SPDR® S&P Retail ETF

On June 11, Lululemon Athletica (LULU) filed a shelf prospectus with the US Securities and Exchange Commission (or SEC).

TJX Companies (TJX) will announce its results for the second quarter of fiscal 2016 on August 18. The second quarter ended on August 1, 2015.

On January 7, 2016, Signet Jewelers (SIG), the world’s largest retailer of diamond jewelry, announced its broad-based success in the holiday season with revenue of $1.9 billion.

Retail sales in the United States in April didn’t see any growth over March’s sales figures. But the jobless claims reading brought some positive news for the consumer sector.

On August 13, 2015, US retail sales came in at expected levels for July. The increase in the retail sector was broad-based.

International brands such as Estée Lauder (EL), L’Oréal (LRLCY), Procter & Gamble (PG), Shiseido (SSDOY), and Nivea (BDRFF) dominate the cosmetics market in China.

The tails of the yield curve may provide more value due to low inflation.

Since its inception, Dover Corporation (DOV) has followed an acquisition-based growth strategy. The company has acquired over 100 manufacturing companies since 1955, and it currently manages close to 30 independently operating companies under its umbrella.

The Dover Refrigeration & Food Equipment unit is a major provider of refrigerated display cases and kitchen equipment such as cookers, mixers, braising pans, and packaging and processing solutions for the meat and poultry business.

Walmex also looking at higher sales through the e-commerce channel. It launched e-commerce in Mexico in 2013. The growth has been moderate.

Developed by Harvard Business School professor Michael E. Porter, Porter’s Five Forces Model is used for assessing the nature of competition and attractiveness of an industry.

Competitive rivalry is extremely strong in the organic and natural food industry. More companies are entering and expanding their presence in the industry.

Trends shaping the jewelry industry include Increasing demand for branded jewelry and an increased focus on e-commerce sales.

Tiffany (TIF) disappointed investors with its comparable-store sales numbers in 1Q17. After results were announced, the company’s stock plunged ~9%.

Ross Stores, which falls in the moderate off-price space, does not seem to be keen on expanding its e-commerce business and does not have an online store.

While Whole Foods Market is struggling at the hands of giants like Kroger and Wal-Mart, Sprouts has been growing steadily in same-store sales and margins.

Porter’s Five Forces model suggests that there are five forces that determine the attractiveness and long-term profitability of an industry or a sector.

On October 1, Nordstrom (JWN) announced the completion of the sale of its credit card portfolio to Toronto-Dominion Bank (TD), also known as TD Bank.

Some ETFs with holdings in Macy’s include one of the most popular ETFs in this category, the Consumer Discretionary Select Sector SPDR Fund (XLY).

In this part of the series, we’ll look at the important events for the week ahead, from May 22–26, 2017.

Costco’s suppliers include companies like PepsiCo (PEP), Procter & Gamble (PG), and the Kraft Heinz Company (KHC). No single supplier accounts for over 5% of revenue.

Walmart’s strategic priorities include building omni-channel capabilities, growing its top line faster, focusing on core assets and capital discipline, and generating stronger shareholder returns.

We think the final tally for holiday retail sales could differ from the gloomy picture some of the initial estimates had painted.

Retail sales in Malaysia rose 13.9% YoY (year-over-year) in June 2017, compared with its 13.6% gain in May 2017.

The NLRB filed a complaint last January. It accused Walmart of violating labor laws. The NLRB claims that the retailer acted against workers who joined unions.

Valuation price multiples are used in the relative valuation technique. This is the most common method used by Wall Street to value stocks.

Whole Foods Market (WFM) has returned nearly 40% on a year-to-date basis as of June 20, 2017.

Since it’s a luxury brand, Tiffany & Co.’s products are priced high, with no promotions. Thus, Tiffany products may be out of reach for many customers.

The Porter’s Five Forces model is extensively used for assessing the nature of competition and attractiveness in an industry.

Sears has a market cap of $2.0 billion. Its YTD price movement both rose and fell in fiscal 2015. After it released its fiscal 3Q15 report, SHLD fell by 6.9%.

Since 2006, Tiffany’s margins have been on the higher side compared to its peers, including Signet Jewelers and Fossil, in the retail jewelry industry.

Tiffany has been increasing its advertising expenses. In fiscal 2015, it spent $284 million on advertising, marketing, and public and media relations.

Total retail jewelry sales in the US grew at a CAGR of 4.4%, reaching $74.7 billion in 2014. Fine jewelry sales grew at a CAGR of 5%, reaching ~$69 billion.

LULU’s gross profit margin slipped from 55.7% in fiscal 2013 to 52.8% in fiscal 2014. The company’s operating profit margin slipped from 27.5% to 24.6%.

The company grew its revenues at a compound annual growth rate of more than 35% over the past five years to come in at $1.6 billion in fiscal 2014.

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

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.

Coach’s (COH) performance in North America remained pressured in the quarter, with sales declining 7% in reported terms to $731 million.

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.

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.

The wholesale channel is the largest channel for Nike’s (NKE) sales.

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

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

In recent quarters, Foot Locker (FL) has made inventory management a priority. The retailer is targeting faster inventory turns.

Margins in the food and staples (XLP) retail segment are slender. It’s important for Walmart (WMT) to keep a tight grip on the cost structure.

The Redbook Sales Index compiles and analyzes comparable store sales at more than 9,000 stores.

Last week, the S&P 500 (SPY) fell 2.6% due to a drastic fall in the energy, retail, consumer staples, and financial sectors.

The consumer staples sector had a slight gain of 0.10% led by a stock increase in the stock price of CVS Health, Coty, Estee Lauder, and Walmart.

Consumer expectations for business conditions Average consumer expectations for business conditions form the only component of the Conference Board LEI (Leading Economic Index) that is not a leading indicator. Consumer expectations are based on two separate surveys. One survey is conducted by the University of Michigan and Reuters, while the second survey is conducted by […]