What Did Alibaba See in Trendyol?
Alibaba (BABA) recently struck a deal to buy a stake in Turkey-based online marketplace Trendyol.
Retail & Wholesale
Market Realist tracks the latest news on stock performance, acquisitions, and earnings in the retail and wholesale sectors.
A Look at GoPro’s Marketing and Distribution Strategy
GoPro (GPRO) has a multichannel marketing strategy across social media platforms.
How Oracle’s Soar Could Help It in the Cloud Space
Earlier, we discussed Oracle’s newest offering, Oracle Cloud, which will ease the migration of ERP (enterprise resource planning) systems to the cloud.
Kroger’s Key Revenue Drivers ahead of Its Fiscal Q1 Results
Kroger’s management expects its same-store sales to reach 1.5%–2.0% during fiscal 2018.
Dollar General versus Dollar Tree: A Quick Look
The US dollar industry is highly concentrated and dominated by two major players, Dollar General (DG) and Dollar Tree (DLTR).
CVS Health and Walgreens: Financial Health
CVS recorded total sales of $186 billion (+4% YoY) in the last 12 months. The Pharmacy Services segment was the company’s biggest moneymaker.
CVS Health versus Walgreens: Comparing Pharmacy Giants
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.
Mattel: S&P 500’s Top Gainer on May 15
Mattel, which is an American multinational toy manufacturing company, was the S&P 500’s top gainer on May 15.
Why Walmart’s International Strategy Bodes Well for Growth
Walmart (WMT) is reshaping its international strategy, which augurs well for long-term growth. As competition heats up in the domestic market, Walmart is looking eastward to accelerate growth.
What Are Kohl’s Other Growth Strategies?
Under its Greatness Agenda strategy, Kohl’s is revamping its merchandise offerings, emphasizing the omnichannel experience, and optimizing its marketing spending.
Who Are Alphabet’s Major Cloud Customers?
In March, Airbus said it was shifting its workforce to Google’s G-Suite from Microsoft Office (MSFT).
Costco, Walmart, and Target: Comparing Earnings Growth
Costco (COST) continues to impress with its high earnings growth rate despite its continued focus on prices amid increased competition from Amazon (AMZN).
How HelloFresh Has Overtaken Blue Apron
HelloFresh saw its 2017 revenues touch $1.0 billion in 2017, which is a 52.0% increase from the revenues it generated in 2016.
How Walmart Is Increasing Its Online Presence
Retail giant Walmart (WMT) will expand its home delivery of groceries from its current total of six cities to 100 cities by the end of this year.
What to Know about eBay’s Research and Development Spending
eBay (EBAY) continued boosting its R&D (research and development) budget throughout 2017, leading to a 9.9% increase in its R&D costs overall in the year.
Why AutoZone’s Profit Margin Failed to Impress in Fiscal 2Q18
AutoZone’s 2Q18 earnings Previously, we looked at how AutoZone’s (AZO) key business segments fared in 2Q18. The company’s focus on improving parts availability and the in-store experience continued to drive growth. AZO’s commercial and online retail business traffic grew during the quarter. Let’s find out how these factors affected AutoZone’s profitability in 2Q18. Profit margin in 2Q18 […]
Analyzing AutoZone’s Segment-Wise Performance in 2Q18
AutoZone’s business segments AutoZone’s (AZO) results are divided into two business segments: the DIY (Do-it-yourself) segment and the Commercial or DIFM (Do-it-for-me) segment. The DIY segment, which targets retail customers, yields wider margins than DIFM. Let’s take a look how these business segments performed in 2Q18 and AutoZone’s other key growth priorities. DIY segment in 2Q18 AutoZone’s […]
How the Drug Store Industry Is Changing
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.
Walmart’s US Segment Is a Key Revenue Driver
During fiscal 4Q18, Walmart’s US segment reported sales of $86.6 billion, up 3.4% on a year-over-year basis.
What’s Urban Outfitters’ Growth Strategy?
Urban Outfitters is also trying to boost its top line through overseas expansion.
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.