Flash ReportCVS Health (CVS) 4Q15 Results: Strong Growth Aided by Acquisitions Coresight Research February 10, 2016 Executive Summary CVS Health reported that 4Q15 net sales rose by 11.0% year over year, to $41.1 billion, slightly above the consensus estimate of $41.0 billion. Diluted non-GAAP EPS rose by 26.5% year over year, to $1.53, which was in line with the consensus estimate and within the guidance range of $1.51–$1.55. Pharmacy sales grew by 11.1%, to $26.5 billion, driven by growth in specialty drugs and the recent $10 billion acquisition of pharmaceutical distributor Omnicare. The company reaffirmed its FY16 forecast of non-GAAP EPS of $5.73–$5.88, in line with consensus of $5.82. For 1Q, CVS expects non-GAAP EPS of $1.14–$1.17, slightly below the consensus estimate of $1.18. This document was generated for
Insight ReportSkechers (SKX) 4Q15 Results: Strong Product Demand and Impactful Marketing Coresight Research February 10, 2016 Executive Summary Skechers reported 4Q15 EPS of $0.19 versus the consensus estimate of $0.20. Total revenue was $722.7 million, an increase of 26.8% year over year, versus expectations of $693.5 million. Domestic wholesale sales increased at a high-single-digit rate, while international wholesale sales and retail segment sales both increased at a double-digit rate. Growth was driven by sales across men’s, women’s and kids’ categories. Management provided 1Q16 guidance for EPS of $0.50–$0.55 versus consensus of $0.52. Total revenue is expected to be $885–$920 million versus consensus of $895.7 million. According to the company, 1Q16 started off strong; January sales were up 35% and the first week of February was strong, too. Company-owned retail stores are on track to achieve mid- to high-single-digit comps in January. 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 ReportTaubman (TCO) 4Q15 Results: Very Complicated Quarter, but Solid Outlook Coresight Research February 10, 2016 Executive Summary Real estate investment trust Taubman Centers reported 4Q15 funds from operations (FFO) of $156.2 million, beating the consensus estimate of $151.3 million. FFO per diluted share was $0.85, up 57.4% year over year, but below the consensus estimate of $0.93. Adjusting for the charges related to the October 2014 sale of seven centers to Starwood Capital, FFO per diluted share was $0.98, down 2.0% and in line with the consensus estimate. The company expects FY16 FFO per diluted share to be $3.45–$3.65, slightly below the consensus estimate of $3.67, and it expects net income per share to be $1.55–$1.80. 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 UpdateMetro Group (ETR: MEO) 1Q16 Results: Earnings Slip on Weak Ruble Coresight Research February 10, 2016 Executive Summary Metro AG reported a decline of 7.2% in EBIT before special items, to €828 million, for 1Q16, missing the consensus estimate. Group sales were down 1.3% in reporting currency, to €17.1 billion, while comps were marginally up at 0.1%. The group maintains a positive outlook for FY16despite the challenging economic environment. This document was generated for
Company Earnings UpdateWhole Foods Market (WFM) 1Q16 Results: Comps Have Decelerated in 2Q Coresight Research February 10, 2016 Executive Summary Whole Foods reported 1Q16 EPS of $0.46 versus the consensus estimate of $0.40. Total revenue was $4.83 billion, an increase of 3.4% over the prior year period, versus expectations of $4.81 billion. Comps declined by 1.8% versus consensus of a 2.1% decline. The decrease was driven by a 0.2% decline in basket and a 1.6% decline in transactions. Comps for the first three weeks of 2Q16 declined by 2.8%, following a modest deceleration in trends over the first quarter. This document was generated for
Insight ReportEstée Lauder (EL) 2Q16 Results: Company Beats Consensus Estimates, but Lowers Outlook Coresight Research February 5, 2016 Executive Summary Estée Lauder reported that 2Q16 net sales rose by 2.6% year over year, to $3.1 billion, slightly above the consensus estimate and company guidance. Excluding currency and accelerated orders, net sales increased by 8% year over year. Diluted non-GAAP EPS was $1.22, above the consensus estimate of $1.09 and up 7.9% from the prior-year quarter. Excluding currency, adjusted EPS growth was 18%. The fastest growing segment was hair care, increasing by 9% year over year, to $149.0 million, versus consensus of $141.5 million. Sales were primarily driven by expanded global distribution, primarily in salons and freestanding stores. In terms of dollar contribution, makeup segments were the largest, more than offsetting the decline in skin care. Third-quarter guidance calls for revenues to increase by 2%–3% and for adjusted EPS of $0.53–$0.58, below analysts’ estimates of $0.76. The company lowered its full-year earnings guidance to $3.07–$3.12 per diluted share, compared to $3.10–$3.17 previously and below the consensus of $3.18. 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 February 5, 2016 Coresight Research February 5, 2016 Executive Summary This week, the FBIC Global Retail & Technology team attended the Brand & Retail Selection Day held by Silicon Valley–based accelerator Plug and Play. We saw presentations from many innovative startups. Frye redesigned its logo, and the brand now sports a new tagline, “The original craftsmen of American footwear.” The updated branding follows the opening of three new stores in 2015, bringing the freestanding store total to eight. Another three store openings are planned for 2016. British supermarket Sainsbury’s has agreed to buy Argos-owner Home Retail Group for approximately £1.3 billion (US$1.9 billion). Once the deal is completed, Home Retail Group shareholders will own nearly 12% of the combined group shares. The NDP Group reports that sales of fitness trackers doubled in just a year, with sales reaching $1.46 billion in 2015, up from $692 million the previous year. Fitbit remained the top fitness tracker brand in 2015, accounting for 79% of sales. This document was generated for
Flash ReportClorox (CLX) 2Q16 Results: Mixed Quarter, Company Raises EPS Guidance Coresight Research February 4, 2016 Executive Summary Clorox reported fiscal 2Q16 revenues of $1.3 billion, flat year over year and slightly below the consensus estimate. Diluted EPS from continuing operations were $1.14, up 18% year over year and exceeding the consensus estimate of $1.05. Cleaning and Lifestyle products each posted a 2% volume gain. Clorox Disinfecting Wipes were up by double digits, and Natural Personal Care products posted double-digit volume growth for the second year in a row. The company raised its fiscal 2016 EPS guidance to $4.75–$90 from $4.68–$4.83 due to expectations of higher EBIT margins. This document was generated for
Insight ReportElizabeth Arden (RDEN) 2Q16 Results: Misses EPS by $0.50 and Misses on Revenue Coresight Research February 4, 2016 Executive Summary Elizabeth Arden reported 2Q16 revenues of $316.2 million, a decrease of 5.2% from the year-ago quarter and missing the consensus estimate of $340.9 million. Excluding currency effects, sales were down 1%. Diluted non-GAAP EPS was $0.10, below the consensus estimate of $0.60. Sales of Elizabeth Arden branded products led growth, increasing by 3%. The growth was driven by higher fragrance and skin care sales, which increased by 8% and 2%, respectively. Management expects foreign currency headwinds to negatively impact full-year net sales growth by approximately 3.75%. In November 2015, the company had estimated a 3% negative impact. 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 ReportHanes Brand Inc (HBI) 4Q15 Results: Company Misses Earnings and Revenue Estimates Coresight Research February 4, 2016 Executive Summary HanesBrands reported 4Q15 EPS (ex items) of $0.44 versus consensus of $0.46. Total revenue decreased by 7.4%, to $1.41 billion, versus consensus of $1.53 billion. By segment, innerwear sales were $658.4 million versus consensus of $695.1 million; activewear sales were $368.1 million versus consensus of $406.6 million; direct-to-consumer sales were $98.6 million versus consensus of $102.6 million; and international sales were $284.4 million versus consensus of $319.0 million. Domestic retail traffic declined significantly in the period due to unseasonably warm weather in November and December. Retail traffic declined by a high-single-digit percentage, which weighed on point-of-sale trends and caused retailers to pull back on orders, impacting shipments of both replenishment innerwear and cold-weather and replenishment activewear. Full-year guidance calls for EPS of $1.85–$1.91 versus consensus of $1.90, which implies year-over-year growth of 11%–15%. Total revenue is expected to be in the range of $5.8–$5.9 billion as compared to consensus of $6.03 billion. 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 ReportCoty (COTY) 2Q16 Results: Sales Beat as Demand for Cosmetics Rises Coresight Research February 4, 2016 Executive Summary Coty reported 2Q16 revenues of $1.21 billion, representing a 1% like-for-like decline from the year-ago quarter but topping consensus expectations of $1.20 billion. The beauty products maker recorded diluted non-GAAP EPS of $0.38 versus consensus of $0.34. Revenues were driven by the Color Cosmetics business, which rose by 3% like for like, marking the division’s third straight quarterly increase. Growth was driven by the Rimmel and Sally Hansen power brands. Coty confirmed the acquisition of 10 Procter & Gamble (P&G) fragrance licenses, including Hugo Boss, Gucci and Lacoste, and said it is on track to close in the second half of 2016. Management indicated that a 29% decrease in quarterly net income was tied to costs of $45.5 million in relation to its P&G acquisition. This document was generated for
Insight ReportRalph Lauren (RL) 3Q16 Results: Sales Disappoint, Management Lowers Outlook as Inventory Drags Coresight Research February 4, 2016 Executive Summary Ralph Lauren reported 3Q16 EPS of $2.27 (ex-items) versus consensus of $2.13. Total revenues were down 4% in the quarter, to $1.90 billion, versus consensus of $2.03 billion. The decrease was driven by weakness in the North American business, which declined by 4% due to unseasonably warm weather throughout the quarter, a drop in tourist traffic and product assortment challenges in the Lauren brand. Management provided 4Q guidance that calls for a 2% decline in revenues versus the consensus estimate of a 4% increase. Operating margins are expected to fall by 400–450basis points versus the prior year period due to excess inventory the company will need to clear as well as infrastructure investments and negative foreign exchange impacts. Results, particularly in terms of sales, were disappointing in the period. New CEO Stefan Larsson is conducting a thorough review of each business to understand where both the opportunities and inefficiencies are. The company plans to lay out a more detailed plan about its future strategy next quarter. 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 ReportAmazon Planning Expansion into Brick-and-Mortar Stores Coresight Research February 3, 2016 Executive Summary Industry sources stated that Amazon intends to open as many as 400 stores. Amazon has experimented with physical stores before. It opened its first brick-and-mortar bookstore, called Amazon Books, in Seattle in November 2015. Other online retailers, such as Warby Parker, Blue Nile, Bonobos, Birchbox and Casper, have also opened brick-and-mortar stores. E-tailers open physical stores to better market their wares, forge closer customer relations, and boost online traffic and sales. 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) to Acquire Canadian Home Improvement Chain Rona (TSX: RON) Coresight Research February 3, 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 ReportMacerich (MAC) 4Q15 Results: Tops 4Q Earnings Estimates, Misses on Revenue Coresight Research February 3, 2016 Executive Summary The real estate investment company Macerich reported 4Q15 funds from operations (FFO) of $187.3 million, up 17.9% year over year. Diluted FFO EPS increased by 13.1%, to $1.12 from $0.99 in the prior year period, beating the consensus estimate of $1.06 and representing an EPS growth of 13.1% year over year. The company had revenue of $320.7 million for the quarter, down 0.7% year-over-year, missing the consensus estimate of $333.3 million Macerich expects continued growth in 2016 despite challenging macroeconomic conditions. It expects FFO of $4.05–$4.15 a share, above the consensus estimate of $4.03. 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
