Retail & Wholesale

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.

Lowe’s (LOW) operates in the home improvement retail industry. The company competes with a number of retail and wholesale players.

Lowe’s (LOW) operates in the home improvement industry where most products, especially building materials, are largely standardized and undifferentiated.

Lowe’s sources its merchandise from over 7,000 suppliers with no supplier accounting for more than 6% of sales.

Lowe’s (LOW) has reported a positive trend in comparable store sales (XRT) for the past ten quarters.

Historically, a large percentage of Lowe’s (LOW) capital expenditure (or capex) has been spent on new store rollouts.

Driving growth from sales to pro customers is a key growth opportunity for the world’s largest home improvement retailer.

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.

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.

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.

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%.

Walmart’s reported operating income margin declined from 5.6% in fiscal 2015 to 5.0% in fiscal 2016.

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 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.

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.

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.

Target opened 15 new stores in fiscal 2016. Its same-store sales rose 2.1%, with customer traffic at stores up 1.3%.

Target has identified four signature categories it’s concentrating on to provide higher store and web traffic and sales: Baby, Style, Wellness, and Kids.

In fiscal 2016, Target’s (TGT) performance was upbeat for all merchandise categories with the exception of hardlines.

Target (TGT) has several marketing programs designed to attract higher store (XRT) (RTH) traffic and higher customer loyalty.

Target operates 1,792 stores in the United States under multiple store formats. Its merchandise assortment differs by store, store location, and store size.

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 business model has been tested over several economic cycles. Even during the recession in 2008–2009, it managed to raise its dividend per share.

The growth rate in activewear or athleisurewear has outpaced the overall clothing market, with a double-digit CAGR over the past five years.

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.

Foot Locker (FL) has several key strengths. It’s the largest specialty retailer (XRT) of sporting goods in terms of US store count.

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 stock closed 14.1% higher on November 20 thanks to the company’s remarkable performance in the third quarter of fiscal 2019.

Yesterday, Macy’s (M) stock fell 10.9% after department store peer Kohl’s (KSS) announced weak third-quarter results and shared a gloomy outlook.

Wall Street expects Gap’s Q3 earnings to disappoint after the bell on November 21. Analysts expect Gap to post revenues of $3.96 billion, down 3.3% YoY.

Mid-tier department store chain JCPenney (JCP) impressed investors by reporting a lower-than-anticipated loss for the third quarter of fiscal 2019.

During the third quarter, Walmart’s digital sales in the US increased 41% on YoY basis. The reported growth rate showed a sequential acceleration.

Currently, AWS is the market leader in the cloud computing sector. Microsoft Azure holds second place, and Google Cloud comes in third.

Charlotte’s Web Holdings (CWEB) (CWBHF) will report third-quarter earnings before the market opens on November 13. Let’s look at analysts’ expectations.

AT&T stock is prospering, while Netflix’s problems could be rising. We also have the latest earnings including U.S. Steel and Chevron today.

When you think of retail companies leading technological innovation, Walmart (WMT) might not be the first name that comes to mind. But it should be.

Target investors have a lot to celebrate in 2019. Stellar growth, a robust financial performance, and share buybacks have boosted shareholders’ returns.

In today’s Get Real, we saw that Boeing is caught in a massive scandal. Chipotle investors are in a good place and Ford is looking to EVs.

Analyst Christopher Eberle reiterated a “buy” rating and a price target of $161 on Microsoft stock. He predicts that Azure could grow 61.6% in Q1.

Retailing has undergone a tremendous change over the last couple of decades. The brick-and-mortar model is giving way to online retailers.