Insight ReportAscena Retail Group (ASNA) Fiscal 2Q17 Results: Beats by $0.02, but Guides Down for Fiscal 3Q17 Coresight Research March 7, 2017 Executive Summary Ascena Retail Group reported fiscal 2Q17 adjusted EPS of $(0.07), versus a profit of $0.01 per share in the year-ago quarter and beating the consensus estimate by two cents. Revenues were $1.75 billion, down 5.1% year over year and in line with the consensus estimate. Comps were down 4%, in line with consensus, comprising a 5% decline for Premium Fashion, a 6% decline for Value Fashion, a 4% decline for Plus Fashion and a 1% decline for Kids Fashion. The company expects full-year adjusted EPS of $0.37–$0.42, which brackets the $0.39 consensus, and fiscal 3Q17 adjusted EPS of $0.07–$0.12, below the $0.15 consensus estimate. 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: IoT in Retail—Digitalizing Brick-and-Mortar Stores Coresight Research March 6, 2017 Executive SummaryInternet of Things (IoT) technology has the potential to transform the way retailers operate brick-and-mortar stores. In this report, we: Outline the applications of IoT technology for retailers and the advantages of adopting such technology in brick-and-mortar stores. Illustrate how retailers including Amazon and Walmart are planning to apply IoT technology in their stores, and what IoT products two industry specialists—Catalyst and Smartrac—provide to retailers. Propose a series of recommendations that retailers should consider when implementing strategies to adopt IoT technology in their physical 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 Overview of the Digitalization of the Apparel Supply Chain Coresight Research March 3, 2017 Executive SummaryDigital technologies are transforming the apparel supply chain by challenging old operating models and unleashing new opportunities. This is the first in a series of reports that will investigate the different aspects of the digitalization of the supply chain. As the introduction to the series, this report: Provides an overview of how the apparel supply chain can be transformed digitally and the advantages that digitalization brings to the value chain. Looks at the various stages of the apparel supply chain—design, manufacturing, distribution and sales—and illustrates how digital technology can be applied to each stage. Highlights the importance of a holistic approach to digitalization, which should increase the synergies and interaction between the different stakeholders along the supply chain, so that the efficiencies reached at each stage will be reflected positively on the supply chain as a whole. 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 3, 2017 Coresight Research March 3, 2017 Executive Summary This week’s note “From the Desk of Deborah Weinswig” discusses the estimated $2.5 billion in revenue that will be freed up for other retailers to grab once JCPenney, Macy’s and Sears complete their recently announced store closures. According to Moody’s Investors Service, the number of US retailers ranked at the most-distressed level of the credit-rating spectrum has more than tripled since the Global Financial Crisis of 2008–2009 and is heading toward record levels in the next five years. German discount grocer Lidl has unveiled a new concept store called Loft in Calais, France, where it already has two stores. Loft features wider aisles and more than 1,600 products. The store’s heat-reduction and waste-recycling processes make it environmentally friendly. To develop 5G technology, China’s Huawei deploys an R&D staff of 80,000, challenging Europe’s dominance. That could give Huawei a sizable edge at a time when all suppliers have set their sights on 5G, which promises to be a wellspring of revenue by enabling smoother and faster interaction between connected objects. 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) 4Q16 Results: Disappointing Quarter; Comps Still Challenging Coresight Research March 3, 2017 Executive Summary Abercrombie & Fitch reported 4Q16 EPS of $0.71, missing the consensus estimate of $0.75 and down from $0.85 in the year-ago quarter. Total comps were down 5%, beating the consensus estimate of a 5.4% decline. Total revenue was $1.04 billion, down 6.9% from the year-ago period and missing the consensus estimate of $1.05 billion. Total net sales for the Abercrombie brand were $442.4 million, down 13%. Total comps for the Abercrombie brand were also down 13%, missing the consensus estimate of an 11.3% decline. Sales at Hollister were down 2%, to $594.0 million. Comps at Hollister were up 1%, beating the consensus estimate of a 0.5% decline. The company expects comp trends to improve in FY17. Gross margin is expected to be flat compared with FY16 due to continued promotion pressures that will be offset by lower average unit cost. 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 ReportJD.com (JD) 4Q16 Results: Revenue Beats Consensus on Strong GMV Growth; JD Finance Spins-Off Coresight Research March 3, 2017 Executive Summary JD.com reported 4Q16 revenues of ¥80.25 billion, up 47% year over year, and beating the consensus estimate of ¥76.70 billion. Net loss per ADS was ¥1.26, compared to a net loss of ¥5.57 for 4Q15. Total GMV reached ¥206.2 billion in 4Q16, an increase of 50.5% year over year. General merchandise contributed 52% of total GMV, up from 49% in the year-ago period. JD.com will dispose of and no longer hold legal ownership of JD Finance. JD.com will receive approximately ¥14.3 billion in cash and profit-sharing rights for 40% of JD Finance’s pretax income. 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 2Q17 Results: Misses on EPS, Raises Membership Fees Coresight Research March 3, 2017 Executive Summary Costco reported fiscal 2Q17 EPS of $1.17, versus $1.24 in the year-ago quarter and missing the $1.36 consensus estimate. Revenues were $29.8 billion, down 5.7% year over year and roughly in line with the consensus estimate. Comps were up 3%, below the 3.5% consensus estimate, comprising an increase of 3% in the US, an increase of 8% in Canada and a decrease of 2% in other international regions. In addition, the company announced that it will raise the price of a Business membership by $5, to $60, and the price of an Executive membership by $10, to $120, effective June 1. 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 UpdateTarget (TGT) 4Q16 Results and Financial Community Meeting: Company Resets the Bar and Lowers Guidance for 2017 Coresight Research March 2, 2017 Executive Summary Target held its annual Financial Community Meeting on February 28 in New York City.The company is making some major changes in an effort to compete in what CEO Brian Cornell called a “new era of retailing.” Cornell outlined plans for the company to spend $7 billion over the next three years—and forfeit $1 billion in annual operating profit as it lowers prices and invests in stores—in an effort to recapture long-term, sustainable growth and stay competitive. Target will invest the $7 billion in capital in digital operations; remodeling its existing big-box stores and expanding its smaller-format stores; launching new, exclusive lines; and lowering prices on staple products. The company reported revenues of $20.69 billion for 4Q16, down 4.3% and slightly below the $20.70 billion consensus estimate. Total company same-store sales declined by 1.5%, versus analysts’ estimate of a 1.4% decline and the company’s previous guidance of a 1.0%–1.5% 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 UpdateZalando (XTRA: ZAL) FY16 Results: Stellar Sales and EBIT Margin Performance Coresight Research March 2, 2017 Executive Summary Zalando reported FY16 revenue growth of 23.0% year over year to €3,639.0 million, slightly below the consensus estimate of €3,649.5 million. The company reported FY16 adjusted EBIT of €216.3 million and the adjusted EBIT margin reached 5.9%, up from 3.6% in FY15. For 4Q16, the adjusted EBIT margin reached 8.8%, expanding 50 bps from 8.3% in 4Q15. Zalando issued FY17 guidance to deliver year-over-year revenue growth in the range of 20.0%–25.0%, in line with FY16. The company expects the FY17 adjusted EBIT margin to fall between 5.0% and 6.0%. 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
Company Earnings UpdateLuxottica (BIT: LUX) FY16 Results: Operating Profits Decline, But EPS Beats Expectations Coresight Research March 2, 2017 Executive Summary Italian eyewear manufacturer Luxottica reported FY16 adjusted EPS of €1.84, up 3.4% year over year and ahead of the consensus estimate of €1.80. A 1.1% decline in gross profit was partially offset by a 0.8% decline in operating costs. Exceptional costs contributed to a 2.3% decline in operating profit. Net sales, which had already been reported, climbed by 2.8% in FY16. 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 UpdateAmerican Eagle Outfitters (AEO) 4Q16 Results: Beats by a Penny, Guides Down for 1Q17 Coresight Research March 2, 2017 Executive Summary American Eagle Outfitters reported adjusted 4Q16 EPS of $0.39, versus $0.35 in the year-ago quarter and beating the consensus estimate by a penny. Revenues were $1.10 billion, down 0.8% year over year and slightly below the consensus estimate. Comps were up 0.4% in the quarter, comprising a 1% decline for the American Eagle total brand and a 17% increase for the Aerie total brand. The company’s 1Q17 guidance calls for comps to be flat to down by low single digits (versus consensus of up 0.5%) and adjusted EPS of $0.15–$0.17, below consensus of $0.21. 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 ReportYoox Net-A-Porter Group (BIT: YNAP) FY16 Results: Solid Sales and Operating Margin Improvement Coresight Research March 2, 2017 Executive Summary Italian online fashion retailer YOOX Net-a-Porter Group reported net revenues of €1,871 million for FY16, up 12.4% year over year on a reported basis and up 17.7% at constant exchange rates. Revenues were slightly below the consensus estimate of €1,875 million. FY16 sales growth was driven by strong performance across all geographic regions, especially the Asia-Pacific region, where sales increased by 27.1% at constant exchange rates. UK sales increased by 15.3% year over year at constant exchange rates. YOOX Net-a-Porter provided FY17 revenue guidance of 17%–20% year-over-year growth. The company expects its EBITDA margin to improve slightly over FY16’s 8.3%. The company is also targeting FY17 capital expenditures of €160–€170 million. 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 UpdateAhold Delhaize (ENXTAM: AD) 4Q and FY16 Results: Dutch Business Boosts Sales, Merger Synergies On-Target Coresight Research March 2, 2017 Executive Summary Ahold Delhaize reported FY16 revenues of €49,695 million, up by 29.6% from FY15 at constant exchange rates (up 30.1% in reported currency). Pro forma FY16 revenues, which reflect the entirety of the merged group, were €62,331 million, up by 2.1% at constant currency (up 2.4% in reported currency) and slightly below the consensus estimate of €62,419.14 million. Gross margin declined by 42 basis points, SG&A as a percentage of sales fell by 15 bps and operating margin declined by 26 bps, all as reported. Diluted EPS shrank by 20.6% to €0.81 in FY16, below the consensus estimate of €0.93. Ahold Delhaize expects the deflationary environment in the US to continue through 1Q17 and confirms its target of realizing €220 million in net synergies in FY17, of which €22 million has already been realized in FY16. 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) 4Q16 Results: Tops EPS and Revenue Expectations; Issues Strong 2017 Guidance amid Robust Housing Market Coresight Research March 2, 2017 Executive Summary Lowe’s reported 4Q16 adjusted EPS of $0.86, up 45.8% from the year-ago quarter and beating the consensus estimate of $0.79. The company reported revenue of $15.78 billion, up 19.2% from the year-ago quarter and above the $15.37 billion consensus estimate. Same-store sales rose by1% during the quarter, beating the 2.4% consensus estimate. Comp sales for the US were up 5.1% as well. Comps were driven by a 4.0% increase in average ticket and a 1.1% increase in customer transactions. The company expects total revenue to grow by about 5% in FY17, to about $68.27 billion, and it expects full-year comp growth of 3.5%. The consensus estimate calls for revenues of $67.66 billion. The company expects FY17 EPS of $4.64, up about 16.3% from FY16 and above the consensus estimate of $4.53. 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 ReportWho Is Buying Beauty Products on Amazon? Coresight Research March 1, 2017 Executive SummaryThis report takes a brief look at the results of a recent Coresight Research US consumer survey: Beauty and personal care products are the second-most-shopped category on Amazon. Only books register a greater number of shoppers in the US. Fully 48% of US women have bought beauty or personal care products on Amazon in the past 12 months. Prime members support sales of beauty on Amazon: fully 52.5% of Prime members have bought beauty or personal care products on Amazon in the past 12 months. Younger shoppers are most likely to buy beauty products on Amazon. This contrasts to age trends in apparel shopping, with 18–29 year olds less likely than those ages 30–60 to have bought apparel on Amazon. 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
