Thu, Feb. 12, 9:43 AM
- The read on retail sales in the U.S. isn't nearly as bad as the headline -0.8% M/M drop for January.
- Retail sales were up 3.3% compared to a year ago with a few sectors showing strong growth.
- Restaurant sales +11.3% Y/Y: The strong read follows up on a positive report from Black Box Intelligence on the sector. CAKE, CBRL, CMG, DPZ, DRI, EAT, JACK, PNRA, RRGB, RT, SBUX, SONC, WEN, BWLD, BDL, NATH, LUB, CHUY, BLMN, PZZA, TXRH, DENN, KKD, BBRG, DFRG, BOBE, RUTH, IRG, DIN, HABT, NDLS, PLKI, LOCO, YUM, KKD, TAST, GTIM, FRSH, COSI, FRS, PBPB, FRGI, QSR, CBRL, BLMN, ZOES.
- Sporting goods +8.0% Y/Y: DKS, BGFV, CAB, HIBB, SPWH.
- Building material and garden +6.9% Y/Y: A favorable weather compare came to the aid of this category. HD, LOW, LL.
- Health and personal care +6.6% Y/Y: Online channels have contributed for companies selling beauty and health items. ULTA, SBH, CVS, WBA, RAD.
Wed, Feb. 11, 9:30 AM
- Investment firms are resetting expectations on CVS Health (NYSE:CVS) after taking in the drugstore chain's Q4 report.
- Argus raises its price target on CVS to $114 from $104.
- RBC Capital increases its PT to $115 from $108.
- Mizuho is also erasing its PT, moving it to $113 from $103.
- Previously: Margins improve at CVS Health in Q4 (Feb. 10 2015)
- CVS -0.2% premarket to $101.45.
Tue, Feb. 10, 7:18 AM
- CVS Health (NYSE:CVS) reports revenue in its pharmacy segment rose 21.7% to $23.9B in Q4 with acquisition playing a factor.
- Pharmacy network claims processed rose 8.2% to 221.6M during the period.
- Retail pharmacy sales +2.9% to $17.7B.
- Retail comparable-store sales +1.6% with the front end store comp dragged down by the tobacco exit.
- Gross profit rate +70 bps to 31.4%.
- Operating profit rate +40 bps to 10.1%.
- CVS +1.85% premarket.
Tue, Feb. 10, 7:04 AM
Mon, Feb. 9, 5:30 PM
Thu, Feb. 5, 1:36 PM
- CVS Health (CVS -0.3%) says its pharmacists have counseled over 67K patients about their smoking habits since pulling out of the category last September.
- Prescriptions for smoke cessation products are up 63% during the period.
- Sales of nicotine replacement therapy products are up 21%.
- Shares of CVS are up 22% since the company's tobacco exit.
Wed, Jan. 28, 8:40 AM
- CVS Health (NYSE:CVS) announces new affiliations with regional health care systems in Kansas and Louisiana.
- The agreements will increase the scope of medical services provided at CVS stores in the two states.
- Front-end comps at CVS are still impacted by the full tobacco exit, but are seeing a benefit from the influx of new healthcare customers.
Fri, Jan. 23, 8:34 AM| Fri, Jan. 23, 8:34 AM | 6 Comments
Wed, Jan. 21, 8:31 AM
- Stephens initiates coverage on CVS Health (NYSE:CVS) with an Overweight rating.
- The company also landed an upgrade from Goldman Sachs to Buy from Neutral and price target boost to $113.
- The general consensus on CVS is that there is more upside for pharmacy sales and that store traffic trends have improved in January.
Tue, Jan. 20, 10:56 AM
- The Supreme Court passes on hearing a case over the level of swipe fees charged by banks to retailers.
- The cap on swipe fees will stand at $0.21-$0.24 following the high court decision.
- Intense lobbying from the financial services industry prompted the Fed to move off its original recommendation for a $0.12 cap.
- The National Retail Federation and other consumer groups have vowed to keep the fight going.
- Related stocks: V, MA, WMT, TGT, BBY, CVS, WBA, COST, HD, LOW, GPS, M.
Wed, Jan. 14, 7:32 AM
- Shares of CVS Health (NYSE:CVS) are on watch after the stock was recommended on CNBC's Fast Money program.
- Karen Finerman sees a quick move to $100 for CVS as investors buy into the company's strong underlying growth story.
- CVS has never cracked the $100 level.
- Also leaning to the bullish side, SA contributor Jeroen Jongbloed thinks CVS has room to lift its dividend payout even higher.
Sun, Jan. 11, 10:44 AM
- The better-than-expected round of reports on holiday sales in the retail sector has improved the outlook on the profitability of chain stores, according to RetailDive.
- Teen Retailers: Out with dark lighting and logo-centric marketing and in with fast-fashion and online fulfillment. American Eagle Outfitters (NYSE:AEO), Aeropostale (NYSE:ARO), and Abercrombie & Fitch (NYSE:ANF) are finally pulling the right levers, according to analysts. Deb's Shops, Delia's, and possibly Wet Seal (NASDAQ:WTSL) won't be around to make the transition. It's Hail Mary time at American Apparel (NYSEMKT:APP).
- Department stores/specialty apparel: Smaller store counts and restructuring initiatives could be the theme in 2015 as mall traffic stays weak. RetailDive doesn't discount turnarounds at Sears Holdings (NASDAQ:SHLD) and J.C. Penney (NYSE:JCP). Gap (NYSE:GPS), Macy's (NYSE:M), and Urban Outfitters (NASDAQ:URBN) are viewed as ahead of the curve in setting their new agenda in place. Soft early comp compares and lower cotton prices could help lift Zumiez (NASDAQ:ZUMZ), Ann (NYSE:ANN), L Brands (NYSE:LB), Pacific Sunwear (NASDAQ:PSUN), and Express (NYSE:EXPR).
- Drugstores 2.0: Significant changes in the sector have given Walgreen Boots Alliance (NASDAQ:WBA), CVS Health (NYSE:CVS), and Rite Aid (NYSE:RAD) the room to grab more market share in healthcare and grocery. A much worse flu season in the U.S. than a year ago has helped the group get off to a good start.
- Previously: Holiday retail sales something of a revelation (Jan. 8)
Mon, Jan. 5, 12:57 PM
- CVS Health (CVS -1.3%) bestows Preferred Status to Gilead Sciences' (GILD +2.3%) Sovaldi (sofosbuvir) and Harvoni (ledipasvir/sofosbuvir) for the treatment of HCV infection. The pills will be the exclusive treatment option for beneficiaries on CVS's Medicare, Medicaid and other drug benefit plans. AbbVie's (ABBV -2.9%) Viekira Pak will be available only via a medical exception or prior authorization. Recently, AbbVie announced a similar deal with Express Scripts.
- Previously: AbbVie's new hepatitis C drug gets boost (Dec. 22, 2014)
Dec. 20, 2014, 10:17 AM
- The S&P Retail ETF (NYSEARCA:XRT) is up 3.4% over the last month to outpace the S&P 500 Index as consumer spending trends improve. Analysts have honed in on some categories which show some promise for growth.
- Drugstores: The transition by the sector into more health/wellness services sets it up for new growth channels. CVS Health (NYSE:CVS) reported strong comparable-store sales despite the full tobacco exit, while Rite Aid (NYSE:RAD) is prepping for a roll-out of RediClinics and HealthSpot kiosks. The visibility on Walgreen (NYSE:WAG) is somewhat clouded by the giant Alliance Boots integration, although it's ahead of rivals on the tech front with its rewards program, pharmacy app and developing online doctor concept.
- Athleisure: There's some gender initiatives going on in the athletic apparel sector with Under Armour (NYSE:UA) and Nike (NYSE:NKE) growing their women's business and Lululemon (NASDAQ:LULU) expanding on the men's side. All three companies have been closely on-trend with their assortment in a category with explosive demand. Importantly, pricing has held up this holiday season in the U.S., note retail watchers.
- Online replenishing: Fresh research into shopping trends indicates certain categories see continued buying through the online channel as consumers become attuned to a brand. Retailers positioned well to see more gains from the trend include Williams-Sonoma (NYSE:WSM), Ulta Beauty (NASDAQ:ULTA), Staples (NASDAQ:SPLS), Office Depot (NASDAQ:ODP), Sephora (OTCPK:LVMHF), Dick's Sporting Goods (NYSE:DKS), and of course Amazon (NASDAQ:AMZN).
- P-E buyouts: There are plenty of candidates in the retail sector for a leveraged buyout similar to the action that helped propel shares of PetSmart (NASDAQ:PETM) +40% from their lows. Keep an eye on Abercrombie & Fitch (NYSE:ANF), Aeropostale (NYSE:ARO), and Ann (NYSE:ANN).
Dec. 19, 2014, 7:53 AM
- SunTrust Robinson Humphrey upgrades CVS Health (NYSE:CVS) to a Buy rating from Neutral.
- The investment firm has a price target of $110 on the drugstore chain.
- What to watch: A strong report from CVS management at its Analyst Day last week has drawn notice from the Street. Also of note, the company doesn't appear to be showing any immediate side effects from its tobacco exit.
Dec. 17, 2014, 7:32 AM
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