Independent research on the U.S. markets, Baptista Research

Baptista Research

Independent research on the U.S. markets

Baptista Research is an independent financial research house focused on the U.S. markets. We provide equity research as well as credit research reports on the top-listed U.S. companies with most of our focus on technology, consumer goods and services, automobiles, industrials, oil and gas, pharma, and healthcare. Our research has served more than 3000 institutional investors including mutual funds, hedge funds, banks, family offices, and various buy-side firms. We operate a research subscription service where institutions, as well as retail investors, can have priority access to all our research. We also have a wide distribution of our research reports across some of the top global financial platforms. Apart from equity research and credit research, we also provide advisory services with respect to mergers & acquisitions (M&A), private equity/ venture capital fundraising, valuation reports, and investment management services for corporates.
Baptista Research is owned and managed by Ishan Majumdar, an ex-Venture Capitalist/ Investment Banker, a Chartered Accountant, and a Masters’ degree holder in Management from HEC Paris. Ishan has nearly a decade of experience in Mergers and Acquisitions, Leveraged Buyouts (LBOs), Venture Capital Investing, Corporate Strategy, and Valuation in front-office roles at the likes of BNP Paribas CIB, Credit Agricole CIB, Groupe Danone, and TIW Private Equity. He has worked on and closed multiple acquisition deals, leveraged buyouts, and start-up investment transactions.

Equity Capital Markets

<ul><li>Dollar Tree maintained its momentum in the fourth quarter and delivered an all-around beat.</li><li>Operational income climbed 6.8% to $618.1 million, or 8% of total revenue, and the operating margin fell by 20 basis points.</li><li>Inventory increased by 24.8%, owing mostly to unit growth from early spring 2023 merchandise receipts, Family Dollar combo expansion and new store unit growth, and cost growth from product inflation.</li></ul>

Dollar Tree maintained its momentum in the fourth quarter and delivered an all-around beat.Operational income climbed 6.8% to $618.1 million, or 8% of total revenue, and the operating margin fell by 20 basis points.Inventory increased by 24.8%, owing mostly to unit growth from early spring 2023 merchandise receipts, Family Dollar combo expansion and new store unit growth, and cost growth from product inflation.

<ul><li>Dollar Tree managed to deliver an all-around beat in its recent result as it continued to meet the needs of its shoppers and associates and improved store efficiencies and productivity.</li><li>In the recent quarter, it refined its strategies at both Family Dollar and Dollar Tree to aim at the traffic-driving consumable side of the business.</li><li>Among other updates, the company will be partnering with RELEX Solutions to improve demand replenishment and forecasting processes across both their Family Dollar and Dollar Tree banners.</li></ul>

Dollar Tree managed to deliver an all-around beat in its recent result as it continued to meet the needs of its shoppers and associates and improved store efficiencies and productivity.In the recent quarter, it refined its strategies at both Family Dollar and Dollar Tree to aim at the traffic-driving consumable side of the business.Among other updates, the company will be partnering with RELEX Solutions to improve demand replenishment and forecasting processes across both their Family Dollar and Dollar Tree banners.

Dollar Tree Inc: Partnership With RELEX Solutions & Other Drivers

<ul><li>Given the ongoing cost difficulties that the retail industry is witnessing, Dollar Tree’s business was bound to be negatively impacted.</li><li>Its second quarter performance was below par with revenues below Wall Street expectations and earnings just about meeting the analyst consensus estimate.</li><li>For Family Dollar, the management relocated 24 stores, remodelled 257 stores, and established 95 new stores throughout the quarter.</li></ul>

Given the ongoing cost difficulties that the retail industry is witnessing, Dollar Tree’s business was bound to be negatively impacted.Its second quarter performance was below par with revenues below Wall Street expectations and earnings just about meeting the analyst consensus estimate.For Family Dollar, the management relocated 24 stores, remodelled 257 stores, and established 95 new stores throughout the quarter.

<ul><li>Dollar Tree delivered a decent quarterly result with a strong 40.6% gross profit margin, up nearly 700 basis points from the previous year's first quarter.</li><li>Despite the inflationary environment, the company delivered a 20.2% operating margin, up more than 800 basis points.</li><li>Furthermore, the management anticipates a mid-single-digit increase in comparable store sales for the year, with a high-single-digit increase in the Dollar Tree segment.</li></ul>

Dollar Tree delivered a decent quarterly result with a strong 40.6% gross profit margin, up nearly 700 basis points from the previous year's first quarter.Despite the inflationary environment, the company delivered a 20.2% operating margin, up more than 800 basis points.Furthermore, the management anticipates a mid-single-digit increase in comparable store sales for the year, with a high-single-digit increase in the Dollar Tree segment.

Dollar Tree Inc.: The Family Dollar Turnaround & Other Drivers

Credit

<ul><li>Dollar Tree and Family Dollar have both delivered a positive 2-year growth based on recent quarterly performance and are above pre-pandemic levels.</li><li>Discretionary sales accounted for more than 57% of total sales in the last quarter and have been increasing gradually which is a positive sign.</li><li>Its 2022 expansion plans are ambitious as Dollar Tree looks to open 190 Dollar Tree stores and 400 Family Dollar stores and also to renovate 800 Family Dollar stores.</li></ul>

Dollar Tree and Family Dollar have both delivered a positive 2-year growth based on recent quarterly performance and are above pre-pandemic levels.Discretionary sales accounted for more than 57% of total sales in the last quarter and have been increasing gradually which is a positive sign.Its 2022 expansion plans are ambitious as Dollar Tree looks to open 190 Dollar Tree stores and 400 Family Dollar stores and also to renovate 800 Family Dollar stores.

Dollar Tree Inc.: Detailed Credit Analysis & Financial Strength Evaluation Report

United States

Dollar General Corporation operates a chain of discount retail stores located primarily in the southern, southwestern, midwestern, and eastern United States. The Company offer a broad selection of merchandise, including consumable products such as food, paper and cleaning products, health, beauty, pet supplies, and non-consumables such as seasonal merchandise.

Ollie's Bargain Outlet Holdings, Inc. operates a chain of retail stores that offers brand name products at discounted and closeout prices. The Company provides products, including housewares, food, books and stationery, bed and bath, floor coverings, toys, and hardware.

Ollie'S Bargain Outlet Holdings (OLLI US)

Dillard's, Inc. operates retail department stores located primarily in the southwestern, southeastern, and midwestern United States. The Company offers name-brand and private-label merchandise, including fashion apparel and home furnishings.

Macy's, Inc. operates department stores in the United States.  The Company also operates direct mail catalog and electronic commerce subsidiaries. Macy's retail stores sell a wide range of merchandise, including men's, women's and children's apparel and accessories, cosmetics, home furnishings and other consumer goods.

Nordstrom, Inc. is a fashion retailer of apparel, shoes, and accessories for men, women, and children.  The Company operates through multiple retail channels, discount stores, boutiques, catalogs, and on the Internet. Nordstrom, Inc. also offers, through a subsidiary, private label card credit and debit cards.

Kohl's Corporation operates a chain of family-oriented department stores.  The Company's stores feature apparel, footwear and accessories for women, men and children; soft home products such as sheets and pillows; and housewares targeted to middle income customers.  Kohl's also offers online shopping as well as offers store credit cards.

Groupon, Inc. operates a shopping website that shares information on local goods, services, and cultural events for businesses and consumers worldwide. The Company provides information on activities, travel destinations, consumer products, and live events.

Dick's Sporting Goods, Inc. operates as a sporting goods retailer that manages stores primarily in the eastern and central United States. The Company owns stores that offers a broad selection of brand name sporting goods equipment, apparel, and footwear.

Burlington Stores, Inc. owns and operates clothing retail stores. The Company offers, through its stores and internet sites, men's, women's, and children's apparel. Burlington Holding operates within the United States and Puerto Rico.

Tractor Supply Company operates a retail farm store chain in the United States. The Company provides farm maintenance products, animal products, general maintenance products, lawn and garden products, light truck equipment, work clothing, and other products.  Customers include hobby, part-time, and full-time farmers and ranchers, as well as rural customers, contractors, and tradesman.

JD.com Inc is an online direct sales company in China.  The Company offers a wide selection of products through its website and mobile applications.  JD.com sells appliances, computers, digital products, communication products, garments, books, and household items to consumers and vendors.

Trent Limited operates a chain of retail stores that sell fashion apparel, cosmetics, perfumery products and toiletry items. The Company sells apparel for men, women and children. Trent sells its cosmetics products under the "Westside" and "Trent" brand names.

Pan Pacific International Holdings Corporation operates discount stores which sell consumer electronics, daily necessities, groceries, watches, and sporting goods. The Company mostly operates small scale stores based in Tokyo.

Pan Pacific International Holdings (7532 JP)

Isetan Mitsukoshi Holdings Ltd. is a holding company established through a merger of Mitsukoshi and Isetan. The group operates department stores nationwide, selling clothing, foods, household goods, cosmetics and general merchandise.

Naspers Limited operates in the technology industry. The Company invests in global internet companies across the world.

Marks & Spencer Group PLC is a holding company. The Company, through its subsidiaries, provides retail of clothing, food and home products.

Next Plc conducts retailing, home shopping, and customer services management operations.  The Company's retail stores sell ladies wear, mens wear, childrens wear, and housewares.

Falabella S.A. provides digital and physical retail space in Latin America. The Company runs different formats such as department stores, home improvement, supermarkets, regional shopping centers and power centers, and provide financial services. Falabella operates in 7 countries.

Canadian Tire Corporation Limited is a family of businesses that includes a retail segment, a financial services division and CT REIT. The Company's retail business provides Canadians with products for life in Canada across its living, playing, fixing, automotive and seasonal categories. Canadian Tire Corporation's  retail products include casual, industrial and active wear.

Dollarama Inc. operates as an online marketplace. The Company offers cleaning, school, office, home, kitchen, food, health, beauty, hardware, electronics, toys, and pets products, as well as provides delivery services. Dollarama serves customers in Canada.

Dollar Tree, Inc. operates a discount variety store chain in the United States. The Company sells an assortment of everyday general merchandise at the $1.00 price point.

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Dollar Tree Inc (DLTR US)

Dollar Tree Inc.: Major Drivers

Dollar Tree maintained its momentum in the fourth quarter and delivered an all-around beat. Operational income climbed 6.8% to $618.1 million, or...

Baptista Research

Dollar Tree Inc: Partnership With RELEX Solutions & Other Drivers

Dollar Tree managed to deliver an all-around beat in its recent result as it continued to meet the needs of its shoppers and associates and...

Baptista Research

Dollar Tree: Major Drivers

Given the ongoing cost difficulties that the retail industry is witnessing, Dollar Tree’s business was bound to be negatively impacted. Its second...

Baptista Research

Dollar Tree Inc.: The Family Dollar Turnaround & Other Drivers

Dollar Tree delivered a decent quarterly result with a strong 40.6% gross profit margin, up nearly 700 basis points from the previous year's first...

Baptista Research

Dollar Tree Inc.: Detailed Credit Analysis & Financial Strength Evaluation Report

Dollar Tree and Family Dollar have both delivered a positive 2-year growth based on recent quarterly performance and are above pre-pandemic...

Baptista Research

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