Company Earnings UpdateNext (LON: NXT) FY16 Results: Retail Store Comparable Sales Fall 5.4%; Weak Guidance for FY17 Coresight Research March 24, 2017 Executive Summary British fashion retailer Next reported £4,097 million in group revenues in FY16, down 1.9% year over year and below the consensus estimate of £4,157 million. Retail store comparable sales declined 5.4% year over year, reflecting meaningful sales erosion. The retail operating profit margin contracted by 220 basis points to 14.7% year over year. FY16 Diluted EPS was 432 pence, down 2.5% year over year and below the consensus estimate of 433 pence. In FY17, Next expects total full price constant-currency sales growth of the Next Brand to be between (4.5)% and +1.5%. The company guides for FY17 profit before tax (PBT) in the range of £680–£780 million, equating to a fall of between 1.3% and 13.9%. FY17 EPS growth is expected to be between (12.4)% and +0.5%. 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 Mar 24, 2017 Coresight Research March 24, 2017 Executive Summary This week’s note “From the Desk of Deborah Weinswig” discusses takeaways from the second annual Shoptalk conference that was held in Las Vegas this week. Sears, an icon of American retail dating back to the 19th century, is in danger of having to close its doors. The company said late Tuesday in a regulatory filing that there is “substantial doubt” it can remain in business. Total retail footfall in the UK fell by 1% year over year in February, according to the latest data from the British Retail Consortium and Springboard. The rate was below the three-month average of (0.8)%. Flipkart has completed a $1 billion fundraising, and it aims to raise as much as $1 billion more over the next few months, according to people familiar with the matter. The funds would give India’s largest e-commerce company the capital to battle back against rising competition. 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 ReportKingfisher (LSE: KGF) FY17 Results: Profits Jump Against Weak Comparatives Coresight Research March 23, 2017 Executive Summary UK-based DIY giant Kingfisher reported a 7.5% jump in FY17 statutory total sales, helped by the depreciation of the British pound. On an adjusted and constantcurrency basis, total sales were up 1.7%. FY17 revenues of £11,225 million were marginally ahead of consensus of £11,207 million. Due to exceptional restructuring costs in the prior year, operating profit jumped 47%. Underlying basis EPS climbed 17.7% to 25.9 pence and 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 UpdateFive Below (FIVE) 4Q16 Results: EPS beat, positive guidance for 2017 Coresight Research March 23, 2017 Executive Summary Five Below reported 4Q16 revenues of $388.1 million, up 18.9% from $326.3 million in the year-ago period and slightly above the consensus estimate of $387.6 million. EPS was $0.90, ahead of the $0.89 consensus estimate and up 16.9% year over year. Comparable sales increased by 1%, which was in line with the consensus estimate. For 1Q17, the company expects sales of $228–$232 million. For the full year, the company expects sales of $1.21–$1.23 billion and for EPS to increase by 24%, to $1.55–$1.61. 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 UpdateNike (NKE) Fiscal 3Q17 Results: Beats on Earnings, Slightly Misses on Revenue Coresight Research March 22, 2017 Executive Summary Nike reported fiscal 3Q17 adjusted EPS of $0.68, ahead of the $0.53 consensus estimate and up 23.6% year over year, driven by SG&A expense leverage as well as by higher other income, a lower tax rate and a lower share count. Revenues of $8.4 billion were up 5.0% year over year, or up 7.0% on a currency-neutral basis. Revenues for the Nike brand were $7.9 billion, up 7.0% in currency-neutral terms. Revenue growth was driven by double-digit growth in the Western Europe, Greater China and Emerging Markets regions as well as the sportswear and Jordan brand categories. 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 ReportTakeaways from Marriott’s 2017 Security Analyst Meeting Coresight Research March 22, 2017 Executive Summary The Fung Global Retail & Technology team attended Marriott’s 2017 Security Analyst Meeting in New York City today. Marriott, on the heels of its acquisition of Starwood Hotels & Resorts last September, outlined its plans to open an additional 285,000–300,000 rooms through 2019, bringing its total to nearly 1.5 million rooms. Expanding on the music, dining and sporting experiences already offered to elite Marriott and Starwood loyalty program members, the company announced an investment in PlacePass, a provider of travel technology solutions offering travelers a search platform for more than 100,000 authentic local experiences in 800 destinations worldwide. Marriott is also reconfiguring its Element Hotels and Aloft Hotels to offer Gen Z and extended-stay travelers communal gathering and work spaces, as well as a new food and beverage program that emphasizes healthy ingredients. 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 ReportAdidas Investor Day 2017: Riding the Athleisure and E-Commerce Waves Coresight Research March 21, 2017 Executive Summary In March 2015, Adidas introduced a strategic business plan named “Creating the New,” which defines the company’s strategies and objectives through 2020. Following exceptional financial results in its fiscal 2016 year, the company updated its corporate strategy and introduced an acceleration plan that outlines more ambitious growth targets than those initially set in 2015. Adidas is a major player in an industry that is highly attractive due to its robust growth trends, which have been driven by the rise of athleisure, increasing global concerns regarding health and fitness and higher sports participation rates. The global sporting goods industry is forecast to grow at a mid-single-digit rate in 2017. The company will propel sales growth by driving brand desirability through product innovation, brand exits and turnarounds, as well as by focusing on strategic growth areas such as e-commerce, greater penetration of the North American market and womenswear. Adidas plans to improve gross margins by minimizing clearance activities, increasing the share of full-price sales and speeding up its sourcing. 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 UpdateTiffany & Co. (TIF) Fiscal 4Q16 Results: Revenue in Line With Guidance Coresight Research March 20, 2017 Executive Summary Tiffany & Co. reported fiscal 4Q16 adjusted EPS of $1.45, beating the consensus estimate of $1.38. Revenues increased by 1.3%, to $1.2 billion, which was in line with guidance. Comparable-store sales on a constant exchange rate basis in the Americas declined 5% for the full year and 2% for the fourth quarter. The company’s guidance for fiscal 1Q17 includes an increase in worldwide net sales over the prior year by a low single-digit percentage and by a mid single-digit percentage on a constant exchange rate basis. The company expects net earnings per share to increase by a high single-digit percentage over 2016’s EPS of $3.55 and by a mid single-digit percentage over $3.75. 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 UpdateSainsbury (LSE: SBRY) 4Q17 Update Comps Return to Negative Territory Coresight Research March 17, 2017 Executive Summary The UK’s second-biggest grocery retailer, Sainsbury’s, reported comparable sales excluding fuel fell by 0.5% in 4Q17. In FY17, Sainsbury’s comps fell by 0.6% excluding fuel. Argos 4Q17 comps were strong, at 4.3%. 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 Mar 17, 2017 Coresight Research March 17, 2017 Executive Summary This week’s note “From the Desk of Deborah Weinswig” covers our top takeaways from this week’s SXSW Conference in Austin, Texas, where there was much discussion about the future of technology in fashion manufacturing and retail. US retail sales increased by just 0.1% in February, matching economists’ estimates. On a more positive note, retail sales gains for January were revised up to a robust 0.6% from 0.4%, as consumer purchases advanced sharply that month across a wide range of categories. Baidu’s billionaire founder has revealed his intention to spin off the company’s driverless car division once it reaches maturity. Baidu believes its search and mapping data grant it advantages in artificial intelligence that can be used to develop driverless technology. In Brazil, the world’s fifth-largest consumer market, Walmart is making a contrarian bet, investing heavily to revamp its US-style big-box stores in the country even as shoppers increasingly flock to smaller, cheaper options. 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 UpdateInditex (BME: ITX) FY16 Results: Continued Comp Strength Offset by Margin Erosion Coresight Research March 16, 2017 Executive Summary Inditex reported FY16 revenues of €23.3 billion, an increase of 11.5% over FY15 and broadly in line with analysts’ estimates. Comparable store sales in FY16 increased a strong 10% year over year. EBIT increased by 9.4% year over year to €4.1 billion, and FY16 EBIT margin contracted by 40 basis points year over year to 17.2%. For the trading period of February 1 to March 12, 2017, Inditex’s store and online sales increased by 13% year over year at constant currencies. 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 UpdateH&M (STO: HM-B) Monthly Sales Update: Sales Slow Down in February Coresight Research March 16, 2017 Executive Summary H&M reported total sales rose by 3% year over year in local currencies in February 2017. This compares to year-over-year sales growth of 8% in January. Sales in February were negatively impacted by 4% due to a calendar impact, since 2016 was a leap year. The total number of stores grew by 10.7% year over year to 4,393, as of February 28. Sales growth lagged store growth by 766 basis points in February, expanding from the 266-bps difference in January. H&M also reported total sales rose by 4% year over year in local currencies in 1Q 2017, the period from December 1, 2016 to February 28, 2017. During the period, sales including VAT amounted to SEK54.4 billion (US$6.0 billion), an increase of 7% year over year, while sales excluding VAT amounted to SEK47.0 billion (US$5.2 billion), up 8% 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
Deep DiveDeep Dive: New Retail – The Key To Unlocking Pent-Up Chinese Consumer Demand Coresight Research March 16, 2017 Executive SummaryThe Fung Global Retail & Technology team attended the 5th China E-commerce and Retail Innovation Summit 2017 in Shanghai. The theme of the conference was “using big data and internet technology to explore the future of New Retail.” AliResearch unveiled the details of “New Retail,” which is expected to hold the solution for physical retailers and pure-play e-tailers and propel the industry’s transformation. It refers to the integration of online, offline, logistics and data across a single value chain. New Retail addresses the bottleneck of China’s stagnating physical retail industry, which is defined by low operational efficiency, mall supply that is below most developed markets and a supply-demand imbalance between the top-tier and the lower tier cities. China is “New Retail”-ready, given its solid digital infrastructure and digitally-literate consumer base. The best way for retailers to position themselves is by providing a consumer-centric, data-driven offering which is focused on content. Retailers’ value chain will need to extend upstream to product design, innovation and merchandizing to satisfy consumers’ preferences. On the other hand, retailers that are slow to adapt will be marginalized. Those undermined are likely to be: 1) traditional retail; 2) traditional manufacturing; and 3) pure-play e-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
Insight ReportNeiman Marcus Group Puts Itself Up for Sale; Hudson’s Bay Co.in Advanced Talks for a Deal Coresight Research March 16, 2017 Executive Summary Luxury onmichannel retailer Neiman Marcus is exploring strategic options of a sale or capital restructuring, amid a swelling debt profile and a disappointing sales performance. Hudson’s Bay Co. is in exploratory talks with Neiman Marcus to discuss an acquisition. The debt profile of the target company is a significant obstacle. The retail industry, especially companies with a primarily brick-and-mortar presence, is facing significant headwinds brought, in part, by online competition. The news comes after the announcement that Macy’s is also exploring a possible sale, and after other major retailers such as BCBG Max Azria and Wet Seal have already filed for bankruptcy in 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 UpdateOcado (LSE: OCDO) 1Q17 Update: Strong Growth Maintained as Inflationary Effects Creep In Coresight Research March 15, 2017 Executive Summary UK grocery pure-play Ocado reported total gross sales growth of 13.3% in its first quarter, ended February 26. Ocado’s own retail sales grew by 13.1%. The number of average orders per week grew by 16.7%. Average order size fell by 1.6% to £111. 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
