Flash ReportAlibaba’s Ant Financial to Acquire US Payment Service MoneyGram for $880 Million in Cash Coresight Research February 1, 2017 Executive Summary On January 26, Ant Financial and MoneyGram announced that privately held Ant Financial would acquire publicly traded MoneyGram (MGI) for $13.25 per share, representing a total deal value of about $880 million. The deal is expected to close in the second half of 2017. The announced merger would create a global payment powerhouse with combined revenues of more than $3 billion and bases in Asia and North America. It would also enable Alipay, the top payment network in China, to enter the US and enable MoneyGram to access China and the rest of Asia. MoneyGram operates a money transfer network of 2.4 billion bank and mobile accounts in addition to 350,000 physical locations. The company is expected to report revenues of about $1.5 billion for 2016. Ant Financial maintains a network of more than 630 million users, comprising 450 million Alipay users, plus another 180 million users through its partnership with Paytm, India’s leading mobile payment provider. 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 Trading Update: Solid Performance in Retail Segment Outweighs Weakness in Wholesale Coresight Research February 1, 2017 Executive Summary Luxottica reported that adjusted revenue in FY16 increased by 0.8% (1.9% at constant currency), to €9,086 million, which was slightly above the consensus estimate of €9,070 million. The company also announced an agreement to acquire 100% of Óticas Carol, one of the largest optical retail franchisors in Brazil. Sales growth was driven by strong performance in Europe and Latin America, as well as by solid performance in the retail segment. Luxottica’s e-commerce sales increased by 24% year over year at constant exchange rates in FY16. The company did not provide explicit numerical guidance for FY17, but stated that growth was healthy in the first few weeks of 2017 and that management expects growth to accelerate during the year. On January 16, 2017, Luxottica agreed to a merger with France-based Essilor (ENXTPA: EI) to create an eyewear industry powerhouse valued at €46 billion. 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 UpdateOcado (LSE: OCDO) FY16 Results: Strong Revenue Growth, But Costs Weigh On Margins Coresight Research February 1, 2017 Executive Summary British online grocery retailer Ocado Group announced a 14.8% increase in revenues for the year ended November 27, 2016, marginally below the 15.1% growth that analysts expected. Higher SG&A expenses caused operating margins to slide by 23 basis points, with the company noting adverse impacts from the deflationary grocery market, higher wage costs and investments to grow the business. Ocado increased its active customer numbers by 13.9% and grew order numbers by 17.9%, but saw its average basket value decline by 2.7%. 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 UpdateUnder Armour (UAA) 4Q16 Results: Big Miss, Slowing Growth, CFO Departure Coresight Research February 1, 2017 Executive Summary Under Armour reported 4Q16 adjusted EPS of $0.23, down from $0.24 in the year-ago quarter and missing the consensus estimate by $0.02. Revenues were $1.31 billion, up 11.7% year over year but also missing the consensus estimate, which called for revenues of $1.41 billion. Management commented that numerous challenges and disruptions in North American retail had tempered the company’s results. Footwear revenues increased by 36.4%, to $228 million, driven by accelerated growth in the running and basketball categories. Apparel revenues increased by 7.4%, to $929 million, driven by strength in the golf and basketball categories. For 2017, Under Armour expects revenue to grow by 11%–12%, to nearly $5.4 billion, which is below the consensus estimate of $6.06 billion. Separately, the company announced that its CFO, Chip Molloy, has decided to leave the company due to personal reasons and that David Bergman, SVP, Corporate Finance, will serve as acting CFO. 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 ReportFrom Runway to Checkout: The See-Now-Buy-Now Trend in Fashion Coresight Research February 1, 2017 Executive Summary Impacted by rising digitization, the fashion industry is currently in a state of rapid transformation. High-end fashion brands are evolving towards a see-now-buy-now business model, which consists of runway styles being available for purchase immediately after fashion shows instead of the customary six-month wait. The changing fashion industry retail schedule has far-reaching implications for design, marketing and supply chains. This see-now-buy-now development presents additional challenges and increases logistical complexity, as realigning orders and delivery schedules with suppliers is required. Major brands and designers that have introduced capsule collections and turned their runway shows into see-now-buy-now formats include Rebecca Minkoff, Burberry, Tommy Hilfiger, Ralph Lauren, Coach and Michael Kors, amongst others. To date, the majority of designers that have adopted instant runway fashion models focus on premium and aspirational price points rather than high-end luxury product. 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 UpdateCoach (COH) 2Q17 Results: Solid Quarter; Company Lowers Revenue Outlook Due to Currency Effects Coresight Research February 1, 2017 Executive Summary Coach reported fiscal 2Q17 adjusted EPS of $0.75, up from $0.68 in the year-ago quarter, beating the consensus estimate by a penny. Revenues were $1.32 billion, up 3.8% year over year and in line with the consensus estimate. Sales at Stuart Weitzman grew by 26% year over year.Net sales for the Coach brand were up 2% year over year; a strategic decision to elevate the brand’s positioning in the North American wholesale channel negatively impacted sales by 100 basis points. Due to currency effects, Coach now expects full-year revenue growth in the low single digits. The company had previously guided for revenues to increase by low-to-mid-single digits. However, the company still expects double-digit growth in both net income and EPS for the 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
Flash ReportTesco-Booker Merger: Uniting Food Retail and Wholesale Coresight Research January 30, 2017 Executive Summary Tesco, the UK’s biggest grocery retailer, and Booker, the UK’s largest cash-and-carry wholesale supplier, have announced an agreement to merge. The transaction values Booker, the smaller of the parties, at £3.7 billion. Tesco and Booker are complementary businesses. While Booker has retail interests through convenience stores, these are non-owned symbol groups, to which it wholesales. The transaction offers Tesco exposure to the foodservice sector, which is growing faster than traditional grocery retailing. Pro forma, the group generated some £59 billion in revenue in FY16, with Booker contributing 9% of this. Tesco says that it expects total quantifiable synergies of at least £200 million within three years. 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 Dive2017 Spring Festival Preview Part 2: Chinese Expected to Spend Big on Outbound Travel and Entertainment Coresight Research January 27, 2017 Executive Summary In Part 2 of our 2017 Spring Festival Report, we focus on two main themes: 1) the continued rise in Chinese outbound travel; and 2) the growing preference for spending on experiences and entertainment. We expect the number of overseas trips taken by Chinese to increase 9% year over year to reach 6.3 million during this year’s Spring Festival. In our view, the sustained increase in outbound tourism is driven by currency fluctuations, the relaxation of visa policies and the expanding network of airlines’ international direct flights from China. Within China, we have a positive view on the performance of payment providers and the movie industry during this year’s Spring Festival. For outbound travel, we are positive on Australia, Thailand, the UK and Japan, due to increasing flights, currency, and/or relaxed visa policies. We remain negative on Taiwan and Hong Kong, as Chinese tourists increasingly prefer destinations that offer unique experiences. 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 Jan 27, 2017 Coresight Research January 27, 2017 Executive Summary This week’s note “From the Desk of Deborah Weinswig” discusses the whirlwind of policies and executive orders US President Donald Trump has launched since taking office on January 20. Shoppers will be able to use their phones to pay in Target stores later this year, but it will not necessarily be with Apple Pay or Android Pay. Instead, Target plans to introduce mobile payment features to one or more of its own apps. L’Oréal and startup incubator Founders Factory revealed the first five startups they have selected to participate in a six-month accelerator program. Founders Factory will provide the selected startups with digital and business support and product guidance, while L’Oréal will provide them with access to its laboratories and marketing and research departments. According to the China Internet Network Information Center, mobile Internet usage in China has reached the notable threshold of 50% for the first time, while the growth of smartphone sales may be declining. As of December 2016, China had 731 million Internet users. That figure represents 53.2% of China’s population. Some 95% of Chinese Internet users, or 695 million people, are on mobile. 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’Oréal (ENXTPA: OR) FY16 Results: Solid Top-Line Growth Across All Regions Coresight Research January 27, 2017 Executive Summary LVMH Moët Hennessy Louis Vuitton increased revenues by 5.0% year over year in FY16, to €37,600 million, which was above the consensus estimate of €37,316 million. Revenues increased by 6.0% year over year on an organic basis. The company’s gross margin expanded by 50 basis points year over year, to 65.3%. However, the SG&A margin expanded by 30 basis points, resulting in the operating margin expanding by 10 basis points, to 18.7%. FY16 adjusted EPS increased by 11.4% and beat consensus. Revenues were driven by strength in the US and Europe. In terms of business segments, sales growth was driven by Perfumes & Cosmetics, Selective Retailing and Wines & Spirits. 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 ReportAmazon Introduces New Rewards Card for Prime Members Coresight Research January 27, 2017 Executive Summary Amazon recently released a revamped rewards card for its Prime members that offers 5% cash back on Amazon purchases and solid rebates on other purchases. The card has no annual fee and those who sign up for it receive a $70 Amazon gift card, which mostly offsets the first year’s $99 fee for an Amazon Prime membership. While the card is not likely to be the “Costco killer” that some in the industry have been suggested it will be, it offers a solid mix of features and is most compelling for those who shop heavily on Amazon.com. The card represents another valuable service Amazon is offering its Prime members as well as another perk of joining the program. The card’s offerings are competitive versus those of other leading cards, and affiliated credit cards can have a meaningful impact on retailers’ earnings, as evidenced by Costco’s switch from an American Express card to a Visa card. 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 UpdateUnilever (LSE: ULVR) FY16 Results: Top and Bottom Line Beat Estimates, But Tough Start to FY17 Coresight Research January 27, 2017 Executive Summary Unilever reported FY16 sales of €52,713 million, ahead of consensus of €52,373 million, but down 1.0% from FY15. At constant exchange rates, sales increased by 4.3%. Gross margin increased by 50 basis points and the operating profit grew by 3.8% (up 5.8% at constant rates) to €7,801 million. Underlying sales growth was 3.7%, but volume growth was mostly flat in aggregate, the company noted, impacted by devaluation-led cost increases in several regions. 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 UpdateeBay (EBAY) 2016 Results: Mixed Quarter and Outlook Coresight Research January 26, 2017 Executive Summary eBay reported 4Q16 revenues of $2.4 billion, up 3.1% year over year and in line with the consensus estimate. Gross merchandise volume (GMV) was $22.3 billion, up 2% year over year as reported and up 5% on a currency-neutral basis. Adjusted EPS was $0.54, compared with $0.50 in the year-ago quarter, beating the consensus estimate by a penny. The company’s Marketplace platforms achieved GMV of $21.1 billion, up 2% year over year, and revenues of $1.6 billion, up 1%. StubHub achieved GMV of $1.2 billion, up 5% year over year, and revenues of $274 million, up 18%. For 2017, the company expects revenues of $9.3–$9.5 billion, with the midpoint slightly above the consensus estimate of $9.36 billion, and adjusted EPS of $1.98–$2.03, below the consensus estimate of $2.07. 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 Reportvip.com Luncheon Takeaways Coresight Research January 25, 2017 Executive SummaryThe Fung Global Retail & Technology team attended the Vipshop luncheon hosted by Supply Chain and Logistics Professionals (SCLP) on January 20, 2017. Filippo Gori, Business Development Director for International Brands at Vipshop discussed the opportunities and challenges that international fashion brands face when selling to Chinese consumers. In this report, we summarize the key takeaways from the luncheon. Borrowing from his breadth of experience marketing luxury brands to Chinese consumers, Filippo Gori summarized what he sees as the key ways international brands can profit from the Chinese consumer market. With the rise of the upper middle class and increase in spending power, the Chinese consumer market presents many opportunities, disproportionately benefiting international brands and verticals such as fashion. When shopping online, Chinese consumers typically expect next-day delivery compared to western consumers who are receptive to different service levels. At the same time, they are price sensitive and aware of brands’ premium pricing. Vipshop is well positioned to benefit from the rise of online consumption in China, on the back of its big data and business-intelligence capabilities, regional warehouse and last-mile delivery network and ability to deliver value for brands and customers. 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 ReportAlibaba (BABA) FY3Q17 Results: Another Solid Quarter Thanks to Robust Online Ad Growth Coresight Research January 25, 2017 Executive Summary Alibaba reported FY3Q17 revenue of ¥53.3 billion, up 54.1% year over year, and beat consensus by 6%. The company attributed the strong results to robust growth of online marketing service revenue, as well as growth in commission revenue and consumer usage. Core commerce revenue reached ¥46.6 billion, up 45% year over year. The growth was mainly driven by the 42% year-over-year increase in China retail revenue of ¥40.8 billion. International retail revenue growth also accelerated to 288% year over year, thanks to AliExpress and Lazada. Cloud computing sales reached ¥1.8 billion, up 115% year over year, driven by a 99.7% year-over-year increase in the number of paying customers to 765,000, as well as an increase in their usage of cloud computing. Alibaba raised its full-year FY17 revenue growth guidance to 53% from 48%. 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
