Daily Brief Consumer: Jumia Technologies AG, TSE Tokyo Price Index TOPIX, Tsi Holdings, BYD, Yukiguni Maitake, Campbell Soup Co, Macy’s Inc, M.P. Evans and more

• Jumia, dubbed the “Amazon of Africa,” had a highly anticipated IPO in April 2019 but has not met expectations since listing
• The company aimed to revolutionize e-commerce in Africa but has faced challenges in profitability and implementing Western business models
• Despite initial hype and investments from blue chip firms, Jumia’s struggles serve as a cautionary tale about transposing Western ideas onto the African continent

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• It’s true that measures to raise P/B that focus on strengthening shareholder returns are unpopular with investors, while excess cash on hand should be returned to shareholders under stagnated ROE.
• Both bond and equity investors are focused on the future cash flow a company will generate, and increasing cash flow is consistent with the goals of a public company.
• If a company can’t use cash reserves to increase corporate value, it should either return excess cash to shareholders or change to a manager that can use cash for growth.

• Like all the big apparel firms, TSI sees diversification as one of the few ways to find growth in a contracting market. 
• It has the cash to do this and has just bought Daytona, the respected operator of the Freak’s store chain.
• It will use its access to capital to accelerate expansion for new fashion chains.

• In our previous insight from September 2 we suggested if BYD (1211 HK) reached 102 could have been a good BUY signal. 
• It took a bit more than a couple of week for the stock to bottom at 102.80 (this week), then rally 10%  to 113.50. Impressive, but….
• … it could be a Bear rally, so in this insight we will try to assess BYD upside potential, and suggest some tactical positioning for the next few weeks.

• On August 7, YUKIGUNI FACTORY CO., LTD. (hereinafter, the Company) announced its consolidated financial results for Q1 FY2026/3 (April–June).
• Revenue decreased 1.8% YoY to JPY 7,284 mn, while core EBITDA fell 15.5% YoY to JPY 575 mn and core operating profit dropped 78.6% YoY to JPY 22 mn.
• Due to seasonality, Q1 and Q2 are non-demanding periods for mushrooms, and significant earnings progress is difficult to expect.

• The Campbell Soup Company’s fourth-quarter fiscal 2025 performance slightly surpassed expectations, with mixed outcomes across its divisions.
• The company experienced a 1% increase in net sales, attributed partly to an additional week in the quarter and partially offset by divestitures.
• In-market consumption declined 1%, and organic net sales fell by 3%, primarily due to favorable shipment timing in the previous quarter reversing.

• Macy’s, Inc. reported a second-quarter financial performance that reflected a combination of improved sales figures, strategic advancements, and cautious outlook adjustments due to the macroeconomic environment.
• The company achieved a 1.9% growth in comparable sales, marking its strongest performance in 12 quarters, driven by a 2.2% increase in its Go-Forward businesses, which include prominent brands like Bloomingdale’s and Bluemercury.
• These brands demonstrated notable sales momentum, with Bloomingdale’s hitting a 5.7% increase in comparable sales, maintaining growth consistency, and Bluemercury achieving its 18th consecutive quarter of sales growth.

MP Evans Group’s board raised the interim dividend 20% to 18p, reflecting both confidence in long-term prospects and improved H125 results. Operating profit rose 50% to $62.2m, while EPS increased 60% to 71.7p. MP Evans continues to shift towards processing its own crop, which now represents 84% of volumes (H124: 74%). Group harvested crop rose to 8%, while independent purchases fell by 39%. The stronger mix and robust prices lifted the gross margin to 35% (H124: 26%) and underpinned net cash of $70.5m, compared with net debt of $7.3m a year earlier.