What’s Urban Outfitters’ Growth Strategy?
Urban Outfitters is also trying to boost its top line through overseas expansion.
Retail & Wholesale
Market Realist tracks the latest news on stock performance, acquisitions, and earnings in the retail and wholesale sectors.
Etsy in 2017: A Year of Sweeping Changes
In March 2017, Black-and-White Capital sent a letter to Etsy’s board of directors, noting that the company had a variety of execution and corporate governance issues.
Factors that Help Etsy Stand Out in the e-Commerce Space
Etsy (ETSY) reported strong 3Q17 results and ended fiscal 2017 with its stock price rising 73.6%. This increase beat the S&P 500 Index’s (SPY) gain of 19.4%.
What the New Amazon Prime Charges Look Like
Amazon (AMZN) is raising its Amazon Prime membership fees for some subscribers.
Understanding Home Depot’s Dividend Policy
In the first three quarters of 2017, Home Depot (HD) paid dividends of $0.89 per share. In 3Q17, it paid dividends at a payout ratio of 48.2%.
Target’s Valuation Compared to Its Peers
Target (TGT) stock was trading at a forward PE ratio of 14.8x on January 9, 2018, which seems compelling when compared to the peer group average of 24.5x.
Analysts’ Consensus on RPM International
For RPM International, 54% of the analysts recommended a “buy,” 46% recommended a “hold,” and none of the analysts recommended a “sell.”
Why Mattel’s Sales Could Keep Falling in the Near Term
Toy makers in the United States (SPY) are facing near-term disruptions affecting their top-line performance. Toys “R” US, one of the leading distribution partners for US toy companies, filed for bankruptcy.
Understanding Best Buy’s Growth Strategies
Best Buy (BBY) has managed to deliver higher same-store sales for three consecutive quarters. This growth came amid tough retail market conditions and heightened competition from online retailers like Amazon (AMZN).
What Rising Services Activity Means for the US Economy
After reaching a lifetime high in October 2017, the ISM (Institute of Supply Management) non-manufacturing index fell 2.7 percentage points to 57.4%.
JCPenney’s Sales Growth Strategy
JCPenney (JCP) has been undertaking several strategic actions to improve its sales amid a challenging retail environment.
Amazon Unveils Amazon Prime in Southeast Asia
Amazon (AMZN) has finally launched its Prime membership in Singapore, thus expanding its reach in the fastest growing region of Southeast Asia.
Valuation Multiples: Comparing Home Depot, Lowe’s, and Peers
Valuation multiples help investors determine market values for comparable companies. For our analysis, we consider forward PE (price-to-earnings) multiples due to high visibility in Home Depot (HD) and Lowe’s Companies’ (LOW) earnings.
How Hurricanes Affected HPE’s Earnings
Perhaps US-based (SPY) IT vendor Hewlett Packard Enterprise (HPE) would have generated better profits in fiscal 4Q17 if not for the impact of natural disasters.
Target’s Growth Initiatives Are on Track
Target announced several customer-friendly initiatives that are resulting in higher sales. The company ramped up its delivery mechanism.
Here’s What’s Driving Walmart’s Sales Growth
Walmart (WMT) reported sales of $123.2 billion in fiscal 3Q18, which easily exceeded analysts’ expectation of $121 billion, rose 4.2% YoY (year-over-year).
Walmart: Segments’ Sales Trends in Fiscal 2018
During the last reported quarter, the Walmart U.S. segment’s sales rose 3.3% year-over-year to $78.7 billion, reflecting a 1.8% increase in comps.
Efficient Scale Offers a Narrow Moat
Across the five moat sources (network effect, intangible assets, cost advantage, switching costs, and efficient scale), efficient scale is the most likely to drive a “narrow moat” rating from Morningstar.
Walgreens versus CVS: Discussing PBM Strategies
In August 2016, Walgreens announced a long-term strategic alliance with Prime Therapeutics, America’s fourth-largest PBM.
Walgreens versus CVS: Comparing International Presence
The US is Walgreens’ largest market and accounts for more than 70% of its total sales and operating income.
Walgreens versus CVS: Comparing Pharmacy Giants
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.
Home Depot’s Same-Store Sales Growth Was Higher than Lowe’s
Home Depot (HD) posted SSSG of 6.3%, while its US stores posted SSSG of 6.6%. Its stores in Mexico and Canada also posted positive SSSG.
A Look at Rite Aid’s Stock Crash This Year
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.
Here’s Why Rite Aid’s Margins Have Deteriorated over the Years
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.
Alibaba Has One of the Highest Average Revenues per User
Alibaba’s (BABA) revenue per monthly active mobile user (or MAU) was 196 yuan (or $29.00) in fiscal 1Q18.
Deutsche Bank and Oppenheimer Downgrade Kroger
Kroger’s (KR) 2Q18 results invited a host of negative reactions from Wall Street.
Change in Whole Foods’ Pricing Strategy Starts to Impact Grocers
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.
What’s Contributing to Kohl’s Dividend Yield
The story behind Kohl’s rising yield Department store retailer Kohl’s (KSS) saw its sales fall 3% in 2016, driven by lower comparable sales, after recording growth in 2015. Like Macy’s, it was impacted by online competition, store closures, discounts, and advertisements. Its operating income fell 8% in 2015 and 24% in 2016, while its operating […]
What’s behind Macy’s Rising Dividend Yield
The story behind Macy’s attractive yield Macy’s (M) operates Macy’s and Bloomingdale’s stores. The company’s sales fell between 2013 and 2016. Revenue fell 5% in 2016, compared with 4% in 2015. Online shopping and discount stores have wreaked havoc on brick-and-mortar stores, leading to store closures. Narrowing gross margins and rising impairments, store closing costs, and […]
Why Tencent’s Growth Story Is Not Over
Tencent posts record earnings and revenue Tencent Holdings (TCEHY), China’s biggest gaming and social media company by revenue, reported its fiscal 2Q17 results on Wednesday, August 16. The Shenzhen-based company beat forecasts and reported its best-ever quarterly results. Its strong results were driven by higher income from its popular Honor of Kings mobile game, triple-digit growth […]
Behind Dollar General’s Fiscal 2Q17 Top Line
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.
Will RH’s 2Q17 Earnings Boost Its Stock Price?
Luxury home furnishings retailer RH (RH) will announce its 2Q17 earnings after the market closes on September 6, 2017.
Ulta Beauty Stock: Why It Fell despite Beating 2Q17 Expectations
Ulta Beauty (ULTA) stock fell 9.1% to $212.36 on August 25, 2017, in reaction to the company’s results for fiscal 2Q17, which ended on July 29, 2017.
How Walmart Has an Edge Over Competition
As competition heats up in the grocery business, Walmart (WMT) is leveraging its strong retail presence, which gives the company an edge over the competition.
Walmart Beats Fiscal 2Q18 Bottom-Line Analyst Estimates
Walmart (WMT) reported its fiscal 2Q18 results on August 17. Walmart’s adjusted earnings per share of $1.08 beat Wall Street’s estimate and increased 1% year-over-year.
How Nabors Could Use Its Free Cash Flow This Year
Nabors Industries’ (NBR) CFO (cash from operating activities) turned positive in 2Q17, compared with its negative CFO in 1Q17.
Analyzing Gap’s 2Q17 Top-Line Performance
Gap (GPS) reported total revenues of $3.8 billion in 2Q17 and beat the consensus by $30 million. On a YoY basis, the company’s top line fell 1.4%.
Amazon Sold $16 Billion in Bonds: Here’s Why
Amazon sold bonds to finance Whole Foods acquisition On August 15, Amazon (AMZN) sold $16 billion in bonds to fund its acquisition of Whole Foods (WFM). The bonds were met with robust demand from investors, as the tech giant rarely visits the bond market. Amazon is taking advantage of a good borrowing environment. Amazon’s bond sale is the […]
Target’ s Performance as a Dividend Aristocrat
Target’s (TGT) sales for 2016 fell 6.0% due to lower comparable store sales and weak store traffic.
Will Genuine Parts Sustain Its Dividend Yield?
Genuine Parts (GPC) recorded a marginal growth in its 2016 net sales, driven by its Automotive and Office Products segments.
Sprouts Farmers Market’s 2Q17 Earnings Rose 16%
SFM’s top line is expected to grow 13%–14% based on its sales comp growth of 1.5%–2.0% and 32 new store openings.
Sprouts Farmers Market’s 2Q17 Earnings Beat: Top, Bottom Lines Up
Phoenix, Arizona–based Sprouts Farmers Market (SFM) reported its 2Q17 results on August 3. Total sales for SFM increased 15% year-over-year to $1.2 billion, $17.0 million more than consensus estimates.
A Look at Alibaba’s International Business
In fiscal 4Q17, Alibaba’s international commerce retail business generated $353.0 million in revenues, up 312.0% YoY.
What’s Going on in Intel’s Programmable Solutions Group?
Intel is offering a full spectrum of AI solutions and several accelerators. The company’s journey in accelerated computing began with its acquisition of Altera in 2015.
Lowe’s: Great Business Built on Logistics Strength
Lowe’s Companies (LOW) operates 2,129 home improvement and hardware stores in the United States, Canada, and Mexico.
What Wall Street Recommends for VFC ahead of 2Q17 Results
VFC is covered by 21 Wall Street analysts. It has received a 2.7 rating on a scale where one is a “strong buy” and five is a “strong sell.”
Why Retail Sales Are an Important Indicator of Economic Growth
In this series, we’ll explore the trends in consumer spending in recent months and try to shed some light on the retail sales data that will be released on July 14.
Consumer Discretionary: Which Are the Top Dividend Growers?
Consumer Discretionary Select Index sales, earnings, and dividends have grown at a CAGR (compound annual growth rate) of 6%, 7.2%, and 10.7%, respectively between 2012 and 2017.
Best Buy Stock Falls: Amazon’s Competing with Geek Squad
Best Buy (BBY) stock fell 6.3% on July 10, 2017, in reaction to news of Amazon’s (AMZN) new service that will compete with Best Buy’s Geek Squad.
A Look at PayPal’s Fundamental Analysis
PayPal (PYPL) is trading at a price-to-book value of 4.4x.
