Insight ReportEstée Lauder (EL) 4Q16 RESULTS: EPS BEATS CONSENSUS, SOLID BUT MIXED GUIDANCE Coresight Research August 22, 2016 Executive Summary Estée Lauder reported adjusted 4Q16 EPS of $0.43, ahead of the $0.40 consensus estimate and up 8.3% year over year. Revenues were $2.65 billion, up 4.8% year over year and slightly below the consensus estimate. Makeup was the strongest product category in the quarter; revenues were up 12% year over year, and skincare sales grew just 3%, both in constant currency. Europe, the Middle East and Africa were the strongest geographic regions, with sales up 12%, Asia Pacific was up 6% and the Americas were up 4%, also in constant currency. For fiscal year 2017, guidance is for sales up 6%–7% in constant currency, slightly above the consensus estimate, and EPS guidance is $3.38–$3.44, below the $3.52 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
Deep DiveIntroduction to Deep Learning and Neural Networks Coresight Research August 22, 2016 Executive Summary Deep learning and neural networks are techniques used in computer science to analyze data. They are especially useful in pattern and image recognition. Neural networks use software to mimic the function of the many neurons in the human brain. These functions can be tuned over time; this means man-made neural networks can learn. Deep learning refers to the use of multiple layers of neural networks. Consumers benefit from these technologies every day when they read curated news headlines, research renting a room online or converse with a chatbot. Although the emerging artificial intelligence (AI) market is estimated at just $400 million this year, it can potentially enhance tens of billions of adjacent markets such as, medicine, consumer electronics, robotics, and most importantly, autonomous cars. Many global industrial and technology companies are pursuing autonomous cars. Venture capitalists and technology companies are aggressively investing in and acquiring AI startups. 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 ReportStein Mart (SMRT) 2Q16 Results: Misses on EPS, Lowers SG&A Guidance, New Initiatives for 3Q16 Coresight Research August 22, 2016 Executive Summary Stein Mart reported 2Q16 EPS earnings of $0.06, and missed the consensus estimate of $0.07 by $0.01. Total revenues were $319.8 million compared to $311.6 million last year, which is a 2.6% increase. The company missed the revenue consensus estimate of $326.1 million by 2.0%. Comparable store sales decreased by 1.4%, but new-store sales and a controlled markdown strategy contributed to the sales growth. Management maintained its revenue and gross profit guidance and decreased its SG&A guidance to $360 million, compared to $370 million previously. 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 Aug 21, 2016 Coresight Research August 21, 2016 Executive Summary Bloomingdale’s is promoting more items this week than it did during the same week last year. Last year, the retailer focused on online-exclusive sales, offering customers up to three online-only promotions. This year, Bloomingdale’s is having a five-day, in-store-only sale, which it did not run last year. JCPenney is running fewer promotions than it did during this week last year. The retailer is promoting its JCPenney credit card by offering customers additional discounts of up to 25% when they use it to make a purchase, just as it did during this week last year. Kohl’sran more promotions during this week last year than it is offering this week. This year, the company is offering additional discounts of up to 30% when customers use Kohl’s Cash, whereas last year, it offered an additional 15% off. This week last year, Kohl’s featured longer-running sales, with some sales lasting up to 13 days. This week, Macy’s is running fewer promotional sales than it did last year. The retailer offered more one-day-only sales last year than it is offering 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
Analyst CornerWeekly Insights Aug 19, 2016 Coresight Research August 19, 2016 Executive Summary This week’s note “From the Desk of Deborah Weinswig” highlights the US Fung Global Retail & Technology team’s participation in the MAGIC trade show in Las Vegas this week, as well as our key takeaways from the event. For a limited time, McDonald’s will be giving away fitness trackers with Happy Meals, replacing the plastic figurine or toy that is typically included. The fitness trackers will come in six colors and will count steps and blink according to how quickly the wearer is moving. In pursuit of a more modern and flexible business intelligence system, German discount chain Lidl is currently spending millions on new IT systems that reportedly can optimize its product range, pricing, consumer communication and discounts. Many Thai firms are investing heavily in healthcare for the aging population, as Thailand will see those over 60 account for more than 15% of its total population by the end of 2016. CT Asia Robotics offers an elderly care robot, Dinsow, that can keep track of elderly consumers’ medication, video-phone their relatives, exercise together with them and even entertain them with karaoke skills. This document was generated for
Insight ReportFoot Locker (FL) 1Q16 Results: In-Line Quarter, Marking 25th Consecutive Quarter of Revenue and Profit Growth Coresight Research August 19, 2016 Executive Summary Foot Locker reported 2Q16 revenues of $1.78 billion, up 5.0% from the year-ago quarter and above the consensus estimate of $1.76 billion. Reported EPS were $0.94, up 11.9% year over year and exceeded expectations of $0.94. Both sales and earnings results were better than expected. Comps were up 4.7% with sales driven by positive comparable sales across basketball, running, and classic footwear, as well as apparel. The company maintained fiscal 2016 guidance of comps up mid-single digits and EPS up double digits in line with the consensus of +10.0% or $4.72. For 3Q16, management expects EPS to increase “close to” double digits versus the consensus of +12.0% or $1.12. 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 ReportThe Fung Global Retail & Technology team attended JCPenney’s analyst meeting today in Plano, TX. Coresight Research August 19, 2016 Executive Summary CEO Marvin Ellison characterized the company as having turned the corner, and as now targeting growth and profitability. The company aims to return to profitability this year and to generate EPS of $1.40–$1.55 in 2019. Management has simplified and clarified the company’s strategy and made an effort to get to know its emerging customer profile and give her what she wants and needs. Focus areas include providing her with value (in terms of utility and ease of shopping), offering a beauty solution, becoming a destination for special (i.e., plus) sizes, and enabling her to refresh her home. At the same time, JCPenney is working to improve its supply chain, technology, and omni-channel and in-store entertainment offerings. 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 ReportRoss Stores (ROST) 2Q16 RESULTS: ABOVE EXPECTED PERFORMANCE; WOMEN’S BUSINESS CHALLENGING Coresight Research August 19, 2016 Executive Summary Ross Stores reported 2Q16 EPS of $0.71 and beat the consensus estimate of $0.67, and was up 13% from last year. The Midwest was one of the strongest performing regions, and the company plans further expansion there. Weakness in the ladies’ apparel business and rising labor costs are two headwinds for Ross Stores. The company slightly lowered its guidance for the fiscal year and guided for EPS of $2.69–$2.75 versus the prior guidance of $2.63–$2.72. 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 ReportGap (GPS) 2Q16 Results: Turnaround Continues Coresight Research August 19, 2016 Executive Summary Gap reported 2Q16 adjusted diluted EPS of $0.60, beating the consensus estimate by a penny and versus guidance of $0.58–$0.59. The figure excluded a $0.29 impact associated with the company’s restructuring plans. Total revenues were $3.85 billion, down 1.2% from $3.90 billion in the year-ago quarter. By brand, Gap comps were down 3%, Banana Republic comps were down 9% and Old Navy comps were flat. Management updated its full-year diluted EPS guidance to $1.37–$1.47. Excluding the negative impact of restructuring costs, which is expected to be $0.45–$0.50, the company expects its adjusted diluted EPS to be $1.87–$1.92. 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 ReportLowe’s (LOW) 2Q 2016 RESULTS: EARNINGS MISS, FULL YEAR GUIDANCE CUT Coresight Research August 18, 2016 Executive Summary Lowe’s reported EPS was $1.31 for 2Q 2016, up 9.2% but below the consensus of $1.42. Revenues were $18.3 billion, up 5.3% year over year and below the consensus. The foreign currency hedge in advance of the RONA acquisition decreased pre-tax earnings by $84 million and EPS by $0.06. Overall comps were +2.0% and +1.9% for US stores, down from a 7.3% increase in 1Q 2016 and missed the consensus of 4.2%. Comps were aided by an increased demand for seasonal items and strength in indoor project demand. The company maintained comps +4.0% for 2016 and lowered its EPS guidance from $4.11 to $4.06 to reflect its acquisition of Canadian retail company, Rona, which was completed in May. The consensus calls for EPS of $4.06 for 2016. 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 ReportKingfisher (LSE: KGF): Strong Top-Line Performance in 2Q17 Coresight Research August 18, 2016 Executive Summary UK-based home-improvement retailer, Kingfisher, reported total sales increased by 3.2% at constant currency in 2Q17, with group comps up 3.0% at constant currency. Solid growth was driven by strong performances in the UK and Poland. The company grew comparable sales by 7.2% in the UK and Ireland, but French comps fell 3.2% at constant currency. Kingfisher will report full 1H17 results on September 20. 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 UpdateAMERICAN EAGEL OUTFITTERS (AEO) 2Q 2016 RESULTS: STRONG RESULTS FUELED AERIE COMPS, SIGNIFICANT MARGIN IMPROVEMENT Coresight Research August 18, 2016 Executive Summary American Eagle Outfitters reported 2Q 2016 EPS of $0.23 and exceeded expectations of $0.21, driven by improved margins. Sales at Aerie saw strong momentum and reported the fifth consecutive quarter of comps above 20%. The brand plans to launch a new sports and yoga line this fall. Management guided 3Q 2016 comps will be up low single-digit versus the expected 2.8% and EPS of $0.40–$0.41, in line with the $0.41 consensus. This document was generated for
Insight ReportL Brands (LB) 2Q 2016 RESULTS: MANAGEMENT RAISES FULL-YEAR OUTLOOK AS 2Q RESULTS TOP ESTIMATES Coresight Research August 18, 2016 Executive Summary L Brands reported 2Q 2016 adjusted EPS of $0.70, up 3% and above the guidance it provided earlier in the month, which was at the high end of $0.50–$0.60 and versus the consensus of $0.57. Revenues were $2.89 billion, up 4.5% year over year and above the consensus estimate of $2.85 billion. Comps were up 3% and 1% for store-only, driven by Victoria’s Secret’s increase of 2% and Bath & Body Works’ increase of 5%. The company expects 3Q 2016 EPS to be $0.40–$0.45, versus consensus of $0.47. Management increased its full-year adjusted EPS guidance to $3.70–$3.85 from $3.60–$3.80 previously, and versus the consensus of $3.74. Expectations are for full-year comps to increase 1.3%, driven by Victoria’s Secret (+0.1%) and Bath & Body Works (+3.9%). 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 ReportTencent (0700.HK) 2Q 2016 RESULTS: EARNINGS BEAT, DRIVEN BY OUTPERFORMANCE IN MOBILE GAMES Coresight Research August 18, 2016 Executive Summary Tencent reported 2Q 2016 revenues of ¥35.7 billion, up 52.3% year over year and 6% ahead of the consensus estimate. Non-GAAP diluted EPS was ¥1.16, up 41% year over year and beat the consensus estimate of ¥1.10. All segments performed strongly. Value-Added Services (VAS) revenue increased 39% year over year and comprised 72% of total revenue. Smartphone games outperformed, with revenue growth of 114% and comprised 27% of total revenue. In the second half of 2016 and beyond, the company plans to further build its mobile ecosystem, strengthen its smartphone game portfolio by leveraging on Supercell, the Finnish game developer Tencent recently acquired, and grow its digital-content business. 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 ReportUnilever to Acquire Air-Purification Brand Blueair Coresight Research August 18, 2016 Executive Summary On August 16, consumer goods giant Unilever (LSE: ULVR) announced that it had agreed to acquire Blueair, a Swedish air-purification systems manufacturer, for an undisclosed sum. Unilever said that privately owned Blueair turned over US$106 million in revenues in 2015. The acquisition will take Unilever into a new category. According to market researchers’ forecasts, the air-purification systems category is set for robust growth, with urbanization and consumer awareness of health issues fueling purchases. 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
