Deep DiveDeep Dive: US Retail—Store Closure and Management Change Tracker Coresight Research March 15, 2017 Executive Summary Store closure and bankruptcy announcements: BCBG will be closing all of their stores due to bankruptcy. Lucy Activewear will also close all of its stores as it is merged into the North Face brand. JCPenney will be closing 13%–14% of its stores, while Crocs will be closing 29% of its stores. Store opening announcements: Lidl is opening 100 stores within a year and Dick’s Sporting Goods plans to open five more. Ross Stores is on track to its plan to opening 90 stores in 2017. Management changes: Ten major retailers that we track have announced management changes, including Adidas, ALDO, Barneys, Calvin Klein, Céline, Crocs, Louis Vuitton, Next, Tiffany and Tory Burch. Other major announcements: Skip Hop Holdings, Blue Nile and Wet Seal have been acquired by institutional investors. Hudson’s Bay Co. failed to reach an agreement to acquire Macy’s. Other announcements include: Kate Spade is putting itself up for sale, Neiman Marcus is restructuring its debt, and Finish Line has sold of JackRabbit to a fund. 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 UpdateSalvatore Ferragamo (BIT: SFER) FY16 Results: Underpaces Luxury Rivals at the Top Line, Tax Benefit Boosts the Bottom Line Coresight Research March 15, 2017 Executive Summary Italian luxury leather goods and apparel firm Salvatore Ferragamo posted FY16 revenue growth of just 0.6%, broadly in line with consensus expectations. Operating profit slid back by 1.5%, impacted by costs associated with management changes. Net profit jumped 13.7%, boosted by a one-off drop in the tax rate. 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 UpdateNordstrom (JWN) 1Q17 Results: Comps Negative, but Better than Peers’ Coresight Research March 12, 2017 Executive Summary Nordstrom reported 1Q17 EPS of $0.37, up 42.3% from $0.26 in the year-ago period. Comparable store sales decreased by 0.8% year over year, missing the consensus estimate of (0.1)%. Online sales were up 11% at Nordstrom.com and up 19% at NordstromRack.com/HauteLook.com. The company maintained its FY17 outlook for EPS of $2.75–$3.00. For the full year, the company expects total sales to be up 3%–4% and comps to be flat. 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 DiveMining Silver: Identifying Opportunities in the Senior Boom Coresight Research March 10, 2017 Executive SummaryToday, dealing with aging goes well beyond just shrugging off one’s apprehensions about getting old. For individuals, businesses and governments, the physical and mental changes associated with getting older present a host of challenges. And ever-more people are facing these challenges: improvements in healthcare, safer food and more comfortable, less dangerous jobs are fueling a consistent upward movement in average life expectancy. As a result, we are seeing a boom in the population of silvers, which we define as those aged 65 and older. The growth in senior populations across the world is impacting consumer spending patterns and pressing governments to legislate and budget for changing demands. Two main factors are impacting these trends—the sheer size of the aging population and the purchasing power that aging consumers wield: The senior population will account for over a third of all global population growth between 2015 and 2030. The global 65+ population stood at 8.3%, or 608 million in 2015, and it is expected to grow to 11.7% of the total population, or 995 million, by 2030, according to UN data. Our research on the US, the UK and Japan found that senior households tend to spend more on a per-person basis than the average household does. This is part a result of wealth accumulation, but it also reflects the relative advantages older consumers have enjoyed over their younger peers. Younger generations have see pay and conditions degraded, tuition fees climb and, in some markets, basic living costs, such as housing, skyrocket. 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 Mar 10, 2017 Coresight Research March 10, 2017 Executive Summary This week’s note “From the Desk of Deborah Weinswig” discusses the growing need for and increasing sophistication of cybersecurity tools, given that we live in a world where all of our connected machines can be targeted by hackers and cyberthieves. The flow of income tax refunds to US consumers is getting back on track following a slow start this year that had some worried that consumers might have less to spend at retailers already struggling with dwindling mall traffic and harsh competition from Amazon. Amazon could inflict roughly the same amount of cumulative pain on its competitors over the next three years as it did over two decades as a public company. However, analysts predict that growth of the company’s North America segment will slow to 16% in 2018 and decelerate in each of the following years. German retailer Lidl has announced that it plans to launch in the US this summer, with the first 20 stores to open in Virginia, North Carolina and South Carolina. The company intends to have at least 100 stores running on the East Coast within 12 months of the launch. 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 UpdateCarrefour (ENXTPA: CA) FY16 Results: LatAm and S. Europe Lift Sales, While France and China Weaken Coresight Research March 10, 2017 Executive Summary Carrefour reported FY16 net sales of €76.6 billion, down slightly by 0.4% year over year (up 2.7% at constant currency) and slightly above the consensus estimate of €76.5 billion. Adjusted EPS fell by 9.7% to €1.39, missing the consensus estimate of €1.49. For FY17, Carrefour aims to grow sales by 3%–5%, incur capex of €2.4 billion (excluding Cargo, its logistics property company) and increase free cash flow. 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 UpdateMorrisons (LSE: MRW) FY17 Results: Ongoing Improvement in Sales and Profitability Trends Coresight Research March 10, 2017 Executive Summary The UK’s fourth-largest grocery retailer, Morrisons, reported FY17 revenues were up 1.2% year over year and that comparable store sales were up 1.7%. Comps rose by 2.5% in 4Q17, representing a sequential quarterly improvement. This was the fifth consecutive quarter of positive underlying growth and marked the first fiscal year of positive comps since FY12. Underlying operating profit increased by 8.3%, helped by the achievement of the company’s plan to save £1 billion in costs over three years. This contributed to operating margin expansion of 17 basis points, to 2.6%, up from 2.4% in the year-ago period. Underlying profit before tax rose by 11.6%, and these gains trickled down to result in a 38.8% increase in diluted EPS, taking it to 10.73 pence. 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) 4Q16 Results: Tops EPS and Revenue Estimates with Double-Digit Revenue Growth Coresight Research March 10, 2017 Executive Summary Ulta reported 4Q16 EPS of $2.24, up 32.5% from the year-ago quarter and above the $2.14 consensus estimate. Revenues rose 24.6% from the year-ago quarter to $1.58 billion, also beating the consensus estimate of $1.54 billion. Comparable sales, including e-commerce, increased by6% from the year-ago quarter, versus the 13.8% consensus estimate and company guidance of 12%–14%. That growth was driven by a 10.9% gain in transaction volume and a 5.7% higher average ticket sale. Retail comp sales increased 12.8%, including salon comp growth of 8.8%. For FY17, Ulta projects EPS growth in the low 20% range, compared with the 25% consensus estimate, or EPS of $8.03. The company projects comps to be up 8%–10%, versus the 10% 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
Market Navigators/Market OutlookDeep Dive: Global Male Grooming Market Coresight Research March 9, 2017 Executive Summary The global market for male grooming products is booming. It is projected to reach US$60.7 billion by 2020, according to Euromonitor. Valued at US$17.5 billion in 2015, male toiletries—which includes men’s bath and shower, deodorant, skin and hair care products—is expected to outpace that of shaving products and fragrances. Brick-and-mortar accounts for over 80% of male grooming product sales globally. A number of retailers have designed their store layouts to meet male consumers’ needs in this category, while some have incorporated grooming services at their outlets, enhancing the customer experience and creating opportunities for cross-selling. Although most of the beauty giants have already created dedicated brands or sub-brands for their male grooming products, several male grooming startups have emerged in recent years, successfully tapping into the unmet needs and growing trends in this field. You may also be interested in our more recent reports on Male Grooming, Male Makeup, Beauty and Grooming Shoppers in the US, Male Beauty Market in China and the Global Beauty Market. Or, to see our full collection of beauty-related reports, click 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
Company Earnings UpdateAdidas (ETR: ADS) FY16 Results: Standout Sales and Margin Performance Coresight Research March 9, 2017 Executive Summary In FY16, Adidas reported revenue growth of 14.0% year over year to €19,291 million, slightly below the consensus estimate of €19,307 million. Constant-currency FY16 sales increased 18% year over year. The company reported FY16 adjusted EBIT of €1,491 million and the adjusted EBIT margin reached 7.7%, up from 6.5% in FY15. Adidas issued FY17 guidance to deliver constant currency year-over-year revenue growth in the range of 11%–13%. The company expects FY17 gross margin expansion of 50 bps year over year and adjusted EBIT margin to expand by 60–80 bps year over year to 8.3%–8.5%. 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
Company Earnings UpdateExpress (EXPR) 4Q16 Results: EPS in Line with Expectations; Grim Outlook for FY17 Coresight Research March 9, 2017 Executive Summary Express reported 4Q16 EPS of $0.29, down 56.7% from the year-ago quarter and in line with the consensus estimate and company guidance. The company reported revenue of $678.8 million, down 11.3% from the year-ago quarter and slightly above the $675.8 million consensus estimate. Same-store sales, which includes e-commerce, declined by 13% from the year-ago quarter—when they grew by 4% year over year—versus the consensus estimate of a 12% decline. The company said slower mall traffic and a promotional retail environment impacted performance. For FY17, Express projects EPS of $0.65–$0.73, compared with the $0.87 consensus estimate. Same-store sales for the full year are expected to be flat to up by low single digits, versus the consensus estimate of a 0.4% decline. 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 UpdateVera Bradley (VRA) Fiscal 4Q17 Results: Revenue Down Due to Challenging Retail Environment Coresight Research March 9, 2017 Executive Summary Vera Bradley reported fiscal 4Q17 adjusted EPS of $0.28, beating the consensus estimate of $0.23. Revenues decreased by 12.5%, to $134.8 million, which was roughly $2.5 million below guidance. Comparable sales including e-commerce decreased by 9.5% for the quarter; the decrease was partially offset by new store growth. The company’s guidance for fiscal 1Q18 includes a decrease in net revenue, to $94–$99 million, compared with 1Q17 revenue of $105.2 million. For the full fiscal year, the company expects net revenue to decrease to $460–$480 million from $485.9 million the prior 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 UpdateGroupe Casino (EPA: CO) FY16 Results: LatAm Business Drives Sales Growth Coresight Research March 8, 2017 Executive Summary Groupe Casino reported FY16 revenues of €36,030 million, up by 2.0% from the previous year and up by 5.7% on an organic basis. In FY16, net sales in France grew by 0.3% (0.8% organic growth) and comps grew by 0.3%. In Latin America, net sales grew by 3.6% (11.4% organic growth). E-Commerce sales grew by 7.9% and comps grew by 13.6%. Casino estimates the FY17 trading profit in France to grow by about 15% and group trading profit to rise by 10%, assuming no change in exchange rates. 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: Retail Revolution— US Apparel Shifts in 20 Charts Coresight Research March 8, 2017 Executive Summary Despite some reports to the contrary, Amazon is not among the top 10 apparel retailers in the US, by revenues, if we consider what it retails in its own right. H&M has grown substantially, but it is now experiencing deep declines in its US comparable sales, according to analysts’ estimates. Primark could achieve just under $1 billion in US sales by 2020. The off-price apparel specialist segment grew revenues by 39% between 2011 and 2016, and now accounts for 22.5% of all apparel specialists’ sales. By shopper numbers, Amazon is the sixth-most-popular retailer for womenswear, the second-most-popular for menswear and the top-ranking retailer for footwear in 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
Event PresentationUS Retail Revolution Coresight Research March 7, 2017 Executive SummaryIsrael Takeaways Israel Tech Startup Scene Is Booming Innovate or Die—Partnerships with Startups Adidas Launches Sports Tech Accelerator Program General Electric (GE) Is Taking on Stealth Development to Innovate 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
