New CEO Marvin Ellison is altering the wide-moat business by winding down the Orchard Supply brand and introducing an inventory rationalization plan.
Despite good second-quarter results, we still anticipate pricing gains to be difficult for the no-moat retailer during the next decade, pressuring gross margins.
The narrow-moat retailer has modest pricing power from its brand equity and has successfully cultivated synergies between its full- and off-price segments.
We see value in cruise companies as the market is unduly concerned about the impact of new ship deployments.
The growth metrics the wide-moat retailer continues to capture are impressive for a relatively mature business.
The toymaker could be set to deliver modestly positive top-line growth again.
We think mispriced Norwegian Cruise Lines is poised to pivot nimbly to capitalize on evolving consumer trends.
Short-term attendance hiccups could alter long-term earnings power.
Cruise line still sails in a moat based on efficient scale, cost advantages, and intangible brand assets.
We're lowering our fair value estimate by a couple of dollars and expect shares to remain volatile short term.
We don't think the commentary surrounding demand for cruising warrants excessive worry, and we're maintaining our fair value estimate and narrow moat rating.
Taking a majority stake in Silversea should help Royal build more robust brand awareness, supporting its brand intangible asset and narrow moat rating.
Cost and creative efforts should begin to pay off in the second half.
Efforts to deliver right-sized product innovation are gaining traction.
The undervalued retailer remains competitively positioned with its core customer base.
We expect sales at the wide-moat retailer to rise over the rest of the year.
Tractor Supply has a differentiated product mix, a loyal customer base, and defensibility against e-commerce competitors.
We think the resignation has more to do with the business that Margo Georgiadis inherited, rather than the business worsening beyond expectations.
Despite headwinds, the industry can still grow, and we think Mattel looks attractive today.
We're placing the retailer under review as earnings growth gets crushed by operating margin pressure.
We're lowering our fair value estimates for narrow-moat toy companies Mattel and Hasbro but still see value in former.
The retailer's liquidation doesn't change our long-term thesis or narrow moat rating for either toymaker.
Robust travel demand supports pricing growth for the cruise operator, driving profit gains.
By prioritizing inventory cleanup, the narrow-moat toymaker likely won't realize the full gains from its turnaround program as soon as originally expected.
The positive momentum the wide-moat company has captured through its brand positioning and supply chain is set to continue in 2018.
More dynamic merchandising, a faster supply chain, and better customer read-through from opportunities with its loyalty program have driven solid sales and recent share price gains.
Although some retailers continue to cede share to online peers, some protected businesses should deliver rising profitability.
We expect the company to continue to close stores through attrition and continue to invest in its online platform.
The narrow-moat toymaker expects operating margins to be 'significantly lower' than 2016's.
While we expect healthy operating margin gains in 2018, we operating margins will approach 10% over our long-term outlook.
We think Hasbro will gain market share but view Mattel as the more undervalued stock today.
While this marks another quarter in which Lowe's business lagged that of Home Depot, the performance was still solid.
Although top- and bottom-line results were better than we expected, we still view the shares as overvalued.
With elevated existing-homes sales and prices that help turnover remain inflated--along with overhang of storm-related sales--home improvement spending should persist.
Such speculation has fizzled in the past, and a similar fate could occur this go-round.
We're maintaining our $98 fair value estimate and view shares as modestly undervalued today.
E-commerce is growing at a more than 20% clip, but that’s not enough to protect the firm from total market share erosion.
The narrow-moat toymakers have some time to find alternate channels to distribute their products and prevent future sales shortages that may stem from degradation of the Toys 'R' Us channel.
Refocusing on the core business with more relevant inventory has put RH in better position to match supply and demand of product ahead.
After reporting weaker second-quarter results compared with larger competitor Home Depot, we find Lowe's shares attractively priced.
The narrow-moat retailer should see incremental market share gains ahead.
Labor changes continue to pressure operating margins at the wide-moat retailer more than management had anticipated.
The wide-moat retailer saw a solid quarter with same-store sales growth of 6.3%.
We still view the shares as overvalued after second-quarter results.
Meaningful pricing gains in the future will remain difficult to capture relative to the past, given the price sensitivity of the average consumer.
Earnings will remain depressed short term as the narrow-moat toymaker invests in brands and operations before resuming more normalized earnings levels.
CEO Margo Georgiadis' new strategy offers a more defined focus on expectations and priorities for the narrow-moat company.
Affordability could present a larger challenge over the longer term.
The wide-moat home-improvement retailer continues to outperform its brick-and-mortar comeptitors again -- and trends suggest it should continue to do so.
The long-term growth cadence of demand could be slowing, despite changes to the business.