In today’s briefing:
- Tax-Loss Selling in Australia 2024 – The May Basket (April Basket +2.3 to +6.3% Rtn)
- SHEIN: Several US Customs Broker Suspensions Tied to Tighter ‘de Minimis’ Rules
- Engagement Keeps Widening the Profitability Gap Between the Top and Bottom Companies in Market Cap
- Deckers Outdoor Corporation: These Are The 5 Fundamental Factors Driving Its Performance! – Financial Forecasts
- Aisin – 141% Profit Growth, With Future to Have More Sales for Electric and Hybrid Vehicles
- V.F. Corporation: Expansion of Direct-to-Consumer (DTC) Channel & Other Major Drivers
- Ralph Lauren Corporation: Will Its Focus on Direct-to-Consumer (DTC) Channel Growth Especially In Asia Pay Off? – Major Drivers
- e.l.f. Beauty Inc.: Will The Strong Growth in Sales and Market Share Last? – Major Drivers
- Target Corporation: How Is The Continuing Growth In Private Labels Expected To Impact The Top-Line? – Major Drivers
- BJ’s Wholesale Club Holdings: Expanding Locations & Membership Base & Other Major Drivers
Tax-Loss Selling in Australia 2024 – The May Basket (April Basket +2.3 to +6.3% Rtn)
- I am not a tax advisor and I do not play one on TV but it is a subject of interest in Australia, as an AFR article from June 2022 shows.
- The general gist: retail investors in Australia will take gains on stocks which run up in price, or get taken over, then look for losses to offset.
- The portfolio worked well in April. Now we let April ride and add the May basket.
SHEIN: Several US Customs Broker Suspensions Tied to Tighter ‘de Minimis’ Rules
- Several US customs brokers have been suspended under new, tighter rules
- The new rules could make ‘de minimis’ imports slightly more difficult
- Whether it lists in London or NYC, additional rule changes could threaten SHEIN
Engagement Keeps Widening the Profitability Gap Between the Top and Bottom Companies in Market Cap
- Companies with larger market capitalizations tend to have higher profitability and valuations, and those companies have higher foreign ownership.
- Given that board practices improved and that valuations, highly correlated with foreign ownership, are higher for companies with larger market capitalizations, this can be due to engagement of overseas investors.
- If this hypothesis is correct, the gap between the top and bottom market capitalization companies will widen further as it takes a certain time for engagement to pay off.
Deckers Outdoor Corporation: These Are The 5 Fundamental Factors Driving Its Performance! – Financial Forecasts
- In the fourth quarter fiscal of 2024, Deckers Brands achieved record revenue growth of 18% compared to the previous year, almost reaching $4.3 billion of annual revenue.
- Gross margin increased by a considerable 530 basis points from last year to 55.6%, and earnings per share rose by 51% to $29.16.
- These results reflect Deckers’ successful long-term strategies and the hard work of its employees.
Aisin – 141% Profit Growth, With Future to Have More Sales for Electric and Hybrid Vehicles
- Aisin is already achieving strong growth, across many markets, and this should continue with more sales into EV and HEV markets
- Financial strength is improving, with gearing moving lower, and debt/ebitda moving lower
- Balance sheet clean up can lead to some volatility, but overall a general positive, as is the focus on capital management
V.F. Corporation: Expansion of Direct-to-Consumer (DTC) Channel & Other Major Drivers
- From the Q4 2024 Earnings of VF Corporation, it can be inferred that the company is working on a transformation strategy named Reinvent to return to long-term growth.
- The company seems to be undergoing significant changes both structurally and operationally.
- Reinvent’s primary focus is on restructuring the U.S. business, cost base adjustment, and balance sheet enhancement.
Ralph Lauren Corporation: Will Its Focus on Direct-to-Consumer (DTC) Channel Growth Especially In Asia Pay Off? – Major Drivers
- Based on the recent earnings, Ralph Lauren Corporation demonstrated credible fiscal performance despite the ongoing uncertainties of the global business climate.
- The company remained resilient with the successful execution of its Next Great Chapter Accelerate plan.
- On a positive note, President and CEO, Patrice Louvet, highlighted the progress made on several fronts.
e.l.f. Beauty Inc.: Will The Strong Growth in Sales and Market Share Last? – Major Drivers
- e.l.f. Beauty reported a solid 2024 fiscal fourth quarter, hitting a significant milestone of over $1 billion in net sales.
- The company grew net sales by 77%, exceeding expectations.
- Q4 marked the 21st consecutive quarter of both net sales growth and market share gains.
Target Corporation: How Is The Continuing Growth In Private Labels Expected To Impact The Top-Line? – Major Drivers
- Target Corporation reported its Q1 2024 financial results that were largely in line with its own expectations, while outlining various strategies and initiatives aimed at bolstering growth and profitability.
- Despite the challenging economic environment and volatility in consumer spending patterns, Target remains resilient, with its profitability continuing to benefit from prudent cost management and ongoing investments in strategic growth initiatives.
- However, softer trends in discretionary categories, particularly Home and Hardlines, may continue to pressure sales in the near term.
BJ’s Wholesale Club Holdings: Expanding Locations & Membership Base & Other Major Drivers
- BJ’s Wholesale Club Holdings, Inc., an American wholesale club chain reported its first-quarter earnings for fiscal 2024.
- The results from the call were mixed, with continued strong growth in membership fees and market share, supported by robust traffic and unit growth.
- However, the team cautioned that the first quarter’s robust projections could be challenging given the previous year’s inflation dynamics.
💡 Before it’s here, it’s on Smartkarma
Sign Up for Free
The Smartkarma Preview Pass is your entry to the Independent Investment Research Network
- ✓ Unlimited Research Summaries
- ✓ Personalised Alerts
- ✓ Custom Watchlists
- ✓ Company Data and News
- ✓ Events & Webinars
