1, 2017 Executive Summary Consumers’ media consumption preferences and habits have changed rapidly. In this report, we examine what these changes could mean for the retail sector. The average American spends nearly half the day staring at a screen. According to Nielsen, US adults spent 11 hours and 22 minutes daily consuming media in the fourth quarter of 2016, up a full hour from a year earlier. While Americans are spending more time consuming media, traditional channels such as TV and radio have begun to lose share to smartphones, devices such as Apple TV and Roku, and online streaming services such as Netflix, Hulu and Amazon Video. As consumers move away from traditional media viewing, retailers have been forced to adjust their digital media strategies. And with people spending more and more of their daily lives engaging with digital media, the digital channel’s influence on retail sales continues to grow. With new devices, greater wireless connectivity and evolving media business models, digital interaction and engagement are taking on new forms. As consumers take more control of the digital experience, companies across industries are employing new strategies to engage them. 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 ReportTarget +Techstars Retail Accelerator Welcomes Its Second Class Coresight Research July 31, 2017 Executive SummaryThe Target + Techstars retail accelerator program is welcoming its second batch of startups to Target’s headquarters in Minneapolis, MN. After receiving applications from more than 3,000 retail-specific tech startups from across the globe, Target selected 10 finalists to participate in this year’s 13-week program. Deborah Weinswig, Managing Director of FGRT, was in Minneapolis for the program launch and will serve as a mentor to the accelerator participants. This year, the participating startups offer solutions that range from online advertising to clothing alterations to meal kit delivery. The startups are Air Tailor, Bybe, Find Me a Shoe, Kokko, Local Crate, Savitude, Shopturn, SpotCrowd, StoryXpress and Upsie. While on-site at Target’s headquarters, the startups will have access to more than 120 mentors who have signed up to advise this year’s group, 50 of whom are Target executives at the VP level or above. Target CEO Brian Cornell will personally provide mentorship to the group. Other mentors include business executives from major retailers such as Best Buy and Disney. This year, the participating startups are more diverse than last year. The group includes two companies from India and one from Belgium. In addition, 70% of applicants to this year’s program have a female or a racially diverse founder. The accelerator program will conclude with a Demo Day in October at which the startups will present their work to an audience of Target team members and the greater tech community. 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 UpdateBaidu (BIDU) 2Q17 Results: Strong Beat on Disciplined Cost Control Coresight Research July 31, 2017 Executive Summary Baidu reported 2Q17 non-GAAP diluted earnings per ADS of ¥16.00, up 98.0% year over year, to beat the consensus of ¥10.13. Revenues reached ¥20.9 billion, up 14.3% year over year and were broadly in-line with the consensus estimate. The solid EPS beat is mainly due to lower-than-expected operating expenses as well as a tax-rate reduction. The decrease in the effective tax rate was due to the preferential tax status that was granted to certain PRC subsidiaries in 2Q17. Management expects the top-line for 2Q17 to be in the ¥23.13–¥23.75 billion range, representing a year-over-year increase of 26.7%–30.1%. Management expects to use artificial intelligence (AI) as a fundamental driver to offset the slow growth in the core business. 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: A Box for Everything and Everyone Coresight Research July 31, 2017 Executive Summary Recent years have seen a proliferation of online subscription box service companies that focus on a large variety of products such as food, apparel, cosmetics, toys, etc. Subscription box services consist of replenishment boxes for regular, frequently used products or curated items that allow subscribers to try new products tailored to their personal tastes. The boom in the subscription model poses at least some competitive threat to conventional retailers and product manufacturers, who have been responding by launching their own subscription services or acquiring subscription startups. There looks to be room in the market for only a few subscription box services per category, as consumers cannot have an infinite number of subscriptions. Some of the largest and most established online subscription services are not profitable, putting into question the longer-term validity of this business model. 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 UpdateAdidas (ETR: ADS) Adidas 2Q17: Beats and Raises Guidance Coresight Research July 31, 2017 Executive Summary Adidas pre-announced stronger-than-expected revenue growth for 2Q17. Revenues were up 20%, versus the 12% growth expected by analysts, and up by 19% on a constant-currency basis. EBIT grew by 18% to €505 million, versus the consensus estimate of €430 million. Net income from continuing operations grew by 16% to €347 million, versus the consensus estimate of €298 million. Adidas raised its guidance for FY17. The company now expects currency-neutral revenue growth of 17%–19%, versus 12%–14% growth previously, while guidance for net income went from 13%–15% to 26%–28%. 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 Jul 28, 2017 Coresight Research July 28, 2017 Executive Summary This week’s note “From the Desk of Deborah Weinswig” discusses the part Amazon is playing in the changing back-to-school shopping season. Deepening their strategic alliance, Walmart and JD.com have revealed a new omnichannel shopping festival set for August 8 and a set of initiatives to integrate their supply chains and other operations as the battle for the Chinese consumer intensifies. Fashion brand Michael Kors has acquired luxury shoe brand Jimmy Choo for €1 billion (US$1.2 billion). Amazon is continuing its international expansion push with the launch of its services in Singapore coming imminently, marking Amazon’s entry into Southeast Asia. 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 Report(ENXTPA: OR) 1H17 Results: Robust Growth Despite a Second-Quarter Slowdown Coresight Research July 28, 2017 Executive Summary Cosmetics giant L’Oréal grew 1H17 sales by 7.3% year over year, once we exclude figures for the now-divested The Body Shop from the 2016 total. However, revenues missed expectations. Comparable sales growth was solid in North America and Western Europe and strong in the Asia-Pacific region due to a bounce back for L’Oréal Luxe in China. Diluted EPS beat expectations. 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 UpdateGroupe Casino (EPA:CO) 1H17 Results: Strong Growth in Revenues Lifts Full-Year Trading Profit Target Coresight Research July 28, 2017 Executive Summary Casino reported 1H17 revenues of €18,598 million, up by 9.7% from 1H16 and up by 3.1% on an organic basis, and slightly below the consensus estimate of €18,875 million. The EBITDA margin rose by 90 basis points to 4.4% and the operating margin returned to positive from (0.8)% in 1H16 to 1.0% in 1H17. Diluted EPS jumped 66.7% to €0.05, but was below the consensus estimate of €0.10. Casino raised its outlook for FY17, and now expects to achieve 15% growth in food retail trading profit in France andup to 20% growth in group trading profit. 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 UpdateAmazon (AMZN) 2Q17 Results: Strong Revenues, but 2Q and Guidance for 3Q Operating Income Below Consensus Coresight Research July 28, 2017 Executive Summary Amazon reported 2Q17 EPS of $0.40, compared with $1.78 in the year-ago quarter and missing the $1.41 consensus estimate. Net sales were $38.0 billion, up 24.8% year over year and beating the $37.2 billion consensus estimate. Retail Subscription Services was the fastest-growing segment, growing by 51.3% in the quarter, followed by Amazon Web Services (AWS) at 42.1%. Guidance for 3Q17 is for revenues of $39.25–$41.75 billion, with the $40.5 billion midpoint above consensus, and for operating income of $(400)–$300 million, well below consensus of GAAP operating income of $931 million. 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 UpdateDIA (BME: DIA) 1H17 Results: Strong Performance in Emerging Markets Lifts Sales Coresight Research July 28, 2017 Executive Summary DIA reported 1H17 sales of €4,288 million, below the consensus estimate of €4,316.9 million, up by 3.4% as reported, and by 1.0% excluding currency effects. Gross margin improved by 40 basis points and the EBITDA margin remained stable. Underlying EPS improved by 4.8% to €0.173. DIA reaffirmed that it is on track to meet its targets for FY17. 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 UpdateCarter’s (CRI) 2Q17 Results: Beats Estimates, Driven by Retail and International Businesses Coresight Research July 28, 2017 Executive Summary Carter’s reported 2Q17 revenue of $692.1 million, up 8.2% year over year, beating the consensus estimate of $681.1 million. Adjusted EPS was $0.78, up 9.9% year over year and above the consensus estimate of $0.70. The upside was driven by the retail and international businesses as well as by the contribution from the Skip Hop brand, which was acquired earlier this year. The company reaffirmed its EPS guidance for the full fiscal year; Carter’s expects net sales growth of 4%–6% and adjusted diluted EPS growth of 8%–10%. 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 UpdateWhole Foods Market (WFM) Fiscal 3Q17 Results: Same-Store Sales Declines Persist Ahead of Pending Takeover by Amazon Coresight Research July 27, 2017 Executive Summary Whole Foods Market reported fiscal 3Q17 adjusted EPS of $0.36, ahead of the $0.33 consensus estimate but down 2.7% year over year. Total revenues were $3.73 billion, in line with the consensus estimate and up 0.6% from the year-ago quarter. Total comps decreased by 1.9% for the quarter; the decline was less than the 2.2% decline that analysts expected. The period marked the eighth consecutive quarter of comp declines, which have been driven by tougher competition from traditional grocers and big-box retailers that have been expanding their organic offerings. The company is not updating its outlook for the rest of the year, citing the pending takeover by Amazon. The e-commerce giant agreed to buy Whole Foods for $13.7 billion last month. Whole Foods expects the deal to be completed in the second half of 2017. 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 DiveWellness as a Luxury, Part 3—Eating Well Swarooprani Muralidhar, Director of Research July 26, 2017 Reasons to ReadOur Wellness as a Luxury series looks at wellness as the new status symbol: “wellthness” is fast replacing other signifiers of affluence as a luxury to be enjoyed and flaunted. In this report, we look closely at three aspects of eating well: Fresh, organic and clean food: Consumers are increasingly buying fresh, organic, natural and other kinds of clean food. Diets: More and more consumers are trying out specific diets, and protein-based, “free from” and plant-based diets are growing in popularity. Supplements: Consumers across all age groups consume dietary supplements, but there are distinct differences in the types of supplements used by younger and older consumers. Read part one of our series, on living well, here and part two, on sleeping well, here. 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 ReportStartup Xenoma Announces Camera-Free, Gesture-Tracking, E-Skin Smart Apparel Coresight Research July 25, 2017 Executive Summary Smart apparel company Xenoma is planning to launch a preconsumer version of its e-skin,sensor-embedded smart shirt on Kickstarter in Augustat a price of $479. E-skin apparel uses stretchable sensors and electronics that detect the user’s movement while maintaining the comfort, durability and machine wash ability of a regular shirt. E-skin features a next-generation wearable interface that enables camera-free motion capture and tracking in a garment that is as comfortable as a regular shirt. Applications include gaming, fitness and healthcare. The shirt contains 14 strain sensors, plus a hub with a six-axis accelerometer and gyroscope. The hub transmits information to smartphones, tablets and PCs via Bluetooth. The shirt provides the same level of functionality as the one in Xenoma’s Developer’s Kit and is being offered to the first 100 backers,with the goal of raising $50,000 through the Kickstarter campaign. 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 UpdateVF Corporation (VFC) 2Q17 Results: Beats Consensus Estimates and Raises Guidance Coresight Research July 25, 2017 Executive Summary VF Corporation reported 2Q17 EPS of $0.29, above the $0.28 consensus estimate. Revenues were $2.36 billion, up 1.7% year over year and above the $2.29 billion consensus estimate. Sales increased by 3% on a constant-currency basis in the quarter. Separately, the company announced the retirement of Executive Chairman Eric C. Wiseman, effective October 28. As part of a planned succession, Wiseman will be succeeded upon retirement by President and CEO Steven E. Rendle. The company also raised its full-year revenue guidance to $11.65 billion (from up by low single digits previously) and its EPS guidance to $2.94, up from $2.89–$2.94 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
