Retail & Wholesale

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.

Mattel, which is an American multinational toy manufacturing company, was the S&P 500’s top gainer on May 15.

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.

Costco (COST) continues to impress with its high earnings growth rate despite its continued focus on prices amid increased competition from Amazon (AMZN).

HelloFresh saw its 2017 revenues touch $1.0 billion in 2017, which is a 52.0% increase from the revenues it generated in 2016.

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.

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.

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 […]

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 […]

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.

During fiscal 4Q18, Walmart’s US segment reported sales of $86.6 billion, up 3.4% on a year-over-year basis.

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%.

Amazon (AMZN) is raising its Amazon Prime membership fees for some subscribers.

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 (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.

For RPM International, 54% of the analysts recommended a “buy,” 46% recommended a “hold,” and none of the analysts recommended a “sell.”

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.

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).

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%.

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.

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 announced several customer-friendly initiatives that are resulting in higher sales. The company ramped up its delivery mechanism.

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).

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.

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.

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.

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.

Alibaba’s (BABA) revenue per monthly active mobile user (or MAU) was 196 yuan (or $29.00) in fiscal 1Q18.

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

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.

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 […]

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 […]

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 […]

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.

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 (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.