India’s e-tailers burn bright in festival season 18 Aug 2017 Amazon India and SoftBank-backed Flipkart are going head-to-head for the first time in India’s months-long shopping season. Both will offer massive discounts despite New Delhi's dislike of the practice. The challenge will be growing the customer base enough to justify the losses.
Wal-Mart beats Amazon at its own game 17 Aug 2017 The $244 bln retailer cranked out its 12th quarter of growing sales in a row as smaller rivals suffered. E-commerce soared 60 pct, in part sparked by food shoppers. That gives CEO Doug McMillon a leg up as the industry waits for Amazon to digest its $13.7 bln Whole Foods meal.
Advertisers rise to VIP status for Alibaba 17 Aug 2017 The Chinese e-commerce group raked in over $7 bln of sales in the recent quarter, thanks to a surge in ad dollars. Marketing revenue already accounts for half of the total, and Alibaba is pushing hard to attract more top brands. These early efforts look promising.
Like much else, Amazon can sell debt in a flash 16 Aug 2017 The e-commerce giant’s blowout $16 bln bond deal suggests further potential for it to pursue M&A. Yet in nearly tripling debt to buy brick-and-mortar Whole Foods, Jeff Bezos’ outfit is starting to look like a traditional retailer. The risk is that its stock will do the same.
Home Depot manages to fence out Amazon 15 Aug 2017 The $180 bln mecca for do-it-yourselfers beat earnings expectations as more people spiffed up their homes. Robust online growth and sales of big-ticket appliances helped keep the e-commerce giant at bay. Aging housing is good for business; an old recovery hints at looming risks.
Danone can stomach new activist investor 15 Aug 2017 Hedge fund Corvex’s reported stake in the yoghurt maker may be small, but it puts pressure on management to meet its new margin target. Danone was once shielded from a Pepsi bid by the French state. If new investors bring good ideas and discipline, such defences won’t be needed.
Mexico, Canada miss trick in NAFTA e-commerce fight 14 Aug 2017 Both countries are battling against Trump administration demands to let their citizens import more online goods duty-free. It would hurt their retailers and help U.S. firms like Amazon. But consumers would benefit. Conceding may also help their case in broader NAFTA negotiations.
JD tests limits of China’s tech euphoria 14 Aug 2017 Stocks like JD, Alibaba and Tencent have soared amid a global tech boom and renewed optimism over China. As JD’s latest results show, some firms are also fundamentally getting stronger. A further run-up, however, will be hard to justify.
Michael Kors and Ralph Lauren improve their looks 8 Aug 2017 Shares in the U.S. fashion houses leapt as tighter distribution and inventory curbs yielded earnings beats. Yet a harsh retail climate is depressing sales and both shops are late in their turnaround efforts. It will take more work to get their valuations off the discount rack.
Next’s classic model is key to a better look 3 Aug 2017 Sales at the fashion chain returned to growth in the second quarter, helped by better online sales. Next’s direct-sales catalogue gave it a head start over rivals when it comes to selling on the web. It also provides a potential hedge against fewer shoppers in its stores.
Apple profit, rumors and hype climb together 1 Aug 2017 Ten years after the first iPhone, hype over the $780 bln tech giant’s next model is rising on whispers from suppliers and developers. CEO Tim Cook racked up $8.7 bln more profit in the past quarter. Absent other blockbuster devices, though, it’s the next reveal that matters more.
Hudson’s Bay may be more real estate than retail 1 Aug 2017 The C$2 bln Canadian company is under siege from a pushy investor. Jonathan Litt has ideas about repurposing the Saks Fifth Avenue flagship location and exiting Europe. Even if too bold, the bleak outlook for department stores suggests it's time for Hudson's Bay to refocus.
BP’s leverage is punt on oil price resilience 1 Aug 2017 The British energy giant’s net income fell to $684 mln in the second quarter but was better than expected as production soared. However, debt has crept up to 29 percent of equity. A weaker oil price would call the strategy into question.
LVMH’s only bad look is a now-fashionable euro 27 Jul 2017 Operating profit at the Louis Vuitton owner jumped 23 percent in the first half. The French group’s lucrative clothing and handbag division last performed this strongly during China’s shopping frenzy in 2011. Europe’s strengthening currency could yet cramp the company’s style.
Ceconomy plays to German retail stereotype 26 Jul 2017 As befits a country known for thrifty shoppers, the newly listed electronics retailer has bought cheaply into Fnac Darty. While Ceconomy could probably afford a big premium to take over its French rival, it will take just a 24 pct stake – enough to keep rival bidders at bay.
Chipotle’s yuck overwhelms financial yum 25 Jul 2017 The $10 bln burrito chain delivered healthy financial results that exceeded expectations. It won't be enough to restore confidence, however, after a new suspected norovirus outbreak and video surfaced of rodents at one location. More radical change at the top may be necessary.
Barnes & Noble sale has plot logic but no ending 25 Jul 2017 An activist wants the $560 mln U.S. bookstore chain to go private. That makes sense for a fading business that needs work. The problem is finding a buyer on the other end. Amazon’s Whole Foods deal has everyone thinking. But Barnes & Noble may be nowhere on Jeff Bezos’ list.
Jimmy Choo buyout could blister the brand 25 Jul 2017 U.S. label Michael Kors is paying $1.2 billion for the luxury shoemaker. Three nimble steps are necessary to justify that price: supercharge sales, improve margins and find synergies. The buyer’s track record shows that is achievable, but at risk of taking Choo downmarket.
B&M is unimaginative punt on Brexit Britain 24 Jul 2017 The discount retailer has been named as a potential 4.4 bln pound target for Wal-Mart’s Asda. With incomes tightening, UK shoppers will want cheaper goods. Yet Asda could as easily soup up its existing offering or copy rivals Tesco and Sainsbury’s with a more ambitious deal.
Puppy love keeps IPO investors on the leash 21 Jul 2017 Snap's stumble, Blue Apron's disastrous debut and YogaWorks' yanked listing spelled doom for trendy, fast-growing businesses. Then shares of PetIQ jumped some 30 pct. More sensible pricing helped the maker of dog treats and medicine, but it also remains vulnerable to competition.