Company Earnings UpdateZalando (XTRA: ZAL) 1Q17 Results: Strong Revenue Growth Driven by Expanding Customer Base Coresight Research May 10, 2017 Executive Summary Zalando reported 1Q17 group revenue of €980.2 million, up 23.1% on a reported basis and above the consensus estimate of €978.8 million. The company’s gross margin contracted by 50 basis points year over year, to 41.4%, and its adjusted EBIT margin declined to 2.1%. Diluted EPS remained stable at €0.02 in 1Q17. A growing customer base that ordered more often translated into strong revenue growth. Continued investment in infrastructure and the customer and brand propositions translated into a decrease in gross margin and operating margin. Zalando reiterated its FY17 revenue guidance of 20.0%–25.0% growth. The company expects an adjusted EBIT margin of 5.0%–6.0% for the full year. This document was generated for
Company Earnings UpdateJD.com (JD) 1Q17 Results: Earnings Beat; JD Logistics Established as Separate Business Group Coresight Research May 10, 2017 Executive Summary JD.com reported 1Q17 revenues of ¥76.23 billion, up 41% year over year, and beating the consensus estimate of ¥73.60 billion. Non-GAAP diluted earnings per ADS was ¥1.01, compared to a net loss per ADS of ¥0.15 for 1Q16. Total gross merchandise volume (GMV) reached ¥184.1 billion in 1Q17, an increase of 42% year over year. General merchandise contributed 50% of total GMV, up from 48% in the year-ago period. On March 1, JD.com announced the establishment of JD Logistics, a new business group under the JD.com umbrella. The move allows the logistics arm to be run more autonomously, and together with its strong logistics capability, should help it to better serve third-party business partners. JD.com anticipates the reorganization of JD Finance to be completed within 2Q17. It will receive approximately ¥14.3 billion in cash and profit-sharing rights for 40% of the future pretax profit of JD Finance once the deal is closed. This document was generated for
Company Earnings UpdateH&M (STO: HM-B) Monthly Sales Update: Slight Sales Improvement in April Coresight Research May 9, 2017 Executive Summary H&M reported that total sales rose by 7% year over year in local currencies in April 2017. This compares to growth of 6% in March. The total number of stores grew by 10.9% year over year to 4,474, as of April 30. Sales growth lagged store growth by 388 basis points in April, contracting from the 473-bps difference in March. This document was generated for
Flash ReportCoach to Acquire Kate Spade for $2.4 Billion Coresight Research May 9, 2017 Executive Summary Coach announced on Monday, May 8, that it has signed a definitive agreement to acquire Kate Spade for $2.4 billion in an all-cash transaction. The transaction is equal to $18.50 per share, a 27.5% premium to the unaffected closing price of Kate Spade shares on December 27, 2016. The acquisition is part of Coach’s plan to become a multibrand, modern luxury lifestyle company; aside from the Coach brand, it also owns the Stuart Weitzman brand. The company will operate Kate Spade separately from the Coach brand, as it does Stuart Weitzman. Coach management believes that Kate Spade’s strong appeal among millennials, which constitute about 60% of the brand’s customers, will help the company drive future growth. This document was generated for
Insight ReportLidl US Update: Answers to Four Key Questions Coresight Research May 5, 2017 Executive SummaryLidl will open its first US stores in the summer of 2017 across three eastern states: North Carolina, South Carolina and Virginia. The company is hiring for store-based roles in a total of 38 towns in eight eastern states. This report provides an update on what we know so far, and provides some answers to four questions: What do we estimate Lidl’s US sales will be? We see an approximate 1-2-4 step-up in Lidl’s US sales: roughly $1 billion in 2018, $2 billion in 2019 and $4 billion in 2020. These figures presume that Lidl will open just under 100 stores per year in the US. What headwinds and tailwinds could Lidl face? Lidl could face headwinds in terms of compromising the quality of store locations in a race for space and diverging from its traditional small-store format. Tailwinds could include increased consumer demand for fresh and natural foods and millennials’ frugality when it comes to shopping for groceries. Which incumbent retailers look to be most at risk? Weis Markets and Ingles Markets have the greatest exposure in the eight states in which Lidl is hiring. What will Lidl’s US offering look like? We expect Lidl to offer more fresh foods and a substantial general merchandise selection in its US stores, and to push the US provenance of many of the products it offers. 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) 1Q17 Results: North America and Greater China Deliver Strong Performance Coresight Research May 5, 2017 Executive Summary Adidas reported 1Q17 net sales of €5,671 million, up 18.9% on a reported basis and up 16.0% on a constant-currency basis. Net sales for the quarter were above the consensus estimate of €5,387 million. Revenue growth was underpinned by strong performance in North America and Greater China. The company’s gross margin contracted by 20 basis points year over year, to 49.2%, due to foreign-exchange headwinds. Underlying EPS of €2.23 represented an expansion of 5% year over year and beat the consensus estimate. For FY17, Adidas confirmed its guidance for group sales to increase by 11.0%–13.0% at constant currency. The company expects a full-year gross margin of 49.1% and an operating margin of 8.3%–8.5%. The company expects net income to grow by 18.0%–20.0% year over year, to approximately €1.225 billion. This document was generated for
Company Earnings UpdateMorrisons (LSE: MRW) 1Q18 Update: Comps Strengthen Further Coresight Research May 5, 2017 Executive Summary The UK’s fourth-biggest grocery retailer, Morrisons, reported comps ex fuel of 3.4% for 1Q18. Total sales ex fuel were up 2.8%. More premium food lines and an extension of its clothing offer boosted sales. This document was generated for
Company Earnings UpdateNext (LON:NXT) 1Q17 Update: Weak Sales and Lower FY17 Guidance Coresight Research May 5, 2017 Executive Summary British fashion retailer Next reported a decline in total full price sales of 3.0%. Next Retail full price sales declined 8.1% year over year, while Next Directory sales increased 3.3%. Sales from new retail space accounted for a full price sales increase of 1.6%. Following weak 1Q17 sales, the company lowered its FY17 revenue and profit guidance. The company now expects total full price sales growth for the Next Brand to be between (3.5)% and +0.5%. The company expects FY17 profit before tax (PBT) in the range of £680–£740 million, equating to negative year-over-year growth of between 13.9% and 6.4%. This document was generated for
Company Earnings UpdateSainsbury’s (LSE: SBRY) FY17 Results: Growing Scale Fails to Prevent Disappointing Erosion of Profitability Coresight Research May 4, 2017 Executive Summary Sainsbury’s reported that group sales were up 11.6% in the year ended March 2017. Revenues were boosted by the acquisition of general merchandiser Argos as well as by growth in clothing and general merchandise, implying meaningful declines in Sainsbury’s grocery sales. Despite the company’s increased scale, operating profit fell by 9.2% and missed the consensus estimate. Lower comparable sales, investment in its offering and cost inflation eroded operating margins. In turn, underlying diluted EPS fell by 10.5%, but was in line with consensus. This document was generated for
Company Earnings UpdateApple (AAPL) 2Q17 Results: Beats on EPS, 3Q Guidance Below Consensus Coresight Research May 4, 2017 Executive Summary Apple reported 2Q17 EPS of $2.10, up 10.4% year over year and beating the consensus estimate of $2.02. Revenues were $52.9 billion, up 4.6% year over year and slightly below the $53.1 billion consensus estimate. The company sold 50.8 million iPhones in the quarter, below the consensus estimate of 52.3 million units. iPad units sold decreased by 13% year over year and Mac units sold increased by 4%. Services revenue was $7.0 billion, up 18% year over year. Apple guided for 3Q17 revenues of $43.5–$45.5 billion, below the consensus estimate of $45.6 billion. The margin and expense ranges provided result in an EPS range of $1.42–$1.61, below the consensus estimate of $1.62. This document was generated for
Company Earnings UpdateBaidu (BIDU) 1Q17 Results: Revenue Improved on Higher Spending Per Customer, Non-GAAP Earnings Beat Coresight Research May 2, 2017 Executive Summary Baidu reported 1Q17 non-GAAP diluted earnings per ADS of ¥6.85, up 0.7% year over year, to beat the consensus of ¥6.15. Revenues reached ¥16.9 billion, up 6.8% year over year and in line with the consensus estimate. The company announced that Jennifer Li would be stepping down as CFO to serve as CEO of Baidu’s investment firm Baidu Capital. Management expects the top-line for 2Q17 to be in the range of ¥20.47–¥20.98 billion, representing a year-over-year increase of 12.1%–14.9%. This document was generated for
Event PresentationDisruptors Breakfast – Fashion Tech Companies Coresight Research May 2, 2017 Executive SummaryAGENDA Retail Revolution Is Happening: Store Openings and Closures All-Channel Universe Will Require Adaptation Corporate Innovation Is the New R&D Store as a Platform Wellness as the New Luxury 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 UpdateLuxottica (MIL:LUX) 1Q17 Trading Update: North American Sales Underperforming Coresight Research May 2, 2017 Executive Summary Luxottica reported that its adjusted revenue in 1Q17 increased to €2,384 million, up 5.2% year over year and up 1.9% at constant currency. The result was slightly above the consensus estimate of €2,377 million. Sales growth was driven by a very strong performance in Europe and Latin America, as well as by a solid performance in the retail division. Luxottica e-commerce sales increased by 6% year over year at constant exchange rates. Comparable store sales declined by 2.9% year over year at LensCrafters and by 5.4% at Sunglass Hut. This document was generated for
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. 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
