Share to Twitter Share to Linkedin Online pet retailer Chewy said its third quarter results, released today after the market closed, show investments it made in fulfillment and logistics are paying off. Chewy surprised analysts, who had been expecting a loss for the quarter, by posting net income of $2.3 million, and earnings per share of 1 cent. The retailer also beat expectations for revenue, posting net sales of $2.53 billion for the quarter, up 14.5% over the third quarter of 2021. Chewy is showing that it is able to combine its image as a warm and fuzzy, feel-good company that understands pet lovers, with hard-nosed business decisions that cut costs and give it an edge in the competitive pet space. But while analysts on the earnings call praised Chewy for its performance during the quarter, investors didn’t immediately reward Chewy for the positive results. Chewy’s stock, which closed up 1.79% at $41.97, was down more than 2% in after hours … [Read more...] about Logistics Improvements Boost Chewy’s Profits
How retailers can drive profitable growth through dynamic pricing
Share to Twitter Share to Linkedin Record levels of discounting during Cyber Week promotions caused online prices to fall by the largest year-over-year drop in 31 months, according to the Adobe ADBE Digital Price Index. The index, released today, shows that online prices fell 1.9%, on an annual basis, in November. Prices were down 3.2% compared to October. November was the third consecutive month that online prices have decreased on an annual basis. The report is another indication that retail is returning to pre-pandemic norms. High demand and supply chain shortages in 2020 and 2021 kept online prices high and deep discounting unnecessary. After years in which online prices typically declined year-over-year, Adobe began tracking consistent price increases, and saw a loss of online purchasing power during the pandemic. Overall online spending rose 1.7% year-over-year in November, to $116.5 billion, showing strong demand, according to Adobe. … [Read more...] about Online Prices Had Biggest Drop In Over Two Years In November, Adobe Reports
Share to Twitter Share to Linkedin Key Takeaways Volvo is shifting to an all-electric lineup by 2030. The new EX90 is the company’s flagship SUV, available in the Fall of 2023. Volvo has struggled recently with higher costs and sourcing of semiconductors. For decades, Volvo has been a brand known for safety. Now, the Swedish car manufacturer wants to be known as an all-electric vehicle company too. Volvo has faced obstacles like the semiconductor shortage and price increases, but all car manufacturers have encountered these issues. Here is what the future holds for Volvo, including the EX90. Volvo committed to all electric Volvo has decided to turn its automobile production into an all-electric or hybrid powertrain for each of its models. The carmaker, once known for its cutting-edge safety features and crash ratings, is looking to lead the automotive industry in terms of innovation. It announced this decision in 2019 and aims to … [Read more...] about Volvo EV: Will A Volvo EV Drive Volvo Stock Upward?
Share to Twitter Share to Linkedin The Frasers Group share price tanked on Thursday even as it announced robust half-year financials results. The owner of the budget Sports Direct chain of shops was last trading 9% lower today at 815p per share. Revenues at the FTSE 100 business rose to £2.64 billion in the 26 weeks to 23 October. This was up 12.7% year on year and driven by sales growth across the group. Consequently, pre-tax profits jumped 53% from the same 2021 period, to £284.6 million. However, Frasers Group shares have fallen on market concerns that sales could be set to sink. Acquisitions Boost Sales Revenues at Frasers Group’s core UK sports retail operations rose 11.6% in the six months to October, to £1.53 billion. However, sales were boosted by the acquisition of sports chain Studio Retail at the start of the 2022. Without this, sports retail sales would have ducked 3.1%. Excluding acquisitions, disposals and changing … [Read more...] about Frasers Group Shares Sink 9% Despite Profits Jump. What’s Going On?
Share to Twitter Share to Linkedin After a 21% fall year-to-date, Roche stock (OTCMKTS: RHHBY) looks undervalued. It has declined from $52 in early January to around $40 now. The YTD 21% fall for Roche is worse than the -17% returns for the broader S&P500 index and -3% returns for the S&P500 Health Care index. Looking at the longer term, Roche stock is up 27% from levels seen in late 2018, compared to around 65% returns for the S&P500 index. This 27% rise for Roche stock since late 2018 was driven by: 1. the company’s EPS, which rose 18% to $2.72 in 2021, compared to $2.31 in 2018, and 2. an 8% rise in the company’s P/E ratio to 15x trailing adjusted earnings now, vs. 14x in 2018. The earnings growth can be attributed to higher revenues, partly offset by net margin contraction, as discussed below. Roche’s revenue grew 12.4% to $72.4 billion in 2021, compared to $64.4 billion in 2019, partly driven by higher demand for Covid-19 … [Read more...] about What’s Driving Roche Stock?
- A + A KUALA LUMPUR (Dec 8): Cash-strapped Sapura Energy Bhd returned to the black for the third quarter ended Oct 31, 2022 (3QFY2023), with RM10.18 million net profit versus a huge RM669.34 million net loss in the previous year’s corresponding quarter. The improvement is due to lower recognition of provision for foreseeable losses, lower project costs recognised, lower depreciation, higher share of profit from associates and joint ventures, and a favourable foreign exchange gain during the quarter. In contrast, quarterly revenue fell 12.42% to RM1.28 billion from RM1.46 billion in 3QFY2023, amid lower revenue recognised from the engineering and construction (E&C) business segment from a lower percentage of completion of executed projects. The oil and gas services provider’s filing on Thursday (Dec 8) showed that it posted a 0.06 sen earnings per share for the quarter, against a loss-per-share of 4.19 sen in the prior year. Thanks to improved 3Q net profit, … [Read more...] about Sapura Energy swings to the black in 3Q with RM10.18 mil net profit
Share to Twitter Share to Linkedin Against unprecedentedly strong comparables last third quarter when revenues rose 18%, Signet Jewelers SIG continued to deliver topline growth during fiscal third quarter 2023 with revenues up 2.9% to $1.6 billion; however, most of that increase is credited to the acquisition of Diamonds Direct and Blue Nile since then. Though same-store sales dropped 7.6% during the quarter despite average transaction value increasing 8%, revenues are up 33% over pre-pandemic levels, and profitablity has tripled since then. While it continues to guide on full-year revenues between $7.6 to $7.7 billion, a modest decline from fiscal 2022’s high of $7.8 billion driven by a 50% year-over-year increase, the company raised operating income guidance to between $809 million to $850 million, up from $787 million to $828 million previously. Well-positioned inventory-wise for the holiday season, the company expects revenues to reach $2.59 … [Read more...] about Signet Jewelers Flexes Muscle To Power Forward As Headwinds Increase
Share to Twitter Share to Linkedin Tesla is riding high in Europe, helped by the addition of the Model Y SUV, but it faces increasing competition from China now and later from locals like BMW and VW, while the logistics of importing some of its vehicles from the Middle Kingdom are coming under pressure. Analysts expect Tesla to expand its model range with a move downmarket sooner rather than later. CEO Elon Musk could rest on his laurels and enjoy the fruits of his hugely successful company, which generates record profits per car for a large automaker. Continued expansion means massive profit margins would come under pressure. In the normal world, larger production means less profit per sale, but Musk probably thinks he can do both. Is anyone out there ready to bet Musk can’t do that? The Tesla Model Y topped European sales for both traditional internal combustion engine (ICE) vehicles in September as well as battery electric vehicle (BEV) ones. The … [Read more...] about Model Y Boosts Tesla’s European Sales As China, Logistics Challenges Loom
Share to Twitter Share to Linkedin GoodRx qualified as a unicorn prior to its IPO , but its story and ambition is rare enough that it may warrant a new mythological creature dedication. Founded in 2011, the nine year-old digital health company went public last September with $388 million in 2019 revenue and, more surprisingly, $139 million in operating profit. GoodRx is best known for making prescription drug pricing transparent and offering discount coupons to consumers, allowing consumers to shop for which pharmacy provides the best combination of price and convenience. The company earns revenue only only when it saves people money. Thus far, the company estimates it has helped Americans realize $20 billion in savings. Doing good is going well for GoodRx and its investors, as suggested by the company’s $18 billion market capitalization (as of the publish date). While GoodRx’s growth has been impressive, it also begs questions: How does … [Read more...] about What Could A Healthcare Marketplace Look Like? GoodRx Is Trying To Show Us
Share to Twitter Share to Linkedin Ernest Garcia II made billions of dollars by timing his Carvana stock sales to perfection. As the used car retailer careens towards bankruptcy, his controversial cashout looks smarter than ever. Shares of used car retailer Carvana plunged 43% Wednesday following reports that the company’s two largest creditors, private equity firm Apollo and investment manager PIMCO, entered an agreement to work together in any negotiations with Carvana, which many investors interpreted as a sign of the used car dealer’s impending declaration of bankruptcy. Carvana has not commented on that possibility. No one has lost more than Ernest Garcia III, the 40-year-old founder and CEO of Carvana. His fortune soared to over $11 billion at Carvana’s peak in August 2021. Carvana’s shares, following the company’s pandemic-fueled boom and subsequent crash , are down 99% from that time. Garcia III sold a little stock in late 2020, but has also … [Read more...] about Carvana CEO’s Net Worth Skids But His Dad, Who Controls Company, Is Worth Nearly $3 Billion