Was 2019 a “Nightmare” for Warren Buffett and Berkshire?
Warren Buffett underperformed the stock markets last year. Berkshire Hathaway’s returns versus the S&P 500 were the worst since 2009.
Retail & Wholesale
Market Realist tracks the latest news on stock performance, acquisitions, and earnings in the retail and wholesale sectors.
Alphabet’s Other Bets: Three Things to Know as 2020 Starts
To diversify its business outside the advertising market, Alphabet is building several startup businesses in its Other Bets segment.
How Costco Manages Its Inventory and Supply Chain
Costco Wholesale (COST) has been growing its top line consistently, thanks to its impressive comparable sales growth. Let’s take a closer look.
Macy’s, Nordstrom, and Amazon Post Strong Holiday Sales
Macy’s and Nordstrom stocks rose 2.6% and 1.8% on Thursday. Mastercard SpendingPulse reported a 3.4% rise in US retail sales during the holiday season.
Amazon Stops Sellers from Using FedEx Ground Service
FedEx stock fell 1% yesterday on reports that Amazon is blocking third-party merchants from using FedEx’s Ground delivery services for Prime shipments.
Alibaba in 2020: Why Esports Are the Next Big Thing
Alibaba (BABA) has bagged the exclusive rights to stream media content from the English soccer club, Manchester United (MANU), in China.
Walmart Coin: A Bigger Deal than FB’s Libra and Bitcoin?
Retail giant Walmart (WMT) had applied for a digital coin patent. The news comes just as Facebook (FB) is pushing for its own cryptocurrency, Libra.
Get Real: Tesla Bears and the ‘Tariff Man’
The Dow Jones Index needs a Santa Claus rally this year. Instead, the Dow Jones might have to contend with the “Tariff Man.”
AAPL, FFIV, FB, GOOGL, ETSY: Top 5 Tech Calls Today
AAPL and other tech stocks are trending! Let’s take a look at what drove revised price targets, downgrades, and upgrades for today’s top tech stocks.
Dollar General Announces Strong Q3 Earnings
Dollar General (DG) stock was up 1.4% in the pre-market trading session today as the company declared strong third-quarter earnings.
Get Real: Troubles in Asia Move the Market
In our Get Real market newsletter, we saw trouble in China with the Hang Seng’s free fall and the Hong Kong Act. Plus, cannabis has declined in Canada.
CVS Health Stock: What’s Fueling Growth and Will the Uptrend Last?
CVS Health stock is up about 13% in November. Strong financial performance is driving the stock higher, but low earnings growth could limit further upside.
Why Gap Wants to Sell Its Merchandise on Amazon
Gap (GPS) recently announced that it will start selling merchandise on Amazon.
Maverick Capital lowers position in Baidu, Inc.
Maverick Capital lowered its position in Baidu, Inc. in 3Q14. The position accounts for 0.36% of the fund’s total portfolio in the third quarter.Consumer Why signs of a weak economy affect restaurants
This restaurant industry does well when the economy is expanding and poorly when the economy is contracting. In other words, it’s cyclical.
CalPERS adds new position in Liberty Media
Liberty Media Corporation owns interests in a range of communications and entertainment businesses. Recently, the company completed the previously announced spin-off of its cable business, Liberty Broadband.
OTPP opens new position in XPO Logistics
OTPP added a new position in XPO Logistics Inc. (XPO) during the third quarter that ended in September. The position accounted for 0.46% of the fund’s total portfolio.
Why Home Depot and Lowe’s Are Leaders in Home Improvement Retail
Lowe’s (LOW) operates in the home improvement retail industry. The company competes with a number of retail and wholesale players.
Porter’s 5 Forces: Lowe’s Position in a Competitive Industry
Lowe’s (LOW) operates in the home improvement industry where most products, especially building materials, are largely standardized and undifferentiated.
Analyzing Lowe’s Merchandise and Services Assortment
Lowe’s sources its merchandise from over 7,000 suppliers with no supplier accounting for more than 6% of sales.
What’s Driving Sequential Same-Store Sales Growth for Lowe’s?
Lowe’s (LOW) has reported a positive trend in comparable store sales (XRT) for the past ten quarters.
Why Lowe’s Store Productivity Is Growing Faster than Home Depot’s
One of the ways retailers can track their store performance is via productivity measures like sales and profitability per retail square foot.
How Lowe’s Is Leveraging Its Omni-Channel Opportunity
Going omni-channel makes natural sense for both Lowe’s and Home Depot. Both retailers have a massive store network in the US, which can double as strategic fulfillment centers.
How Lowe’s Is Allocating Its Capital Expenditure Budget
Historically, a large percentage of Lowe’s (LOW) capital expenditure (or capex) has been spent on new store rollouts.
How Home Depot Is Leveraging the Pro Customer Opportunity
Driving growth from sales to pro customers is a key growth opportunity for the world’s largest home improvement retailer.
How Home Depot Drives Membership Loyalty With Pro Customers
The Home Depot’s (HD) focus on the pro customer allows the retailer to compete in the installations market and the product demand the services create.
Market Share Play: Lowe’s Bid to Gain Scale in Canada with Rona
The Rona (RON.TO) acquisition should give Lowe’s (LOW) a market-leading position in Canada’s home improvement market, estimated at over $45 billion Canadian.
Why Foreign Currency Headwinds Have Hurt Walmart in Fiscal 2016
Adverse foreign currency movements due to an appreciating US dollar have reduced Walmart’s top line by $12.3 billion in the last three quarters.
Analyzing Lowe’s YTD Sales Performance in Fiscal 2016
Lowe’s sales performance and growth in fiscal 2016 have been robust so far, with net sales rising by 4.9% and same-store sales rising by 4.6%.
How Has Walmart’s Profitability Dip Affected Its Outlook?
Walmart’s reported operating income margin declined from 5.6% in fiscal 2015 to 5.0% in fiscal 2016.
How Walmart Is Looking to Offset Future Operating Cost Headwinds
Wage costs are expected to be a headwind for Walmart. On February 20, Walmart made the second round of wage increases for over 1.2 million staff.
Costco’s Revenue Growth Likely to Moderate in Fiscal 2Q16
Costco posted record results for fiscal 2015. Revenue grew by 3.2% to $116.2 billion, and net income rose by 15.5% to $2.4 billion.
What’s Driving Record Membership Loyalty at Costco?
Costco has been able to steadily increase the renewal rate in the US and Canada from 88% in fiscal 2010 to 91% in fiscal 1Q16.
Kirkland Signature: Costco’s Key Differentiator in Fiscal 2Q16?
Costco has seen traffic growth averaging 4.3% per year in the period between fiscal 2009 and fiscal 2015. In fiscal 1Q16, club traffic rose by 3.5% YoY.
Analyzing Target’s Same-Store Sales Growth in Fiscal 2016
Target had upbeat revenue performance in fiscal 4Q16 and 2016. Store traffic was up by 1.3% YoY in fiscal 2016, trending in positive territory in all four quarters of the year.
Porter’s 5 Forces: Analyzing Target’s Competitive Positioning
It’s relatively easy to open a competing business like Target’s, though it’s harder to do it on the scale that the retailer presently enjoys.
How Does Target’s Historical Sales Growth Compare to Its Peers’?
Target opened 15 new stores in fiscal 2016. Its same-store sales rose 2.1%, with customer traffic at stores up 1.3%.
Why Target Is Focusing on Its Signature Categories to Drive Sales
Target has identified four signature categories it’s concentrating on to provide higher store and web traffic and sales: Baby, Style, Wellness, and Kids.
Merchandise Mix: Which Categories Are Performing Best at Target?
In fiscal 2016, Target’s (TGT) performance was upbeat for all merchandise categories with the exception of hardlines.
How the REDCard and Cartwheel Programs Affect Target’s Sales
Target (TGT) has several marketing programs designed to attract higher store (XRT) (RTH) traffic and higher customer loyalty.
Why Target Is Looking at Flexible Format Stores in the US Market
Target operates 1,792 stores in the United States under multiple store formats. Its merchandise assortment differs by store, store location, and store size.
Why Target Is Ramping up on Supply Chain and Digital Investments
Target (TGT) has been making improvements in its supply chain to cope with the additional demand posed by e-commerce and omni-channel retailing (RTH).
Where Is Target Spending the Bulk of Its Capital Expenditure?
Target (TGT) spent $1.4 billion on capital expenditure in fiscal 2016, representing about 2% of sales.
Can Target Make the Most of Its Opportunities?
Target’s flexible and smaller format stores could prove a cost-effective and capital-efficient way for it to reach customers in new markets.
Target’s Strengths and Weaknesses Are Balanced
Target’s business model has been tested over several economic cycles. Even during the recession in 2008–2009, it managed to raise its dividend per share.
How Has Athleisurewear Boom Impacted the US Apparel Industry?
The growth rate in activewear or athleisurewear has outpaced the overall clothing market, with a double-digit CAGR over the past five years.
Is Walmart’s Supercenter Format Its Most Successful Retail Foray?
Supercenters are more likely to double as fulfillment centers as Walmart widens its omni-channel capabilities. They are likely to provide the company with economies of distribution.
A Look at Foot Locker’s Key Strengths and Weaknesses
Foot Locker (FL) has several key strengths. It’s the largest specialty retailer (XRT) of sporting goods in terms of US store count.
Get Real: Is Unrest Sweeping the Markets?
In today’s Get Real, we took a closer look at Uber’s trouble and an unexpected boost for Canopy Growth while markets react to more unrest.
Target: Why Analysts See More Upside Post-Q3
Target stock closed 14.1% higher on November 20 thanks to the company’s remarkable performance in the third quarter of fiscal 2019.