september 29, 2017 - deborah weinswig...2017/09/29  · (september 25) company press release •...

1

September29,2017

DeborahWeinswig,ManagingDirector,FGRTdeborahweinswig@fung1937.comUS:917.655.6790HK:852.6119.1779CN:86.186.1420.3016Copyright©2017TheFungGroup.Allrightsreserved.

ChartoftheWeekStatoftheWeek

Deborah Weinswig Managing Director

FGRT

deborahweinswig@fung1937.com

US: 917.655.6790

HK: 852.6119.1779

CN: 86.186.1420.3016

September 29, 2017

1) Thisweek’snote“FromtheDeskofDeborahWeinswig”discussesthechangesAmazonhasmadeatWholeFoodsMarketsincetheacquisitionclosedonAugust28,aswellasthechangesitisplanningtomakeandtheresponsefromothergrocers.

2) BusinessadvisoryfirmAlixPartnersreleaseditsforecastforUSretailsalesfortheupcomingholidayseason.Thefirmanticipatesthatretailerswillseeayear-over-yearsalesincreaseof3.5%–4.4%duringtheNovember–Januaryperiod.

3) GrocerydiscounterAldireporteda13.5%increaseinUKandIrelandsales,to£8.7billion(US$11.9billion),fortheyearendedDecember31,2016.Thecompanynotedthatitsawunspecifiedpositivecomparablesalesgrowthintheyear.

4) Baiduisputtingsomeseriouscashbehinditsself-drivingcarpushwithitsannouncementofa$1.5billionfundfocusedonbackingautonomous-drivingtechnologycompanies.TheChinesegianthasprioritizedautonomousvehiclesinamajorwayinrecentyears.

NumberofSocialMediaUsersWorldwide(Bil.)

Source:eMarketer

Source:MinistryofTransportofChina

560Mil.• TheMinistryofTransportofChinaexpectscitizensto

take560millionroadtripsovertheupcomingGoldenWeek,theseven-dayholidaythatcelebratesChina’sNationalDay.Trafficisforecasttobe10%higherthanoverthesameperiodlastyear.

• TheGoldenWeekandMid-AutumnFestivalaremajorpromotionaloccasionsforretailersinChina,asmanyChineseconsumersbuygiftstobringhometotheirfamiliesfortheholidays.

0.971.22

1.401.59

1.912.14

2.282.46

2.622.77

2.903.02

0

0.5

1

1.5

2

2.5

3

3.5

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September29,2017

DeborahWeinswig,ManagingDirector,FGRTdeborahweinswig@fung1937.comUS:917.655.6790HK:852.6119.1779CN:86.186.1420.3016Copyright©2017TheFungGroup.Allrightsreserved.

FromtheDeskofDeborahWeinswig

AmazonIsMakingBigChangesatWholeFoodsMarketandCreatingWavesinGroceryOnAugust28—thedayAmazonclosedits$13.7billionacquisitionofWholeFoodsMarket—subtlechangeswerealreadyevidentinWholeFoodsstores,whererecentlyinstalleddisplaypyramidsofferedAmazon’sEchoandDotintelligentconnecteddevices.Ontheclosingdate,WholeFoodscutpricesupto40%onmanystaples,suchasbananas,eggsandgroundbeef.

Amazonalsopromisedtomakefurtherchanges,includingmakingitsAmazonPrimesubscriptionplantheWholeFoodscustomerrewardsprogram;offeringWholeFoodsproductsthroughAmazon.com,AmazonFresh,PrimePantryandPrimeNow;andputtingAmazonLockersintoWholeFoodslocations.PrimemembersarelikelytoreceiveadditionaldiscountsatWholeFoodsstoresinthefuture,effectivelydrivingthemfromonlinetoofflineshopping.

AlthoughitisreasonabletoexpectthatAmazonwillneedsometimetoaccomplishallofitsplans,thecompanyhasalreadyhitthegroundrunning.Ittookadvantageoftheinterimbetweentheacquisitionannouncementandthedealclosetoquicklyexecuteonanumberoftheseinitiatives—promptingacompetitiveresponsefromothergrocers.

WholeFoodsproductsonAmazon.Morethan1,000WholeFoodsproductsareavailableonAmazon.com,accordingtobusinesswebsiteBusinessInsider.com.Theseincludebutter,turkeybreast,cookies,icecreamsandwiches,shampooandlaundrydetergent.Asimpleofsearchof“WholeFoodsMarket”onAmazon’shomepageturnsupbeautyproducts,nutritionalsupplementsandcerealbarsunderWholeFoods’365EverydayValueprivatelabel.

AmazonLockersinWholeFoodsstores.SomeWholeFoodslocationsnowincludeAmazonLockers,whichholdpackagessecurelyuntilcustomersarrivetopickthemupandenterapasscodetoretrievethem.Amazoncustomerscanalsousethelockerstoreturnitems.(Separately,Kohl’srecentlyannouncedthatitwouldsellAmazon’sEchoandothersmart-homeproducts,aswellasacceptAmazonreturns,in82ofitsstores.)

Centralizationandchangestoregionalofferings.WholeFoodsischangingthewayitmarketsproductstoitscustomers,accordingtoTheWallStreetJournal.Thecompanywillnolongerpermitbrandrepresentativestovisititsstorestoensurethatproductsarestockedanddisplayedcorrectly.Inaddition,theproductassortmentisbecomingcentralized,whicheliminatesthepracticeoflocalbrandsmarketingtheirproductstoindividualstoresandregions.Rather,productassortmentdecisionswilllargelybemadebymanagersatWholeFoods’Austin,TX,headquarters.ThesemoveswilllikelyenableWholeFoodstoofferbetterpricestocustomersthroughgreaterbargainingpowerwithitssuppliersandtobetterintegratewithAmazon’se-commerceplatform.However,customerswilllosethelocalflavoranduniquenesstheirnearestWholeFoodsofferedbefore.

Despitedrivinggreaterefficiencyinstores,WholeFoodsplanstohiremoreworkersandcontinuetoopenmorestores.Theintegrationofthetwocompanies’point-of-saleandmerchandisingsystemswilltakesometime—butAmazonhasdemonstratedthatitismovingattopspeedinenactingthesechanges.

CompetinggrocershavebeenforcedtorespondtoAmazon’schangesatWholeFoods.Interestingly,Krogerismovingintheoppositedirectionintermsoflocalizationbyincreasingitslevelofpartnershipwithlocalbrands.Thecompanyalreadysourcesfromthousandsoflocalsuppliersanditrecentlylaunchedawebsitewiththeslogans“KrogerLovesLocal”and“WeAreLocal”thataimstoencouragemorelocalbrandstosignuptosellinitsstores,accordingtoCNBC.Toincreaseconsumerinterestinshoppingandeatinglocal,Krogerwillcontinuetoofferfoodsamplingandfoodeducationinitsstores.

Thoughithasonlybeenamonthsincetheacquisitionwasfinalized,AmazonhasalreadyimplementedanumberofsignificantchangesatWholeFoodsstoresthatarecreatingripplesthroughoutthegroceryindustry.IndustryobserversandcompetinggrocersareanxiouslywaitingtoseetheadditionalimprovementsandchallengesthatAmazonhasupitssleeve.

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September29,2017

DeborahWeinswig,ManagingDirector,FGRTdeborahweinswig@fung1937.comUS:917.655.6790HK:852.6119.1779CN:86.186.1420.3016Copyright©2017TheFungGroup.Allrightsreserved.

USRETAILEARNINGS

Company

Revenues(USDMil.)

YoY%Change GrossMargin(%)

Change(bps)

NetIncome(USDMil.)

YoY%Change StoreFleetEOP

Period TY LY

TY LY

TY LY

TY LY

AscenaRetailGroup 4Q17 1,658 1,812 (8.5) 57.4 57.5 (8) (16) 14 NM 4,807 4,906

FinishLine 2Q18 469 485 (3.3) 27.8 31.7 (390) 3 22 (87.1) 947 976

Nike 2Q18 9,070 9,061 0.1 43.7 45.5 (180) 950 1,249 (23.9) 1,142 1,045

Source:Companyreports

USRETAIL&TECHHEADLINESNikeDeclinesAfterAthleticGiantGivesBleakUSOutlook(September26)Bloomberg.com• NikesharesdeclinedearlyWednesdayafterthecompanysquelchedanyhopeofaquick

turnaroundatitsailingdomesticoperations.Theworld’sbiggestsportswearmakerexpectsNorthAmericansalestodeclineagainthisquarter,followinga3%dipintheregionlastquarter.Nike’sConversebusinessalsowilldropinthecurrentperiod.

• TheslumphasforcedNiketorelymoreheavilyonoverseasgrowth,especiallyinChina.Internationalsales—alongwithanaggressivecost-cuttingplan—helpedthecompanypostfirst-quarterprofitsthattoppedestimatesonTuesday.CEOMarkParkervowedtoigniteglobalgrowththrough“innovativeproductsandthemostpersonal,digitallyconnectedexperiencesinourindustry.”

ManselltoRetireasKohl’sCEO;FormerStarbucksExecutiveGasstoSucceedHim(September26)JSOnline.com• MichelleGass,whojoinedKohl’sfouryearsagoafterasuccessfulrunatStarbucks,will

succeedKevinMansellasCEOatKohl’s.ThechangepromisesnewperspectivesattheMenomoneeFalls–basedretailer,which,likeotherdepartmentstorechains,hasstruggledtofindapathtogrowthasonlinecompetitioneatsintosalesandconsumerpreferencesevolve.

• Amidthechanges,Kohl’sremainscommittedtobrick-and-mortar,butitisreconfiguringitsfleetofsome1,150storestoeffectivelydownsizeitsretailfootprint.AndthefirmrecentlyraisedindustryeyebrowsbyunveilinganalliancewitharchrivalAmazon.

BankruptToys“R”UsSecuresFinancing,BeginsHolidayHiring(September26)JSOnline.com• Toys“R”Ussaidinareleasethatithadclosedon$3.1billioninbankruptcyfinancingfroma

groupoflendersledbyJPMorgan.Theretailersaidthefundswouldbeusedtomodernizeitsstoresaswellasupdateitse-commerceplatformandinfrastructure.Toys“R”UsannouncedonSeptember21thatitwouldbeginhiringseasonalworkersinstoresandinfulfillmentoperationsinsixofitstopmarkets—NewYorkCity,LosAngeles,Philadelphia,Chicago,BostonandGroveport,OH.

• Theretailerexpectsseasonaljobsinthosemarketstotop12,000,accordingtotherelease.ThehiringannouncementcamejustoveraweekafterthetoyretailerfiledforChapter11bankruptcyfollowingyearsofstrugglingwithamultibillion-dollardebtload.

WEINSWIG’SWATCHING

Thisweek,theFGRTteamattendedtheColliersRetailRoundtablelunchinHongKongandthePepcomHolidaySpectacular!EastinNewYork.

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September29,2017

DeborahWeinswig,ManagingDirector,FGRTdeborahweinswig@fung1937.comUS:917.655.6790HK:852.6119.1779CN:86.186.1420.3016Copyright©2017TheFungGroup.Allrightsreserved.

TargetRaisesMinimumHourlyWageto$11,Pledges$15byEndof2020(September25)Reuters.com• Targetsaiditwouldincreaseitsminimumhourlywagethisyearbyadollar,to$11,vowing

toraisethisbytheendof2020to$15anhour—theso-calledlivingwagethatlaboradvocatesacrosstheUSarecampaigningfor.TheMinneapolis-basedretailer,whichplanstostarthikingminimumpayacrossitsstoresto$11anhourinOctober,providedassurancesthatthemovewouldnothurtitspreviouslyannouncedfull-yearandquarterlyearningsforecasts.

• Amidincreasingcompetitionforworkersinastrengtheninglabormarket,the“FightforFifteen”movement—aunion-ledpushfora$15minimumwage—hasbeengainingtractionincitiesacrossthecountry.

RetailSalestoRise3.5%–4.4%ThisHolidaySeason,AccordingtoAlixPartners’Forecast(September20)AlixPartnerspressrelease• BusinessadvisoryfirmAlixPartnersreleaseditsforecastforUSretailsalesfortheupcoming

holidayseason.Thefirmanticipatesthatretailerswillseeayear-over-yearsalesincreaseof3.5%–4.4%overtheNovember–Januaryperiod.

• JoelBines,co-headoftheAlixPartners’retailpracticeandamanagingdirectoratthefirm,said,“Theso-calledRetailApocalypsemaynotbenighafterall.Basedonouruniqueandhistoricallyhighlyaccuratemethodology,weseeafairlyhealthyholidayseasonforretail.”

EUROPERETAILEARNINGS

Boohoo.comacquiredamajoritystakeinPrettyLittleThingonJanuary3,2017,andinNastyGalonFebruary28,2017.Source:Companyreports/FGRT

EUROPERETAILHEADLINESAldiReports13.5%JumpinUKandIrelandSales(September25)Companypressrelease• GrocerydiscounterAldireporteda13.5%increaseinUKandIrelandsales,to£8.7billion

(US$11.9billion),fortheyearendedDecember31,2016.Grossprofitdeclinedby7%inaprice-competitiveenvironment.Operatingprofitdeclinedby17%asAldicontinuedtoopenstores.

• PrivatelyownedAldinotedthatitsawunspecifiedpositivecomparablesalesgrowthintheyear.Thecompanycurrentlyoperates726UKstoresandplanstoopen70newUKstoresin2018.

Marks&SpencerLaunchesGroceryE-CommerceTrials(September22)Retail-Week.com• TheUK’sMarks&Spencerhaslaunchedtwogrocerye-commercetrials.Inonetrial,

shopperswithinrangeofthecompany’sCamden(London)branchcanopttohave“dinnerfortonight”optionsdeliveredtothemwithinonehourorhavearegulargroceryorderdeliveredintwohours.Inthesecondtrial,Marks&Spencerisofferingaclick-and-collectserviceatitsWoodleystorenearReading.

• Thetrialsareavailableonlytomembersofthecompany’sSparksloyaltyprogram.Marks&Spencerhaslongresistedsellinggroceriesonline,inpartduetothetypicallysmallerbasketsizesofgroceryorders.

TescoClosesinonSuperValuinIreland(September25)ESMMagazine.com• InIreland,second-placegrocerTescohasnarrowedthegapwithmarketleaderSuperValu,

accordingtonewdatafrommarketmeasurementserviceKantarWorldpanel.Inthe12

Company

Revenues(USDMil.)

ChangeinUSD(%)

ChangeinReportingCurrency

(%) GrossMargin(%)Change(bps)

NetIncome(USDMil.)

YoY%Change StoreFleetEOP

Period TY LY

TY LY

TY LY

TY LY

Boohoo.com 1HEAug31 336 177 89.4 106.5 53.3 55.3 (200) 19.9 15.8 26.1 N/A N/A

5

September29,2017

DeborahWeinswig,ManagingDirector,FGRTdeborahweinswig@fung1937.comUS:917.655.6790HK:852.6119.1779CN:86.186.1420.3016Copyright©2017TheFungGroup.Allrightsreserved.

weeksendedSeptember10,Tescoexperienceditsstrongestgrowthinmorethanfiveyears,withsalesup4.3%.SuperValugrewsalesby0.9%inthesameperiod.

• DiscountersLidlandAldigrewsalesby2.4%and3.3%,respectively,duringthe12-weekperiod.

UberSetforTalksoverLondonBan(September25)BBC.com• UberlookssettomeetLondon’stransportregulatorafterTransportforLondondeniedthe

companyanewlicensetooperateinthecity.Uber’scurrentlicenseexpiresSeptember30.• UberChiefExecutiveDaraKhosrowshahiissuedanapologyacknowledgingthatthecompany

hadmade“mistakes.”MayorofLondonSadiqKhansaidhewelcomedtheapologyandaskedTransportforLondonto“makethemselvesavailable”tomeetwithUber.

DeliverooSecuresNewFunding(September25)TheTimes.co.uk• UKfood-deliveryserviceDeliveroohassecured$385millionofnewfunding,valuingthefirm

atmorethan$2billionandmakingitoneofBritain’smostvaluableprivatecompanies.• InvestmentmanagersT.RowePriceandFidelityledthelatestfundinground.

ASIATECHHEADLINESDidiInvests$200MillioninChineseAuto-TradingPlatformRenRenChe(September25)TechCrunch.com• China’sDidiChuxinghasbackedRenRenChe,aChina-based,onlinepeer-to-peercar

marketplace,viaa$200millionstrategicinvestment.ItisnotclearwhatRenRenChe’svaluationispost-investment,butinitslastfundinground,ayearago,thecompanywasvaluedat$500million.Assumingithasnotraisedfundsatadown-round,itwouldnowbeworthatleast$700million.

• Didiisvaluedatmorethan$50billionanditson-demandcarempirestretchesbeyondChina,whereitisintheprocessofbuyingUber’slocalbusiness.ThefirmhaslinksinEurope,SouthAmerica,India,SoutheastAsia,theUSandtheMiddleEastthankstoinvestmentsinthelikesofTaxify,99,Ola,Grab,LyftandCareem.

SoutheastAsiaGamesFirmSea,FormerlyGarena,Filesfor$1BillionUSIPO(September23)TechCrunch.com• SoutheastAsia–basedgamesande-commercefirmSea,formerlyknownasGarena,has

officiallyfiledforitsmuch-anticipatedUSIPO.Thecompany,whichisvaluedatmorethan$3.75billion,willlistontheNewYorkStockExchangeas“SE”andislookingtoraise$1billion.

• SeaisbestknownforitsGarenagamingbusiness,whichfocusesonPCgamesbutalsoincludesmobilegames.Inrecentyears,ithasbranchedoutintoe-commercewithitsShopeeserviceandintopaymentswithitsAirPaybusiness.TheGarenagamesportalhad40.1millionmonthlyusersasofJune2017,with12.9milliondailyusersspendinganaverageof2.3hoursperdayontheservice.GarenaisSea’sonlyrevenuegenerator,asthecompanyisstillsubsidizingShopeeandasAirPayisavailableinjustthreemarkets.

BaiduAnnounces$1.5BillionFundtoBackSelf-DrivingCarStartups(September21)TechCrunch.com• Baiduisputtingsomeseriouscashbehinditsself-drivingcarpushwithitsannouncementof

a$1.5billionfundfocusedonbackingautonomous-drivingtechnologycompanies.TheChinesegiant,bestknownforitsInternetsearchserviceandartificialintelligencetechnology,hasprioritizedautonomousvehiclesinamajorwayinrecentyears,sothenewscomesaslittlesurprise.

• BaidumadeitsApolloself-drivingcarplatformfreelyavailabletotheautoindustryearlierthisyear.Itquicklypickeduppartnersanditcurrentlyclaimstohaveabout70,includingHyundai,Bosch,Continental,Nvidia,MicrosoftCloud,Velodyne,TomTom,UCARandGrab.

6

September29,2017

DeborahWeinswig,ManagingDirector,FGRTdeborahweinswig@fung1937.comUS:917.655.6790HK:852.6119.1779CN:86.186.1420.3016Copyright©2017TheFungGroup.Allrightsreserved.

TwitterIsTestingaTwitterLiteAndroidApp,FirstinthePhilippines(September23)TechCrunch.com• TwitterhasnearlyfourtimesasmanymonthlyactiveusersoutsidetheUSasitdoesinits

homemarket—260millionversus68million—anditlaunchedanewappinanefforttoboostthosenumbersfurther.ThesocialnetworkistestinganAndroidappforTwitterLite,anativeappversionofamobilewebsiteTwitterlaunchedearlierthisyearthatuseslessmobiledatatoworkinthePhilippines.

• Thelighterdataloadmeansthattheappisespeciallyusefulforemergingmarkets,wheredatanetworksareoftenslowerandmoreexpensiveforconsumerstouse.“ThePhilippinesmarkethasslowmobilenetworksandexpensivedataplans,whilemobiledeviceswithlimitedstoragearestillverypopularthere.TwitterLitehelpstoovercomethesebarrierstousageforTwitterinthePhilippines,”saidaTwitterspokesperson.

LATAMRETAIL&TECHHEADLINESFacebookPoachesSASLatAmHead(September25)ZDNet.com• FacebookhaspoachedatopexecutiveatanalyticsfirmSAStoheaditsBraziloperations.

ConradoLeisterwillbetakingoverasBrazilGeneralManageratFacebookfollowingthedepartureofMarcosAngelinieightmonthsearlier.

• Leister’sarrivalmeansthatFacebook’sLatinAmericahead,DiegoDzodan,willbeabletoreturntohisoriginalrole.DzodanhadbeencombiningaccountabilityforBrazilwiththeregionalremitsinceAngelini’sdeparture.

TabletSalesContinuetoDeclineinBrazil(September22)ZDNet.com• TabletsalesinBrazilcontinuedtodropinthesecondquarterof2017,accordingtoanalysis

firmIDC.The790,000devicessoldduringtheperiodrepresentedan8%dropfromthe860,000unitsshippedinthesecondquarterof2016.

• AccordingtoIDC,tabletsalestotaledR$400million(US$127million)duringthesecondquarter,11%lessthaninthesameperiodlastyear,butup9%comparedwiththefirstquarterof2017.

KasperskyLabSecuresContractwithBrazilianArmedForces(September20)ZDNet.com• KasperskyLabhaswonabidtosupplycybersecuritytoolstotheBrazilianArmedForces.

Aftera“complexpubliccompetition”throughlocalchannelpartnerEsyWorld,theRussiancompanysaiditunderwenta“rigorousevaluationprocess”toestablishwhetheritssoftwareofferingsweresuitedtothepurpose.

• Thethree-yearcontractisworthR$8.4million(US$2.6million)intotal,ofwhichR$4.5million(US$1.4million)willbeallocatedtoArmyprojects,R$2.3million(US$735,000)toAirForceprojectsandR$1.6million(US$512,000)toNavyprojects.

CarrefourBrasilNamesPriouxtoReplaceDesmartisasCEO(September22)Kitco.com• CarrefourBrasilhasnamedNoëlPriouxasCEOasitexpandsoperationsafterpricingthe

country’slargestIPOinyears.• PriouxwillreplaceCharlesDesmartis,whodecidedtoleavethegroup,astatementsaid.The

companyalsoelectedPrioux,a33-yearCarrefourveteran,asamemberofthecompany’sboardinBrazil,effectiveOctober2.

7

September29,2017

DeborahWeinswig,ManagingDirector,FGRTdeborahweinswig@fung1937.comUS:917.655.6790HK:852.6119.1779CN:86.186.1420.3016Copyright©2017TheFungGroup.Allrightsreserved.

MACROUPDATEKeypointsfromglobalmacroindicatorsreleasedSeptember20–27,2017:

1) US:ExistinghomesalesintheUStotaled5.35millioninAugust,down1.7%monthovermonth.Newhomesalesdroppedby3.4%monthovermonthinAugust,to560,000.Housingpricesincreasedby5.8%yearoveryearinJuly.

2) Europe:IntheUK,retailsalesexcludingautofuelincreasedby1.0%monthovermonthandby2.8%yearoveryearinAugust.Intheeurozone,theMarkitManufacturingPurchasingManagers’Index(PMI)increasedto58.2inSeptember,whiletheServicesPMItickedupto55.6.

3) Asia-Pacific:InJapan,supermarketsalesweredown0.5%yearoveryearinAugust.Nationwidedepartmentstoresaleswereup2.0%yearoveryearinAugust,whileTokyodepartmentstoresaleswereup3.6%yearoveryear.

4) LatinAmerica:InMexico,retailsalesincreasedby0.3%monthovermonthandby0.4%yearoveryearinJuly.TheunemploymentrateinMexicoedgedupto3.3%inAugust.

*FGRT’sevaluationoftheactualfigure’simpactontheeconomyrelativetohistoricalbenchmarksandthecurrentmacroeconomicenvironment:+indicatesapositivesignalforthecountry’seconomy,–indicatesanegativesignaland=indicatesanegligibleormixedimpact.Source:NationalAssociationofRealtors/USCensusBureau/S&PDowJones/UKOfficeforNationalStatistics/Markit/JapanChainStoresAssociation/JapanDepartmentStoreAssociation/JapanFranchiseAssociation/InstitutoNacionaldeEstadísticayGeografía/FGRT

Country/Region Indicator Period Actual Survey Prior Impacton

Economy*

US ExistingHomeSales(Mil.) Aug 5.35 5.45 5.44 –

US ExistingHomeSales(MoM) Aug (1.7)% 0.2% (1.3)% –

US NewHomeSales(Thous.) Aug 560 585 580 –

US NewHomeSales(MoM) Aug (3.4)% 2.5% (5.5)% –

US S&PCoreLogicCase-Shiller20-CityCompositeIndex(SA,MoM) Jul 0.4% 0.2% 0.1% +

US S&PCoreLogicCase-Shiller20-CityCompositeIndex(NSA,YoY) Jul 5.8% 5.7% 5.7% +

UK RetailSalesexAutoFuel(MoM) Aug 1.0% 0.1% 0.7% +

UK RetailSalesexAutoFuel(YoY) Aug 2.8% 1.4% 1.7% +

UK RetailSalesIncl.AutoFuel(MoM) Aug 1.0% 0.2% 0.6% +

UK RetailSalesIncl.AutoFuel(YoY) Aug 2.4% 1.1% 1.4% +

EZ MarkitEurozoneManufacturingPMI(Prelim.)

Sep 58.2 57.2 57.4 +

EZ MarkitEurozoneServicesPMI(Prelim.) Sep 55.6 54.8 54.7 +

EZ MarkitEurozoneCompositePMI(Prelim.) Sep 56.7 55.6 55.7 +

JP SupermarketSales(YoY) Aug (0.5)% – 0.0% –

JP NationwideDept.Sales(YoY) Aug 2.0% – (1.4)% +

JP TokyoDept.StoreSales(YoY) Aug 3.6% – (0.9)% +

JP ConvenienceStoreSales(YoY) Aug (0.9)% – 0.0% –

MX RetailSales(MoM) Jul 0.3% 0.0% (1.1)% =

MX RetailSales(YoY) Jul 0.4% 1.0% 0.4% =

MX UnemploymentRate(SA) Aug 3.3% 3.3% 3.2% –

8

September29,2017

DeborahWeinswig,ManagingDirector,FGRTdeborahweinswig@fung1937.comUS:917.655.6790HK:852.6119.1779CN:86.186.1420.3016Copyright©2017TheFungGroup.Allrightsreserved.

EARNINGSCALENDAR

Sales(Mil.) EPS

Company

EarningsReleasePeriod Date

ConsensusTY LYActual

ConsensusTY LYActual Currency

Tesco(TSCO.L) 1H18 Oct4 27,997 27,338 0.04 0.01 GBP

CostcoWholesale(COST) 4Q17 Oct5 41,532 36,560 2.01 1.77 USD

SuperValu(SVU) 2Q18 Oct11(E) 3,792 3,865 0.37 1.03 USD

FastRetailing(9983.JP) FY17 Oct12 1,861 1,787 1,104 648 JPY

ASOS(ASC.L) FY17 Oct17 1,936 1,445 0.76 0.63 GBP

eBay(EBAY) 3Q17 Oct18(E) 2,367 2,217 0.48 0.36 USD

Zalando(ZAL.DE) 3Q17 Oct18 1,040 835 0.03 0.02 EUR

Skechers(SKX) 3Q17 Oct19(E) 1,069 942 0.44 0.42 USD

Kimberly-Clark(KMB) 3Q17 Oct23 4,658 4,594 1.55 1.52 USD

VFCorp.(VFC) 3Q17 Oct23 3,384 3,488 1.12 1.15 USD

Apple(AAPL) 4Q17 Oct24(E) 50,709 46,852 1.88 1.66 USD

Alibaba(BABA) 2Q18 Oct24(E) 52,064 34,292 6.92 3.10 CNY

ExpressScripts(ESRX) 3Q17 Oct24 25,679 25,410 1.90 1.27 USD

Procter&Gamble(PG) 1Q18 Oct24(E) 16,662 16,518 1.07 1.01 USD

UnderArmour(UA) 3Q17 Oct24(E) 1,482 1,472 0.19 0.29 USD

Carter’s(CRI) 3Q17 Oct25(E) 949 901 1.65 1.61 USD

Facebook(FB) 3Q17 Oct25(E) 9,821 7,011 1.39 0.82 USD

WalgreensBootsAlliance(WBA) 4Q17 Oct25 29,988 28,636 1.21 1.18 USD

Amazon(AMZN) 3Q17 Oct26(E) 41,212 32,714 1.89 0.52 USD

Baidu(BIDU) 3Q17 Oct26(E) 23,479 18,253 13.23 8.71 CNY

Debenhams(DEB.L) FY17 Oct26 2,947 2,342 0.06 0.07 GBP

Alphabet(GOOGL) 3Q17 Oct26 21,891 22,451 10.09 7.17 USD

SimonPropertyGroup(SPG) 3Q17 Oct26(E) 1,393 1,357 2.87 2.70 USD

9

September29,2017

DeborahWeinswig,ManagingDirector,FGRTdeborahweinswig@fung1937.comUS:917.655.6790HK:852.6119.1779CN:86.186.1420.3016Copyright©2017TheFungGroup.Allrightsreserved.

EVENTCALENDAR

Event Location Date(s)

FGRTPresenting/Attending

2017RetailCyberIntelligenceSummit Chicago,IL Oct3–4

GMDCRetailTomorrow NewYork,NY Oct4–5

FashionTechForum2017:WestCoastDebut LosAngeles,CA Oct6

ShoptalkEurope Copenhagen,Denmark Oct9–11 √

Walmart2017InvestmentCommunityMeeting Bentonville,AR Oct10

RetailCongressAsiaPacific HongKong Oct10–11

KrogerInvestorConference NewYork,NY Oct11

2017TechstarsDemoDay Minneapolis,MN Oct11

REConLatinAmerica&Caribbean SanJuan,PR Oct15–17

SourcingJournalSummit2017 NewYork,NY Oct17

ICSCNewYorkNextGenerationBreakfastProgram NewYork,NY Oct17

SourcingJournalSummit2017 NewYork,NY Oct17

ExclusiveExecutiveConference Orlando,FL Oct17–19 √

NACSShow2017 Chicago,IL Oct17–20

ICSCResearchConnectionsConference Toronto,Canada Oct22–24

BackEndofInnovation Orlando,FL Oct22–25

RetailWestSummit SanFrancisco,CA Oct24

WWDApparel&RetailCEOSummit NewYork,NY Oct24–25 √

X5RetailGroupCapitalMarketsDay Moscow,Russia Oct26

AAFAExecutiveThinkTank HongKong Oct26 √

FIT’sFashionistas&Financiers NewYork,NY Nov1

IDTechExShow:WearableUSAandPrintedElectronicsUSA SantaClara,CA Nov15–16

LBrandsAnnualInvestorMeeting Columbus,OH Nov22

Asia-GlobalDialogue2017 HongKong Nov22

HomeDepotInvestor/AnalystDay Boston,MA Dec6–7

FortuneGlobalForum Guangzhou,China Dec6–8 √

ICSCNewYorkDealMaking NewYork,NY Dec6–8

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September29,2017

DeborahWeinswig,ManagingDirector,FGRTdeborahweinswig@fung1937.comUS:917.655.6790HK:852.6119.1779CN:86.186.1420.3016Copyright©2017TheFungGroup.Allrightsreserved.

DeborahWeinswig,CPAManagingDirectorFGRTNewYork:917.655.6790HongKong:852.6119.1779China:86.186.1420.3016deborahweinswig@fung1937.comKirilPopovSeniorAnalyst

JohnHarmon,CFASeniorAnalyst

JohnMercerSeniorAnalyst

StevenWinnickResearchAssociate

CharliePoonResearchAssistant

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