Flash ReportBurberry (LSE: BRBY) 1H17 RESULTS: CHALLENGED SALES AND PROFITABILITY EROSION Coresight Research November 10, 2016 Executive Summary Burberry reported a 4% decline in 1H17 total group constant-currency revenue growth to £1,159 million (up 5% in reported currency), below the consensus estimate of £1,165 million. Total results were negatively impacted by weakness in the wholesale and licensing businesses. Total retail sales increased 2% year over year at constant currency (down 11% in reported currency) to £859 million. The retail business was driven by strength in the UK. Wholesale sales declined by 14% year over year at constant currency (down 6% at reported currency) to £287 million in FY17. 1H17 gross margin contracted by 80 basis points and the SG&A margin increased by 50bps, resulting in operating margin contraction of 120bps. 1H17 adjusted EPS declined by 6.2% year over year, in line with consensus. This document was generated for
Insight ReportSainsbury’s (LSE: SBRY) 1H17 Results: Beats Consensus, Gains Scale from Argos Coresight Research November 10, 2016 Executive Summary The UK’s second-biggest grocery retailer, Sainsbury’s, reported 1H17 comparable sales growth of (1.0)%. Sainsbury’s grew total revenues by 1.8% to £12.6 billion, ahead of the analyst consensus of £12.4 billion. Underlying diluted EPS fell by 8.8%, but marginally beat analysts’ expectations. 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 ReportYOOX Net-a-Porter (BIT: YNAP) 3Q16 Trading Results: Strong Top-Line Growth Coresight Research November 10, 2016 Executive Summary Italian online fashion retailer YOOX Net-a-Porter reported net revenues of €435.4 million in 3Q16, up 11.7% year over year on a reported basis and up 19.0% year over year at current exchange rates. Net revenues were slightly below the consensus estimate of €440.4 million. 3Q16 sales growth was driven by strong performance in the US and Asia-Pacific regions, where sales increased by 17.8% and 36.8%, respectively. UK sales increased by 13.5% year over year. In the first nine months, the average number of monthly unique visitors across the company’s sites rose by 6.2% year over year, from 25.9 million in 9M15 to 27.5 million in 9M16, and orders increased by 18.3%, to 5.9 million, compared with 5.0 million in 9M15. YOOX Net-a-Porter expects to achieve further revenue growth and year-over-year improvement in its adjusted EBITDA margin in FY16. All of the group’s business lines are expected to contribute to EBITDA margin expansion. 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 ReportWayfair (W) 3Q16 Results: Despite Solid Quarter, Softer Consumer Spending Has Sales Outlook Below Expectations Coresight Research November 9, 2016 Executive Summary Boston-based online home goods retailer Wayfair reported adjusted 3Q16 EPS of $(0.54), ahead of the $(0.59) consensus estimate, but down from $(0.13) in the year-ago period. Revenues were $861.5 million, up 45.0% year over year and above the consensus estimate of $845.9 million. Orders in 3Q16 totaled 3.4 million, above the consensus estimate of 3.2 million. Average order value was $244, compared with $235 in the year-ago period. Ending active customers totaled 7.4 million, up 60% year over year and versus consensus of 7.3 million. Mobile orders accounted for 40.3% of the total, up from 35.1% in the year-ago quarter. For 4Q16, Wayfair expects revenue of $920–$960 million, below the $1.03 billion consensus estimate. Additionally, the company expects direct retail revenue in the range of $890–$925 million, below the $995 million 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
Flash ReportCVS Pharmacy [CVS] 3Q16 Results: Mixed Quarter; Company Reduces and Narrows Guidance Range Coresight Research November 9, 2016 Executive Summary CVS reported 3Q16 adjusted EPS of $1.64, up 28.0% year over year and beating the $1.57 consensus estimate. Revenues were $44.6 billion, up 15.5% year over year, missing the $45.3 billion consensus estimate. Pharmacy Services was the fastest-growing segment, with revenues up 19.2% year over year, to $30.4 billion; revenues in the Retail/Long-Term Care (LTC) segment grew by 12.5%. The company reduced and narrowed its 2016 adjusted EPS guidance range to $5.77–$5.83 from $5.81–$5.89. Preliminary 2017 adjusted EPS guidance is $5.77–$5.93, below the consensus estimate of $6.53. This document was generated for
Insight ReportMarks & Spencer (LSE: MKS) 1H17 Results: Beats Expectations, but Comp Decline Continues Coresight Research November 9, 2016 Executive Summary UK clothing-and-food retailer Marks & Spencer (M&S) reported 1H17 sales up 0.9% in total. The closely watched UK Clothing and Home segment posted 1H comps of (5.9)%, versus (0.9)% for the better-performing Food segment. Clothing and Home reported comps of (2.9)% in 2Q17, a sequential improvement from (8.9)% in 1Q17. Food posted comps of (0.9)% in both 1Q17 and 2Q17. The company announced plans to close all its company-owned stores in 10 overseas markets, reduce its UK full-line store numbers by 60 and rebalance some remaining UK space from Clothing and Home to Food. 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 ReportPrimark (LSE: ABF) FY16 RESULTS: SOFT COMPARABLE SALES AND RAPID SPACE EXPANSION Coresight Research November 9, 2016 Executive Summary Primark’s owner Associated British Foods (ABF), reported its FY16 results for the year ended September 17, 2016. This flash report will only focus on Primark, ABF’s retail division. Primark revenues for FY16increased 9.0% year over year at constant currency, and reported sales increased 11.0% year over year to £5,949 million. Comparable-store sales decreased by 2.0% year over year. For FY16, Primark’s operating profit margin was 11.6%, down 100 basis points from 12.6% in FY15, driven by the euro’s weakening against the US dollar. 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: The Mall Is Not Dead: Part 1 Coresight Research November 7, 2016 Executive SummaryTraffic Is Down, but Malls Are Still a Fixture This is the first report in a three-part series in which Fung Global Retail & Technology analyzes the US mall landscape. There are 1,221 malls in the US today, according to the International Council of Shopping Centers (ICSC). The number of malls increased by more than 300% from 1970 to 2015. Given the oversaturation of malls in the US, we believe that at least 30% of malls—mostly within the C and D classifications—need to be closed. Malls classified as A properties are the most productive: they account for only 20% of all malls, yet represent 72% of total mall sales. Even though retail traffic at malls has declined, retailers such as Tesla Motors and Apple are choosing to locate stores in malls in order to expose their brands to meaningful traffic. The top 10 malls in the US see average sales per square foot of over $1,000. Four of these malls are located in Florida and two are in New Hampshire, which has no sales tax. Two are in tourist locations and two are outlet malls. Other reports in this series will analyze department stores in malls, trends impacting malls, malls’ evolution and store concepts that are expanding. 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 ReportWeekly Retail Promo Update Nov 06, 2016 Coresight Research November 6, 2016 Executive Summary Bloomingdale’s is offering fewer promotions this week than it did during the same week last year. The retailer offered up to four online-exclusive sales during the same week last year, but no in-store-exclusive promotions. This week, it is only offering one online-exclusive sale and one in-store Veterans Day sale. 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 nine-hour, online-exclusive promotion this week, while it offered a two-day, online-exclusive promotion last year. This week, JCPenney began its Black Friday promotions, which it did not begin during the same week last year. Kohl’s is running fewer sales this year than it did during the same week last year. The company is offering shoppers two online-exclusive sales this week, while it ran six online-exclusive sales last year. Kohl’s is currently offering a Kohl’s Cash promotion, while it promoted both Kohl’s Charge and Kohl’s Cash last year at this time. 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 focused on promoting its Election Day sale this week, but offered only general weekly sales last year. Macy’s ran more category-specific sales this week last year, such as a designer pop-up sale and a men’s private sale and clearance promotion. 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 Nov 4, 2016 Coresight Research November 4, 2016 Executive Summary This week’s note “From the Desk of Deborah Weinswig” discusses the likelihood of Amazon becoming a majority marketplace, in terms of share of unit sales, in the fourth quarter. Black Friday deals have not varied much in the past several years. Ads and circulars for retailers such as Target, Walmart and Best Buy look almost identical this year to how they looked in past years, featuring nearly the same discounts on the same products. German grocer Lidl is set to sell online in Spain, following similar moves in Belgium, Germany and the Netherlands. A company representative stated that Lidl will not be able to neglect the digitalization trend, but that it will always aim to “guarantee quality at the lowest price.” Walmart is relaunching its hypermarket concept in Brazil, with the opening of Walmart Tamboré in São Paulo and the rebranding of Big Novo Hamburgo in Rio Grande do Sul and Big Santa Felicidade in Parana as Walmart outlets. The company is investing R$1 billion (US$309 million) over the next three years in the rebranding of the Big supermarkets and in the relaunch of the hypermarket concept. This document was generated for
Company Earnings UpdateAdidas Group (ETR: ADS) 3Q16 RESULTS: STRONG RESULTS; FY16 GUIDANCE MAINTAINED Coresight Research November 4, 2016 Executive Summary German athletic and sportswear company Adidas Group reported 3Q16 net sales of €5,413 million, up 13.8% on a reported basis and up 17.0% on a constant-currency basis. Net sales for the quarter were above the consensus estimate of £5,368 million. The strong revenue increase was underpinned by double-digit sales growth in all the group’s geographic markets except Russia. 3Q16 gross margin contracted by 90 basis points year over year to 47.6%, due to foreign-exchange headwinds. Underlying EPS of €1.88 expanded 12.6% year over year, in line with the analyst consensus estimate. For fiscal year 2016, the company confirmed its guidance outlook for group sales to increase in the high teens rate at constant currency. FY16 gross margin is expected to be in the range of 48–48.3%, compared to 48.3% in FY15. The operating margin is expected to reach up to 7.5%, marking a 100bps expansion from 6.5% in FY15. Net income is expected to improve to a range of €975 million to €1 billion, up between 35–39% year over year. This document was generated for
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. 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
