Company Earnings UpdateHudson’s Bay Company (HBC) 1Q17 Results: Misses Guidance, Implementing Transformation Plan Coresight Research June 9, 2017 Executive Summary Hudson’s Bay reported fiscal 1Q17 EPS of C$(1.21), down from C$(0.58) in the year-ago quarter and below the C$(0.75) consensus estimate. Revenues were C$3.20 billion, down 3.0% year over year and slightly below the C$3.26 billion consensus estimate. Comps declined C$94 million, or 2.9%, comprised of flat comps at HBC Europe, down 2.4% at DSG, down 4.8% at Saks Fifth Avenue and down 6.8% at HBC Off Price, on a constant-currency basis. Separately, the company announced a Transformation Plan targeting C$350 million in annual savings, as management changes splitting the president roles for Hudson’s Bay and Lord & Taylor. 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 ReportWalmart Taps Store Employees to Test Last-Mile Delivery Initiative Coresight Research June 9, 2017 Executive Summary Walmart’s latest initiative in its ongoing competition with Amazon is to test a new delivery program that sends store employees to deliver online orders to customers’ homes at the end of their shifts. The new program is designed to solve the challenges associated with the last mile of delivery, which include cutting shipping costs and getting packages to their final destinations faster and more efficiently, according to Marc Lore, President and CEO of Walmart eCommerce US. The company began testing the package-delivery program a month ago in three stores—two in New Jersey and one in Arkansas—but it did not offer details on when or where it might expand the program across the US. 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 ReportTakeaways from 2017 Alibaba Investor Day 1 Coresight Research June 9, 2017 Executive SummaryAt Day 1 of the 2017 Alibaba Investor Day, the senior executive team shared its strategic vision for the company’s core commerce segment, as well as recent developments. CEO Daniel Zhang presented an overview of Alibaba’s ecosystem. He believes that data technology will be pivotal in driving synergies across all business units, which are driving new initiatives in commerce on a global scale. CFO Maggie Wu guided for FY18 revenue growth in the 45%–49% year over year range. She reviewed Alibaba’s satisfactory financial performance since its IPO, driven by strong cash-flow generation of the core commerce segments. She expects AliExpress and AliCloud to be the next growth drivers, followed by initiatives currently being incubated such as New Retail, international expansion, IoT, AI, etc. CMO Chris Tung talked about Uni Marketing and Brand Databank—both tools which Alibaba has made available to brands to increase their marketing efficiency. He illustrated that brands can leverage Alibaba’s platform throughout the consumer journey to raise awareness, interest, purchases and loyalty. One of the leading Key Opinion Leaders (KOL) on Taobao, Cherie, stated that lower traffic-acquisition costs, inventory costs and trailing costs are the key advantages that KOL-driven commerce has over traditional commerce. 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
Flash ReportNordstrom Announces Exploration of “Going Private” Transaction Coresight Research June 9, 2017 Executive Summary Nordstrom announced today that members of the Nordstrom family and Anne Gittinger have formed a group to explore the possibility of pursuing a “going private” transaction that would acquire 100% of the outstanding shares of the company. The group did not offer a proposal. Nordstrom’s board of directors formed a special committee consisting of the independent directors to act on behalf of the company with regard to any possible transaction, and it retained a financial advisor and legal counsel. There was no additional information provided, and there is no guarantee that the group will make an offer or that a transaction will occur. The five Nordstrom family members and the Gittinger estate together own 30.1% of the company’s shares, according to S&P Capital IQ. 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 Jun 9, 2017 Coresight Research June 9, 2017 Executive Summary This week’s note “From the Desk of Deborah Weinswig” discusses Walmart’s rapidly evolving e-commerce offerings, which include deliveries by store associates, pick-and-mix pricing and a larger marketplace selection. Amazon is making a play for low-income shoppers by offering a discount on its pay-by-month Prime membership for people who receive government assistance. British grocery retailer Tesco has successfully used a six-wheeled robot to deliver a basket of goods as part of a one-off test in its Tesco Now one-hour delivery trial. Chinese giant Alibaba has taken another step into India with the acquisition of a majority stake in online movie-ticketing site TicketNew, which enables the booking of movie theater tickets in more than 300 cities across India. 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 UpdateBoohoo Group (LSE: BOO) 1Q18 Update: Revenues Double, Comps Up 78%, Top-Line Guidance Raised Coresight Research June 8, 2017 Executive Summary Boohoo.com grew 1Q18 revenues by 106%, or 98% at constant exchange rates, helped by the acquisition of PrettyLittleThing and the Nasty Gal brand. Boohoo brand revenues were up 48% as reported, or up 44% at constant exchange rates. The company updated its FY18 guidance to revenue growth of around 60%, from previous guidance of 50%. 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 ReportFather’s Day 2017: The Impact on US Retail Coresight Research June 8, 2017 Executive Summary Spending for Father’s Day, which falls on June 18 this year, is expected to reach a record high of $15.5 billion in 2017—the highest total since the National Retail Federation (NRF) first began surveying consumers about the holiday 15 years ago, yet much lower than the total spent on Mother’s Day of $23.6 billion. According to the NRF, average spending per person for the occasion is forecast to be $134.75 this year, up from $125.92 last year. Top gift choices for Father’s Day this year include dining experiences, clothing and gift cards. Department stores will see the majority of Father’s Day shoppers. Some 33% of smartphone owners will research gift ideas on their device, yet only 18% will use it to make a purchase. 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 ReportTakeaways from the 2017 Macy’s Investor Meeting Coresight Research June 7, 2017 Executive SummaryAt the 2017 Macy’s Investor Meeting, management outlined what it refers to as its “North Star strategy,” which consists of five points that will allow the company to emerge a winner and drive future growth. The company describes the five points as 1) From familiar to favorite, 2) It must be Macy’s, 3) Every experience matters, 4) Funding our future and 5) What’s new, what’s next. Management said that 9% of customers visit Macy’s 18 times per year and spend $2,010 per year, accounting for 86% of the company’s sales. The goal is to migrate customers from the second and third tiers to higher tiers by getting to know them using data and analytics and giving them what they want how they want it. Exclusive product at Macy’s comprises private brands, big brands and capsules. The goal is for exclusives to represent 40% of sales by 2020, up from 29% currently. Buy online, pickup in store has proven a successful combination of e-commerce and brick-and-mortar, and such transactions are the company’s most profitable. The service improves margins by cutting out shipping costs and increases sales, as customers tend to shop more when they get to the store to pick up their online orders. The company maintained its adjusted EPS guidance of $3.37–$3.62 for the year. Management noted that there could be risks to the gross margin rate, but that they should be offset by additional expense reduction opportunities (excluding asset gains) and asset sales. Macy’s has a substantial real estate portfolio encompassing more than 130 million square feet. The company’s real estate options include store closures, downsizing the box (reducing the footprint or selling off floors), development on excess land and “wrap and hug” development, such as developing restaurants attached to 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
Deep DiveDeep Dive: An Introduction to Cybersecurity—Part Two Coresight Research June 6, 2017 Executive Summary In Part One of this Deep Dive report, we provided a summary of the current cybersecurity environment and discussed its components. Here in Part Two, we discuss the components and characteristics of an advanced attack, the different types of attacks and vulnerabilities, and the different types of hackers. An advanced attack comprises four stages: infection, persistence, communication, and command and control. Advanced persistent threats are designed to remain undetected and to operate over a long period, slowly accumulating data from servers and databases, aggregating it, and then sending it in a burst to a remote server. Types of attacks include malware, spam, botnets and ransomware, and hackers can take advantage of vulnerabilities in systems, such as the use of weak or common passwords, in order to wage attacks. The typical hacker is not some 15-year-old working at his bedroom desk, as we might imagine. Rather, there are a variety of hackers, who are categorized by the color of “hat” they wear, which corresponds with their presumed motivation. There are also organized crime and state-sponsored hackers. The dark web has emerged as a marketplace for stolen personal information. Fortunately, a powerful cybersecurity industry has emerged, and many private and public companies now specialize in providing targeted hardware and software solutions to thwart and minimize the impact of cyberattacks. Venture capital investment in the space is also healthy, keeping the level of innovation high. 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 ReportMay 2017 US Same-Store Sales Coresight Research June 5, 2017 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 May US Same-Store Sales report: Comps for the group generally beat expectations in May. Costco’s comps were up 4.1%, beating the consensus estimate of 3.0%. Some companies mentioned that weak mall traffic had impacted their sales performance. L Brands’ comps were down 7% in May.The company’s Victoria’s Secret business continues to be challenged. 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 DiveWarehouse Club Stores: Time To Take The Treasure Hunt Online—Part 2 Coresight Research June 5, 2017 Executive SummaryIn Part Two of this Deep Dive, we provide an overview of the warehouse-club sector. The 40-year-old global warehouse club sector is estimated to generate approximately $191 billion in revenues in 2017. The clubs’ business model seeks to limit gross profits so as to offer low prices to members while generating profits for shareholders through reasonable membership fees. The majority of the clubs are located in the US, which accounted for nearly three-quarters of sector revenues in 2016. The market is dominated by three companies: BJ’s Wholesale Club, Costco Wholesale and Sam’s Club (a division of Walmart). The US warehouse club sector grew at a 7.2% CAGR from 2001 through 2016. Its growth rate outpaced that of the total US retail industry by 3.3 percentage points over the period. The international market grew at an even brisker 10.8% CAGR. Yet the sector’s growth rate slowed over the same period, actually hitting zero in 2015. And researchers are forecasting that the US segment will grow at a 2.4% CAGR, more than 1.5 points lower than overall retail, from 2016 through 2020. The spoiler behind the sector’s decelerating growth rate has likely been e-commerce, which the clubs have been slow to embrace. Warehouse clubs currently generate 4% or less of their revenues from e-commerce. As is the case with many other retailers, warehouse clubs need to develop a strategy to compete with e-commerce players, as well as leverage their unique strengths to adapt to other demographic and technological changes. 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 UpdateFive Below (FIVE) 1Q17 Results: Strong Sales and EPS Performance Coresight Research June 2, 2017 Executive Summary Five Below reported 1Q17 EPS of $0.15, up 25% from the year-ago quarter and slightly above the $0.14 consensus estimate. Total revenues were $232.9 million versus expectations of $230.6 million and were up 20.8% year over year. Total comps increased by 2.6% for the quarter, beating the 1.4% consensus estimate and the company’s guidance of 2.0%; the spinner trend drove the comp outperformance. The company raised its full-year EPS guidance from $1.55–$1.61 to $1.59–$1.64, versus consensus of $1.60. Five Below raised its FY17 revenue guidance from $1.21–$1.23 billion to $1.23–$1.24 billion, including the additional 53rd week, which is expected to contribute approximately $15 million to sales and $0.02 to EPS. The consensus estimate calls for full-year revenue of $1.22 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 UpdateExpress (EXPR) 1Q17 Results: EPS Missed Consensus; Company Lowers FY17 Outlook Coresight Research June 2, 2017 Executive Summary Express reported 1Q17 EPS of $(0.06), including a net negative impact of $0.03 per share related to discrete tax items and the exit of Canada. EPS was down 138% from the year-ago quarter and below the consensus estimate of $(0.02). The company reported revenue of $467.0 million, down7.1% from the year-ago quarter and slightly below the $467.7 million consensus estimate. Same-store sales, including e-commerce sales, declined by 10% from the year-ago quarter versus the consensus estimate of an 8.3% decline. Express projects 2Q17 adjusted EPS of $(0.03)–$0.01 compared with the $0.07 consensus estimate. For FY17, the company lowered its adjusted EPS guidance to $0.41–$0.48 from $0.65–$0.73 versus consensus of$0.67. The company expects same-store sales for the full year to be in the negative low-single digits versus prior guidance of flat to low-single-digit growth. 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 UpdateDollar General (DG) 1Q17 Results: Beats on EPS and Sales, Lifts Outlook Coresight Research June 2, 2017 Executive Summary Dollar General reported 1Q17 adjusted EPS of $1.03, flat versus the year-ago quarter and slightly above the $1.00consensus estimate. Total revenues were $5.61 billion versus expectations of $5.58 billion, and were up 6.5% year over year. Total comps increased by 0.7% for the quarter, in line with the consensus estimate; comp growth was driven by an increase in average transaction that was partially offset by a decline in traffic. Comp sales were driven by positive results in consumables and apparel categories that were partially offset by results in home and seasonal categories. Dollar General reaffirmed its FY17 EPS guidance of $4.25–$4.50 compared with consensus of $4.46.The company expects comps to be “slightly positive” to up 2%. The company raised its full-year guidance for revenue growth from 4%–6% to 5%–7%, assuming the pending acquisition of 322 small-box retail stores is completed. The consensus estimate calls for full-year revenue growth of 5.5%. 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 Jun 2, 2017 Coresight Research June 2, 2017 Executive Summary This week’s note “From the Desk of Deborah Weinswig” discusses our recent visit to the new Amazon Books store location in New York City. Target will invest $75 million in online mattress seller Casper, according to media reports. The San Francisco–based bedding maker typically sells online and ships mattresses directly to shoppers. UK GDP grew by 0.2% quarter over quarter versus a first estimate of 0.3%. The UK Office for National Statistics noted a slowdown in household expenditure growth, which decelerated to its slowest rate since the end of the first quarter of 2014. Swedish fashion retailer H&M has launched its loyalty scheme, H&M Club, in the UK. The program will reward customers with one point for every pound spent both in-store and online and provide members with exclusive offers and brand experiences. 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
