Amazon’s Debt Analysis
Amazon’s (AMZN) balance sheet reflects total debt of $7.7 billion. The company reported total capital of ~$29.4 billion, and its total-debt-to-total-capital ratio is 50%.
Retail & Wholesale
Market Realist tracks the latest news on stock performance, acquisitions, and earnings in the retail and wholesale sectors.
Inside Twitter’s Valuation
Twitter’s current book value per share of ~$6.5 compares with its expected book value per share of $6.4. Its shares are trading at a PBV ratio of ~2.8x.
Inside American Express’s Global Merchant Services Segment
American Express’s (AXP) Global Merchant Services segment is expected to see a marginal increase in its net income in 2Q17.
How Are the Defensive and Cyclical Sectors Performing?
If we compare the performances of the defensive sectors, we can see that their YTD performance and one-year performances have been reasonably uniform with the exception of the energy and telecom sectors.
American Express to Ride on Partnerships, Digitization
American Express (or Amex) (AXP) has entered into digital partnerships with Airbnb, Facebook (FB), and Uber in order to offset the revenue loss from Costco (COST).
How Does Amazon Gain from the Whole Foods Deal?
News of the Whole Foods acquisition has already given Amazon a boost, pushing its stock up 2.4% and adding $11.0 billion to its market cap, which nearly pays for the $13.7 billion deal.
What’s Eating Kroger’s Sales Comps?
Kroger (KR) has done reasonably well lately, having survived an intensely competitive retailing environment over the past few years.
Gap’s 1Q17 Top-Line Growth Driven Entirely by Old Navy
Gap (GPS) reported total revenues of $3.4 billion in fiscal 1Q17, beating the consensus by $50.0 million. YoY, its top line remained almost flat.
What Analysts Think of Target Stock
The majority of analysts covering Target (TGT) are neutral on the stock. Analysts’ consensus rating on TGT was 2.9 on a scale of 1.0 (strong buy) to 5.0 (strong sell).
Off-Price Retailers Look to Outperform Department Stores in 2017
Despite a rough retail environment, off-price retailers TJX Companies (TJX), Ross Stores (ROST), and Burlington Stores (BURL) have been delivering strong sales growth. In this series, we’ll compare their margins, stock price movements, and analyst recommendations.
How Has Supervalu’s Stock Performed?
After falling around 30% in 2016, Supervalu’s (SVU) stock continues to be in the red in 2017.
Why VF Corporation Stock Has a Downside of 4%
VFC stock is currently trading at $56.44, which is ~17.0% below its 52-week high price.
Understanding Dollar General’s Business Strategies
Dollar General’s (DG) business strategy revolves around driving profitable topline growth while enhancing its low-cost operator position and capturing new growth opportunities.
Dollar General’s Supply Chain and Distribution Model
Dollar General (DG) must maintain an efficient supply chain in order to juggle hundreds of products in over 13,000 stores in 44 states across the United States.
Understanding the US Dollar Store Industry
Dollar stores follow a small-box format to maintain low costs. Target customers are typically lower- and middle-income families.
Dollar General: Why Small-Format Stores Are Key
Dollar General (DG) operates dollar stores that offer a variety of inexpensive merchandise, including home products, seasonal products, consumables, and apparel.
A Snapshot of Dollar General, America’s Largest Dollar Store Chain
Headquartered in Tennessee, Dollar General (DG) is the largest discount store retailer in the United States in terms of total sales.
Understanding Dollar General’s Key Product Offerings
Dollar General (DG) is the largest discount store retailers in the United States in terms of total revenue generated.
Why Tiffany’s Growth Story May Take Place in Asia
Tiffany’s international operations are vital to top-line growth. In fiscal 2016, US sales accounted for 42.3% of overall sales, while other countries made up 42.6%.
Dollar General’s Sales Comps Turn to Growth in Fiscal 4Q16
In fiscal 4Q16, Dollar General’s (DG) top line increased 13.7% year-over-year to $6 billion.
Germany’s Economic Growth and the Role of Rising Inflation
Germany’s expected rise in inflation is concerning as the cost of borrowing has increased across Europe—and this amid all the political uncertainty.
Why Wall Street Is Mostly Positive on Dollar General
30 Wall Street analysts cover Dollar General (DG). On average, they rate the company a 2.4 on a scale of one (strong buy) to five (strong sell).
Target Stock Plunges after 4Q16 Earnings and Revenue Miss
Target (TGT), the third-largest mass merchandiser in the US, declared results for 4Q16 on February 28, 2017.
Why Gap’s CEO Is Projecting Optimism after 4Q16
Gap (GPS) reported total revenues of ~$4.4 billion in 4Q16, beating the consensus by $40 million.
Management Expects VFC’s EPS to Contract in Fiscal 2017
VFC’s gross margin is likely to remain flat at 48.6% and would include 70 basis points of negative impact from currency adjustments.
Why Hanesbrands’ Weak Innerwear Sales Drove Its Top Line Miss
With trailing-12-month sales of over $6 billion, Hanesbrands (HBI) is one the largest marketers of basic apparel in the United States.
Telsey Downgraded Kate Spade & Company to ‘Market Perform’
On January 25, 2017, Telsey downgraded Kate Spade’s rating to “market perform” from “outperform.” It reported fiscal 3Q16 net sales of $316.5 million.
Why Are Walmart and Fellow Old-Guard Giants Shopping in Silicon Valley?
Silicon Valley startups with promising technologies have been pulling in money from surprising new sources.
Will Macy’s Job Cuts and Store Closures Improve Its Position?
On January 4, Macy’s disclosed 68 store closures—three stores closed in mid-2016, 63 stores slated to close in early spring 2017, and two in mid-2017.
Why Did Kate Spade Stock Rise on December 28?
Kate Spade (KATE) rose more than 23.0% on December 28, 2016, after the report that the company is planning to sell its businesses with the help of investment banker.
Citigroup Upgrades Carter’s to a ‘Buy’
Carter’s (CRI) fell 3.3% to close at $87.48 per share during the third week of December 2016.
Lower Fuel Margins Drove Casey’s 2Q17 Earnings Miss
Gasoline sales accounted for 58.0% of Casey’s (CASY) total revenue in fiscal 2Q17. Total gasoline sales fell 4.6% YoY (year-over-year) in fiscal 2Q17.
What Are the Key Focus Areas for Hewlett-Packard Enterprise?
Hewlett-Packard Enterprise (HPE) has mentioned that enterprises and customers are shifting toward hybrid cloud, and it aims to simplify this transition.
Wolfe Research Downgraded Kate Spade to ‘Peer Perform’
On November 23, 2016, Wolfe Research downgraded Kate Spade & Company’s rating to “peer perform” from “outperform.”
Carter’s Declares Dividend of $0.33 Per Share
Price movement Carter’s (CRI) has a market cap of $4.4 billion. It rose 0.48% to close at $88.09 per share on November 11, 2016. The stock’s weekly, monthly, and year-to-date (or YTD) price movements were 2.3%, 0.92%, and -0.06%, respectively, on the same day. CRI is trading 2.0% above its 20-day moving average, 2.1% below […]
Looking Back: What Drove Target’s Top Line in 2Q16?
In 2Q16, mass merchandiser Target (TGT) reported a 7.2% decline in its top line to $16.2 billion. Target’s 2Q16 revenues were affected by lower traffic and higher variability in sales patterns.
Analyzing Sprouts Farmers Market’s Margins and Profitability
Despite the slowdown, Sprouts Farmers Market continues to display better margins compared to Kroger (KR) and Supervalu (SVU).
Sprouts Farmers Market Beat Revenue Estimates in 3Q16
Sprouts Farmers Market (SFM) reported its 3Q16 results on November 3, 2016. The results relate to the three-month period ending October 2, 2016.
How Does GNC Holdings Compare to Its Peers?
GNC’s peers have outperformed GNC Holdings based on PE and PBV ratios. But GNC has mostly outperformed its peers based on PS ratios.
What Social Factors Do ESG Criteria Touch On?
Some issues considered under the social criterion when evaluating a company’s products and practices are human rights, human capital management, and work conditions.
How Does Cabela’s Compare to Its Peers?
Cabela’s peers have outperformed the company based on PBV. However, Cabela’s has outperformed its peers based on PE and PS.
Sprouts Farmers Market May Not Have the Best Quarter
Sprouts Farmers Market (SFM) is slated to release its 3Q16 results on Thursday, November 3, 2016, before the market opens. Wall Street is expecting a fall of 19.0% in EPS.
Weakness in North America Offset VFC’s International Gains
As in the last several quarters, VF’s (VFC) international business remained firm during the third quarter.
How This Emerson Sales Strategy Is Reeling in Big Box Retailers
Emerson Electric’s (EMR) omnichannel sales strategy is a multichannel approach that provides an integrated shopping experience.
A Quick Look at SFM’s Guidance Update for Fiscal 2016
Sprouts Farmers Market has displayed industry-leading earnings growth in the past few years.
Casey’s Gasoline Sales Witnessed a Resurgence in 1Q17
Gasoline sales accounted for 58.2% of Casey’s (CASY) total revenue in 1Q17.
Target’s Stock Price Fell 6.4% after Fiscal 2Q16 Earnings
Target’s (TGT) stock price fell 6.4% to $70.63 on August 17, 2016, after the company released its fiscal 2Q16 earnings.
Target’s Signature Categories Beat Overall Business in Fiscal 2Q
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.
Nordstrom’s Off-Price Rack Business Delivers Again in Fiscal 2Q16
Nordstrom’s off-price Rack business continued to display strength in fiscal 2Q16 ended July 30, 2016.
What Caused a Decline in Macy’s 2Q16 Margins?
Macy’s (M) gross margin remained flat in fiscal 2Q16 ended July 30, 2016. However, the company’s operating margin declined on a year-over-year basis.
