Sonya Bells

Whole Foods Market reported a 1.9% year-over-year (or YoY) increase in its top line, primarily driven by new store openings.

Wall Street analysts predicted a 13.3% YoY rise in Kroger’s earnings in 3Q16, going to $0.39 from $0.35 in 3Q15. Sales for fiscal 1H16 stood at $58.5 billion.

Ralph Lauren’s merchandise is available through ~13,000 wholesale distribution channels, 501 retail stores, 589 shops-within-shops, and ten websites.

In this part of the series, we’ll conduct a SWOT (strength, weakness, opportunity, and threat) analysis for The Fresh Market (TFM).

Developed by Harvard Business School professor Michael E. Porter, Porter’s Five Forces Model is used for assessing the nature of competition and attractiveness of an industry.

Competitive rivalry is extremely strong in the organic and natural food industry. More companies are entering and expanding their presence in the industry.

Nike is the world’s largest athletic footwear and apparel company. It dominates the sportswear market in Europe, China, and North America.

Casey’s, as per the North American Industry Classification System (NAICS), falls under the sub-category of gas stations with convenience stores.

The company derived 46% of its operating income from the Calvin Klein business in fiscal 2015 compared to 37% in fiscal 2014.

CVS generates close to 70% of its annual sales by offering a full range of pharmacy benefit management services.

While Whole Foods Market is struggling at the hands of giants like Kroger and Wal-Mart, Sprouts has been growing steadily in same-store sales and margins.

S&P Global Ratings lowered the credit rating of Under Armour (UAA) stock to junk status after the company reported weak 4Q16 results and a gloomy sales outlook. The rating on UAA’s bonds dropped from BBB- to BB+.

The Porter’s Five Forces model is extensively used for assessing the nature of competition and attractiveness in an industry.

In early March, Nike showcased its new self-lacing footwear. Also known as “HyperAdapt 1.0,” the shoes tighten up when the foot is placed inside them.

Apollo Global Management (APO) announced today, March 14, 2016, that it has entered into a definitive agreement to acquire The Fresh Market (TFM).

Nike (NKE), the world’s largest apparel company and America’s leading sportswear brand, faced analyst downgrades and target price revisions in September.

Nike’s total sales for fiscal 2018 increased 6% YoY to $34.5 billion. Its brand wholesale revenue increased 2%, and its DTC sales grew 12%.

Currently, 37 analysts track Nike stock. Of these analysts, ~59% recommended a “buy,” 35% recommended a “hold,” and 5% recommended a “sell.”

Inventory backlog has been a critical pressing issue for Under Armour (UAA) for some time.

Not long ago, Under Armour (UAA) challenged Nike’s (NKE) dominance in the sneaker market with the success of its Curry series.

Kroger’s management expects its same-store sales to reach 1.5%–2.0% during fiscal 2018.

The US dollar industry is highly concentrated and dominated by two major players, Dollar General (DG) and Dollar Tree (DLTR).

CVS recorded total sales of $186 billion (+4% YoY) in the last 12 months. The Pharmacy Services segment was the company’s biggest moneymaker.

Around 70% of the US population lives within three miles of a CVS store, while more than 75% of the population lives within five miles of a Walgreens store.

Nike (NKE) delivered a strong performance in the stock market during 2017 with a 23% rise during the year.

The top three drugstore chains in the US are in the process of forming new associations through mergers and acquisitions to create a more diversified portfolio and protect themselves from the growing online threat.

Under Armour (UAA) reported its 4Q17 results on February 13. Its revenues rose 4.6% YOY to $1.4 billion, beating the consensus.

Portland-based Columbia Sportswear (COLM) plans to release its 4Q17 financial results on Thursday, February 8, 2018.

Though Ralph Lauren (RL) has been having a tough time attracting customers, it has been able to impress investors with its stock market gains.

Ralph Lauren (RL) is working hard to improve its brand image and turn around its business.

Ralph Lauren (RL), which is scheduled to report its third-quarter results on February 1, is expected to post another quarter of top-line declines.

Under Armour (UAA) started 2018 on a positive note and surged more than 10.0% in the first three trading days of the new year.

Walmart (WMT) is America’s largest food retailer. Kroger (KR) is the second-largest food retailer and the largest supermarket.

Nike (NKE) is a well-covered stock, tracked by 37 Wall Street analysts. The company is rated a “buy” by 49% of analysts, a “hold” by 46%, and a “sell” by 5%.

CVS is paying more than 11 times the trailing 12-month EBITDA for Aetna.

Baltimore-based Under Armour (UAA) reported its 3Q17 results on October 31.

In August 2016, Walgreens announced a long-term strategic alliance with Prime Therapeutics, America’s fourth-largest PBM.

The US is Walgreens’ largest market and accounts for more than 70% of its total sales and operating income.

The US drugstore market is dominated by two major players—CVS Health (CVS) and Walgreens Boots Alliance (WBA). CVS and WBA accounted for ~29% of the country’s prescription dispensing revenues in 2016.

Rite Aid’s shareholders have been the real losers from the delay and eventual termination of the deal between Rite Aid (RAD) and Walgreens Boots Alliance (WBA) in October 2015.

Rite Aid’s profitability has worsened over the years. Its gross margin has fallen from 29.0% in fiscal 2013 to just 22.6% in the first quarter of the current fiscal year.

Kroger’s (KR) 2Q18 results invited a host of negative reactions from Wall Street.

After bleeding in the stock market in 2015 and 2016, Sprouts Farmers Market (SFM) stock finally bounced back in 2017, rising 27.0% at the end of July 2017. But August turned out to be one of its worst months.

Amazon (AMZN) announced the acquisition of premium organic and natural food retailer Whole Foods Market on June 16, 2017. The deal sent tremors across the food retail sector.

Dollar General (DG) saw its top line rise 8.1% YoY (year-over-year) to $5.6 billion, driven by an 8.9% rise in demand for consumables.

Wall Street’s reaction to 2Q17 earnings Under Armour’s (UAA) 2Q17 results were followed by a host of analyst actions, ranging from target price cuts to downward revisions. The stock’s target price was revised by UBS (from $21 to $19), Canaccord Genuity (from $21 to $18), Stifel (from $19 to $18), Wedbush (from $18 to $17), […]

Baltimore-based Under Armour (UAA) reported its 2Q17 results on Tuesday, August 1. This series is an overview of Under Armour’s 2Q17 results.

A look at Under Armour’s 2Q17 bottom line Under Armour (UAA), which released its 2Q17 results on August 1, reported net earnings of -$12 million, or EPS (earnings per share) of -$0.03. The company reported a weaker gross margin and a rise in SG&A (selling, general, and administrative) expenses. In comparison, it reported earnings of $19 […]

Footwear growth turns negative Under Armour’s (UAA) footwear business was considered the company’s growth engine until recently. The company recorded average quarterly growth of 52% between fiscal 2014 and 2016. However, 2Q17 was a complete letdown. Sales were down 2% YoY (year-over-year) as the company coped with tough comparisons with the year prior. Also impacting sales […]

Under Armour revises guidance As discussed in the previous section, Under Armour’s (UAA) top line grew 8.6% YoY (year-over-year) in 2Q17, against the average growth of 20% it saw up until 3Q16. This slowdown was primarily anchored by weakness in its North American business, which grew by just 0.3% during the quarter. The wholesale business was […]