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GME Logo
How Important Is The Retail & Technology Brands Segment For GameStop?
  • By , 8/29/16
  • tags: GME
  • GameStop ‘s (NYSE:GME) retail & technology brands business contributes almost 40% to the company’s value as per our estimates, despite accounting for just 26% of its revenues. This is because the retail & technology brands’ segment is a more profitable business with gross margins at around 44%, as opposed to GameStop’s remaining segments, where gross margins are lower at 27%. Additionally, revenues for the retail & technology brands side of the business are expected to rise at CAGR (compound annual growth rate) of 6.3% through to 2021, while revenues from other segments are expected to shrink at a CAGR of 0.4%. The company’s retail & technology brand business is expected to grow strongly on the back of rapid acquisition and expansion of technology brand stores. Have more questions on GameStop (NYSE: GME)? See the links below: How Has GameStop’s Revenue And Gross Profit Composition Changed Over 2011-2015? By What Percentage Have GameStop’s Revenues And Gross Profits Grown Over The Last Five Years? What’s GameStop’s Fundamental Value Based On Expected 2016 Results? GameStop Q4 Earnings Preview: Technology Brands & Digital Segment To Remain The Highlight; Core Segments Struggle What Is GameStop’s Revenue & Gross Profit Breakdown? Gamestop’s Year 2015 In Focus: Technology Brands & Digital Segment Drive Margins; Core Business Witnesses Slump Notes:   See More at Trefis | View Interactive Institutional Research (Powered by Trefis) Get Trefis Technology
    VALE Logo
    Why Copper Prices Will Continue To Remain Subdued For The Rest Of The Year
  • By , 8/29/16
  • tags: VALE FCX ABX NEM
  • London Metal Exchange (LME) spot copper prices currently stand at levels of $4,700 per ton, around 15% lower than the average for last year. Despite rising above $5,000 per ton earlier in the year, we do not expect prices to rise significantly from current levels for the rest of this year. A combination of weakness in demand and excess supply are likely to preclude significant upward moves in copper prices for the rest of the current year. Weakness in Chinese Manufacturing Activity China is the world’s largest consumer of copper, accounting for over 40% of global consumption of the commodity. The slowdown in Chinese manufacturing activity, reflected in the Manufacturing Purchasing Managers Index (PMI) data shown below, has weighed on Chinese demand for the commodity. Despite the Chinese government’s fiscal stimulus, Chinese Manufacturing PMI exceeded 50 (which indicates expansion in manufacturing activity) in only one month so far this year. As copper is a metal with diverse industrial applications, weakness in Chinese manufacturing activity has translated into weakness in Chinese demand for the metal. The weakness in underlying demand is indicated by surging stockpiles of copper, with inventories monitored by the LME currently at a ten-month high. The weakness in underlying demand is also reflected in a slowdown in Chinese copper imports. Excess Supply In the backdrop of weakness in demand, a ramp-up of copper production by miners globally is likely to lead to a situation of supply outstripping demand. Production increases from copper miners seen in the first half of the year are indicative of this looming oversupply situation. Given the looming oversupply situation, we expect copper prices to average close to 15% lower year-over-year in 2016. Moreover, the upside for prices will remain limited in the near term, as indicated by our forecasts for Vale’s average realized copper prices, which mirror our expectations for copper prices. Have more questions about Vale? See the links below. Vale’s Full Year 2015 Pre-Earnings Report Vale’s Q4 2015 Earnings Report: Decline In Iron Ore Prices Negatively Impacts Results How Important Is China To Vale’s Iron Ore Sales? What Is China’s Share Of Vale’s Overall Revenue? What Is Vale’s Revenue & EBITDA Breakdown? What Is Vale’s Fundamental Value Based On 2015 Results? By What Percentage Has Vale’s Revenue & EBITDA Declined Over The Last 5 Years? By What Percentage Can Vale’s Revenue & EBITDA Increase Over The Next 3 Years? How Has Vale’s Revenue Composition Changed Over The Last 5 Years? Notes:
    NEM Logo
    How Successful Have Newmont Mining's Debt Reduction Efforts Been This Year?
  • By , 8/29/16
  • tags: NEM ABX FCX SLW
  • Newmont Mining announced the repayment of a term loan due in 2019 earlier in the month, which reduced its outstanding debt by around $275 million. The company also bought back $498 million worth of notes outstanding and repaid the balance on a revolving credit facility earlier in the year. Aided by an improvement in gold prices and the company’s cost reduction initiatives, these actions have translated into a 31% improvement in the company’s Net Debt to EBITDA ratio this year, as illustrated below. As a result of Newmont Mining’s debt reduction initiatives, the company has maintained its investment grade credit rating. A strengthening of Newmont’s balance sheet will also give the company the financial flexibility to operate in an environment of weaker gold prices than prevailing at present, standing it in good stead for such a scenario. Have more questions about Newmont Mining? See the links below. What Is Newmont Mining’s Revenue And EBITDA Breakdown? What Is Newmont Mining’s Fundamental Value Based On Expected 2015 Results? How Has Newmont Mining’s Revenue Composition Changed Over The Last 5 Years? By What Percentage Did Newmont Mining’s Revenue & EBITDA Decline In The Last 5 Years? By What Percentage Can Newmont Mining’s Revenue & EBITDA Grow In The Next 3 Years? How Will Newmont Mining’s Revenue Composition Change by 2020 Notes: See More at Trefis | View Interactive Institutional Research (Powered by Trefis) Get Trefis Technology
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    Why Is Samsung Planning To Sell Refurbished Smartphones?
  • By , 8/29/16
  • tags: SSNLF NOK AAPL
  • Reports suggest that Samsung Electronics (OTC:SSNLF) is planning to launch a program to sell refurbished used versions of its premium smartphones starting next year. As growth in the global smartphone market slows, Samsung is looking at innovative ways to improve its mobile phone revenue and profitability, in our view. According to Deloitte,  used smartphones will be a $17 billion market in 2016 and at least 10% of premium smartphones purchased in 2016 will have two or three owners before being retired.  We believe by entering this market Samsung can attract consumers towards its refurbished models and lure them away from phones of  local players such as Micromax in India and Xiaomi in China, which sell smartphones with high end features at low prices. If the company is able to avoid the risk of cannibalizing sales of its own low priced models, this strategy can build momentum for its mobile phone segment, which according to our estimates accounts for more than 30% of its valuation.
    ANF Logo
    What Does Abercrombie's Deal With Online Retailer Zalando Mean?
  • By , 8/29/16
  • tags: ANF GPS AEO URBN
  • Abercrombie & Fitch  (NYSE:ANF) recently announced a wholesale agreement with Zalando, Europe’s largest online platform for fashion. The German-based online retailer carries over 150,000 styles from more than 1,500 brands, and serves 15 European markets. The products of Abercrombie & Fitch, Hollister, and abercrombie kids will be available for sale on the platform from this week forward, and will receive the advantage of Zalando’s 19 million active customer base. See our complete analysis for Abercrombie & Fitch According to internetretailer.com’s top 500 e-tailers of the European Union, the German company ranks 7th, with estimated web sales of $3.31 billion in 2015. The company has been increasing its investment on technology improvement recently, as well as spending more on marketing, in order to attract more customers. It is also considered to be one of the best internet retailers in Europe, and the availability of brands on this website does not diminish the brand value. A number of major US brands, such as Nike, Ralph Lauren, Kate Spade, and Under Armour, are present on the website, along with European designers like Armani Jeans, Hugo Boss, and Versace. For Abercrombie to be able to get access to Zalando’s almost 19 million active users, who are regularly engaged through Zalando’s email marketing, could be immense. Furthermore, since every sale through this website will be additional revenue, without any fixed costs associated with it, it may have a positive impact on the margins. The company is also not that heavily present in the continent, and hence, a presence on the website will not result in cannibalization. In the past as well, wholesale arrangements with online retailers such as Next plc and Asos Plc in the United Kingdom have resulted in increased revenue, with $10 million additional sales in the year 2015 . Internet trade, in Europe, is expected to witness more dynamic growth than the overall retail sector . In 2016, the growth expected of the European retail industry is 1.2%, while that of the online trade is 10.6%. For Germany, as well, a similar scenario is forecast, with 1% estimated growth in retail, as compared to 11.4% for internet retail. This positive trend for European online trade is forecast to continue for the next several years, with a CAGR of 8.8% for the period 2016 to 2020. Within this segment, the online fashion industry is also predicted to see burgeoning growth. For Europe, the growth figure is estimated to be 9.6%, while for Germany it is 9.1% in 2016. The main drivers for the overall e-commerce growth have been identified as apparel and footwear, and this coupled with Zalando’s large customer base, wide brand awareness, and strong supplier relationships, will ensure the company’s continued success. These factors, in turn, will be beneficial to Abercrombie. Have more questions about Abercrombie & Fitch? See the links below: How Has Abercrombie & Fitch’s Revenue By Geography Changed Over The Last Three Years? Abercrombie & Fitch Plans Changes To Turn Their Business Around Who Relies On Debt More; Gap Inc or Abercrombie & Fitch? What Is Abercrombie & Fitch’s Revenue & Earnings Breakdown In Terms of Different Operating Segments? What Is Abercrombie & Fitch’s Fundamental Value Based On Expected 2015 Results? How Has Abercrombie & Fitch’s Revenue Composition Changed In The Last Five Years? By How Much have Abercrombie & Fitch’s Revenues & Earnings Grown In The Last Five Years? Notes: Global Large Cap |  U.S. Mid & Small Cap |  European Large & Mid Cap | More Trefis Research
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    Growing Content In China Could Add To Lear's Growth This Year
  • By , 8/29/16
  • tags: LEAR LEA JCI BMW GM TM F VLKAY DAI DDAIF TTM
  • Lear Corporation  (NYSE:LEA) is a leading automotive interiors manufacturer, reporting 2.5% year-over-year growth in revenue through the first half, on 2% growth in global automotive production. The stronger U.S. dollar has been one of the main reasons for lower revenue growth for Lear so far this year, but the company has continued to grow sales by more than the growth in global automotive production nonetheless. China has been a shot in the arm for Lear this year. Sales for the company in the country, excluding the impact of currency, grew 6% year-over-year in the second quarter, more than the automotive production growth of 4%. See our full analysis for Lear Corporation Lear is well-placed in China with 44 manufacturing facilities in the country. Revenue from China formed ~12% ($2.1 billion) of Lear’s top line in 2015, and non-consolidated sales in the country were another $1.5 billion. Why Lear has been able to grow sales by more than the automotive production is because of the growth in content-seating and electrical, per vehicle. Emerging markets tend to have lower content per vehicle, but growth in disposable incomes and in lower-tier cities in China, are boosting the content per vehicle in the country. In particular, the growing demand for SUVs and Crossovers is aiding in growing content. Customers are opting for SUVs and Crossovers, which combine the looks of a car with the functionality of a utility vehicle. Why this benefits Lear is because these vehicles typically require more seating and electrical content per unit. According to China Association of Automobile manufacturers, while production of passenger vehicles was up 10% year-over-year in the country through the first seven months, production of SUVs was up 44%. Just like in the U.S., the bigger, more spacious, vehicles have piqued customer interest. In the U.S., while the overall passenger vehicle market was up only 1.4% through July, SUV/Crossover sales were up 8%. In addition to the growth in larger vehicles, growth in premium vehicle sales is also expected to aid the growth in content per vehicle. Luxury vehicles require more elaborate seating and electrical content, and this bodes well for Lear. For the first seven months of the year, growth in sales for premium automakers outpaced that for the overall market. Lear supplies interiors to BMW, Audi, Mercedes-Benz, and Jaguar Land Rover — the leading luxury automakers in the world. In fact, BMW was Lear’s third-largest client last year, constituting 10.5% of the top line. Lear’s equity earnings from its Chinese joint ventures doubled to $50 million in 2015 from $24 million in 2010. Lear now expects these joint ventures to continue to grow strong and surpass $3 billion in sales by 2018, based on its 3-year non-consolidated sales backlog of $700 million. What works for Lear is that its business is well-balanced, in terms of product segment, customer and platform mix, and by geography. So basically, when one market isn’t doing well, growth in another market offsets that sluggishness.  For example, in China the company has maintained strong relationships with foreign automakers in the country, as well as domestic automakers such as FAW, BAIC, Dongfeng, and SAIC. Local brands are outpacing growth in foreign joint ventures, but this isn’t a problem for Lear, as a considerable 30% of its seating business in China is with major domestic automakers. Why this matters is that local businesses are rising in China. Domestic automakers improved their market share in the country’s passenger vehicle market by 1.2 percentage points to 42.5% through July. Having adequate business with the local companies ensures that the trend of increasing sales for the domestic carmakers doesn’t hamper Lear’s sales. Global vehicle production is expected to grow by 3% in 2016, up from 2% in 2015. China is expected to spearhead this growth, while growth in the U.S. is expected to weaken after the refilling of fleet (following the recession) in the previous three years. Demand is expected to be subdued in struggling economies that are major oil and commodity exporters. In this case, the growing production and content per vehicle in China becomes even more significant for Lear Corporation. Have more questions on Lear Corporation? See the links below. Lear Earnings Review: Profit Rises On Solid Performance Across Seating And Electrical Segments What’s Lear Corporation’s Fundamental Value Based On Expected 2015 Results? Where Will Lear’s Revenue And EBITDA Growth Come From Over The Next Three Years? What Is Lear Corporation’s Revenue And EBITDA Breakdown? Lear Corporation: Year In Review By What Percentage Have Lear’s Revenues And EBITDA Grown Over The Last Five Years? How Has Lear Corporation’s Revenue And EBITDA Composition Changed Over 2011-2015? What Is Lear Corporation’s Geographical And Client-Wise Revenue Breakdown? Why Lear’s Stock Has Appreciated 90% In The Last Five Years Notes: See More at Trefis | View Interactive Institutional Research (Powered by Trefis) Get Trefis Technology
    TSLA Logo
    Here’s Why Tesla’s New Battery Pack Is Significant For Its Future Growth
  • By , 8/29/16
  • tags: TSLA GM F
  • Recently, Tesla Motors  (NYSE:TSLA) unveiled a new battery for its electric vehicles which is capable of going up to 315 miles on a single charge. This range sets a new benchmark for automotive engineers who are trying to resolve “range anxiety” issues, as it brings electric cars in line with the range typically received in a gasoline powered car .  Tesla’s existing batteries give a range of around 170 miles from a charge that takes about 30 minutes . The company divulged the new power pack with the introduction of its Model S (P100D ), which claims records for accelleration as well as range.  And with this technological breakthrough in place, Tesla canoffer this higher range battery in its less costly models as well.  Still,  the success of an electric vehicle, adequate infrastructure in terms of charging stations is critical.  As an increasing number of Tesla cars hit the roads in the next few years, its super charger network can face tremendous volume, which can be balanced with a battery having a higher range, reducing waiting time in these stations.  This development is an indication of Tesla’s innovative edge over competition and should attract buyers towards its higher end models in the long term. See our full analysis for Tesla Motors Competitive Edge For Tesla’s Model S Tesla’s Model 3 – its mass market moderately priced electric car received an overwhelming response, receiving   400,000 orders within a month of its launch. However, many consumers shy away from electric vehicles, primarily due to the paucity of charging stations relative to gasoline stations.  The long charging time and limited range per chargeare issues as well. As Tesla looks to expand its fleet of electric vehicles and grab a higher market share in this segment, it is critical for the company to eliminate “range anxiety” in order to attract a higher number of consumers towards its vehicles. While the new battery with 315 miles range is aimed to differentiate the Model S with the less expensive Model 3, the breakthrough is an indication of: 1) Tesla’s continuous focus on innovation; and,  2) Tesla’s competitive edge in the electric cars space as no other company producing electric cars is able to match this range.  Tesla has now set the bar very high for other electric car makers and defined itself as the leader in this technology. According to our estimates Tesla’s  gross profit margin for Model S will be around 30% over our forecast period, much higher than the highest expected gross profit margin of around 24% for Model 3. We expect Model S to capture a 1% market share in the electric vehicles market by the end of our forecast period. A higher market share for Model S can impact Tesla’s valuation significantly. Assuming the company launches new versions of  this Model S and through innovations claims a market share of around 1.4%,by the end of our forecast period, there can be a nearly 20% upside to our price estimate. We believe Tesla’s ability to innovate and consequently provide its consumers with solutions for “critical” issues is its key advantage. Even as other automakers launch electric vehicles in future, as the automotive landscape undergoes a transition, Tesla will continue to retain its competitive edge with its focus on innovation. Understand How a Company’s Products Impact its Stock Price at Trefis View Interactive Institutional Research (Powered by Trefis): Global Large Cap |  U.S. Mid & Small Cap |  European Large & Mid Cap More Trefis Research
    DD Logo
    Dissecting Dow And DuPont Deal: Why Merge And Split?
  • By , 8/29/16
  • tags: DOW DD
  • DuPont (NYSE: DD) and Dow (NYSE: DOW) are expected to merge, subject to regulatory approvals. Once merged, the management has plans to split the combined entity into three independent and publicly traded companies, with different areas of  focus. This is expected to happen within a period of 18 to 24 months following the merger. What is the need of splitting up the joint companies and how does it help shareholders? We would try to answer these and similar such questions. (Read: Part 1. Dissecting Dow and DuPont Deal: Does The Merger Make Sense?  |  Part 2.  Dissecting Dow and DuPont Deal: Are The Synergy Expectations Reasonable? ) Our price estimate for DuPont stands at $62.02    |   Our price estimate for Dow stands at $57.88  The Split Is Consistent With The Existing Strategy Both Dow and DuPont have been divesting some of their non-strategic businesses to focus on high-margin products. Some of the recent divestitures by Dow include: the Chlorine business to Olin Corp. in 2015 and the AGNUS Chemical Co. to Golden Gate Capital in 2014-15. Likewise, DuPont spun-off its performance chemical business, Chemours, in 2015. The merger and the subsequent split is essentially a continuation of the strategy to create lean and focused businesses, which could help them navigate the current challenging and competitive environment. Avoiding Conglomerate Discount And Allocating Capital efficiently The split should help unlock value for shareholders. Post-merger the companies would operate three broadly unrelated businesses: Agriculture, Material Science and Speciality Products. The combined entity would be faced with what is known as “conglomerate discount”, where the conglomerate tends to trade at a discount to its sum of parts valuation. The split up would lead to efficient capital allocation. The investors would be free to invest only in those businesses which they believe has value and is suitable for them. Merger Before Split Would Provide Significant Size Advantage The merger and eventual split, would give the three companies significant size advantage. The entities formed after the split will be market leader in agriculture and second largest in material science in terms of revenue. Had these companies split without merger they would have missed the size benefits. Additionally, being smaller in size, they would have been easy acquisition targets and would have missed the synergy benefit they can expect post-merger. Have more questions about DuPont? See the links below: How Much Can Dupont’s Revenue Grow In The Next Five Years? What Is Dupont’s Revenue & EBITDA Breakdown? What is Dupont’s Fundamental Value Based On Expected 2016 Results? How Can Dupont’s Revenue Composition Change In The Next Five Years? How Has Dupont’s Revenue Composition Changed In The Last Four Years? Have more questions about Dow Chemical Company? See the links below: What’s Dow Chemical’s Revenue & EBITDA Breakdown In Terms Of Different Products? What’s Dow Chemical’s Fundamental Value Based On Expected 2016 Results? How Has Dow Chemical’s Revenue Composition Changed In The Last Five Years? Notes: Global Large Cap |  U.S. Mid & Small Cap |  European Large & Mid Cap | More Trefis Research
    TTM Logo
    Tata Motors Profit Halves Due To Unfavorable Currency Woes
  • By , 8/29/16
  • tags: TTM-BY-COMPANY TTM TM GM F DAI DDAIF VLKAY BMW TSLA
  • Have more questions on Tata Motors? See the links below. Brexit Could Be Good Or Bad News For Jaguar Land Rover New Compact Models Boost Jaguar Land Rover’s First Half Volumes Tata Motors Rides On Strong Q4 Performance By Jaguar Land Rover To Boost Fiscal 2016 Results Jaguar Land Rover Steps Up Unit Sales In Crucial Markets How Will Tata Motors’ Valuation Be Impacted If Jaguar Land Rover Sells Fewer Cars Than Estimated? What Will Be The Jump In Tata Motors’ Valuation If Jaguar Land Rover Sells More Cars Than Expected? Where Does Jaguar Land Rover Stand Relative To The German Top 3 In Crucial Markets? What’s Tata Motors’s Fundamental Value Based On Expected Fiscal 2016 Results? How Has Tata Motors’s Revenue And EBITDA Composition Changed Over FY12-FY16? By What Percentage Have Tata Motors’s Revenues And EBITDA Grown Over The Last Five Years? What Is Tata Motors’s Revenue And EBITDA Breakdown? Where Will Tata Motors’s Revenue And EBITDA Growth Come From Over The Next Three Years? Why Jaguar Land Rover Forms More Than 90% Of Tata Motors’ Valuation Notes: Get Trefis Technology
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    How Can Curbing Growth Capital Expenditure Impact Alphabet’s Stock Price?
  • By , 8/29/16
  • tags: GOOG
  • Alphabet Inc.  (NASDAQ:GOOG) continues to invest heavily in systems, data centers, real estate and facilities, and information technology infrastructure. Over the past six years, the company has spent nearly $39 billion in capital expenditure (CapEx). As a percentage of revenues, the CapEx has fluctuated between 13.5% and 16.7%. Most  of this CapEx has been growth as the company continues to strive for an increase in topline. The table below illustrates how the CapEx has fluctuated in absolute terms over the past six years. Year Units Value 2010 $ Bil 4.02 2011 $ Bil 3.44 2012 $ Bil 3.27 2013 $ Bil 7.36 2014 $ Bil 10.96 2015 $ Bil 9.92 Total $ Bil 38.96 The driver below illustrates how the capital expenditure (as a % of revenues) has waxed and waned over the past six years. While most of the capital expenditure has been related to Google and its ads business, capital expenditure related to other bets have gone up recently as the company expands its operations to other business vertical such as Google fiber and improving human life expectancy. The following table shows this trend. CapEx Units 2013 2014 2015 Google $ Bil 7.00 11.17 8.85 % Of Total CapEx % 95.21% 101.95% 89.25% Other Bets $ Bil 0.19 0.50 0.87 % Of Total CapEx % 2.54% 4.57% 8.76% Reconciling Items $ Bil 0.17 -0.72 0.20 Total $ Bil 7.35 10.96 9.92 As a result of this capital expenditure, Alphabet’s free cash flow to the firm have been suppressed, as shown below: Free Cash Flow To For The Firm Unit Value 2010 $ Bil 8.90 2011 $ Bil 10.20 2012 $ Bil 13.98 2013 $ Bil 13.90 2014 $ Bil 12.69 2015 $ Bil 18.52 Based on these trends we project that the CapEx (growth and maintenance) in the ensuing years will be as follows: Year Unit CapEx CapEx As A% Of Revenue FCF 2016 $ Bil 11.60 13.2% 19.38 2017 $ Bil 12.60 13.1% 20.80 2018 $ Bil 13.69 13.1% 22.41 2019 $ Bil 15.02 13.1% 23.81 2020 $ Bil 16.88 13.1% 25.91 2021 $ Bil 18.62 13.1% 27.71 2022 $ Bil 19.81 13.1% 28.03 2023 $ Bil 21.67 13.1% 29.17 However, if the company were to undertake only maintenance CapEx, its free cashflow would be market better as shown below: Year Unit CapEx CapEx As A% Of Revenue FCF Increase 2016 $ Bil 9.89 11.25% 20.88 1.49 2017 $ Bil 9.82 10.25% 23.22 2.42 2018 $ Bil 10.16 9.75% 25.48 3.07 2019 $ Bil 10.58 9.25% 27.68 3.86 2020 $ Bil 10.93 8.50% 31.08 5.17 2021 $ Bil 11.01 7.75% 34.34 6.63 2022 $ Bil 10.58 7.00% 36.06 8.03 2023 $ Bil 10.35 6.25% 39.03 9.86 This can lead to a 25% upside to our estimate of Alphabets’ stock price. Have more questions about Alphabet? See the links below: What’s Alphabet’s Fundamental Value-Based On 2015 Results? By What Percentage Did Alphabet’s Revenue And EBITDA Increase In The Last Five Years? How Has Alphabet’s Revenue Composition Changed Over The Last 5 Years? By What Percentage Can Alphabet’s Revenues And EBITDA Grow In The Next 3 Years? How Much Are Advertiser Paying For Internet Users In Rest Of The World To Google? How Much Are Advertiser Paying For The US Internet Users To Google? What Was The Estimated Desktop Revenue Per Search For Google In 2015? Notes: Global Large Cap |  U.S. Mid & Small Cap |  European Large & Mid Cap | More Trefis Research
    LMT Logo
    By What Percentage Did Lockheed Martin's Revenue & EBITDA Grow In The Last 5 Years?
  • By , 8/29/16
  • tags: LMT
  • Notes: View Interactive Institutional Research (Powered by Trefis): Global Large Cap  |  U.S. Mid & Small Cap  |  European Large & Mid Cap More Trefis Research
    QCOM Logo
    How Do We Expect Qualcomm's QCT Segment Revenues To Grow In The Next 5 Years?
  • By , 8/29/16
  • tags: QCOM
  • We expect Qualcomm’s Chipset segment (QCT) revenues to decline by approximately $800 million in the next five  years. At present, the segment accounts for about 68% of the company’s overall revenues and this figure is expected to reach 72% by 2021, which is essentially because we expect the company’s licencing segment to see a larger decline in revenues during this period. We believe that Qualcomm’s modem chipset prices will decline at a steep rate going forward, offsetting the impact of the increase in the number of chipsets sold, which will eventually lead to a drop in QCT segment revenues. Incentive For Qualcomm To Reduce Chipset Prices Qualcomm’s chipset prices have come under pressure, as mobile phone makers, especially in emerging markets such as India and China, are looking to reduce mobile phone prices to stimulate demand. Further, an increasing number of Chinese companies such as Huawei and Xiaomi have started manufacturing their own chipsets to benefit from the fast growth in the penetration of 3G and 4G technologies in these emerging markets. Qualcomm is also facing strong competition from its rivals such as MediaTek and Apple in the Application processor market. According to reports, Apple and MediaTek held 21% and 19% of the Application Processor market in 2015. Even Samsung has built in its own Exynos series of processors, which were used in its high end phones such as Galaxy S6, replacing Qualcomm’s Snapdragon 810. Going ahead, we can expect more smartphone makers to come up with their own processors to cut down device costs and improve their margins. Qualcomm therefore has a big incentive to keep reducing the chipset prices in order to maintain its market share and gain more traction in emerging markets. See More at Trefis | View Interactive Institutional Research (Powered by Trefis) Get Trefis Technology    
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    Should Investors Worry About Exxon Mobil's Increasing Debt?
  • By , 8/29/16
  • tags: XOM CVX BP PBR RDSA
  • Much like the rest of the oil and gas industry,  Exxon Mobil (NYSE:XOM), the US-based energy company, has been severely hit by the commodity slump over the last two years. The downturn, which led to a sharp drop in commodity price realizations globally, caused the integrated company’s revenue to decline by more than 35% in 2015. This forced the world’s largest publicly listed oil and gas company to cut down its 2016 capital spending budget to $23.2 billion, roughly 25% lower compared to the $31.1 billion spent in 2015. Further, Exxon’s operating cash flows began to deteriorate due to the persistently weak commodity prices, compelling the company to raise long-term debt to finance its capital expenditure. Below, we show how Exxon Mobil’s long-term debt obligations have increased since the onset of the commodity trough in mid-2014. As on 30th June 2016, the company’s debt has grown to $29.5 billion, almost 2.5x of its debt at the end of 2014. Consequently, the integrated company’s debt-to-capital ratio has increased from merely 6% in 2014 to over 14% in the June quarter of 2016. On a standalone basis, the rise in debt is a large jump even for a company of Exxon’s size. However, when compared to its peers, the company’s debt position does not appear as daunting. For instance, the debt levels of Royal Dutch Shell and BP Plc. – two of Exxon’s closest rivals – rose to $79.5 billion and $50.6 billion respectively over the last few quarters, as opposed to Exxon’s debt of around $29.5 billion. In tandem, these companies witnessed a surge in their debt-to-capital ratio, much higher than Exxon. That said, long-term obligation of around $30 billion is indeed large for any company. However, Exxon Mobil has remained resilient throughout the commodity down cycle on the back of its high quality reserves and excellent execution skills. As a result, the company continues to generate strong cash flows, enough to partly fund its operational and capital spending requirements for the year. For the first six months of 2016, the oil and gas company generated cash flows of $9.3 billion from its operations, versus $3.7 billion and $5.8 billion generated by Chevron and BP, respectively, during the same period. To top it all, Exxon has maintained a credit rating of AAA even in the weak price environment. This implies that the company can leverage better credit terms if it chooses to refinance its  existing debt, or raise new debt, in the coming quarters. Source: Exxon Mobil’s Analyst Meeting 2016 Thus, we conclude that with high quality assets, outstanding execution, and a strong credit rating, there is not much reason for investors to worry about Exxon’s fundamental value. We have a price estimate of $93 per share for Exxon Mobil, which is roughly 6% higher than its current market price.   Have more questions about Exxon Mobil (NYSE:XOM)? See the links below: Exxon Mobil 2Q’16 Results: Are They As Bad As They Appear? Exxon Mobil To See A Notable Drop In Its 2Q’16 Earnings Despite Moderate Recovery In Commodity Prices Who Will Acquire InterOil? – ExxonMobil Or Oil Search What’s Exxon Mobil’s Revenue & Earnings Breakdown In Terms of Different Products? What’s Exxon Mobil’s Fundamental Value Based On Expected 2016 Results? How Has Exxon Mobil’s Revenue Composition Changed In The Last Five Years? What Has Led To More Than 30% Decline In Exxon Mobil’s Revenues & EBITDA In The Last Five Years? By What Percentage Can Exxon Mobil’s Revenues Grow Over the Next Five Years? Why Crude Oil & NGLs Operations Are 2x As Valuable As Refined Petroleum Products Operations For Exxon Mobil? Why Is Exxon Mobil’s Crude Oil & NGL’s EBITDA Margin Greater Than Its Refined Products EBITDA Margin? Notes: 1) The purpose of these analyses is to help readers focus on a few important things. We hope such lean communication sparks thinking, and encourages readers to comment and ask questions on the comment section, or email content@trefis.com 2) Figures mentioned are approximate values to help our readers remember the key concepts more intuitively. For precise figures, please refer to  our complete analysis for Exxon Mobil View Interactive Institutional Research (Powered by Trefis): Global Large Cap  |   U.S. Mid & Small Cap  |  European Large & Mid Cap More Trefis Research
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    Activision Versus Electronics Arts: Who's More Leveraged?
  • By , 8/29/16
  • tags: ATVI ERTS EA
  • The comparison reveals that Activision is more leveraged than Electronic Arts . Activision has been more aggressive in financing its growth through debt and a notable portion of its assets appear to have been generated through debt. On the other hand, Electronic Arts has financed most of its growth through equity which makes its earnings less susceptible to volatility on account of interest expense In fact, Electronic Arts’ Debt/Equity ratio is about 40% below the industry average (according to Morningstar), which suggests that the company can raise debt relatively easily, if and when it needs to finance its growth On the other hand, Activision’s Debt/Equity ratio is about 20% above the industry average, which reflects more volatility in its earnings compared to its peers. Have more questions on Activision Blizzard  (NASDAQ: ATVI)? See the links below. What Is Activision Blizzard’s Revenue & EBITDA Breakdown? By What Percentage Have Activision Blizzard’s Revenues And EBITDA Grown Over The Last Five Years? What’s Activision Blizzard’s Fundamental Value Based On Expected 2016 Results? How Has Activision Blizzard’s Revenue And EBITDA Composition Changed Over 2011-2015? Where Will Activision Blizzard’s Revenue And Gross Profit Growth Come From Over The Next Three Years? Activision Blizzard’s Console Market Share Witnessed A Decline In 2015; Digital Channels Provide Respite Notes:   See More at Trefis | View Interactive Institutional Research (Powered by Trefis) Get Trefis Technology
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    What's United Technologies' Expected Revenue And Earnings Breakdown in 2016?
  • By , 8/29/16
  • tags: UTX
  • Notes: View Interactive Institutional Research (Powered by Trefis): Global Large Cap  |  U.S. Mid & Small Cap  |  European Large & Mid Cap More Trefis Research
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    Why Consumer Products Companies Might Be Overvalued At Current Prices?
  • By , 8/29/16
  • tags: CL KMB PG UL
  • Consumer products companies have long been thought of as a safe haven for investments as their growth is considered to be proportional to ever increasing population, especially in developing world. The rising middle class, which is expected to more than double to around 4.9 billion people in 2030, has been an assuring factor for investors to cling on to these stocks. However, this might not be the best time to throw chips into these stocks, as most of the consumer giants are being challenged by tough competition in China, the economic slowdown in Latin America and an ever strengthening US dollar. Many companies like Kimberly Clark  (NYSE:KMB), Procter & Gamble  (NYSE:PG) and Colgate Palmolive  (NYSE:CL) have seen a decline in revenues and operating profits since 2011. Despite these factors, most of them are trading near their yearly or all time highs, which has led us to believe that these stocks might be overvalued. Competition In China China, being the world’s second largest economy, is an important region for any consumer goods company. According to a report by Kantar World Panels, the local FMCG (i.e., Fast Moving Consumer Goods)  players in China grew by $41 billion in 2015, which accounted for 58% growth in the Chinese FMCG market. The growth rate of local brands was double than that of multinational brands. The global brands are also losing the market share, for instance, in 2015, P&G (NYSE:PG) lost its top position in Tissue and Hygiene market to the local player Hengan Fujian. In diaper segment, both Kimberly Clark (NYSE:KMB) and P&G are facing tough competition from Chinese and Japanese brands such as Merries, Moony and Goon. Another factor causing problems is the slowdown in growth of Chinese FMCG market, which has almost halved from 12% in 2012 to around 4.7% in late 2015. Latin America Economic Slowdown Major Latin American economies are going through an economic slowdown with high inflation rates. Venezuela has an inflation rate of around 180% followed by around 40.5% in Argentina and 8.7% in Brazil. Due to this, raw material costs have shot up significantly, which has led to higher prices of products resulting in a substantial hit to the volumes from the region for most of the companies. Colgate was the worst hit with 13.5% year-over-year decline in Q2 volumes from the region. Also, Venezuela’s political and economic crises has led Kimberly Clark, Colgate Palmolive and P&G to either de-consolidate or close down their operations in the country. Strengthening of US Dollar Trimming The Top-line Since the start of the decade, the US Dollar has strengthened against most of the major currencies around the world leading to severe currency headwinds to the top-line of the FMCG companies as large part of their revenues come from outside North America. According to Commitment of Traders report, since early 2015, large commercials and hedgers have continuously decreased their short positions in US Dollar Index, which further indicates that Dollar might strengthen more in coming quarters and continue to put a stress on the revenues.   Get Trefis Technology
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    Ctrip Q2 2016 Earnings Preview
  • By , 8/29/16
  • tags: CTRIP PCLN EXPE TRIP
  • Ctrip is slated to release its Q2 2016 earnings results on August 31st. Ctrip’s revenues grew by ~70% Y-o-Y in the first quarter primarily because of the consolidation of Qunar’s financial results starting from December 31, 2015. Last year, Ctrip consolidated its position in China’s OTA market by buying over 40% shares in each of its rivals Qunar and eLong. Ctrip and Qunar currently control around 80% of China’s online hotel and air ticketing market share. This has led to the decline of the discounting and couponing trend in the Chinese online travel market which has also resulted in Ctrip’s healthy bottom line recovery. After becoming the second largest OTA in terms of market capitalization ($21 billion)  post its consolidation efforts, the company seems to be contemplating an expansion in the international markets, most notably the U.S.  Earlier this year, it has made investments of $180 million in India’s largest OTA, MakeMyTrip, and has gained the option to own up to a 26.6% stake in the company. Ctrip’s consolidation efforts and aggressive growth plans seem to be working in its favor. We expect Ctrip’s second quarter to also follow the strong growth trend of Q1 2016. Have more questions about Ctrip? See the links below. What Is Ctrip’s Revenue And EBITDA Breakdown? How Has Ctrip’s Revenue And EBITDA Composition Changed Over 2012-2016E? Ctrip Q4 2015 Pre-Earnings Report What Drove Ctrip’s Revenue Growth And Led To Its EBITDA Decline Over The Last Five Years? Ctrip: Year 2015 In Review Ctrip Q1 2016 Earnings Preview Where Can Ctrip’s Growth Come From In The Next 5 Years? Which Two Segments Are The Biggest Contributors To Ctrip’s Growth? How Fast Is Ctrip’s Hotel Revenue Growing? How Can Ctrip’s Expansion In Geographies Like The U.S. Impact Its Share Price? How Did The Brexit Decision Impact Ctrip So Far? Notes: See More at Trefis | View Interactive Institutional Research (Powered by Trefis) Get Trefis Technology
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    How Did Medtronic Fare In Q1'17 Earnings?
  • By , 8/29/16
  • tags: MDT
  • Medical technology company Medtronic (NYSE: MDT) reported its Q1 earnings for fiscal 2017 on August 25th. (Fiscal years end with April.) The Diabetes segment was the best performer with its revenue growing by 2% on year-over-year basis, while other divisions experienced decreases. Going forward, we expect this segment to increase its market share on account of its strong portfolio of products in both intensive and non-intensive insulin management. Moreover, the Cardio Vascular Group should also give a solid performance on back of product launches. At the company level, the recent acquisitions will continue to contribute to revenue growth for the year ahead. Further, Medtronic reported lower tax rate for the quarter. We expect the tax rate to be slightly higher for the rest of fiscal 2017. Moreover, as as expected, synergies from Covidien acquisition have started to moderate. The company reiterated its revenue and EPS guidance for the remainder of the fiscal year. Last quarter’s revenues were in line with expectations and decreased by about 1% on account of an extra week in the prior year and currency headwinds. Furthermore, on a non-GAAP constant currency, constant week basis, the company reported a reduced gross margin, due to changes in revenue mix.  However,  operating earnings improved on account of lower SG&A and lower other operating expense. Below are key performance metrics as reported by the company: Our price estimate of $91 for Medtronic  is slightly above the current market price. See our complete analysis for Medtronic stock here Strong Product Portfolio To Drive Performance Of Diabetes And Cardio Vascular Group In the diabetes segment, growth is likely to come from continued strong adoption of MiniMed 640G (outside of U.S.), iPro2 CGM and the recent FDA approval of MiniMed 630G. Guardian Connect CGM system received CE Mark approval recently and, post FDA approval (expected in the second half of fiscal 2017), we expect it to experience strong demand. In the cardio vascular group (CVG), we expect continued growth from Micra Transcatheter Pacing System (TPS) and MRI-implantable defibrillator. But in the transcatherer aortic valve device, we expect Medtronic to face competition from Edward Lifesciences. Further, management described Enveo R (used to deliver Evolut R CoreValve) issues to be related to training and, expects it to not have any material effect on the adoption of Evolut CoreValve. New Acquisitions To Boost Revenue For The Year Ahead The recent acquisition of Simth & Nephew’s gynecology business and majority stake in NOK should help the Minimally Invasive Therapies group’s growth. With  CVG, the earlier than expected closure of HeartWare acquisition is further expected to boost revenue. HeartWare’s acquisition provides Medtronic with strong product in the $800 million ventricular assist device market. Services And Solutions Initiative Is Of Strategic Importance The company lists three focus areas for growth going forward – new therapies, emerging markets and services & solutions. The performance of services & solutions was below guidance in fiscal Q1 2017. But we consider it to be an important strategic move. Services & solutions agreement would enable Medtronic to append its product, generating additional revenue. We expect this initiative will help create an ecosystem leading to greater adoption of Medtronic’s product. Global Large Cap |  U.S. Mid & Small Cap |  European Large & Mid Cap | More Trefis Research  |  Get Trefis Technology  
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    Is Nike Effectively Expanding Its Store Base In The United States?
  • By , 8/29/16
  • tags: NKE
  • For a retail company, it is essential that customers have easy access to its products. Sales and ease of access are directly correlated. Such is the case when it comes to Nike ‘s (NYSE:NKE) business. The company derives upwards of 45% of their sales from the United States. Over the past five years, the company has worked hard to increase the store base across the country. But how is this strategy working for the company? As we can see from the table above, Nike’s net revenue per store has increased steadily over the aforementioned period. Supplementing this strategy with increasing its e-commerce footprint, concentrated ad campaigns, and better sponsorships and endorsements can help the company stand out amongst competitors. Notes: View Interactive Institutional Research (Powered by Trefis): Global Large Cap  |  U.S. Mid & Small Cap  |  European Large & Mid Cap More Trefis Research
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    Intel's Latest Agreement With ARM To Boost Its Foundry Business For Leading Edge Products
  • By , 8/29/16
  • tags: INTC
  • In conjunction with the recent Intel Developers Conference,  Intel (NYSE:INTC)   announced  an agreement with the British processor core designer ARM, according to which it can now deliver chips based on ARM’s Artisan Physical IP on its 10 nano-meter design platform. This deal is significant for Intel, as other leading chip makers are expected to follow Intel in its migration from a 14 nano-meter or a larger process nodes to this 10 nano-meter process.  As always, finer geometries yield superior performance and smaller devices, which will enhance the performance of the devices. Among the major players in the foundry business, Intel seems to be ruling  the transition to this leading edge process node. This factor, combined with the addition of ARM’s Artisan Physical IP degsign environment, should help Intel win more orders going ahead.  Smartphone giant LG Electronics has already announced its intention to  use  Intel’s foundries for 10nm chip development. There are other reasons as well, which makes this deal important for Intel. The strategic partnership with ARM can help Intel to grow its position in the Internet of Things (IoT) market, where ARM is uniquely positioned due to its power efficient and compact processor core designs. Further, this deal can have a positive impact on Intel’s margins, due to increased utilization of its foundry capacity, which has likely been affected due to declining PC sales. Furthermore, the company can participate in the growth of smartphone market, where its market share is negligible and ARM, via the partners that us its cores, has a dominant position. PC Shipment Decline Has Weighed Heavy On Intel’s Growth Intel’s PC processor revenues, which constituted around 55% of its overall revenues in 2015, declined by around 8% in the year. The decline in PC shipments is due both to slower upgrade cycles and consumers’ increased focus the mobile computing enabled by smartphones and tablets.  In sum, we believe growth in the PC shipments will at best remain in coming years. According to reports, Intel has cut back the production of its new chips in 2016 in the wake of low demand for PCs. Because of this, the company’s foundries might be currently underutilized, which can have a negative impact on its margins going ahead. However, if Intel can improve the utilization of its foundries by accepting new orders from other ARM based chip makers, the company should be able to prevent its margins from declining. ARM Uniquely Positioned In IoT And Smartphone Markets ARM, which is being acquired  by Softbank, licenses its architecture to a majority of smartphone chipmakers. Unlike Intel’s x86 architecture which is based on CISC  (Complex instruction set computing), ARM’s architecture is based on  RISC  (Reduced instruction set computing). This helps  ARM based chips to have more power saving features, while Intel’s x86 chips consume more power at the cost of higher performance. This factor, along with the late entry of Intel, helped ARM to gain a leadership position in the smartphone processor market.  We  believe that ARM can exploit the IoT market  similarly as it ruled  the smartphone processor business. Hence, Intel’s latest deal with ARM should help it  participate in both IoT and the smartphone market boom, which it missed in the past. See our complete analysis for Intel See More at Trefis | View Interactive Institutional Research (Powered by Trefis) Get Trefis Technology  
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    How Do The Stake Sales In The Morenci And African Copper Mines Impact Freeport-McMoRan's Copper Shipments?
  • By , 8/29/16
  • tags: FCX RIO VALE ABX NEM
  • Freeport-McMoRan has made debt reduction a priority, completing a 13% stake sale in its Morenci, Arizona copper mine, and announcing the sale of its full 56% stake in its African copper mining operations, with the proceeds of these transactions earmarked for debt reduction. The stake sale in the Morenci mine (completed in May) and the planned sale of its interest in the African mines (to be completed in Q4 2016) lowered the company’s estimated 2016 shipments by only 3%. However, when we factor in the impact of a full year with a reduced interest in Morenci and the sale of the African operations (2016 figures include shipments from Morenci and the African mines for 5 months and approximately three quarters respectively), the company’s estimated 2017 shipments are around 18% lower than its original 2016 shipment guidance. Have more questions about Freeport-McMoRan? See the links below. What Is Freeport-McMoRan’s Fundamental Value Based On 2015 Results? What Is Freeport-McMoRan’s Revenue And EBITDA Breakdown? How Has Freeport-McMoRan’s Revenue Composition Changed Over The Last 5 Years? By What Percentage Did Freeport-McMoRan’s Revenue & EBITDA Decline Over The Last 5 Years? By What Percentage Can Freeport-McMoRan’s Revenue & EBITDA Change Over The Next 3 Years? How Will Freeport-McMoRan’s Revenue Composition Change by 2020? Why Have Copper Prices Declined Over The Past Year? Why Is China Important For The Global Copper Industry ? Notes: See More at Trefis | View Interactive Institutional Research (Powered by Trefis) Get Trefis Technology
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    How Is Priceline's Revenue Growth Trending?
  • By , 8/29/16
  • tags: PCLN EXPE TRIP TZOO
  • Priceline’s growth story seems to continue despite macroeconomic problems. All of its divisions seem to be soaring forward and its main growth driver, booking.com, is still ruling the accommodation booking space. In Q2 2016, Priceline’s booking.com delivered a 30% year-on-year growth and it almost doubled the number of properties on its platform in around two years time. Kayak,the biggest growth driver for Priceline’s fastest growing advertising and media segment, continues to deliver above expectations. Furthermore, its brand, priceline.com, is making progress with its repositioning plans including strengthening the management team and upgrading products and services in order to make a fresh start in 2017. We expect Priceline’s growth to continue with a strong momentum even in the future. Have more questions on Priceline? See the links below. What Is Priceline’s Fundamental Value On The Basis Of Its Forecasted 2015 Results? How Has Priceline’s Revenue And EBITDA Composition Changed Over 2012-2016E? What Is Priceline’s Revenue And EBITDA Breakdown? Top 3 U.S. OTAs: A Comparison Of Operating Margins How Has Priceline’s Stock Performed In The Last Five Years? What Drove Priceline’s Revenue And EBITDA Growth Over The Last Five Years? Where Can Priceline’s Growth Come From In The Next 5 Years? What Is Priceline’s Fundamental Value Based On 2016 Estimated Numbers? Top 3 U.S. OTAs: A Comparison Of Operating Margins Why Might TripAdvisor Be An Attractive Acquisition Target For Priceline? What Has Been The Immediate Impact Of The Brexit Decision On The Online Travel Companies? Which Will Be The Most Important Segment To Fuel Priceline’s Future Growth? How Fast Are Priceline’s Advertising Revenues Growing? Priceline’s Q2 2016 Earnings Preview Priceline’s Robust Q2 2016 Suggests That The Company’s Growth Story Is Expected To Continue How Is Priceline’s Hotels Division Expected To Trend? Notes: See More at Trefis | View Interactive Institutional Research (Powered by Trefis) Get Trefis Technology
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    How Will Abercrombie & Fitch Perform In Q2 2016?
  • By , 8/29/16
  • tags: ANF GPS AEO URBN
  • Abercrombie & Fitch  (NYSE:ANF) will announce its second quarter results on August 30, 2016 . While a 4.5% fall in revenue is expected, the EPS is estimated to be $-0.19, over a 250% decline from the previous year’s EPS of $0.12. See our complete analysis for Abercrombie & Fitch The once popular clothing company is spiraling downwards, with a number of periods of poor sales. Their favored clientele are now moving to fast fashion brands such as Forever 21, Zara, and H&M. While the company has made attempts to reduce its pricing, its clothes are still considered more expensive than the aforementioned companies, which have shortened their runway-to-shelf turnover time to enable them to offer their products at lower prices. ANF has also decided to remove its infamous logo from a majority of its products. While the logos do still exist to some extent, the retailer began phasing them out in 2014. This follows from millennial consumers’ increasing preferences of clothing and accessories without labels or logos, according to a report by Goldman Sachs . While their parents and grandparents derived status from brand names, millennial shoppers would rather spend on food, technology, and vacations. The company is also focusing more on its direct-to-consumer (DTC) channel to generate higher sales. During 2015, this channel, which includes online and omnichannel sales, accounted for almost a quarter of the company’s sales. This 24% was an increase of two percentage points from a year earlier. The company has undertaken significant investment for its online and omnichannel strategy, with a further $70 million expected in 2016, while at the same time undertaking an aggressive store closure program. The company has started a number of initiatives such as ‘Click and Collect,’ which is ordering online and collecting in the store, which was rolled out in all stores in the US in the first quarter of 2016. It further planned to start shipping from the stores internationally in Canada, and the UK, in the second quarter. A robust international DTC business is being developed, which includes localized websites, local language, and local currency. The company has also undertaken a massive rebranding initiative after parting ways with its former CEO Michael Jeffries in late 2014, to move away from the reputation it had built in the last decade, because of which the company was also voted the most hated retail brand in February of this year. However, the company is taking efforts to reinvent itself, which was reflected in its men’s lineup, which fused its roots as a hunting and fishing store, with a more contemporary style. Aaron Levine, who joined the company last year as the head of men’s design, had a major role to play in this. Abercrombie released two new casual luxury lines with a refreshed design philosophy, which will be available for retail in July. The company’s women’s line also featured a more sophisticated and classic look, with the advertising campaigns also moving towards something more consumer friendly. The company also used Indian model and activist Neelam Gill, in its last Fall’s campaign. Have more questions about Abercrombie & Fitch? See the links below: How Has Abercrombie & Fitch’s Revenue By Geography Changed Over The Last Three Years? Abercrombie & Fitch Plans Changes To Turn Their Business Around Who Relies On Debt More; Gap Inc or Abercrombie & Fitch? What Is Abercrombie & Fitch’s Revenue & Earnings Breakdown In Terms of Different Operating Segments? What Is Abercrombie & Fitch’s Fundamental Value Based On Expected 2015 Results? How Has Abercrombie & Fitch’s Revenue Composition Changed In The Last Five Years? By How Much have Abercrombie & Fitch’s Revenues & Earnings Grown In The Last Five Years? Notes: Global Large Cap |  U.S. Mid & Small Cap |  European Large & Mid Cap | More Trefis Research
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    Groupon Mid Year Review: Stock Up 70% On Growing North America Customer Base
  • By , 8/29/16
  • tags: GRPN EBAY AMZN
  • Groupon ‘s (NYSE:GRPN) stock is up about 17% in the last year and a whopping 70% year-to-date (YTD) following solid second quarter results last month. The company’s stock had tumbled over 10% after its first quarter results missed earnings expectations in April, but soared 25% after it reported better-than-expected second quarter earnings and full year guidance last month, with both revenue and adjusted profits beating market expectations. However, it wasn’t all great news for the company – below we discuss all aspects of Groupon’s performance in the last six months.
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    Jaguar Land Rover Is Having A Solid 2016
  • By , 8/29/16
  • tags: TTM-BY-COMPANY TTM VLKAY TM BMW GM F DAI DDAIF TSLA
  • Tata Motors ‘ (NYSE:TTM) British marquee brand Jaguar Land Rover forms just under 90% of the group’s valuation, as per our estimates. JLR is back in full swing in 2016, posting record-breaking results for the first seven months, selling 336,052 vehicles between January and July, up 23% year-over-year. At the helm of this growth is the whopping 69% year-over-year growth in retail sales for Jaguar through July. High demand for compact luxury vehicles has been the main reason for Jaguar’s rapid sales rise in the last year or so.  JLR has beaten the growth seen by any of the German trio of Mercedes-Benz, Audi, and BMW in the U.S. and Europe, falling short of only Mercedes’ growth rate in China. Led by its new entry-level model, the XE, Jaguar more than doubled its sales in the first seven months of 2016. This also helped make Jaguar Land Rover Europe’s fastest-growing automaker this year.  JLR was also the fastest growing group in Europe in 2015, however, the growth that time was led by the Land Rover brand, which forms three-fourths the net retail sales for JLR. Have more questions on Tata Motors? See the links below. Brexit Could Be Good Or Bad News For Jaguar Land Rover New Compact Models Boost Jaguar Land Rover’s First Half Volumes Tata Motors Rides On Strong Q4 Performance By Jaguar Land Rover To Boost Fiscal 2016 Results Jaguar Land Rover Steps Up Unit Sales In Crucial Markets How Will Tata Motors’ Valuation Be Impacted If Jaguar Land Rover Sells Fewer Cars Than Estimated? What Will Be The Jump In Tata Motors’ Valuation If Jaguar Land Rover Sells More Cars Than Expected? Where Does Jaguar Land Rover Stand Relative To The German Top 3 In Crucial Markets? What’s Tata Motors’s Fundamental Value Based On Expected Fiscal 2016 Results? How Has Tata Motors’s Revenue And EBITDA Composition Changed Over FY12-FY16? By What Percentage Have Tata Motors’s Revenues And EBITDA Grown Over The Last Five Years? What Is Tata Motors’s Revenue And EBITDA Breakdown? Where Will Tata Motors’s Revenue And EBITDA Growth Come From Over The Next Three Years? Why Jaguar Land Rover Forms More Than 90% Of Tata Motors’ Valuation Notes: Get Trefis Technology