Company Earnings UpdateAlibaba (BABA) 2Q17 RESULTS: REVENUE BEATS CONSENSUS ON STRONG GROWTH IN E-COMMERCE AND MEDIA Coresight Research November 4, 2016 Executive Summary Alibaba reported 2Q17 non-GAAP diluted EPS of US$0.79, ahead of the US$0.70 consensus estimate and up 7% year over year. Revenues were US$5.14 billion, up 54.7% year over year and above the consensus estimates. Core commerce revenue totaled ¥49 billion (US$4.23 billion) for 2Q17, an increase of 40.8% year over year. Cloud Computing and Digital Media & Entertainment both recorded triple-digit year-over-year growth in revenue. Strong margin in the core Commerce segment will help the company to continue investment in future growth areas. 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 ReportMorrisons (LSE: MRW) 3Q17 Trading Update: 4th Consecutive Quarter of Positive Comps Coresight Research November 4, 2016 Executive Summary The UK’s fourth-largest grocery chain posted 3Q17 comps of 1.6%. This marked a slight sequential weakening from 2.0% growth in 2Q17, but met consensus and was the fourth consecutive quarter of positive underlying growth. Total sales fell 1.2%, due to store closures and the disposal of Morrisons’ convenience-store chain later in 2015. For FY17, analysts expect total sales to fall by 0.4%, but EPS to climb by 8.1%. 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 ReportNotes From Kroger’s 2016 Investor Conference And Store Tour Coresight Research November 3, 2016 Executive Summary The Fung Global Retail & Technology team attended Kroger’s 2016 Investor Conference this week at the headquarters of Kroger’s 84.51° division in Cincinnati, OH. Investors and analysts who attended were also invited to tour the company’s largest store. Kroger possesses a unique culture focused on hard work, modesty and a drive to continuously improve while not underestimating its competitors. In its 84.51° division, Kroger processes a huge amount of data that it collects from social media and customer feedback. It uses the data to create personalized communications featuring yellow tag sale items, digital coupons, weekly ad items and predictive shopping lists. The use of data has enabled Kroger to increase customer loyalty, which in turn has increased average basket size. Kroger has benefited substantially from key acquisitions such as 84.51°, which provided data analyticssis capabilities, and Harris Teeter, whose technology helped create the ClickList click-and-collect platform. Management highlighted the “four keys” that underpin Kroger’s strategy: people, prices, products and experience. Kroger strives to be a model corporate citizen and is focusing on sustainability in its supply chain and on eliminating waste, as well as on social outreach programs such as ending hunger. 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 ReportL Brands [LB] Annual Investor Update Meeting: Key Takeaways Coresight Research November 3, 2016 Executive Summary Ahead of its Annual Investor Update Meeting, L Brands updated its third-quarter 2016 expectations, guiding to the low end of its EPS range of $0.40–$0.45 for the quarter, which is roughly 13% below the consensus estimate. The company said that weakness in Victoria’s Secret October comps (which were down 2.0%) and lower merchandise margins drove the guidance revision. Victoria’s Secret is currently undergoing an evolution as the company works to keep the brand young and relevant by creating an emotional connection with customers. The brand’s efforts include offering newness in its product ranges, facilitated by a focus on speed to market. Management continued to highlight the importance of improving speed. The company had approximately 90% of its inventories for the fourth quarter available to buy at the beginning of the fall season, which allows for agility and a “read, react and chase” approach to planning the business. As the company looks to connect with customers, it is also focusing on its real estate portfolio and the freshness of its stores in terms of the in-store experience they provide. The company has tested various remodels, and has looked to see a definite improvement in store sales performance before rolling out changes across a chain. Remodeling improvements that were tested at Bath & Body Works, for example, generated 25% higher sales in the remodeled locations. The most significant growth opportunity for L Brands is the Chinese market, which management said could potentially equal the size of the US market. The company currently operates 31 Victoria’s Secret Beauty and Accessories stores in China and will launch a Chinese e-commerce site in the next few days, followed by three full-assortment stores later this year. 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 ReportNext [LON: NXT] 3Q17 TRADING RESULTS: SOFT SALES TREND Coresight Research November 3, 2016 Executive Summary British fashion retailer Next reported 3Q17 revenues for the three months ending October 31, 2016. Next Retail full-price sales declined 5.9% and Next Directory full-price sales were flat. Next Total brand full-price sales declined 3.5%, of which sales from newly opened space contributed 1.3%. The 3Q17 sales decline can be attributed to subdued full-price sales in August and difficult sales comparisons against strong monthly sales in September 2015. Sales in October 2016 improved, as sales comparisons from last year became less challenging. Following 3Q17 results, the company has narrowed its guidance ranges for FY17sales, profit before tax (PBT) and earnings per share (EPS). The company forecasts total full-price sales growth for the Next Brand to be between the range of (1.75)% and +1.25%. The mid-point of the revised sales range is slightly lower than the previous sales guidance. Reflecting better-than-expected cost savings, Nextforecasts FY17 PBTto fall in the range of (4.4)% to +0.5% year over year to €785–825 million. FY17 EPS growth is expected to fall between (1.3)% and +3.7%. 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
Flash ReportCOACH [COH] 1Q17 Results: EPS In-Line, Reports Double-Digit Earnings Growth Coresight Research November 2, 2016 Executive Summary Coach reported adjusted 1Q17 EPS of $0.45, in-line with the $0.44 consensus estimate and up 8.9% year over year. Revenues were $1.04 billion, up 0.7% year over year but below the consensus estimate of $1.07 billion. The company highlighted positive comparable store sales in North America and strong international growth. North American brick-and-mortar comps rose by approximately 4% in the quarter, and international sales rose by 7%. For fiscal year 2017, the company maintained its previous guidance; it expects revenues to increase by low- to mid-single digits, and to see double-digit growth in both net income and earnings per diluted share 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
Insight ReportSteve Madden [SHOO] 3Q16 Results: Solid Quarter Led by Women’s Wholesale Segment Coresight Research November 2, 2016 Executive Summary Steve Madden reported 3Q16 revenues of $408.4 million, down 1.2% year over year but above the consensus estimate of $404.6 million. EPS was $0.74, in line with the consensus estimate and up 5.7% from the year-ago period. Comps for the retail business increased by 1.3%. New trends helped to drive growth. The Steve Madden and Dolce Vita divisions drove growth in the wholesale footwear business. The company reiterated its 2016 guidance for revenue growth of 0%–1%. It increased its EPS guidance to $1.98–$2.03, which are in line with consensus estimates calling for revenue of $1.41 billion and EPS of $1.99. 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 ReportKith’s New Pop-Up Shop Serves up Cereal in Collaboration with Captain Crunch Coresight Research November 1, 2016 Executive Summary Kith, the self-described “multifunctional lifestyle brand for both men and women, and a progressive retail establishment,” recently partnered with cereal brand Captain Crunch to create a capsule collection deemed Cap’n Kith. Kith launched a pop-up shop in New York’s SoHo to celebrate the new collaboration. Kith’s relationship with cereal goes way back, with the debut of Kith Treats, New York’s first cereal bar and café located inside of the flagship location. 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 ReportG-COMMERCE: LOOP COMMERCE Disrupts the Gifting Industry Coresight Research October 31, 2016 Executive Summary Retailers (and the industry as a whole) seem to view consumers through a single lens, effectively with the mindset that there is only one customer involved during a transaction. Loop Commerce disagrees, as consumers have one of two mind-sets while they shop – depending on whether they are buying for themselves or shopping for others. This distinction is not captured or accommodated in today’s single shopping flow and checkout, and therefore a massive opportunity is gone uncaptured. Thanks to Loop’s unique and sophisticated platform, retailers can offer a new service and experience to their consumers to shop, buy and deliver any product as a thoughtful gift from their online store, without the anxiety and guesswork that is traditionally associated with gift purchasing. This anxiety ultimately results in loss of transactions and sales, a problem that Loop solves for the merchants. Virtually all products are now easily giftable and new possibilities are opened up, such as true last minute gift purchases and delivery (previously limited by cut-offs due to supply chain and ship-time constraints) for those last minute gifting needs. Recipients of the gifts are able to unbox their chosen gift virtually through a beautiful experience online, and select the size, color, style they want (all before anything has shipped), and enter the shipping address of their choice. They can even elect to exchange their gift altogether for something else, before it ships. Top issues retailers face today include a shrinking customer base and fewer transactions per customer, which result in fewer sales. Through this new paradigm and capabilities, Loop Commerce helps merchants grow their business, customer base and number of transactions by providing incremental sales opportunities, a higher gift checkout conversion, and acquiring new customers. Loop Commerce works closely with Professor Dan Ariely from Duke University, one of the top worldwide experts in Behavioral Economics. Many studies on consumer psychology and behavioral economics have shown that gifting is an emotional process. It’s about elevating the connection between human beings, and should be an exciting experience. Though in today’s commerce world consumers face the feelings of anxiety and stress when shopping for a gift, that in many cases ends up with a loss of business for merchants. Loop Commerce wants to bring happiness and thoughtfulness back into gifting, which ties directly into sales and dollars for the industry as a whole. Loop Commerce’s data indicate that at least 40% of gifts are purchased the day of an occasion or the day before, as people either procrastinated or forget they needed to buy a gift. This is observed across all major occasions as well as year-round with events such as birthdays. Consider receiving a Facebook reminder of your friend’s birthday, today… These last minute gifting needs are not easily accommodated by retailers that require a lead time typically longer than a few hours and even a few days, forcing consumers to look for alternative gifts and even stores (for example, Amazon with its same day delivery in some markets). Loop’s solution is being quickly adopted by some of the largest retailers in the country because of the unique expertise of the company, the sophistication of the technology and service, and the benefit of joining the Loop ecosystem of partners and network of top retailers. The implementation of the right solution will help the merchants tap into the $200-300 billion market of consumers looking to buy products online as gifts. 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
Flash ReportBAIDU [BIDU] 3Q16 RESULTS: REVENUE DECLINES, BUT EARNINGS BEAT ON COST SAVINGS Coresight Research October 31, 2016 Executive Summary Baidu reported 3Q16 non-GAAP diluted EPS of US$49, ahead of the US$1.08 consensus estimate and up 6.9% year over year. Revenues were US$2.74 billion, down 0.7% year over year and in line with estimates. Baidu’s gross merchandise value totaled ¥19.4 billion (US$2.9 billion) for 3Q16, an increase of 49% year over year. Mobile search monthly active users (MAU) and mobile maps MAUs for the month of September 2016 were up 3% YoY and 7% year over year, Management guided for 4Q16 total revenues of ¥17.84–¥18.38 billion (US$2.68–US$2.76 billion), representing a 1.7–4.6% year-over-year decrease. 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 ReportWeekly Retail Promo Update Oct 30, 2016 Coresight Research October 30, 2016 Executive Summary Bloomingdale’s is offering a few more promotions this week than it did during the same week last year. The retailer is running shoe and men’s and women’s designer sales this week that are similar to last year’s. The women’s designer sale this year is in-store exclusive, while it was available online and in-store last year. During this week last year, Bloomingdale’s ran a two-day, online-only jewelry sale, but it is not offering the same sale this year. The retailer is using text message marketing this week, which it did not use during this week last year. JCPenney is promoting fewer sales this week than it did during the same week last year. The retailer is offering one online-exclusive Halloween sale that extended to a two-day online and in-store promotion this week, while it offered a three-day online-exclusive Halloween promotion last year. JCPenney offered multiple other sales during the same week last year, including a Friends and Family sale, a Super Saturday sale and a home sale. Kohl’s is running fewer sales this year than it did during the same week last year. The company is offering shoppers one online-exclusive sale this week, while it ran two online-exclusive sales last year. Kohl’s is currently offering a Yes2You Rewards Members promotion for six days, and Kohl’s Charge and Kohl’s Cash promotions for three days. During this week last year, the retailer featured the same promotions, except for the Kohl’s Charge promotion. Kohl’s is not using text message marketing this week, but did during this week last year. Macy’s is offering fewer promotions this week than it did last year during the same week. The company is promoting its Macy’s Money this week, whereas it offered Macy’s Star Rewards last year during the same week. In both years, Macy’s featured a pop-up sale in selected departments. 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
Flash ReportDebenhams (LSE: DEB) FY16 RESULTS: SALES PERFORMANCE IN LINE WITH EXPECTATIONS Coresight Research October 28, 2016 Executive Summary UK-based department-store chain Debenhams reported gross transaction value sales of £2,939 million for the 53 weeks ended September 3, 2016, slightly above the consensus estimate of £2,902 million. FY16 statutory revenues came in at £2,310 billion, down 0.5% year over year for the 52 weeks ended August 27, 2016. Group comparable store sales increased +0.6% year over year in FY16, with comparable store sales mainly driven by online sales growth of 9.3%. UK-reported revenues declined by 0.8% and international revenues increased 0.9%. FY16 gross margin contracted by 10 basis points to 12.9%. Underlying EPS of 7.5p for the 52 weeks ending August 27, 2016, declined 1.3% year over year from 7.6p in FY15. For fiscal year 2017, guidance is for gross margin to change by between +25bps and (25)bps, total costs to increase by 2% to 4% and capital expenditure of £130 million. The company did not provide sales guidance. 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 Oct 28, 2016 Coresight Research October 28, 2016 Executive Summary This week’s note “From the Desk of Deborah Weinswig” discusses the WWD Apparel & Retail CEO Summit held in New York this week, and highlights the key themes covered by presenters and panelists at the event. With “see now, buy now” gaining momentum in the fashion industry, fast-fashion retailers could stand to lose, even though they operate at different price points. The trend could cause other factors—such as strong and relevant product offerings, improved service options, e-commerce options and increased sales productivity—to play a bigger role in retailers’ success. German discounter Lidl is expected to trial click-and-collect service for fresh and frozen products in Hamburg beginning in December this year. Lidl’s parent company, Schwarz Group, is reported to be investing “a three-digit million figure” to improve its global online presence. British grocer Tesco has launched a trial at two stores in Essex for a new technology called Tap&Tag, which replaces paper receipts with digital ones when a customer completes a purchase. To use the technology, customers simply need to tap a contactless card or NFC-enabled phone on the Tap&Tag console to pay, and a digital receipt will then be sent to them. 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 ReportApple (AAPL) 4Q16 Results: Beats on Bottom Line, Guides for 1Q17 Revenues Coresight Research October 27, 2016 Executive Summary Apple reported 4Q16 EPS of $1.67, down 14.6% year over year but beating the consensus estimate by $0.03. Revenues were $46.9 billion, down 9.0% year over year and slightly below the $47.0 billion consensus estimate. Apple sold 45.5 million iPhones in the quarter, slightly more than analysts expected. Unit sales for all product categories—iPhone, iPad and Mac—were down year over year. Services revenue was up 24%, setting a new record. Apple guided for 1Q17 revenues of $76–$78 billion, above the consensus estimate of $75 billion. The margin and expense ranges provided result in an EPS range of $3.06–$3.23, with the midpoint below the consensus estimate of $3.21. 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 UpdateDIA (DIA) 3Q16 RESULTS: GROWTH IN EMERGING MARKETS WHILE SALES DECLINE ON HOME TURF Coresight Research October 26, 2016 Executive Summary DIA reported 3Q16 net revenues of €2,320.5 million, below the consensus estimate of €2,349.4 million, but up 0.8% year over year, including currency effects. At constant currencies, sales grew by 8.7%. The increase was mainly driven by positive performance in the emerging markets, as sales in its home country of Spain and in Portugal declined by 1.7%. Net profit in 3Q16 grew by 17.2% year over year, to €47.7 million. The company said it will focus on sales growth in the last quarter, and expects adjusted EBITDA to grow 4–5% for 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
