Oct. 28, 2014, 11:32 AM
- Redbook notes the timing of Halloween on a Friday is giving a boost to merchandise sales related to the holiday as more consumers prep for parties and celebrations.
- Both Redbook and ICSC's weekly read on retail store sales showed year-over-year improvement with Halloween sales a factor.
- Stores have also been extending their hours to draw in more shoppers.
- Looking for a Halloween boost: DLTR, DG, FDO, KR, SVU, SWY, WMT, TGT, HSY, KRFT, CVS, RAD, WAG, MDLZ.
Oct. 27, 2014, 4:59 AM
- Rite Aid (NYSE:RAD) and CVS (NYSE:CVS) have disabled Apple's (NASDAQ:AAPL) mobile wallet system, Apple Pay, from working in their outlets across the U.S.
- The reason wasn't immediately clear, the NYT reports, although it might have something to do with the drug retailers being part of MCX, a consortium of merchants that is developing an unfinished rival product called CurrentC.
- A major question is whether other MCX retailers, which include Best Buy (NYSE:BBY), Gap (NYSE:GPS) and Walmart (NYSE:WMT), will also cut Apple, and/or whether consumers would revolt at such a move.
- Apple has been working with MasterCard (NYSE:MA) on its system.
Oct. 20, 2014, 10:47 AM
- CVS Health (CVS +1%) plans to charge some customers a $15 co-payment fee for any prescriptions filled at a pharmacy which also sells tobacco products.
- The initiative could boost sales at CVS drugstores as consumers switch to the cheaper option, according to industry insiders.
- Large drugstore chains such as Walgreen (WAG +0.1%) and Rite Aid (RAD +0.6%), along with small independent pharmacies, are expected to cry foul over the CVS strategy.
Oct. 14, 2014, 3:31 PM
- Global growth, foreign-exchange, oil, and small caps are the subject of every client inquiry, says David Kostin. His team's recommendation: Buy "American exceptionalism."
- In Kostin's view, U.S. economy and corporate fundamentals are still strong, with economic growth expected by Goldman economists to be 3.2% next year, the fastest expansion since 2005. Europe is expected to grow just 1%.
- What his team likes are those stocks of companies which have a high proportion of domestic sales, plus sectors like Consumer Staples (XLP -0.1%) and Discretionary (XLY +0.7%) which stand to benefit from lower oil prices (plunging again today).
- As for small caps (IWM +0.9%), Kostin is wary, noting downward earnings revisions have boosted small cap P/E ratios even as prices have declined.
- The list of S&P 500 names capturing two or more of Kostin's themes: GT, GM, PCLN, AMZN, CMCSA, LOW, DG, TSN, ADM, CVS, AVP, WAG, PXD, HAL, JPM, BAC, SCHW, PNC, MS, C, GNW, LNC, MET, THC, AET, UNH, ESRX, HUM, WLP, BIIB, GILD, DAL, CMI, FLR, CRM, JBL, MA, FB, MU, FSLR, VMC, MON, T.
Sep. 24, 2014, 1:50 PM
Sep. 18, 2014, 9:30 AM| 1 Comment
Sep. 12, 2014, 2:02 PM
- Wal-Mart (WMT -0.5%) plans to rebrand all of its Express stores to Neighborhood Market in a move that signals a stronger push into grocery.
- The new strategy means that Neighborhood Market stores will range in size from 15K to 40K square feet.
- The company is still testing the smaller Walmart To Go and Walmart On Campus concepts.
- What to watch: Though there's plenty of retail chains which could be impacted by Wal-Mart's NM push, Gilford Securities reasons that dollar stores (FDO, DLTR, DG) and drugstores (RAD, CVS, WAG) top the list.
Sep. 3, 2014, 2:06 AM
- Coinciding with the sale of its last tobacco product today, CVS Caremark (NYSE:CVS) is unveiling its new corporate name: CVS Health.
- CVS said in February that it would rid all of its 7,700 stores of tobacco products by Oct. 1, but in the end decided to eliminate them one month ahead of schedule.
- Although the move will cost the retail chain $2B in annual sales, CVS is banking that the distinction can help it win business in other parts of the company.
Aug. 27, 2014, 9:02 AM
Aug. 11, 2014, 2:32 PM
- Drugstore stocks are on the move as investors continue to shift assets into consumer staples stocks.
- Walgreen (WAG +2%), CVS Caremark (CVS +0.8%), and Rite Aid (RAD +1.8%) are all higher on the day.
- The trio is also helping lift the Consumer Staples ETF (NYSEARCA:XLP) to a 1% gain to stay ahead of broad market averages.
Aug. 6, 2014, 3:05 PM
- Execs with CVS Caremark (CVS -0.3%) cleared up some of the haze over what the impact of the exit of from the tobacco business will be during the firm's earnings call.
- CVS lost 110 bps from its front store comp sales mark during Q2 and the development contributed to an overall loss in market share for drugstore traffic.
- A 400-500 bp loss in front store sales growth is expected in Q3.
- Overall, CVS says it will lose $2B in annual sales from the tobacco decision.
- There isn't any specific guidance from the company on how much of the $2B will be made up and when by signing new healthcare services and provider deals.
- Earnings call transcript
Aug. 5, 2014, 7:01 AM
Aug. 4, 2014, 5:30 PM
- ACM, ACT, ADM, AEE, AKRX, ALLT, AME, AMSC, ANSS, ARCC, ARCO, ARQL, BCRX, BLMN, CIE, CLDT, CNK, COH, CRZO, CVC, CVS, DWRE, EMR, END, ENZY, EXH, EXLP, EXPD, FE, FUN, GLDD, GTIV, GTXI, HCLP, HCP, HEP, IART, IFF, IIVI, INFI, IT, KWK, LIN, LPX, MDU, MGM, MMP, MSI, MWW, MZOR, NILE, NNN, [[NTi]], NVDQ, NWN, ODP, OXF, OZM, PMC, RBA, REGN, RHP, RIGL, RTI, SCMP, SCOR, SMG, SNSS, SPAR, STE, TDG, VMC, VSI, VTG, WLK, WNR, ZBRA, ZTS
Jul. 30, 2014, 9:45 AM
- McKesson (MCK +0.1%) extends its distribution agreement with CVS Caremark (CVS -0.4%) through June 2019.
- EVP and Group President Paul Julian says, "We have a long track record of delivering comprehensive supply chain solutions to CVS Caremark which in turn allows CVS Caremark to ensure the highest level of pharmaceutical care to its customers. We are pleased to have extended our agreement with CVS Caremark and continue or long standing partnership."
Jul. 28, 2014, 9:03 AM
- Shares of Horizon Pharma (NASDAQ:HZNP) are off 29% premarket on heavy volume after it disclosed in a regulatory filing that CVS Caremark (NYSE:CVS) and Express Scripts (NASDAQ:ESRX) are dropping Duexis and Vimovo from their formularies. The products will be placed on their exclusion lists effective January 1, 2015.
- The company does not expect the actions to impact its financial guidance of $270M - 280M in net revenues and $80 - 90M in EBITDA for fiscal 2014, although 20 - 30% of the prescription volume is at risk.
- Horizon will include the effects of the situation in its 2015 guidance to be issued in Q4.
Jul. 14, 2014, 4:22 PM| Comment!
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