Company Earnings UpdatePrimark (LSE: ABF) 1H17 Trading Update: Flat Total Comparable Store Sales; up 2% in the UK Coresight Research February 28, 2017 Executive Summary Primark’s owner Associated British Foods (ABF), provided a preliminary trading update for 1H17 sales results for the six months ending March 4, 2017. We focus only on Primark, ABF’s retail division, in this flash report. Primark revenues are expected to increase 10% year over year at constant currency for 1H17and reported sales are expected to increase 22% year over year. The company increased selling space by 12% year over year in 1H17. Total comparable store sales were flat, but for the UK increased by 2% year over year. Primark forecasts that operating profit margin in 1H17 will decline, reflecting increased input costs due to US dollar strength. 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
Event PresentationTop Technology Trends Coresight Research February 28, 2017 Executive SummaryTechnology Trends: In-store Gamification Virtual Experiences Innovative Displays AI and Machine Learning Beauty Technology Personalization Excess Stock Platforms Virtual Models 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 UpdateJCPenney (JCP) 4Q16 Results: Better than Expectations; Major Store Restructuring Plans Coresight Research February 27, 2017 Executive Summary JCPenney reported 4Q16 adjusted EPS of $0.64, beating the consensus estimate of $0.61. Reported 4Q16 revenues of $4.0 billion were down 0.9% from the year-ago period. Total comps were down 0.7% versus the consensus estimate of a 0.5% decline. The company announced major store closure plans that include closing two distribution centers and 130–140 stores over the next few months. The total store closures represent about 13%–14% of the company’s store portfolio and less than 5% of total sales. With the announced store closures, the company expects adjusted EPS of $0.40–$0.65 for FY17. Comps are expected to be (1)%–1%. Gross margin is expected to be up 20–40 basis points versus 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
Company Earnings UpdateBaidu (BIDU) 4Q16 Results: EPS Beats, Revenue Falls on Revamped Advertising Practices Coresight Research February 27, 2017 Executive Summary Baidu reported 4Q16 non-GAAP diluted EPS of ¥13.23, up 73.9% year over year, beating the consensus by 77.1%. Revenue was ¥18.21 billion, down 2.6% year over year and in line with consensus, as the company took measures to revamp its advertising practices to meet stringent requirements for vetting advertising customers. Baidu’s gross merchandise value (GMV) totaled ¥18.1 billion (US$2.6 billion) for 4Q16, an increase of 23% year over year. Mobile search monthly active users (MAU) and mobile maps MAUs for December 2016 were up 2% and 13% year over year, respectively. Management guides for 1Q17 revenue of ¥16.48–¥17.03 billion, an increase of 4.2%–7.6% 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: Gen Z and Beauty—the Social Media Symbiosis Coresight Research February 27, 2017 Executive SummaryThis report is part of our new series, The New Beauty Consumer, which looks at various aspects of beauty retailing and consumption. Gen Z is the first generation to use social media in their formative years, and it is pressuring teens to look good. According to a survey by the American Psychological Association, nearly one-third of US teen girls feel bad when comparing themselves with others they see on social media, and other studies have found links between social media usage and low self-esteem. We think these kinds of pressures will drive up spending on beauty products and services and fitness services. US teens are already growing their spending on beauty; the category’s share of spending among upper-income female teens grew to its highest level ever in fall 2016. When shopping for beauty products, young consumers turn to social media, and especially video content, for advice. The volume of beauty content on YouTube rocketed by 200% between 2015 and 2016, and female consumers ages 13–24 make up fully 47% of the audience for these videos. Gen Z’s oldest members are on the cusp of adulthood, and we expect this generation’s demands to be a factor in future beauty industry mergers and acquisitions (M&A). Large, established multibrand companies are likely to acquire beauty brands that resonate with Gen Zers as the generation’s spending power accelerates. 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 UpdateNordstrom (JWN) 4Q16 Results: Solid EPS, Guides Down for FY17 Coresight Research February 24, 2017 Executive Summary Nordstrom reported 4Q16 adjusted EPS of $1.37, versus $1.00 in the year-ago quarter and beating the consensus estimate of $1.15. The figure includes a $0.10 nonoperational gain. Revenues were $4.32 billion, up 2.9% year over year and slightly below the consensus estimate. Net sales (excluding credit card revenues) increased by 2.4% and comps decreased by 0.9%. Net sales for the Nordstrom brand (combined with Trunk Club) decreased by 1.1% and comps decreased by 2.7%. FY17 guidance was for a 3%–4% revenue increase, flat comps and EPS of $2.75–$3.00, below the $3.07 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
Company Earnings UpdateKohl’s (KSS) 4Q16 Results: Beats Expectations; Top Line Remains Challenging Coresight Research February 24, 2017 Executive Summary Kohl’s reported 4Q16 revenues of $6.2 billion, down 2.8% from $6.4 billion in the year-ago quarter and in line with the consensus estimate. EPS was $1.44, beating the consensus estimate of $1.33 and down 9% from $1.58 in the year-ago quarter. Total comps for the quarter were down 2.2%, missing the consensus estimate of a 2.1% decline. Holiday comps declined by 2.1%. Average transaction value increased by 3.8% and average unit retail increased by 3.7%. The company expects FY17 adjusted EPS of $3.50–$3.80, versus consensus of $3.73. The guidance is based on an expected total sales decline of 0.7%–1.3%. 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
Company Earnings UpdateGap (GPS) 4Q16 Results: Solid Earnings and a Revenue Beat; Comps Expected to Be Flat to Up Slightly for FY17 Coresight Research February 24, 2017 Executive Summary Gap reported 4Q16 adjusted EPS of $0.51, down from $0.57 in the year-ago quarter but above the consensus estimate of $0.50. The company reported revenue of $4.43 billion, up 1% from the year-ago quarter and above the $4.41 billion consensus estimate. Same-store sales increased by 2% during the quarter, compared with a decline of 7% in the prior-year period. For FY16, total comps declined by 2%. A comp increase of 1% for the Old Navy brand was offset by a 3% decrease for the Gap brand and a 7% decrease for the Banana Republic brand. For FY17, Gap expects EPS of $1.95–$2.05, including a $0.09 negative impact from foreign currency and exchange rates, versus consensus of $2.06. Same-store sales for the full year are expected to be flat to up slightly, versus the consensus estimate of a 0.5% increase. 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 UpdateDIA (BME: DIA) FY16 Results: Meets Targets with Strong Performance in Emerging Markets Coresight Research February 24, 2017 Executive Summary DIA reported FY16 sales of €8,867.6 million, slightly behind the consensus estimate of €8,953.9 million and up by 9.0% excluding currency effects, but down 0.6% as reported. Adjusted EPS grew by 3.9% to €0.42 (up 6.1% excluding currency effects). Sales in DIA’s home country of Spain and in Portugal increased by 1.1%, but in emerging markets declined by 1.9% as reported (up 26.3% excluding currency effects). DIA expects “mid-single-digit growth in gross sales” for the coming fiscal year, as it intends to downsize its selling area in Spain and anticipates lower inflation in the emerging markets where it operates. 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 Feb 24, 2017 Coresight Research February 24, 2017 Executive Summary This week’s note “From the Desk of Deborah Weinswig” discusses major e-tailers’ recent moves to match each other’s free two-day shipping offers and highlights the fact that “free” shipping is not actually free. A planned delay in the delivery of two tax refunds could be taking a bite out of Walmart’s revenue. After reporting another quarter of top-line growth during the holiday period, the world’s largest retailer said sales have gotten off to a slow start in its new fiscal year, which could be due to the delayed refunds. Global e-commerce leader Amazon announced that it plans to create more than 15,000 jobs across Europe over the course of 2017 to expand its logistics operations and other functions. This is a record number for Amazon, which is looking to hire specialists for roles ranging from linguists to software developers. German grocer Lidl has suspended its plans to trial click-and-collect stores in Germany, merely a week after CEO Sven Seidel announced his resignation. The company was set to test the multichannel Lidl Express banner in Berlin this spring. 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 UpdateTJX Companies (TJX) Fiscal 4Q17 Results: Solid Quarter and Healthy FY18 Outlook Coresight Research February 23, 2017 Executive Summary TJX Companies reported fiscal 4Q17 EPS of $1.03, versus $0.99 in the year-ago quarter and beating the consensus estimate by two cents. Revenues were $9.47 billion, up 5.6% year over year and slightly ahead of consensus estimates. Comps were up 3%, ahead of the 2.7% consensus estimate and compared with a 6% increase in the year-ago quarter. Strength in HomeGoods and TJX Canada was offset by slower growth at Marmaxx and TJX International. Guidance for FY18 EPS was $3.80–$3.89, representing a 10%–12% increase and in line with or above the $3.80 consensus estimate. Comps are expected to increase by 1%–2%. 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 UpdateL Brands (LB) 4Q16 Results: Beats Expectations, Comps Flat Coresight Research February 23, 2017 Executive Summary L Brands reported 4Q16 revenue of $4.5 billion, up 2.2% from last year’s $4.4 billion and beating the consensus estimate of $4.4 billion. Adjusted EPS was $2.03, beating the consensus estimate of $1.90. Total comps declined 9% for the quarter. Victoria’s Secret comps declined by 14% versus a 2% increase in the year-ago period, while Bath & Body Works comps increased by 2%, versus a 6% increase in the year-ago quarter. The company raised its FY17 guidance for EPS to $3.10–$3.40 from $3.05–$3.35 versus the $3.22 consensus estimate. L Brands expects 2Q17 EPS of $0.40–$0.45, slightly below the $0.46 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
Company Earnings UpdateEsprit (330 HK) 1H17 Results: Recovers from a Net Loss, but Revenue Shrinks Coresight Research February 23, 2017 Executive Summary Esprit posted a net profit of HK$66 million for 1H17, a turnaround from the net loss of HK$232 million for the same period last year, driven by an increase in retail sales productivity and trimming operation costs. 1H17 revenues declined 10.6% to HK$8.3 billion from HK$9.3 billion in 1H16, due to closures of unprofitable stores and warm weather in Europe. The company intends to continue to execute its strategic plan with the primary focus of improving the bottom line. For 2H17, management expects to see little change from 1H17. 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 Update(CHS) 4Q16 Results: Solid Earnings and Revenue Beat, Cost-Saving Initiatives Grow Profits Coresight Research February 23, 2017 Executive Summary Chico’s FAS reported 4Q16 adjusted EPS of $0.10, up from $0.05 in the year-ago quarter and beating the consensus estimate of $0.04. The company reported adjusted revenue of $600.8 million, down 2.3% from $614.9 million in the year-ago quarter but above the $594.8 million consensus estimate. Same-store sales declined by 2.5% during the quarter, slightly above the (2.8)% consensus estimate and in line with previous guidance. Total comps were driven by declines in both number of transactions and average dollar sale. For FY17, the company expects a low-single-digit same-store sales decline versus the (0.2)% consensus estimate. Chico’s anticipates it will make steady progress toward its target of a double-digit operating margin in 2019. 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 UpdateCtrip.com (NASDAQ:CTRP) 4Q16 Results: Strong Beat on Top Line and OPM; Eyes on Overseas Expansion Coresight Research February 23, 2017 Executive Summary Ctrip reported 4Q16 revenue of ¥5.1 billion, up 76% year over year, beating consensus by 2%. Non-GAAP operating margin was 16%, better than guidance of 8%–10%. The increase in revenue is primarily due to the consolidation of the financial results of Qunar since December 31, 2015. Hotel and other accommodations grew by over 50% year over year, thanks to strong execution. The ticketing business saw year-over-year growth of 97%, benefiting from wider coverage and fast growth of the China travel market. Management guided for 1Q17 revenue growth of 40%–45% year over year, taking into account consolidation of the newly acquired company Skyscanner, which was completed in December 2016. Non-GAAP operating income is expected to be ¥750–¥800 million, representing an OPM of 12%–13%. With a solid leading position in the China travel industry, Strip appears to be stepping up its globalization efforts through acquisitions of various overseas online travel agents. Synergies from newly added companies will be the key to growth in 2017. 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
