Company Earnings Update | February 1, 2019 Register for Free Access H&M (STO: HM-B) FY18 Results: Logistics Upgrade Proves a Drag on ProfitsFor 1Q19, the company expects markdowns to be around 1 percentage point lower compared to the year-ago period and expects to see continued improvement in inventory, led by strong collections and increased full-price sales. Net sales for the period December 1, 2018 to January 28, 2019, increased 4% year over year in local currencies. In FY19, the company plans to open around 335 new stores, of which around 240 will be H&M stores. H&M plans to close 160 stores. The company will open new logistics centers outside Madrid and north of London at the end of 2019 or beginning of 2020. Read More
Company Earnings Update | February 1, 2019 Register for Free Access LVMH (ENXTPA: MC) FY18 Results: Fashion and Leather Goods Set the PaceLVMH full-year sales rose 9.8% to €46.8 billion. Currency exchange rates adversely impacted full year sales results by (400) bps. Online sales rose approximately 27-28%, to €3.7 billion and now represent 8% of consolidated 2018 revenues. Fashion and leather goods set the sales pace, achieving 15% organic growth in 2018. The Louis Vuitton brand has surpassed €10 billion annually and the fashion and leather goods segment now represents 39% of consolidated 2018 revenues, up from 36% in 2017. Read More
Company Earnings Update | January 29, 2019 Register for Free Access Colgate-Palmolive (NYSE: CL) 4Q18 Results: Driving Growth Through Acquisition, Innovation and ProductColgate-Palmolive reported net sales of $3.81 billion for the three months ended December 31, 2018, down 2.1% year over year but ahead of the consensus estimate of $3.78 billion recorded by StreetAccount. Group organic sales, which exclude the effects of currency movements, acquisitions and divestments, increased 2.0%. Operating income came in at $900 million, down 3.6% year over year. Gross margin decreased 70 basis points to 59.1% and operating margin fell 36 basis points to 23.4%. Read More
Insight Report | January 29, 2019 Premium New Retail Briefing # 2: Alibaba Steps Up Partnerships, NetEase Kaola Opens Flagship StoreAlibaba launched the “A100 Strategic Partnership” program in January 2019 to help partner brands digitalize by giving them access to resources within its ecosystem so participating brands can access Alibaba services in 11 areas to enhance online-offline business integration. Alibaba will also assign a dedicated team to serve each participating brand. Read More
Deep Dive | January 28, 2019 Free Report 10 Retail Trends for 2019: Get Ready for Retail ReinventionGet ready for better stores and better retailing. We expect 2019 to be a year of reinvention — and not just for the retail sector as a whole, but for physical stores in particular. As we outline over the following pages, we anticipate that the year will be marked by spectacular retail, fast retail and smart retail. Read More
Company Earnings Update | January 25, 2019 Register for Free Access Kimberly-Clark (NYSE: KMB) 4Q18 Results: Sales Slow, New Strategy to Guide GrowthThe personal care segment reported sales of $2.2 billion, down 2% year over year, and operating profit of $436 million, down 11% due to higher input costs and operating expenses as well as currency exchange effects. Higher sales volumes drove North America sales, increasing 4% year over year, driven by growth in Pull-Ups training pants, GoodNites youth pants and Depend adult care products. Developed markets outside North America saw sales decrease 4% while net selling prices dropped slightly. Read More
Company Earnings Update | January 25, 2019 Register for Free Access P&G (NYSE: PG) 2Q19 Results: Innovation Driving Growth, Competition Remains ToughP&G reported net sales of $17.4 billion for the three months ended December 31, 2018, up 0.2% year over year. Operating income came in at $3.9 billion, down 0.6% year over year. Gross margin on net sales decreased 130 basis points to 48.9% and operating margin fell 70 basis points to 22.3%. Due to income tax charges caused by a transitional impact of the US Tax Act, diluted earnings per share were $1.22, an increase of 31.2% compared to the previous year. Management said the strong result was driven by the company’s focus on product superiority, productivity and improving its organization and culture. Read More
Analyst Corner | January 25, 2019 Register for Free Access Weinswig’s Weekly January 25, 2019hree Ways China Will Lead Digital Retail Trends in 2019 — and Why These Trends Are Likely to Drive Consolidation Among Major Platforms China continues to lead the world in the integration of online and offline retail, most notably through Alibaba Group’s New Retail concept. We predict that retailers in the U.S. and Europe will increasingly adopt elements of New Retail in 2019. But what else is worth keeping an eye on in Chinese digital retail? This week, we discuss three digital trends we expect to see in 2019, and we note that all three are likely to strengthen the competitive advantages enjoyed by China’s market-leading apps and platforms, such as WeChat, Douyin (also known as TikTok) and Tmall. Read More
Company Earnings Update | January 24, 2019 Register for Free Access Burberry (LSE: BRBY) 3Q19 Update: Limited Edition Products Drive Excitement and SalesBurberry reported a 1.1% retail revenue decline for 3Q19 to £711 million. Comparable store sales rose 1%, driven by mid-single-digit comps in mainland China and Korea. There was very little change in price, thus the increase in comps was volume driven. A net two store closures eliminated 1% of retail selling space. Read More
Flash Report | January 24, 2019 Register for Free Access JD.com Takes Flight in Indonesia with Drone Delivery TrialJD.com’s drone delivery is the first time a Chinese drone has been used for delivery in Southeast Asia, and is also the first time the Indonesian government has granted permission to use a drone for logistics purpose. Read More
Company Earnings Update | January 21, 2019 Register for Free Access VF Corp (VFC) 3Q19 Results: Raises Guidance as Active Segment Propels GainsVF Corp. reported adjusted fiscal 3Q19 EPS of $1.31, up from $1.01 in the year-ago quarter and above the $1.10 consensus estimate. Total revenues were $3.94 billion, up 8.0% year over year (10% at constant currency). Excluding Kontoor Brands (scheduled to be spun off at the end of April), revenues rose 12%. By segment, Outdoor revenues rose 11% to $1.61 billion; Active revenues increased 16% to $1.14 billion; Work segment revenues rose 9% to $62.6 million and Jeans revenues declined 27% to $67.8 million. By channel, direct-to-consumer (DTC) rose 9%, Digital (within DTC) rose 21% and Wholesale increased 6%. By region, Asia Pacific sales rose 16%, led by China, up 23%; followed by a 9% gain in the U.S., 7% in the Americas (non-U.S.) and 4% in EMEA. Read More
Company Earnings Update | January 18, 2019 Register for Free Access Casino Group (ENXTPA: CO) 4Q18 Update: French Protests Drag on Sales GrowthCasino Group reported that group comparable sales excluding automotive fuel were up 3.6% year over year in 4Q18, versus the 3.3% rate reported for 3Q18 and just shy of the 3.7% consensus estimate recorded by StreetAccount. Total group sales were up 0.2% year over year. Read More
Deep Dive | January 17, 2019 Premium 10 Tech Startup Trends Reshaping Retail in 2019: Get Ready for Digital DisruptionThe retail industry has undergone a significant transformation over the past decade, and continues to evolve quickly. In 2019, the market will be defined by emerging technologies that change the way consumers interact with brands, by new engagement formats and channels, as retailers look to collaboration more with startups to future-proof their businesses. Read More
Event Presentation | January 14, 2019 Premium The AI Revolution is Here – Presentation at NRF 2019 Read More
Company Earnings Update | January 11, 2019 Register for Free Access Seven & i (TSE: 3382) 9M19 Results: Struggling at Home, Silver Lining in Overseas Convenience StoresJapan-based retailer Seven & i reported net sales of ¥4,110.6 billion for the nine months ended November 30, 2018, up 15.8% year over year. Operating income came in at ¥304.3 billion, up 2.9% year over year. Gross margin on net sales decreased by 200 basis points to 19.6% and operating margin fell by 60 basis points to 6.0%. Diluted EPS was ¥176.53, up 4.7% year over year. Below, we outline the performance of convenience store operations, superstore Ito-Yokado, food supermarket York-Benimaru and department store Sogo & Seibu. Read More
