Kroger is the OG - Original Grocer! With a history of organic growth and M&A to supplement the story, Kroger has now embarked on the biggest acquisition in its history: the proposed merger with Albertsons. It introduces a lot of risk into the mix, but can it propel the share price CAGR above the index and make this a worthwhile stock to hold?
Foot Locker is a perfect example of a business model that has been cracked wide open by a shift in the value chain. After previous management allowed the company to become a glorified Nike store, the new team is being forced to cut back on Nike because of that company's direct-to-consumer strategy. This creates plenty of uncertainty and a need for a turnaround strategy, which is why the dividend has been suspended.
Home Depot is the eCommerce hero that nobody talks about. There are a lot of surprises in this business, with long-term financial performance telling a wonderful story. This is going to be a disappointing year vs. FY22, but is that perhaps an opportunity?
Use the podcast player below to listen to our discussion on Crocs and its Q3'22 result, which accompanies the detailed write-up below: (Date of report: 15 December 2022) You might not like Crocs, but the group sold over 30 million shoes this quarter. It was a record quarter for revenue and full year guidance has been raised. Clearly, there are enough people out there who like the shoes to make this a potent business. Sitting at the centre of trends like casualisation and direct-to-consumer, the immense share price performance over 5 years is far less polarising than the shoes. Can the [...]
Use the podcast player below to listen to our discussion on Tesco and its Q3'23 result, which accompanies the detailed write-up below: (Date of report: 19 January 2023) Grocery retail isn’t the most exciting industry, let’s face it. Nevertheless, these companies are defensive investments that are theoretically good punts in tough times. As we’ve seen before, the theory and the practice aren’t always aligned. In Tesco, we find a UK retailer that has a history of strategic missteps. Of course, at the right price, almost anything is a buy! In analysing Tesco, we also highlight some stark differences vs. the US [...]
Use the podcast player below to listen to our discussion on Nike and its Q2'23 result, which accompanies the detailed write-up below: (Date of report: 5 January 2023) The intersection of sport, music and fashion: Nike is definitely still that business, with all the sports endorsements and cultural influences you would hope for in an apparel brand. Of course, this doesn’t necessarily make it a good investment. Shareholders are looking for cash flows, not signed basketballs. Nike has been trying very hard to convince the market that it is a growth stock. If there’s one thing the last year has revealed, [...]
Use the podcast player below to listen to our recap on Levi's and Lululemon's recent results, which accompanies the detailed write-up below: (Date of report: 22 December 2022) They both start with the letter L. They are both retailers. They both sell directly to consumers. There are other similarities too, as we will discover. In this recap show, we update our research on Lululemon and Levi’s, two iconic clothing brands that trade at vastly different valuation multiples. Facing a critical Christmas period with full shelves and consumers under pressure, it’s all to play for. We covered Lululemon back in April (read [...]
Use the podcast player below to listen to our discussion on Crocs and its Q3'22 result, which accompanies the detailed write-up below: (Date of report: 15 December 2022) You might not like Crocs, but the group sold over 30 million shoes this quarter. It was a record quarter for revenue and full year guidance has been raised. Clearly, there are enough people out there who like the shoes to make this a potent business. Sitting at the centre of trends like casualisation and direct-to-consumer, the immense share price performance over 5 years is far less polarising than the shoes. Can the [...]
Use the podcast player below to listen to our discussion on Amazon and its Q3’22 result, which accompanies the detailed write-up below: (Date of report: 10 November 2022) What started out as “Earth’s Biggest Bookstore” is now estimated to have gross merchandise value ahead of Walmart, with a big chunk of sales from third-party sellers who use Amazon as a marketplace. The retail side of the business is loss-making again. Amazon Web Services (AWS) is making the money, with all eyes on cloud growth and the advertising business within Amazon’s retail operations. The group is a perfect case study of the [...]
Use the podcast player below to listen to our discussion on Dick's Sporting Goods and its Q2’22 result, which accompanies the detailed write-up below: (Date of report: 15 September 2022) Dick’s Sporting Goods is the largest independent sporting goods chain in the US. The business has aged far better than its name, although it is now facing the challenges of the direct-to-consumer strategy being put in place by giants like Nike. This business was an undercover winner of the pandemic, achieving sales and margins that nobody had dreamed possible for Dick’s. The earnings before tax in the latest quarter were higher [...]
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