Retail store chains are breaking higher as investors digest the impact of the GOP sweep.
A very popular topic on Q3 conference calls was election anxiety in the U.S., with the thought that consumers were holding back.
An interesting point is that in recent consumer sentiment surveys Republicans showed a sharply lower positive reading on the state of affairs than Democrats. If the theory holds out, close to 60M Trump voters will now open their pocketbooks a bit more.
Pokémon Go is on an annual run rate of $1B, according to an estimate from Cowen Research. Nintendo (OTCPK:NTDOY) is well-positioned to benefit from the ongoing phenomenon through its stake in Pokemon Company and publisher Niantic.
The Pokémon craze was brought up by a variety of companies during their Q2 earnings calls as analysts questioned on the impact of the mobile game on foot traffic, virtual reality potential, mind share, and products/accessories sales.
Build-A-Bear Workshop (NYSE:BBW) reports comparable-store sales declined 8.6% in Q2.
Comp sales squeezed 8.3% in North America and 10% in Europe.
Comparable e-commerce sales rose 11.7% for the quarter.
Retail gross margin rate fell 130 bps to 42.2%.
SG&A expense rate increased 520 bps to 49.3%.
Number of franchised stores +3 Y/Y to 77.
Total company-owned retail stores +6 Y/Y to 321.
FY2016 Guidance: Total revenue: increase in the low to single-digit range; Comparable sales: increase in the low single-digit range; Capex: $25M to $30M; D&A: $17M to $19M; Pre-tax income: 10% to 20%; Tax rate: ~34%; Total company-owned retail stores: 345 to 350.
Build-A-Bear Workshop (NYSE:BBW) reports comparable-store sales fell 5.6% in Q4.
Comp declined 4.2% in North America and 10% in Europe.
Comparable e-commerce sales increased 16.4% for the period.
Retail gross margin rate dropped 100 bps to 51.2%.
SG&A expense rate grew 10 bps to 43%.
Number of franchised stores +4 Y/Y to 77.
Total company-owned retail stores +5 Y/Y to 329.
FY2016 Guidance: Total revenue: increase in the low to mid-single digit range; Comparable sales: increase in the low single digit range; Capex: $25M to $30M; D&A: $17M to $19M; Pre-tax income: 15% to 25%; Tax rate: ~30%; Total company-owned retail stores: 340 to 345.