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Monday, November 30, 2020

-=IHS Markit Ltd. (INFO) to be acquired by S&P Global Inc. (SPGI) for $44 billion

  • The biggest M&A deal of 2020
  • S&P Global will own around 67.75% of the combined financial information and data group when the deal is closed in the second half of next year.
  • Combining the two data and information groups will yield around $480 million in cost synergies.

Tuesday, November 24, 2020

-= Gap (GPS) reported earnings on Tue 24 Nov 2020 (a/h)


Gap appoints Asheesh Saksena as Chief Growth Officer; names Sandra Stangl as new CEO of Banana Republic

Gap reports Q3 results, beats on revs, comparable sales up 5%, assumes Q4 net sales will be equal to or slightly higher than last year 

  • Reports Q3 (Oct) GAAP earnings of $0.25 per share. The S&P Capital IQ Consensus is $0.33.
  • Revenues fell 0.1% year/year to $3.99 bln vs the $3.8 bln S&P Capital IQ Consensus.
  • Comparable sales were up 5%, driven by the strength of Gap's scaled e-commerce business, which was driven by a 61% increase in online sales.
    • Old Navy Global net sales increased 15%, with comparable sales up 17%.
    • Gap Global net sales were down 14% and comparable sales were down 5%.
    • Banana Republic Global net sales were down 34%, a slight improvement versus the second quarter. Comparable sales were down 30%.
  • 2020 Financial Outlook: Recognizing the continued high level of uncertainty in the marketplace, the company is not providing a fiscal year earnings outlook.
  • Holiday Shopping Season/Q4 assumptions: Behind the continued investment in digital capabilities, including the third quarter launch of its loyalty program, the company believes it is well-positioned heading into the holiday shopping season.General assumptions for the fourth quarter include:
    • Net sales being equal to or slightly higher than last year.
    • Gross margin rate being equal to last year, reflecting continued benefits of store closures largely offset by higher shipping expenses.
  • -=Nordstrom (JWN) reported earnings on Tue 24 Nov 2020 (a/h)


    The department store Nordstrom delivered a large surprise profit for its fiscal third quarter, boosting the stock even though sales were light.

    Nordstrom (ticker:JWN) said it earned 34 cents a share, while revenue fell 16% to $3.1 billion.  Analysts were expecting the company to lose a nickel a share from revenue of $3.13 billion.

    Digital sales increased 37% year over year to $1.6 billion, or 54% of the company’s total sales. At the company’s full-price stores, sales slipped 7%, while the Nordstrom Rack division notched a 32% decline.
    Management said the off-price Rack segment continues to be the biggest source of new customers, and that it recently further integrated the unit’s inventory with its omnichannel platform, including expanding in-store pickup.

    The results included Nordstrom’s Anniversary Sale, which is usually held in the summer but was delayed due to Covid-19. Excluding the benefit of the event, the company said that online sales increased by a percentage in the mid teens, roughly in line with the first half of the year. Full-price sales declined in the mid-20% range excluding the sale’s effects. Gross profits as a percentage of sales decreased by 1.5 percentage points, affected by the move in the Anniversary Sale’s timing and reduced sales volumes.

    Best Buy (BBY) reported earnings on Tue 24 Nov 2019 (b/o)

     ** charts after earnings **


    Best Buy beats by $0.34, beats on revs; Q3 US comps +22.6%

  • Reports Q3 (Oct) earnings of $2.06 per share, excluding non-recurring items, $0.34 better than the S&P Capital IQ Consensus of $1.72; revenues rose 21.4% year/year to $11.85 bln vs the $10.97 bln S&P Capital IQ Consensus.
  • Domestic revenue of $10.85 billion increased 21.0% versus last year. The increase was primarily driven by comparable sales growth of 22.6%, which was partially offset by the loss of revenue from permanent store closures in the past year. Domestic gross profit rate was 24.0% versus 24.3% last year.
  • From a merchandising perspective, the company generated comparable sales growth across most of its categories, with the largest drivers being computing, home theater and appliances. These growth drivers were partially offset by a decline in mobile phone sales.
  • Barry continued, "For our employees, we raised our starting wage to $15 per hour, paid recognition bonuses to field employees and reinstated our short-term incentive compensation. In the early days of the pandemic, we established an employee hardship fund that continues to provide emergency funds to our employees who are sick, have loved ones who are sick or are experiencing financial hardship. In addition, in recent weeks, we have resumed our 401(k) employer match and invested significantly in our employee well-being benefits."
  • Dollar Tree (DLTR) reported earnings on Tue 24 Nov 2020 (b/o)

     ** charts after earnings **


    Dollar Tree beats by $0.23, reports revs in-line; Q3 comps +5.1%; not providing guidance

  • Reports Q3 (Oct) earnings of $1.39 per share, excluding non-recurring items, $0.23 better than the S&P Capital IQ Consensus of $1.16; revenues rose 7.5% year/year to $6.18 bln vs the $6.12 bln S&P Capital IQ Consensus.
  • Enterprise same-store sales increased 5.1%. Same-store sales for Family Dollar increased 6.4%. Dollar Tree same-store sales increased 4.0%. Gross profit increased 12.9% to $1.92 billion in the quarter compared to the prior year's third quarter.
  • Due to continued volatility and uncertainty related to the COVID-19 pandemic, as well as a lack of visibility into government stimulus initiatives, the Company is not providing updated guidance at this time. The Company now expects the completion of approximately 480 new store openings and 750 Family Dollar H2 store renovations in fiscal 2020. Capital expenditures for fiscal 2020 are expected to be approximately $1.0 billion.