Retail

Recap: Levi’s and Lululemon

Magic Markets2022-12-21T23:52:25+02:00

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 [...]

Recap: Levi’s and LululemonMagic Markets2022-12-21T23:52:25+02:00

Crocs: Ugly shoes; pretty profits

Magic Markets2022-12-15T01:19:51+02:00

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 [...]

Crocs: Ugly shoes; pretty profitsMagic Markets2022-12-15T01:19:51+02:00

Amazon: Castles in the Cloud

Magic Markets2022-11-10T07:40:38+02:00

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 [...]

Amazon: Castles in the CloudMagic Markets2022-11-10T07:40:38+02:00

Dick’s Sporting Goods: Omnichannel is Ominous

Magic Markets2022-09-14T22:09:35+02:00

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 [...]

Dick’s Sporting Goods: Omnichannel is OminousMagic Markets2022-09-14T22:09:35+02:00

Levi’s: Selling Jeans in a Gold Rush

Magic Markets2022-07-18T15:56:28+02:00

Use the podcast player below to listen to our discussion on Levi Strauss & Co and its Q2’22 result, which accompanies the detailed write-up below: (Date of report: 13 July 2022) Levi Strauss was a Bavarian emigrant who arrived in San Francisco in 1850 during the gold rush. He sold the miners durable pants rather than shovels, bucking the trend of the old saying about selling shovels in a gold rush! The patent to add metal rivets to work pants was granted in 1873 and blue jeans were born. Levi’s traded publicly between 1971 and 1985 before being taken private in [...]

Levi’s: Selling Jeans in a Gold RushMagic Markets2022-07-18T15:56:28+02:00

Walgreens Boots Alliance: Is Pharmacy Defensive?

Magic Markets2022-07-06T23:28:25+02:00

Use the podcast player below to listen to our discussion on Walgreens Boots Alliance and its Q3’22 result, which accompanies the detailed write-up below: (Date of report: 6 July 2022) Walgreens Boots Alliance is a pharmacy retail group that sounds like a defensive play at first blush. But as we will explore in this podcast and report, the business model of these types of retailers isn’t as robust as one may think, especially in the US where the pharmacy benefit managers hold incredible power in the value chain. It all comes down to gross margin, so product mix is critical. Dispensary [...]

Walgreens Boots Alliance: Is Pharmacy Defensive?Magic Markets2022-07-06T23:28:25+02:00

Walmart: It’s all in the mix

Magic Markets2022-06-21T19:21:19+02:00

Use the podcast player below to listen to our discussion on Walmart and its Q1’23 result, which accompanies the detailed write-up below: (Date of report: 26 May 2022) With the share price down 15% this year and 22% in the past month, Walmart hasn't been spared in this sell-off. The shocking thing about this is that the pain was felt in the space of a day, with the latest earnings release surprising the market to the downside. With a vast retail footprint and a business model that one would assume is an inflation hedge, has the market overreacted to Walmart's issues, [...]

Walmart: It’s all in the mixMagic Markets2022-06-21T19:21:19+02:00

Simon Property Group: A place to hide?

Magic Markets2022-05-19T00:21:54+02:00

Use the podcast player below to listen to our discussion on Simon Property Group and its Q1’22 result, which accompanies the detailed write-up below: (Date of report: 19 May 2022) Inflation is on a rampage and taking markets with it. There's a bloodbath everywhere you look. We've been almost entirely bearish on the valuations of companies we've covered in Premium and now you can see why. Market corrections can be hideous things. The best thing to do right now is build up a shopping list for when things calm down. In times like these, investors look for assets that can withstand [...]

Simon Property Group: A place to hide?Magic Markets2022-05-19T00:21:54+02:00

Shopify: $SHOP can still drop

Magic Markets2022-05-12T03:28:55+02:00

Use the podcast player below to listen to our discussion on Shopify and its Q1’22 result, which accompanies the detailed write-up below: (Date of report: 12 May 2022) Like Intuit, Etsy and other platforms aimed at creators and entrepreneurs, Shopify is a platform that hopes to be the shovel in the gold rush. The challenge is that sometimes, there are just too many shovels. With a share price that has spectacularly collapsed, Shopify is on the shopping list for some growth investors. Should it be, though? We decided to take a closer look at the company that powers a partner ecosystem [...]

Shopify: $SHOP can still dropMagic Markets2022-05-12T03:28:55+02:00

Costco: can big box stay relevant?

Magic Markets2022-06-21T19:22:12+02:00

Use the podcast player below to listen to our discussion on Costco and its Q2’22 result, which accompanies the detailed write-up below: (Date of report: 13 April 2022) Costco is the ultimate warehouse club model. You can't shop there unless you are a member, which means you're paying at least $60 per year (or $120 for Executive Member status) for the privilege of access to bulk-buy deals at wholesale prices. If you live in South Africa, Makro is the closest thing you'll recognise to Costco. The business has been an exceptional performer. Berkshire Hathaway made a fortune with its investment in [...]

Costco: can big box stay relevant?Magic Markets2022-06-21T19:22:12+02:00

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