reports
- Cedric Rossi
- Clement Genelot
- Loic Morvan
- Paul Rouviere
- Philippine Adam
On the shelves now: Consumer weekly #39
In this Consumer Weekly newsletter, we provide a brief overview of the key factors affecting our Consumer coverage, from Luxury & Consumer goods to Retail & E-commerce and Food & Ingredients. This week, we discuss the Fed's upcoming meeting and rate cut. Happy reading!
- Clement Genelot
Tesco: defensive appeal and earnings momentum overshadow stretched val...
Ahead of the H1 release on 3rd October, we have lifted our FY FCF by c.3% and our PT from 349p to 386p on the back of better market dynamics and Tesco's market share development. While acknowledging the stretched valuation, we continue to favour Tesco (Buy) alongside Ahold Delhaize (Buy) as a conti
- Cedric Rossi
Inditex: strong momentum keeps rolling
Among the four main pillars of its "To the Next Level" strategy, initiatives around Customer Experience (e.g.: store optimisation, roll-out of Zara Streaming Experience, etc.) are delivering the most visible results at both the sales and profit levels. They also support our scenario for profitable
- Cedric Rossi
Inditex: sound Q2 results and current trading
Despite adverse weather conditions during the summer, Inditex has unveiled strong Q2 results this morning with: double-digit FX-n sales growth for the 14th consecutive quarter (+10%) and a solid 100bp-improvement in EBIT margin to 19.2% (CSSe: 18.9%). This momentum has not waned with sales between
- Cedric Rossi
OTC hearing aid market: no worms in the Apple
Among all the innovative products presented at Monday's Apple Keynote, the AirPods Pro 2 stood out for the new OTC hearing aid capability to be included for users with mild to moderate hearing loss, representing EUR1.4bn people globally. While most hearing aid stocks and, to a lesser extent, Essilo
- Cedric Rossi
Fashion: sweet or sour Back-to-School?
While publications of US retailers this week (e.g.: Gap, Abercrombie & Fitch, lululemon, etc) should give the market a clearer view of the US consumer mood, the European consumer mindset is set to be reflected in H&M and Inditex's publications next month. As expected, the summer has been no
- Clement Genelot
Tesco: P08 momentum gains ground in a healthier UK market
Following the P08 Kantar market share release, we continue to favour Tesco for its exposure to a still-healthy UK grocery market (no deflation, volume/mix back to growth, accelerating and looking better than the rest of Europe, no price war until late 2025) and its robust commercial execution curre
- Cedric Rossi
US eyewear: watch out for inflation-weary consumers
Although eyewear players operate in a durable category that enjoys a relatively defensive status, US consumers showed signs of flagging in Q2 as pent-up demand in prescription did not materialise and the sunglass category suffered subdued trends. This cautious behaviour was particularly visible amo
- Cedric Rossi
EssilorLuxottica: expansion of retail operations in Eastern Europe
A couple of weeks after the Supreme and Heidelberg Engineering deals, EssilorLux announced yesterday the acquisition of Optical Investment Group for an undisclosed amount. With a strong footprint already in key markets across Eastern Europe (e.g.: Poland, Czech Rep, Hungary, etc.), EssilorLux is en
- Cedric Rossi
Fashion: will plans to impose duties on cheap goods disrupt Shein and ...
The very competitive prices offered by Shein and Temu stem from their ability to take advantage of tax loopholes allowing parcels to be shipped without having to pay duties and taxes as long as they are under a certain value. As the EU Commission is moving to scrap the EU's EUR150 import tax loopho
- Cedric Rossi
EssilorLux: slight miss on Q2 FX-n growth due to the US, in line H1 ma...
Q2 sales released last night were broadly in line with expectations despite a slight miss with FX-n growth (5.2% vs. CSSe 5.7%) due to a softer-than-expected performance in North America. As expected, H1 aEBIT margin remain flat at 18.3%, dented by FX (-50bps) and strategic investments (-60bps). Du
- Cedric Rossi
EssilorLux: Supreme, the acquisition that no one saw coming...
Yesterday morning, EssilorLux announced the surprise acquisition of iconic streetwear brand Supreme, from VF Corp (VFC) for USD1.5bn. Whilst EssilorLux masters brand-building, even for diversified eyewear brands such as Oakley (30% AFA / 70% eyewear) and DTC (100% of Supreme's sales), this acquisit
- Clement Genelot
Tesco: Still accelerating in an increasingly healthy market
Post P06 Kantar market share release, we continue to favour Tesco for its exposure to a still-healthy UK grocery market (no deflation, volume/mix back in positive territory and looking better than the rest of Europe, no price war until late 2025) and its robust commercial execution currently unlock
- Cedric Rossi
- Clement Genelot
- Loic Morvan
- Paul Rouviere
- Philippine Adam
On the shelves now: Consumer weekly #36
In this Consumer Weekly newsletter, we provide a brief overview of the key factors affecting our Consumer coverage, from Luxury & Consumer goods to Retail & E-commerce and Food & Ingredients. This week, we look at the US job market that is gradually cooling, prompting investors to bet o
- Cedric Rossi
Eyewear: A photochromic first half
On par with these lenses that turn from dark-to-clear, we expect ambivalent performances for EssilorLux (ESLX) and Safilo (SFL) in H1 2024: the former should post strong top-line momentum in Q2 combined with a flat H1 aEBIT margin, whereas SFL's Q2 sales trends will be mainly impacted by the phase-
- Cedric Rossi
- Clement Genelot
- Loic Morvan
- Paul Rouviere
- Philippine Adam
On the shelves now: Consumer weekly #34
In this Consumer Weekly newsletter, we provide a brief overview of the key factors affecting our Consumer coverage, from Luxury & Consumer goods to Retail & E-commerce and Food & Ingredients. This week, we take a look at underperformance by European, and especially French, equity indexe
- Clement Genelot
Tesco: ever-stronger momentum
Post-Q1 publication and P06 Kantar market share release, we continue to favour Tesco for its over-exposure to a still healthy UK grocery market (no deflation, volume/mix looking better than the rest of Europe, no price war until late 2025) and its robust commercial execution currently unlocking eve
- Cedric Rossi
Fashion: consumers backpedaling on sustainability due to inflation
In our recent Fashion report "Is sustainability the new luxury?", we were highlighting the green consumer paradox vis-a-vis sustainable brands. A McKinsey survey just discovered that consumers are indeed de-emphasising the importance of ESG in their purchases in an inflation-impacted world. This wo
- Cedric Rossi
- Clement Genelot
- Loic Morvan
- Paul Rouviere
- Philippine Adam
On the shelves now: Consumer weekly #32
In this Consumer Weekly newsletter, we provide a brief overview of the key factors affecting our Consumer coverage, from Luxury & Consumer goods to Retail & E-commerce and Food & Ingredients. This week, we take a fresher look at the (still ongoing) Red Sea freight crisis. Happy reading!
- Cedric Rossi
Inditex: defying gravity
In our sector update last week, we highlighted that it was becoming hard for ITX to beat the CSS which has been revising estimates upwards over the past two years. And yet, ITX unveiled a good set of Q1 numbers yesterday, marked by a 13th consecutive quarter of double-digit FX-n sales growth, and,
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