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Target’s (TGT) Signature Categories include Style, Baby, Kids, and Wellness. Target’s Signature Categories outpaced the total business by 3 percentage points in fiscal 2Q16.
Coty (COTY) and L’Oréal (LRLCY) are trading at higher valuation multiples relative to the S&P 500 Index (IVV)(SPY)(VOO) and the Dow Jones Industrial Average (DIA).
Beauty companies continue to expand into a multi-pronged digital strategy that encompasses e-commerce, m-commerce, as well as digital and social media.
Philip Morris (PM) is set to release its 2Q16 earnings results before the Market opens on July 19, 2016. PM’s earnings and revenue missed the consensus Wall Street analyst expectations in 1Q16.
Consumer packaged goods (or CPG) companies are trading at higher valuations compared to the S&P 500 Index (IVV) (SPY) (VOO) and the Dow Jones Industrial Average (DIA).
The 1Q16 margins of consumer packaged goods (or CPG) companies sent strong signals. These companies have been investing heavily in innovative products and other growth initiatives.
Coty (COTY) reported a fall in its gross margin in fiscal 3Q16. Its reported gross margin came in at 61.2% in fiscal 3Q16 compared to 62.3% in fiscal 3Q15.
Clorox is focusing on Brita’s water filtration product via a partnership between Brita and Stephen Curry, the Golden State Warriors’ point guard who is the NBA’s first unanimous MVP.
In fiscal 3Q16, Clorox beat the consensus Wall Street analyst estimates on revenue after missing these estimates during the previous quarter. The consensus had projected revenue of $1.41 billion.
On May 31, 2016, Clorox (CLX) was trading at $128.54, a fall of 0.7% since its fiscal 3Q16 earnings were released. The company’s stock was trading at its two-year peak of $132.88 on May 12, 2016.
Operating income for the All Other segment decreased by 44.3% to $30 million in 1Q16. Despite a weak top line, Vuse Digital Vapor Cigarette continued to deliver robust results in 1Q16.
Operating income Reynolds American’s (RAI) reported operating income increased by 786.3% to ~$6.1 billion in 1Q16 versus $0.7 billion in 1Q15. This includes charges for implementation costs, asset impairment, and exit costs. It also includes transaction-related and financing costs for the Lorillard acquisition and related divestitures to Imperial Tobacco Group (ITYBY), as well as other […]
Reynolds American’s (RAI) 1Q16 revenue for the American Snuff Co. increased by 7.5% to $0.22 billion compared to $0.20 billion in 1Q15. The increase was primarily due to higher pricing.
Natural American Spirit’s retail market share increased by 0.3% to 2% in 1Q16 in the US, on a volume growth of 22.1%. Natural American Spirit’s volume grew by double digits, increasing by 22% in 1Q16.
Reynolds American (RAI) released its 1Q16 earnings on April 26, 2016. The company’s adjusted diluted earnings per share rose by 16.3% to $0.50 per share in 1Q16.
Reynolds American’s (RAI) key to transformation is robust results and an active innovation pipeline. The company formed RAI Innovation Company to seek alternatives to traditional cigarettes.
Reynolds American’s (RAI) Santa Fe Natural Tobacco Company’s Natural American Spirit brand aligns with consumers seeking authentic products. The company notes that Natural American Spirit brand is made of natural, additive-free tobacco.
Reynolds American’s (RAI) acquisition transaction with Lorillard and its related divestitures to Imperial Tobacco (ITYBY) occurred in order to shift cigarette volumes into RAI’s drive brands.
Reynolds American (RAI) expects cigarette volumes to be down, closer to the -2% range for the year. RAI noted that consumers are moving into premium brands at the expense of value or discount brands in the US.
Estée Lauder’s (EL) fragrance segment’s reported revenue rose 4.6% in reported terms and 7% on a constant-currency basis to $0.3 billion in fiscal 3Q16.
Coty is trading at a higher valuation relative to the S&P 500 Index and the Dow Jones Industrial Average. Coty is trading at a forward PE multiple of 30.3x.
Gross margin and free cash flow Philip Morris’s (PM) gross margin decreased 0.7 points to 65.5% in 1Q16, compared to 66.3% in 1Q15. Despite the adverse currency impact, Philip Morris is focused on generating strong free cash flow in line with last year’s level. The company’s free cash flow (or FCF) increased by more than […]
PM’s increase in revenue on a constant currency basis was primarily due to favorable pricing of $0.1 billion, driven by Russia and Turkey, and partially offset by Ukraine.
Philip Morris International (PM) released its 1Q16 earnings on April 19, 2016. The company’s adjusted diluted EPS fell 15.5% to $0.98 compared to $1.15 in 1Q15.
Colgate-Palmolive (CL) and Clorox (CLX) are trading at a higher valuation relative to the S&P 500 Index (IVV) (SPY) (VOO) and the Dow Jones Industrial Average (DIA).
During 4Q15, Colgate announced it will no longer include the results of its Venezuelan operations in its consolidated financial statements. This will impact diluted EPS in 2016.
Procter & Gamble (PG) reported a slight improvement in its core gross margin in 2Q16. Its reported gross profit margin increased 170 basis points that quarter.
Since December 2015, FX (foreign exchange) headwinds have increased $0.3 billion after tax. That includes devaluations in Argentina, Russia, and Mexico.
Procter & Gamble (PG) is set to release its fiscal 3Q16 earnings before the Markets open on April 26, 2016. In fiscal 2Q16, P&G missed revenue estimates for the fifth consecutive quarter.
Colgate-Palmolive’s global market share is ~45%. It is the leading toothpaste compared to Oral-B and Close-up, especially in emerging markets like India.
Ian Cook has run Colgate-Palmolive for nine years and is expected to step down in five years. P. Justin Skala and Noel R. Wallace will assume CFO roles.
After a lawsuit was filed against Procter & Gamble (PG), or P&G, for its Old Spice deodorant, P&G’s stock price opened with a fall of 0.4% to $82.46 on March 24, 2016.
On March 24, 2016, Virginia resident Rodney Colley filed a lawsuit against Procter & Gamble (PG), or P&G, for harm allegedly caused by its Old Spice deodorants.
Philip Morris’ (PM) reported operating income declined 27.6% to $1.9 billion in 4Q15 compared to $2.6 billion in 4Q14. The decline was primarily due to the negative impact of foreign currency.
Beauty companies’ revenues for 4Q15 conveyed mixed signals to investors. Although Procter & Gamble and Avon started the earnings season on a disappointing note with lower sales, Estée Lauder and Coty beat consensus Wall Street estimates.
From January 2, 2015, to March 18, 2016, CPG companies’ stock prices have seen volatile movements. P&G’s stock price rose by 2.6% to $78.81 on January 26.
Inventory levels in 4Q15 increased for most CPG companies YoY. The inventory turnover ratio for P&G in 4Q15 increased by 6.1% to 6.1x versus 5.7x in 4Q14.
