weekly insights september 1 2017 - deborah weinswig · 9/1/2017  · abercrombie & fitch 2q17...

1

September1,2017

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 1, 2017

1) Thisweek’snote“FromtheDeskofDeborahWeinswig”discussesoff-priceretailers’recentexpansioninEuropeandtheirprospectsforgrowthintheregion.

2) Hudson’sBayCompany,owneroftheSaksFifthAvenueandLord&Taylorretailchains,planstoreviewitsoptions,includinggoingprivate,followingpressurefromanactivistshareholder.

3) UKonlinesupermarketOcadohasunveiledanappforAmazon’sAlexavoiceassistantthatwillenableownersofAmazon’sartificialintelligence–poweredEchosmartspeakerstoaddgroceriestotheirshoppinglistbyvoicecommand.

4) WalmartintendstoinvestroughlyR$1billion(US$316million)inBrazilthrough2019torestoreabout120storesasrivalsinSouthAmerica’sbiggesteconomyratchetupinvestmentstoretaincash-strappedconsumers.

UK:FoodProducerPricesInflation(PPI)vs.FoodConsumerPricesInflation(CPI)

ThegapbetweenfoodPPIandfoodCPIintheUKstoodatasubstantial2.9percentagepointsinJuly,suggestingthatconsumersarebeinginsulatedfromthefullimpactofrisinginputcosts,andthatfoodretailersandproducersareseeingasignificantsqueezeonmargins.

ThroughJuly2017Source:OfficeforNationalStatistics/FGRT

Source:Forbes.com

$8Bil.• Alibabainvestedasmuchas$8billioninphysical

storesoverthepasttwoyearsthroughstakesinlocalsupermarketchainsandtheacquisitionofChineseluxurymalloperatorIntimeRetail.

• Since2015,Alibabahasopened13brick-and-mortargrocerystoresundertheHemaXianshengbrand.Thecompanybelievesthatseamlessintegrationbetweenonlineandofflinechannelsiscrucialforfuturegrowth.

5.8

2.9

(4.0)

(2.0)

0.0

2.0

4.0

6.0

2015 2016 2017

FoodPPI FoodCPI

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September1,2017

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

FromtheDeskofDeborahWeinswig

IsEuropeRipeforanOff-PriceBoom?Thissummersawtheopeningofwhatisonlythesecondmajoroff-pricechaininEurope.Hudson’sBayCompanybroughtitsSaksOff5thoff-priceformattoEuropeinJunewiththeopeningofitsinauguralstoreinDüsseldorf.ItjoinedTJXCompanies,whichtradesasTKMaxxinEuropeandhasstoresintheUK,Ireland,Germany,Poland,AustriaandtheNetherlands.TKMaxxhassofarbeentheonlyoff-pricebrick-and-mortarchainofnoteinEurope,althoughweviewAmazonasadefactooff-pricefashionretailer,too.

Theimmaturityoftheoff-pricechannelinEuropesuggestsopportunitiesforgrowth.TJXCompanieshasstatedthatitaimstooperate1,100storesinEuropeandAustraliaoverthelongterm,ofwhich125wouldbeinAustralia,implying975storesinEurope.AsofJanuary2017,thecompanyoperatedatotalof582storesacrosstheseregions.Thecompanyplanstoopen45moreEuropeanTKMaxxstoresbyJanuary2018,theendofitscurrentfiscalyear.

SaksOff5thalreadyhasfiveGermanstoresandoneDutchstore,accordingtoitswebsite.AsecondstoreintheNetherlandswillopenthisautumn,thecompanysays.

DatafromEuromonitorInternationalshowthattheoff-pricesectoraccountedforonly2%ofEuropeanapparelspecialistretailsaleslastyear.Some$232billionofsaleswillflowthroughapparelandfootwearspecialiststoresthisyear,accordingtoEuromonitor.Ifoff-priceretailerscan,intime,capture5%ofthesector,itimpliesthepotentialforalmost$12billioninannualsales,at2017prices.

Off-PriceApparelandFootwearSpecialistRetailers’Salesas%ofTotalApparelandFootwearSpecialistRetailers’Sales

Source:EuromonitorInternational

However,wethinktheoff-pricesegmentwillachievealowerpenetrationoftheapparelsectorinEuropethanithasintheUS.Therelativestrengthoffull-priceretailinginEuropewilllikelymakeestablishedretailersmorereluctanttopushintooff-priceformatsthereinthewaythatNordstrom,SaksFifthAvenue,Macy’sandLord&TaylorhavedoneintheUS.Retailers’warinessaboutpossiblecannibalizationcouldcapthescaleoftheoff-pricesectorinEurope.

That,inturn,suggeststhatinternationalentrantssuchasTKMaxxandSaksOff5thcouldenjoyafreeruntobuildshareintheEuropeanapparelsectorinthenearterm.

18.7 19.9 20.5 21.0 21.7 22.5

1.2 1.4 1.5 1.7 1.9 2.0

2011 2012 2013 2014 2015 2016

US WesternEurope

WEINSWIG’SWATCHING

Thisweek,FGRTManagingDirectorDeborahWeinswigpresentedon“TheConnectedMalloftheFuture”attheUrbanLandInstitute(ULI)inHongKong.

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September1,2017

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

Abercrombie&Fitch 2Q17 779 783 (0.5) 59.1 60.9 (180) (15) (13) NM 891 926

AmericanEagleOutfitters 2Q17 845 823 2.7 34.7 37.3 (270) 21 42 (48.9) 1,252 1,202

BigLots 2Q17 1,221 1,203 1.5 40.3 40.4 (10) 29 23 28.2 1,429 1,445

BurlingtonStores 2Q17 1,369 1,261 8.6 41.0 39.9 105 47 20 130.0 600 570

DollarTree 2Q17 5,281 4,996 5.7 30.8 30.3 55 234 170 37.4 14,581 14,129

Express 2Q17 479 505 (5.2) 27.5 29.9 (240) (12) 10 NM 635 680

Guess 2Q18 574 545 5.3 34.5 34.1 45 15 32 (52.8) 1,644 1,638

Lowe’s 2Q17 19,495 18,260 6.8 34.2 34.4 (20) 1,419 1,167 21.6 2,141 2,108

PVHCorp. 2Q17 2,070 1,933 7.1 55.4 53.5 195 120 91 32.3 N/A N/A

Sears 2Q17 4,365 5,663 (22.9) 22.2 22.2 (0) (251) (395) NM 1,250 1,592

Tiffany&Co. 2Q17 960 932 3.0 62.3 61.9 40 115 106 8.8 312 311

UltaBeauty 2Q17 1,290 1,069 20.6 36.4 36.0 40 114 90 26.9 1,010 907

Williams-Sonoma 2Q17 1,202 1,159 3.7 35.2 35.4 (25) 53 52 2.2 635 626

Source:Companyreports

USRETAIL&TECHHEADLINESAtWholeFoods,AmazonTakesRareLeadinCuttingPrices(August28)TheWallStreetJournal• Amazon.computitselfintheunusualpositionofbeingafirstmoveronpricecutswhenit

slashedthestickerpriceonmorethan100itemsatWholeFoodsMarket,manybymorethan30%.

• Amazontypicallyreliesonalgorithmsthatscrapecompetitors’pricesbeforeautomaticallymatchingornarrowlyundercuttingthemonitswebsite.Itfocusesonitemsthataremostpopularonthesiteandthatdrivetraffic,accordingtoformerexecutivesinAmazon’sretaildivisions.Thatgivestheretailgiantareputationforhavingthelowestprices,partofitsstrategyofdrivingmoreshoppertraffic.

WhyHurricaneHarveyIsa“DoubleWhammy”forTexasRetail(August28)FootwearNews.com• Withaheavyblastofdevastatingrainandflooding,Category4stormHurricaneHarvey

pummeledthroughsomeofthemostpopulouscitiesinTexas,leavinginitswakedestructionandchaos.“Thiscomesasadoublewhammy,”saidMarshalCohen,chiefindustryanalystwithTheNPDGroup.“InsomepartsofTexas,thereisalreadyapullbackfromtheHispanicconsumer,[whichhasaffected]someoftheretailersthatrelyheavilyonthatcustomerbase.”

• “Butnow,you’vegottoaddinthefactthatthereisthisnewenvironmentalissue[thatis]totallychangingthefocusofspending,”Cohensaid.Forfootwearandapparelretailers,theendofAugustandearlySeptembermarksacriticaltimeintheback-to-schoolshoppingperiod.

TheParentCompanyofSaksFifthAvenueIsThinkingAboutGoingPrivate(August28)BusinessInsider.com• Hudson’sBayCompany,owneroftheSaksFifthAvenueandLord&Taylorretailchains,

planstoreviewitsoptions,includinggoingprivate,followingpressurefromanactivistshareholder,peoplefamiliarwiththemattersaid.

• Hudson’sBayCompany,whichisalreadyworkingwithaninvestmentbanktodefenditselfagainstactivisthedgefundLandandBuildings,hasbeenseekingtohireanotherfinancialadvisortocarryoutthereview,thesourcessaidthisweek.

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September1,2017

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

PerfumaniaSeeksBankruptcyProtection(August27)TheWallStreetJournal• Mall-basedretailchainPerfumaniahassoughtChapter11protection,withplansto

reorganizearounditsbetter-performingstores.“Unlikemanyretailerswhohavefiledforbankruptcy,Perfumaniaseesaviablepathforward,”ChiefExecutiveMichaelKatzsaidincourtpapersfiledSaturday.

• Thecompanyplanstoclose64ofits226storesduringthebankruptcyprocess,courtpapersshow.Despiteclosingnearly100storessince2015,thecompanystilltooklosseseachyear,Katzsaid.Itsstoreswillremainopenwhileunderbankruptcyprotection.Perfumania’sParluxandFiveStarFragrancesubsidiariesarenotincludedinthebankruptcyfiling.

WalmartandGoogleArePlottingtoChangeYourShoppingHabits(August23)TheWashingtonPost• Moveover,Alexa.Walmartisgoinghigh-techinitsfightagainstAmazon.com.Beginning

nextmonth,shopperswillbeabletobuyWalmartproductsbyspeakingtotheirGoogleHomedevices.Theretaileristhelatest—andlargest—tomakeitsgoodsavailableonGoogleExpress,Google’se-commerceanddeliveryplatform.

• Thepartnership,whichbringstogethertheworld’slargestretailerwiththeworld’slargestsearchengine,isthelatesteffortbyWalmarttochipawayatAmazon’sonlinedominance.

EUROPERETAILEARNINGS

Source:Companyreports/FGRT

EUROPERETAILHEADLINESSainsbury’sAnnouncesArgosClick-and-CollectPointsat100ConvenienceStores(August29)Retail-Week.com• BritishgrocerSainsbury’shasannouncedplanstointroduceArgosclick-and-collectservices

at100conveniencestores.ThismovewillallowshopperstocollectArgosandTuclothingordersplacedonlineatstores“closertowheretheyliveorwork.”

• TheretailersuccessfullytrialedtheinitiativeinsixSainsbury’sLocalconveniencestoresandexpectstheplantobecompletedbytheendof2017.

ArcadiaAgreestoPayBHSCreditors£30Million(August25)TheGuardian.com• UKfashiongroupArcadiahasagreedtopay£30million(US$39million)totheunsecured

creditorsofBHS,adepartmentstorechainthatitownedpreviously.BHScollapsedintoadministrationin2016,leavingbehindapensionfunddeficitof£571million(US$740million).

• BHS’sliquidator,FRPAdvisory,hasagreedtodroplegalactionfiledagainstArcadiawiththissettlement.

Matchesfashion.comValuationReportedlyRises,butCompanyRemainsMumonSale(August27)WWD.com• London-basedluxurye-commercefirmMatchesfashion.comisnowreportedlyworth£800

million(US$1.04billion),upfrom£650million(US$843million)asreportedbyvariousnewspapersearlierinAugust.

• Newsreportssuggestthattheretaileralsohasseveralprivateequitybidders,includingApaxPartners,Permira,KKRandBainCapital,lineduptotabletheiroffers,butWomen’sWearDailywasunabletoreachthemforcomment.Matchesfashion.comhasnotmadeaformalannouncementandtheownershavedeclinedtocommentconcerningthesaleofamajorityorminoritystakeinthefirm.

Company

Revenues(USDMil.)

ChangeinUSD(%)

ChangeinReportingCurrency

(%) GrossMargin(%)Change(bps)

NetIncome(USDMil.)

YoY%Change StoreFleetEOP

Period TY LY

TY LY

TY LY

TY LY

Carrefour 1HEJun30 41,704 40,505 3.0 6.2 22.9 23.2 (34) 159.1 216.5 (26.5) 12,052 11,687

5

September1,2017

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

SparBecomesFirstRetailertoLaunchinBelarus(August25)ESMMagazine.com• DutchretailchainSparhasannouncedplanstoenterBelarusandopen60newstoresinthe

countryby2020.SparispartneringwithBelarusianfirmAlmiGroup,whoseUnifoodCKSCsubsidiarywilloperatethebrandinthecountry.

• AlmiGroupruns43storesinBelarusunderthebannersAlmiandZakrama.Sparwillprovidethegroupwithretaildesign,staff,training,supplychainreviewandmarketingcampaigns.

OcadoLaunchesVoice-ShoppingAppforGroceryonAmazon’sAISpeakers(August29)TechCrunch.com• UKonlinesupermarketOcadohasunveiledanappforAmazon’sAlexavoiceassistantthat

willenableownersofAmazon’sartificialintelligence–poweredEchosmartspeakerstoaddgroceriestotheirshoppinglistbyvoicecommand.ThisnewsfollowsAmazon’sacquisitionofAmericangrocerWholeFoodsMarket.

• OcadosaysthatitisthefirstBritishsupermarkettolaunchanappforAlexa.Currently,theapponlyallowsuserstoamendexistingordersanddoesnotsupportcreatingneworders.

ASIATECHHEADLINESChinaDoublesDownonReal-NameRegistrationLaws,ForbiddingAnonymousOnlinePosts(August27)TechCrunch.com• China’scrackdownonInternetfreedomisgettingevenmoreintense.LastFriday,the

country’stopInternetcensorannouncedanewsetofregulationsmeanttoeliminatepostsbyanonymoususersonInternetforumsandotherplatforms.TheCyberspaceAdministrationofChinawillstartenforcingthoserulesonOctober1.

• Accordingtothenewregulations,Internetcompaniesandserviceprovidersareresponsibleforrequestingandverifyingrealnamesfromuserswhentheyregisterandmustimmediatelyreportillegalcontenttotheauthorities.Techfirms,includingBaidu,AlibabaandTencent,areundermorepressuretoserveasthegovernment’sgatekeepers,whichisexpectedtoresultintheplacementofnewpeopleinseveralkeyleadershippositions.

UberRunningAgaininthePhilippinesAfterPaying$9.6MillioninPenalties(August29)TechCrunch.com• Uber’sone-monthsuspensionofitsserviceinthePhilippineswasliftedearly,afterthe

companyagreedtopaynearly$10millioninfinesandaidfordriversaffectedbytheservicebeingsuspended,Reutersreports.EarlierinAugust,theride-hailinggiantsuspendeditsservicesinthecountryonorderofanationalregulator,theLandTransportationFranchisingandRegulatoryBoard.

• ThesuspensionwasorderedafterUberapparentlyfloutedatemporarybanonaddingnewdriverswhiletheregulatorworkedtocatchupwithabacklogofapplicationsfordriversseekingride-hailingpermits—thoughUberhasclaimedithadnotbeenaddingnewdriversduringthisperiod.

Renault-NissanandDongfengPartnertoBuildElectricCarsforChina(August29)TechCrunch.com• Renault-NissanandChina’sDongfengMotoraresettingupadedicatedjointventuretobuild

electricvehiclesforthegrowingdemandinChina,joiningFordandVolkswagen.AutomakersfromoutsideChinabasicallyneedalocalpartnerinordertomakeandsellvehiclesinthecountrywithoutincurringhugeimporttaxesthatwouldbasicallyrendertheiroperationsunsustainable.

• Renault-Nissan’snewpartnershipwithDongfengiscalledeGTNewEnergyAutomotiveCompany,anditwillbesplitbetweenNissan,with25%ownership,Renaultwithanother25%,andDongfengwiththeremaining50%,accordingtoReuters.ThefirstvehiclefromthejointventurewillbeanewelectricvehiclebasedononeofRenault-Nissan’ssubcompactcrossover-SUVplatformdesigns.

6

September1,2017

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

SoftBankandLineFurtherAIAmbitionsbyJoiningThisStartup’s$33MillionSeriesC(August30)TechinAsia.com• ArtificialintelligencestartupAppierrevealedthatithassecured$33millioninseriesC

fundingfrominvestorssuchasSoftBank,LineandSingapore’sEDBI.TheTaipei-basedcompanysaidinastatementthatitwillusetheinvestmenttohirenewteammembers—particularlyinengineeringandresearchanddevelopment—asitlookstogrowitsglobalpresence.

• Appieroffersanumberofproductsbuiltaroundtechnologythattracksindividualusers’activityacrossalloftheweb-connecteddevicestheyown—includingsmartphones,tablets,laptopsanddesktopcomputers—enablingadvertiserstobettertargettheircampaigns.

LATAMRETAILANDTECHHEADLINESRiodeJaneirotoOpenTaxiAppAPI(August28)ZDNet.com• ThecityofRiodeJaneirowillopentheAPIofitsnewlycreatedtaxiapptootherBrazilian

cities.Thetool,Taxi.Rio,connectslicensedtaxidriverswithpassengers.ThedifferencebetweenTaxi.Rioandothercommercialtools,suchasUber,isthatdriverscanuseitfreeofcharge.

• AproprietarypaymentgatewayfortheappisalsobeingdevelopedbyIplanRio,thecity’sinformaticscompany.AccordingtoIplanRio,theAPIforthetoolwillbeavailabletoanycitywantingtocreatealocalversion.CitiesthathaveshowninterestincludestatecapitalsSãoPaulo,Curitiba,RecifeandAracaju.

FacebookOpeneda“HackStation”inBraziltoTeachStartupSkillstoThousandsofLocals(August28)BusinessInsider.com• FacebookunveileditsfirsttrainingcenterinLatinAmericaforcodersandentrepreneurs,

encouragingtechnologycareersforyoungBrazilianssaddledwithstaggeringunemploymentafteradeepeconomiccrisis.

• Thecompany’sregionalVicePresident,DiegoDzodan,toldReutersthespaceinmidtownSãoPaulo,knownasEstaçãoHack,willbridgethegapinBrazilbetweenatechsectorhungryforskilledtalentandaneagerbutuntrainedgenerationwithtimeontheirhands.

BrazilMakesInroadsintoBiometricCitizenRegistration(August28)ZDNet.com• TheBrazilianSuperiorElectoralTribunal(TSE)hasbeengrantedaccesstodatafromall

driversasthecountryadvancesinitsbiometricdatacollectionefforts.TSEhasbeencollectingbiometricdataforvoteridentificationasameanstopreventfraudsince2013.

• Ultimately,thegovernmentwantstocollectbiometricinformationfrom140millioncitizensby2020.TheultimategoalistocreateasinglecitizendatabaseandunifiedIDcard,whichwouldgatherinformationsuchastax,driverandvotingrecords.TSEisresponsibleforleadingthesinglebiometricdatabaseefforts.

WalmarttoInvestover$300MillioninBrazil(August30)TheStreet.com• WalmartintendstoinvestroughlyR$1billion(US$316million)inBrazilthrough2019to

restoreabout120storesasrivalsinSouthAmerica’sbiggesteconomyratchetupinvestmentstoretaincash-strappedconsumers,Reutersreports.

• “We’vealreadydoneabout10%ofitthisyear,”saidFlavioCotini,Walmart’schiefexecutiveinBrazil.Walmartisthethird-largestdiversifiedretailerinBrazil.ThereportaddedthatGoldmanSachsprojectsthatBrazil’slargestfoodretailer,CarrefourBrasil,willdoubleitsnumberofstoresinthenextthreeyears.

7

September1,2017

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

MACROUPDATEKeypointsfromglobalmacroindicatorsreleasedAugust23–30,2017:

1) US:HomesalescameinlowerthanexpectedinJuly.Newhomesalesstoodat571,000andexistinghomesalestotaled5.4million.InJune,housingpricesroseby0.1%monthovermonth(afterseasonaladjustment)andby5.7%yearoveryear(beforeseasonaladjustment).

2) Europe:IntheUK,GDPincreasedby0.3%quarteroverquarterinthesecondquarter,inlinewiththeconsensusestimate.UKhousingpricesedgeddownby0.1%monthovermonthinAugust.Intheeurozone,theManufacturingandServicesPurchasingManagers’Indexes(PMIs)stoodatlevelsabovetheexpansionthresholdof50.0inAugust.

3) Asia-Pacific:InJapan,retailsalesincreasedby1.1%monthovermonthinJuly,exceedingthemarket’sexpectation.InTaiwan,industrialproductionincreasedby2.4%yearoveryearinJuly.InSingapore,industrialproductionleapedby21.0%yearoveryearinJuly.

4) LatinAmerica:InBrazil,consumerconfidencedroppedto80.9inAugust.InMexico,retailsalesdroppedby1.1%monthovermonthandincreasedby0.4%yearoveryearinJune.

*FGRT’sevaluationoftheactualfigure’simpactontheeconomyrelativetohistoricalbenchmarksandthecurrentmacroeconomicenvironment:+indicatesapositivesignalforthecountry’seconomy,–indicatesanegativesignaland=indicatesanegligibleormixedimpact.Source:USCensusBureau/NationalAssociationofRealtors/S&PDowJones/UKOfficeforNationalStatistics/NationwideBuildingSociety/Markit/EuropeanCommission/JapanMinistryofEconomy,TradeandIndustry/MinistryofEconomicAffairsTaiwan/SingaporeEconomicDevelopmentBoard/BancoCentraldoBrasil/FundaçãoGetulioVargas/InstitutoNacionaldeEstadísticayGeografía/FGRT

Country/Region Indicator Period Actual Survey Prior Impacton

Economy*

US NewHomeSales(Thous.) Jul 571 610 630 –

US NewHomeSales(MoM) Jul (9.4)% 0.0% 1.9% –

US ExistingHomeSales(Mil.) Jul 5.4 5.6 5.5 –

US ExistingHomeSales(MoM) Jul (1.3)% 0.5% (2.0)% –

USS&PCoreLogicCase-Shiller20-CityCompositeHomePriceIndex(SA,MoM) Jun 0.1% 0.1% 0.1% =

US S&PCoreLogicCase-Shiller20-CityCompositeHomePriceIndex(NSA,YoY) Jun 5.7% 5.6% 5.7% =

UK GDP(Prelim.,QoQ) 2Q 0.3% 0.3% 0.3% +

UK GDP(Prelim.,YoY) 2Q 1.7% 1.7% 1.7% +

UK NationwideHousePrice(MoM) Aug (0.1)% 0.0% 0.2% –

UK NationwideHousePrice(NSA,YoY) Aug 2.1% 2.5% 2.9% –

EZ MarkitEurozoneManufacturingPMI(Prelim.) Aug 57.4 56.3 56.6 +

EZ MarkitEurozoneServicesPMI(Prelim.) Aug 54.9 55.4 55.4 +

JP RetailSales(MoM) Jul 1.1% 0.3% 0.2% +

JP RetailSales(YoY) Jul 1.9% 1.0% 2.2% +

JP Dept.StoreandSupermarketSales Jul (0.2)% (0.2)% 0.2% –

TW IndustrialProduction(YoY) Jul 2.4% 3.3% 3.5% –

SG IndustrialProduction(SA,MoM) Jul 1.0% (3.9)% 9.0% +

SG IndustrialProduction(YoY) Jul 21.0% 12.9% 12.7% +

BZ FGVConsumerConfidenceIndex Aug 80.9 – 82.0 –

MX RetailSales(MoM) Jun (1.1)% 0.2% (0.3)% –

MX RetailSales(YoY) Jun 0.4% 2.8% 4.1% –

MX UnemploymentRate(SA) Jul 3.2% 3.3% 3.3% +

8

September1,2017

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

Hudson’sBayCompany(HBC.TO) 2Q17 Sep6 3,260 3,252 (0.60) (0.74) CAD

AlimentationCouche-Tard(ATD-B.TO) 1Q18 Sep6 10,224 8,421 0.65 0.58 USD

G-IIIApparelGroup(GIII) 2Q18 Sep6 522 442 (0.26) 0.02 USD

RestorationHardware(RH) 2Q17 Sep7(E) 607 543 0.46 0.28 USD

Prada(1913.HK) 1H17 Sep8 1,528 1,554 0.06 0.06 EUR

Kroger(KR) 2Q18 Sep8 27,475 26,565 0.39 0.48 USD

Morrisons(MRW.L) 1H18 Sep14 8,404 8,032 0.06 0.05 GBP

AscenaRetailGroup(ASNA) 4Q17 Sep18(E) 1,575 1,812 (0.03) 0.17 USD

EspritHoldings(330.HK) FY17 Sep20 16,358 17,788 0.04 (0.25) HKD

Inditex(ITX.MC) 1H17 Sep20 11,747 10,466 0.46 0.41 EUR

Kingfisher(KGF.L) 1H18 Sep20 6,009 5,749 0.14 0.14 GBP

FinishLine(FINL) 2Q18 Sep20(E) 477 509 0.38 0.53 USD

Nike(NKE) 1Q18 Sep26(E) 9,100 9,061 0.49 0.73 USD

Boohoo.com(BOO.L) 1H17 Sep27 264 127 0.02 0.01 GBP

H&M(HM-B.ST) 3Q17 Sep28 53,678 48,982 3.10 2.91 SEK

RiteAid(RAD) 2Q18 Sep28 7,836 8,030 0.00 0.02 USD

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

9

September1,2017

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

EVENTCALENDAR

Event Location Date(s)

FungGlobalPresenting/Attending

InternationalRetailDesignConference NewOrleans,LA Sep5–8 GoldmanSachs24thAnnualGlobalRetailingConference NewYork,NY Sep6–7 √BigData&AnalyticsInnovationSummitandChiefInnovationOfficerSummit Shanghai,China Sep6–7 √

EnterWorksEngage2017UserConference Nashville,TN Sep11–13 ICSCPA/NJ/DEConference&DealMaking AtlanticCity,NJ Sep11–13 EmergingApplicationsofBlockchainforSupplyChains Cambridge,MA Sep12 Tech.PoweredbyRetailWeek London,UK Sep13–14 √XRCLabsDemoDay NewYork,NY Sep15 HOMIMilano Milan,Italy Sep15–18 SmartSummit London,UK Sep19–20 √WWDDigitalForum NewYork,NY Sep19–20 Shop.org:ThisIsDigital LosAngeles,CA Sep25–27 √NRFProtect LosAngeles,CA Sep25–27 √eCommerceExpo London,UK Sep27–28 FashionTechForum2017:WestCoastDebut LosAngeles,CA Oct6 ShoptalkEurope Copenhagen,

Denmark Oct9–11 √

RetailCongressAsiaPacific HongKong Oct10–11 2017TechstarsDemoDay Minneapolis,MN Oct11 REConLatinAmerica&Caribbean SanJuan,PR Oct15–17 SourcingJournalSummit2017 NewYork,NY Oct17 ExclusiveExecutiveConference Orlando,FL Oct17–19 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 ICSCNewYorkDealMaking NewYork,NY Dec6–7 FortuneGlobalForum Guangzhou,China Dec6–8 √

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September1,2017

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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