Company Earnings UpdateVF Corp. (VFC) 1Q17 Results- Broadly In-Line Against a Backdrop of “Retail Dislocation”, Guides For Low Single Digit Revenue Growth in FY17 Coresight Research May 2, 2017 Executive Summary VF Corp. reported 1Q17 EPS of $0.52, which includes a $0.55 contribution from the licensing business that the company agreed to sell on April 4; consensus called for EPS of $0.55. Total revenues were $2.58 billion, below expectations of $2.73 billion. On a continuing-operations basis, revenues were down 2%, and on a currency-neutral basis, revenues were down 1%. Revenues in the outdoor and action sports category were up 2%, while jeanswear revenues were down 9%. The company guided for a low single-digit decline in full-year EPS versus 2016’s adjusted EPS of $2.98. The company expects full-year EPS to be up by mid-single digits on a currency-neutral 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
Deep DiveDeep Dive: Active M&A in the Beauty Space Fuels Future Growth Coresight Research May 1, 2017 Executive Summary Many global beauty companies have chosen to focus on acquisitions as a key strategy to drive growth. As a result, we have seen a steady rise in merger and acquisition (M&A) activity since 2013. In 2016, there were 91 beauty industry deals announced globally, up 25% from 75 deals in 2013. Beauty companies have been hunting for growth via acquisitions in high-growth niches of the market such as independent cosmetics brands and sustainable brands. Many of the targets have recorded growth rates in the high double digits in recent years. Intense competition for market share among the top beauty companies is expected to continue to drive M&A activity. We see three particular high-growth areas as likely to attract more M&A attention: organic skincare brands, South Korean beauty brands and social media-endorsed independent cosmetics brands. These areas have gained traction in recent years and have potential to outperform the overall beauty market. 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 UpdateAmazon (AMZN) 1Q17 Results: Beats Consensus, Guides Down for 2Q Profit Coresight Research April 28, 2017 Executive Summary Amazon reported 1Q17 EPS of $1.48, compared with $1.07 in the year-ago quarter and beating the $1.08 consensus estimate. Net sales were $35.7 billion, up 22.6% year over year and beating the $35.3 billion consensus estimate. Amazon Web Services (AWS) continued to be a strong business driver, with revenues up 42.7%. The segment contributed 89% of operating profit in the quarter. Guidance for 2Q17 is for revenues of $35.25–$37.75 billion, in line with consensus, and for operating income of $425 million–$1.075 billion, below consensus of $1.46 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 UpdateUnder Armour (UAA) 1Q17 Results: Apparel Sales Growth Outpaces Footwear Growth Coresight Research April 28, 2017 Executive Summary Under Armour reported 1Q17 EPS of $(0.01), ahead of expectations of $(0.04). Total revenues for 1Q17 were $1.12 billion versus expectations of $1.11 billion, and were up 6.6% year over year, driven by a 4% increase in wholesale revenues and a 13% increase in direct-to-consumer revenues. Apparel revenues increased by 7%, while footwear revenues were up 2% and accessories revenues were up 12%. North American revenues were down 1%, as new distribution was more than offset by a lack of business related to bankruptcies in 2016. Management reiterated its guidance for net revenues to increase by 11%–12% for the year, to reach nearly $5.4 billion; consensus calls for revenues of $5.36 billion. The company’s gross margin is expected to be down slightly from the 46.4% rate in 2016. 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 Apr 28, 2017 Coresight Research April 28, 2017 Executive Summary This week’s note “From the Desk of Deborah Weinswig” discusses key takeaways from the 2017 National Association of Chain Drug Stores (NACDS) Annual Meeting in Scottsdale, Arizona. Moody’s has forecast a 1% decline in US department store retailers’ sales this year, and a 7%–8% decrease in their operating profits. Based on the pace of store closures so far this year, Credit Suisse estimates that retailers will close more than 8,600 locations in 2017, which would eclipse the number of closings during the 2008 recession. UK retail sales grew by 3.3% in March, following a 4.7% rise in February, according to the Office for National Statistics. Growth came despite Easter falling in April this year versus March last 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
Company Earnings UpdateBoohoo Group (LSE: BOO) FY17 Results: A Stellar Year and More to Come Coresight Research April 27, 2017 Executive Summary Boohoo.com grew FY17 revenues by 49% at constant exchange rates, with US revenues up 124% at constant rates. Reduced marketing spend and the leveraging effects of scale helped double operating profit to £30 million. For FY18, the company forecasts sales will grow by a further 50%, helped by its acquisition of PrettyLittleThing (PLT) and Nasty Gal. Boohoo.com expects to report an EBITDA margin of around 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
Insight ReportUniqlo Moves into the Fast Lane with Convenience Store Pick-Up in Korea Coresight Research April 24, 2017 Executive Summary Uniqlo announced that customers in South Korea will be able to pick up their online purchases at 7-Eleven stores across the country. Uniqlo has already launched similar initiatives in Japan and Taiwan, and unveiled a new uniqlo.com site in March 2017. For retailers, the key advantages of convenience store pick-up include lower last-mile delivery cost, a more integrated omnichannel offering and higher customer satisfaction. From the customers’ standpoint, online shopping will now become even more convenient. In this report, we also look at the future growth prospects of the convenience retailing industry. We are positive on the industry’s future growth, driven by its diversified service offering and alignment with consumers’ preference for convenience. Looking ahead, we believe private label collaboration between brands and convenience stores represents a huge opportunity, and gives brands exposure to the strong distribution capabilities and strong growth momentum of convenience-store chains. 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 Apr 21, 2017 Coresight Research April 21, 2017 Executive Summary This week’s note “From the Desk of Deborah Weinswig” discusses the state of the British consumer and how the recently announced general election on June 8 may impact consumer spending in the UK. Walmart is in talks to buy men’s clothing retailer Bonobos for about $300 million, according to people familiar with the situation. It would be Walmart’s fourth purchase of a small, online-focused retailer since it bought Jet.com for $3.3 billion last September. British grocery retailer Sainsbury’s has opened 50 Argos digital stores across its supermarkets, and it intends to open a total of 250 over the next three years. The retailer also plans to update 60 existing Argos stores to a new digital format. Alisports, the sports affiliate of e-commerce giant Alibaba, announced that it is partnering with the Olympic Council of Asia to bring e-sports (competitive computer gaming) to the 2018 and 2022 Asian Games, to be held in Jakarta and Hangzhou, respectively. 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 ReportUnilever (LSE: ULVR) 1Q17 Trading Update: Strong Start Driven by Emerging Markets, Ice Cream and Care Products Coresight Research April 21, 2017 Executive Summary Unilever reported 1Q17 sales of €13,319 million, ahead of the consensus estimate of €13,239 million and up 6.1% from 1Q16. The underlying sales growth was 2.9%, ahead of the consensus estimate of 1.2%. Among the regions, Asia/AMET/RUB performed the best, posting 6.9% sales growth, while the Americas posted 1.2% growth and Europe declined by 2.0%, all on an underlying basis. In terms of product segments, home and personal care shined with 3.4% sales growth, while foods and refreshments grew by 2.2%, on an underlying basis. 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 UpdateDebenhams (LSE:DEB) 1H17 Results: Continued Lackluster Sales and Profitability Erosion Coresight Research April 21, 2017 Executive Summary UK-based department store chain Debenhams reported gross transaction value sales of £1,677 million for 1H17, up 2.9% year over year, but below the consensus estimate of £1,681 million. The company’s 1H17 statutory revenues came in at £1,351 million, up 1.8% year over year for the 26 weeks ended March 4, 2017. Group comparable store sales increased by 0.1% year over year on a constant currency basis. UK reported revenues were down0.3% and UK comparable store sales declined by 1.3%. The company’s gross margin contracted by 30basis points in 1H17, to 14.2%, and underlying EPS decreased by 6.5% year over year. For FY17, the company lowered its gross margin guidance to (25) basis points from (25)–25 basis points previously and raised its total cost increase forecast to 3%–4% from 2%–4% previously. The company did not provide sales 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
Insight ReportZalando (XTRA: ZAL) 1Q17 Trading Update: Powering Ahead with Continued Strong Sales Coresight Research April 20, 2017 Executive Summary Zalando expects to report 1Q17 revenue growth in the range of 22%–24% year over year to €971–€987 million, according to preliminary figures. The company expects to achieve 1Q17 adjusted EBIT of €10–€30 million, corresponding to an adjusted EBIT margin of 1.0%–0%. Management confirmed FY17 guidance and reiterated that the company expects to deliver FY17 revenue growth of 20.0%–0% and adjusted EBIT margin of 5.0%–6.0%. The company will report full and detailed 1Q17 results on May 9, 2017. 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 UpdatePrimark (LSE: ABF) 1H17 Results: Sharp Operating Margin Erosion and Lackluster Comps Coresight Research April 20, 2017 Executive Summary Associated British Foods reported 1H17 results for the 24 weeks ended March 4, 2017. This report focuses on results for Primark, the company’s retail division. Primark reported that its 1H17 revenues increased by 21% year over year, to £3,222 million. In constant currency, the company’s sales increased by 11% year over year. Primark increased its selling space by 12% year over year in the first half. Total comparable group store sales increased by 1% year over year, except in the Netherlands, where comparable store sales declined. UK comparable store sales increased by 2% year over year. Primark’s 1H17 operating profit declined by 2% at constant exchange rates and its operating profit margin contracted by 170 basis points year over year, to 10.0%. 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 DiveIs Going Direct-to- Consumer the Way Forward for Retail? Coresight Research April 20, 2017 Executive Summary More and more retailers such as G-III Apparel, Nike, Adidas and VF Corporation are rebalancing their distribution in favor of a direct-to-consumer (DTC) model. Beauty companies such as L’Oréal and Procter & Gamble have also focused more on DTC channels in recent years. Apparel and beauty companies can now reach customers directly through multiple digital channels, and with less effort physically using new store formats such as pop-up stores. Going direct means retailers have more control of the retail experience, better engagement with customers, as well as improved product margins. However, going fully direct means forgoing the scalability that comes with wholesale distribution, so it is not a straightforward decision. 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 ReportBurberry (LSE: BRBY) 2H17 Trading Update: Sales Buoyed by Accessories, Strong Performance in the UK and Mainland China Coresight Research April 20, 2017 Executive Summary Burberry reported a 2H17 group revenue decline of 1% at constant currency to £1,607 million (up 14% in reported currency), below the consensus estimate of £1,617 million. Retail revenues grew by 3% at constant currency to £1,268 million (up 19% in reported currency). Comps grew by 3%, slightly ahead of the consensus estimate of 2.5%. Wholesale revenues fell by 13% at constant currency to £327 million (down 1% in reported currency) and licensing revenues contracted by 38% at constant currency to £12 million (down 26% in reported currency). The company maintained its expectation for FY17 pretax profit. 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 UpdateH&M (STO: HM-B) Monthly Sales Update: Improving, But March Sales Still Soft Coresight Research April 19, 2017 Executive Summary H&M reported total sales rose by 6% year over year in local currencies in March 2017. This compares to year-over-year sales growth of 3% in February. The total number of stores grew by 10.7% year over year to 4,426, as of March 31. Sales growth lagged store growth by 473 basis points in March, contracting from the 766-bps difference in February. 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
