Deep DiveDeep Dive: Amazon in 20 Charts— the Rise and Rise of the E-Commerce Giant Coresight Research June 1, 2017 Executive SummaryIn this report, we present metrics from company filings, consumer surveys and research firms to chart the continued evolution of Amazon. Our top takeaways include: Amazon Web Services is driving growth in Amazon’s operating margins. This business division yielded a 25% operating margin in 2016, up from 19% in 2015. And the division is growing its share of Amazon’s total revenues. Amazon’s third-party marketplace is almost certainly providing further support to margins. Half of all unit sales made through Amazon are now made by third-party sellers. Amazon Prime is shoring up topline growth. Some 42% of US adults now have a Prime membership, and that figure rises to 55% among millennials. 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 UpdateMetro Group (DB:MEO) 1H17 Results: Flat Sales Trends Coresight Research June 1, 2017 Executive Summary Metro Group has demerged into two entities, splitting its consumer electronics retailing business (Media-Saturn) and its food retailing/wholesaling division (Metro Cash & Carry and Real). In terms of reporting, the Media-Saturn division has been classified as continuing operations, and the Metro Cash & Carry and Real businesses are now classified as discontinued operations. Media-Saturn reported net sales of €12,151 million in 1H17, flat versus the same period last year. Constant currency sales were also flat. Comparable store sales increased 0.1% year over year. Media-Saturn expects a slight year-over-year increase in sales and EBIT 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 UpdateMichael Kors (KORS) Fiscal 4Q17 Results: Beats Expectations, but Guides Down for FY18 and Plans to Close Stores Coresight Research June 1, 2017 Executive Summary Michael Kors reported fiscal 4Q17 adjusted EPS of $0.73, down28.8% from $1.02 in the year-ago quarter, but ahead of the $0.70 consensus estimate. Revenues were $1.06 billion, down 11.2% year over year, but slightly ahead of the $1.05 billion consensus estimate. Comps declined by 14.1%, and were down 13.6% on a constant currency basis. As part of a retail fleet optimization, the company plans to close 100–125 full-price retail stores over the next two years. For FY18, the company guided for EPS of $3.57–$3.67 versus consensus of $3.94 and for revenues of $4.25 billion versus consensus of $4.37 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
Deep DiveWarehouse Club Stores: Time To Take The Treasure Hunt Online—Part 1 Coresight Research May 29, 2017 Executive SummaryIn Part One 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
Insight ReportBurlington Stores (BURL) 1Q17 Results: Beats on EPS, Raises FY17 Outlook Coresight Research May 26, 2017 Executive Summary Burlington Stores reported 1Q17 adjusted EPS of $0.79, up 38.6% from the year-ago quarter and above the $0.70 consensus estimate. Revenues were $1.35 billion, up 4.9% year over year and in line with company guidance, but slightly below the $1.36 billion consensus estimate. Same-store sales rose by 0.5% during the quarter on top of a 4.3% increase in the year-ago quarter, but the increase was lower than the 2.4% consensus estimate and company guidance, which called for a 1%–2% increase. The company raised its FY17 adjusted EPS guidance to $3.86–$3.96 from $3.77–$3.87; consensus calls for full-year EPS of $3.89. Burlington Stores reaffirmed its FY17 comp guidance of 2%–3% growth versus the 3% consensus estimate. The company expects 2Q17 adjusted EPS of $0.46–$0.50, compared with the $0.50 consensus estimate, and it expects comp sales to increase by 2%–3%. 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 CornerWeekly Insights May 26, 2017 Coresight Research May 26, 2017 Executive Summary This week’s note “From the Desk of Deborah Weinswig” offers thoughts on voice technology, artificial intelligence and drones in retail, including comments from the recent R:Evolution 4.0 retail and consumer conference in London. Despite the furious pace of store closures and bankruptcies in the US, many indicators suggest that retail employment is unlikely to shrivel and that the US economy can withstand shocks from the sector’s rout. The UK Intellectual Property Office has approved Amazon’s application to trademark the slogans “No Lines. No Checkout. (No, Seriously.)” and “No Queue. No Checkout. (No, Seriously.)” The approval signals that a move by Amazon into the European grocery market may be imminent. German discounter Lidl this week launched its own web shop in China on Alibaba’s online platform, Tmall Global. The site will offer a number of Lidl’s private labels, shipped from Germany. 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 ReportAbercrombie & Fitch (ANF) 1Q17 Results: Environment to Remain Aggressively Promotional Coresight Research May 26, 2017 Executive Summary Abercrombie & Fitch reported 1Q17 adjusted EPS of $(0.72) compared with a loss of $0.59 in the year-ago quarter; the consensus estimate called for a loss of $0.70. Total revenues were $661.1 million versus expectations of $651.5 million. Comps were down 3.0%, roughly in line with expectations of a 3.1% decline. Comps at the Abercrombie brand were down 10%, while comps at the Hollister brand (including Gilly Hicks) were up 3%. Geographically, comps were down 3% in the US and down 2% in international markets. Management expects comparable sales to remain challenging in 2Q17 and to see improvement in trends in the back half of the year. The company expects 2Q17 to remain promotional overall. 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: International Grocery Retailers in India, Where 1.3 Billion Consumers are Shopping for Dinner Coresight Research May 26, 2017 Executive SummaryThis report is the second in a brief series that looks at global retailers’ operations in India. It focuses on international grocery retailers’ and wholesalers’ entries into the country and considers their domestic counterparts. We estimate that Indian consumers spent over $400 billion on food, beverages and tobacco in the year ended March 2017. In the 2014 fiscal year (latest confirmed), Indians allotted around 33% of their total consumer expenditure to food, beverages and tobacco. The Indian government allowed foreign direct investment (FDI) in the wholesale of grocery products beginning in 1997, which paved the way for Metro Group and Walmart to open wholesale stores in India. From 2012 onward, the government allowed FDI of up to 51% in multibrand retail, enabling retailers such as Tesco to operate in the country through joint ventures. In this report, we also share images and observations from our on-the-ground research at various international and domestic grocery wholesale and retail stores in Bangalore. 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 UpdateCostco Wholesale (COST) Fiscal 3Q17 Results: Beats on Top and Bottom Lines Coresight Research May 26, 2017 Executive Summary Costco reported fiscal 3Q17 adjusted EPS of $1.40, up 13.3% from $1.24 in the year-ago quarter and beating the $1.31 consensus estimate. Revenues were $28.9 billion, up 7.8% year over year and beating the $28.6 billion consensus estimate. Total comps were up 5%, with comps up 6% in the US, up 2% in Canada and up 4% in other international regions. Effective June 1, Costco will raise the price of a Business membership by $5, to $60, and the price of an Executive membership by $10, to $120. 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 UpdateUlta (ULTA) 1Q17 Results: Beats Expectations, Raises Guidance Coresight Research May 26, 2017 Executive Summary Ulta reported 1Q17 adjusted EPS of $1.91, up 31.7% from the year-ago quarter and above the $1.80 consensus estimate. The company reported total revenue of $1.31 billion, above the $1.27 billion consensus estimate and up 22.5% from the year-ago quarter. Comparable sales increased by 14.3% year over year, driven by an 8.7% increase in transactions and 5.6% growth in average ticket. By business segment, retail comps increased by 10.9% and salon comps increased by 9.9%. The e-commerce business contributed 340 basis points to total comp. The company expects 2Q17 EPS of $1.72–$1.77 and total revenues of $1.26–$1.28 billion. Comps for the quarter are expected to increase by 10%–12%, versus 14.4% in 2Q16. The company also raised its FY17 guidance, and now expects EPS percentage growth in the mid-twenties versus a low-twenties range 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
Deep DiveDeep Dive: An Introduction to Cybersecurity—Part One Coresight Research May 25, 2017 Executive Summary In Part One of this Deep Dive, we provide a summary of the current environment and discuss the components of cybersecurity. Computer malware and viruses have existed since the advent of the PC. However, it is the Internet that has enabled cybercriminals from around the globe to attempt to gain access to PCs and networks with little up-front investment. Cyberattacks have also become more powerful over time, due to the actions of organized criminal gangs and state-sponsored hackers. The sale of nation-state-level hacking tools on the dark web has further increased the capabilities of hackers. The proliferation of mobile devices such and the Internet of Things (IoT) has given hackers that many more entry points through which they can attempt to enter networks. Enterprises need to draft cybersecurity plans that detail how they will respond to cyberattacks, including identification, detection, response and recovery plans. Many attackers gain entry to devices and networks because of human foible: people often unwittingly make their systems vulnerable by creating weak passwords, clicking on suspicious attachments, failing to keep software patched and up to date, or ignoring warnings from network security monitors. 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
Company Earnings UpdatePVH (PVH) 1Q17 Results: Beats Consensus and Raises EPS Guidance Coresight Research May 25, 2017 Executive Summary PVH Corp. reported 1Q17 adjusted EPS of $1.65, ahead of the $1.60 consensus estimate and up 9.9% year over year. Revenues were $2.0 billion, up 3.7% year over year and slightly ahead of the $1.96 billion consensus estimate. Calvin Klein revenue increased by 5%, driven by an 11% increase in international sales. Tommy Hilfiger revenue increased by 6%, driven by a 15% increase in international sales. Heritage Brands revenue decreased by 3% due to order timing. The company raised its full-year GAAP EPS guidance to $6.24–$6.34 from $6.20–$6.30 previously and raised its non-GAAP EPS guidance to $7.40–$7.50 from $7.30–$7.40 previously, above the $7.40 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
Insight ReportTheatro: Empowering the Next Generation of Store Associates Coresight Research May 25, 2017 Executive Summary Theatro provides a voice platform, virtual voice assistant and a voice-controlled wearable for brick-and-mortar retail employees to help improve in-store communication, worker productivity and customer engagement. The company has developed a small (1.5 oz.) Wi-Fi-based wearable and voice platform that connects employees to one another, to headquarters and to the retailer’s information systems (think Siri or Alexa in an earbud). Theatro’s voice-based application platform connects store associates to their Wi-Fi network, allowing, for example, inventory lookup or a price check with a simple voice command. This removes the need for associates to walk to a terminal or to the stock room to check or pull inventory, conduct a price check or request floor support. Retailers that have used the tool in stores have seen associates save, on average, 12% more of their time. They have also seen a 77% increase in associate response time and higher loyalty registrations, which has led to lower in-store abandonment rates and higher sales. 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 UpdateGuess (GES) Fiscal 1Q18 Results: Beats Expectations; North America Comps Still Weak Coresight Research May 25, 2017 Executive Summary Guess reported fiscal 1Q18 adjusted EPS of $(0.24), down slightly from $(0.23) in the year-ago quarter but above the $(0.32) consensus estimate. Same-store sales for the company’s North America business (including e-commerce) decreased by 15%, beating the consensus estimate of a 16.4% decline for the quarter. Retail comps for the Europe business were up 5%. Comps for the Asia business were up 4%. The company expects 2Q18 adjusted EPS of $0.08–$0.11 and expects total revenues to increase by 2%–4%, or by 3.5%–5.5% on a constant currency 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 UpdateLowe’s (LOW) 1Q17 Results: Miss on EPS and Sales Yet Growth Continues Coresight Research May 25, 2017 Executive Summary Lowe’s reported 1Q17 adjusted EPS of $1.03, up 18.4% from the year-ago quarter, but below the $1.06 consensus estimate. The company reported revenue of $16.86 billion, below the $16.95 billion consensus estimate, but up 10.7% from the year-ago quarter. Same-store sales rose by 9% during the quarter, below the 3.1% consensus estimate. Comp sales for the US were up 2%. Comps were driven by a 3.5% increase in average ticket, which was partially offset by a 1.5% decline in customer transactions due to weaker performance in outdoor categories. The company reaffirmed its FY17 revenue guidance of an increase of 5%, implying $68.27 billion in full-year revenue, slightly below the $68.36 billion consensus estimate. Lowe’s expects full-year comp growth of 3.5% versus the 3.6% consensus estimate. The company lowered its FY17 EPS guidance and now expects EPS of $4.30 versus prior guidance of $4.64 and compared with the $4.65 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
