In today’s briefing:
- Intel. US DoD & AWS Deals Are Distractions While The Head Remains Firmly In The Sand
- Oracle’s Cloud Wars: The Story Of Its Expansion and the Challenges That Could Threaten Its Growth! (9/24)
- BioAge Labs IPO Preview: Investor Focus Has Turned To Azelaprag, A Huge Market Potential
- Signet Jewelers: Striking A Balance Between Merchandise and Pricing! – Major Drivers
- The Kroger Co.: An Insight Into Its Competitive Positioning
- CLS Holdings USA, Inc. – CLSH: Strong Cost Controls Help Offset Revenue Decline in FY24
- Adobe’s Winning Formula for Double-Digit Growth: Creative Cloud, Document Cloud, and AI! (9/24)
- BBW: Snapping the Store: Halloween Rules (Already!); Reiterate Buy, $41 PT
- Pvh Corp – VNCE: 2Q Review: Driving Upside, Remaining Conservative; Reiterate Buy, $3 PT
- RH (Restoration Hardware): Brand Image Transcendence & Other Major Drivers
Intel. US DoD & AWS Deals Are Distractions While The Head Remains Firmly In The Sand
- US DoD & AWS deals are little more than distractions from the main event
- Making Intel Foundry a subsidiary won’t make one whit of a difference but may just be the next step in its eventual spin-off
- The core issue, the GM collapse in Q224, was not addressed in the BM update from the CEO. That’s a problem.
Oracle’s Cloud Wars: The Story Of Its Expansion and the Challenges That Could Threaten Its Growth! (9/24)
- Oracle Corporation’s Q1 FY 2025 results demonstrated a robust performance, underscored by significant revenue growth and strategic expansions in their cloud offerings.
- The total revenue for the quarter was $13.3 billion, marking an 8% year-over-year increase.
- Cloud revenue was a standout with SaaS and IaaS generating $5.6 billion, reflecting a 22% increase.
BioAge Labs IPO Preview: Investor Focus Has Turned To Azelaprag, A Huge Market Potential
- BioAge Labs, a clinical-stage biopharma company backed by a leading syndicate of biotech investors, filed to go public in the United States.
- Anti aging and obesity biopharma startup is purely focused on chronic metabolic diseases and established partner agreements with Amgen and Eli Lilly.
- I have a positive view of upcoming BioAge Labs IPO and expect a strong first-day return above the IPO offer price.
Signet Jewelers: Striking A Balance Between Merchandise and Pricing! – Major Drivers
- Signet Jewelers has reported its financial results for the second quarter of fiscal 2025, highlighting several critical strategic successes and challenges.
- The company’s CEO, Gina Drosos, emphasized the continued momentum in same-store sales, which improved over 5 points from the first quarter, driven notably by robust Fashion sales.
- The merchandise margin and the average transaction value (ATV) also saw growth, reflecting the positive reception of Signet’s merchandise strategies even amidst an intensely dynamic industry landscape.
The Kroger Co.: An Insight Into Its Competitive Positioning
- The Kroger Co. showcased a mixed performance in the second quarter of 2024.
- The company continues its progression towards a strategic operating model which balances customer-centricity with internal efficiencies, maintaining a competitive edge, particularly with its own brands offerings.
- Revenue enhancements through enhanced digital sales channels and personalized promotions were notable.
CLS Holdings USA, Inc. – CLSH: Strong Cost Controls Help Offset Revenue Decline in FY24
- CLS Holdings is a vertically integrated cannabis company with core operations in Nevada.
- The company owns and operates Oasis cannabis dispensary, one of the leading stores in Las Vegas.
- CLS also has a state-of-the art extraction and manufacturing facility in Nevada and a suite of top-performing brands.
Adobe’s Winning Formula for Double-Digit Growth: Creative Cloud, Document Cloud, and AI! (9/24)
- Adobe’s third-quarter fiscal year 2024 performance highlighted a strong trajectory, with substantial year-over-year revenue growth and positive developments across its major product lines.
- Revenue stood at $5.41 billion, marking an 11% increase from the previous year.
- This growth was fueled by the consistent strength in Creative Cloud, Document Cloud, and Experience Cloud.
BBW: Snapping the Store: Halloween Rules (Already!); Reiterate Buy, $41 PT
- We are reiterating our Buy rating, $41 price target and projections for Build-A-Bear Workshop after visiting stores in Long Island and Connecticut.
- We believe the company’s decision to materially move up the Halloween offerings (from August 29th last year to August 6th in 2024) has driven customer excitement and material incremental revenue, as the company has added new characters, multiple drops and the ability to leverage the first Halloween for both Mini Beans and Skoosherz, with more exciting items (including the return of Nightmare before Xmas “furry friends”) on their way.
- As such, we expect momentum to remain strong throughout the season and then almost immediately pivot into the Xmas holiday items.
Pvh Corp – VNCE: 2Q Review: Driving Upside, Remaining Conservative; Reiterate Buy, $3 PT
- We are reiterating our Buy rating and $3 price target for VNCE, slightly reducing our FY24 top line, but increasing our bottom line projections after the company reported solid 2Q results, driven by stronger than expected wholesale revenue.
- With the company now fully anniversarying the ABG Vince relationship, and the drive to materially reduce clearance and discount levels at their own stores completed, we believe 2HFY24 will begin to visibly demonstrate the power of the Vince brand to drive returns and position the company for further material top and bottom line expansion in FY25 from new store openings, further expansion in men’s, international growth and continued wholesale door and segment expansion which, when further fueled by ABG Vince category expansion, debt reduction and share repurchases, positions the company for material upside.
- As such, we reiterate our Buy rating and $3 price target for VNCE.
RH (Restoration Hardware): Brand Image Transcendence & Other Major Drivers
- RH, previously Restoration Hardware, exhibited positive stride in its financial and operational endeavors during the second quarter of fiscal 2024, as outlined in its latest earnings call.
- The results were mostly favorable with noteworthy highlights such as a 7% increase in demand and 3.6% growth in revenues amounting to $830 million compared to the previous year.
- This growth was propelled by strategic expansions and product transformations, notable investments during an economically challenging phase, and detailed preparation for projected housing market rebound.
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