In today’s briefing:
- LG Electronics India Pre-IPO – Peer Comparison – Largest but One of the Slowest
- Chagee IPO: Peer Comp and Thoughts on Valuation
- Frontdoor Just Launched a Game-Changing App—Is This the Future of Home Services?
- Companies May Worked on Raising OP Margin in Minor Ways Without Working on Raising Gross Margins
- Cable One’s Billion-Dollar Bet: Can Tech Upgrades & Customer Gains Help Them Outrun the Competition?
- GameStop’s Secret Weapon: How Smart Vendor Deals Could Revive Its Fortunes!
- Lululemon Athletica Faces New Tariff Pressures Through Vietnam
- PVH Corporation’s Mixed Bag: Calvin Klein & Tommy Hilfiger Shine But Global Headwinds & China Are A Cause Of Concern!
- What’s New(s) in Amsterdam – 8 April (InPost | Acomo)
- McCormick Battles Tariff Turmoil With A New Diversification Strategy But Will It Work?
LG Electronics India Pre-IPO – Peer Comparison – Largest but One of the Slowest
- LG Electronics (066570 KS) is looking to raise US$1.5bn+ via part-selling its stake in LG Electronics India.
- LG Electronics India (LGEI) was the market leader in India in major home appliances and consumer electronics (excluding mobile phones) in terms of volume in 1Q25, as per Redseer Report.
- We have looked at the company’s past performance in our previous note. In this note, we undertake a peer comparison.
Chagee IPO: Peer Comp and Thoughts on Valuation
- Chagee Holdings (CHA US) is planning to raise up to US$500m through its upcoming US IPO.
- It is a leading premium tea drinks brand, serving healthy and delicious freshly-made tea drinks.
- We have looked at the company’s past performance in our earlier notes. In this note, we discuss latest industry dynamics, conduct a quick peer comparison and discuss the company’s valuation.
Frontdoor Just Launched a Game-Changing App—Is This the Future of Home Services?
- Frontdoor’s financial performance in the third quarter of 2024 reflects both achievements and challenges for the company as it navigates a fluctuating market environment.
- The company reported a 3% increase in revenue to $540 million compared to the same period last year, alongside a notable rise in gross profit margin by 550 basis points to reach 57%.
- Net income saw a substantial uptick of 40% to $100 million, while Adjusted EBITDA increased by 29% to $165 million.
Companies May Worked on Raising OP Margin in Minor Ways Without Working on Raising Gross Margins
- Japan’s declining % global GDP and the number of top companies in market capitalization shows that simply boosting profits through yen depreciation left behind the growth speed of global competitors.
- While many Japanese companies tried to improve profit margins by reducing labor costs and other expenses, few have managed to improve gross profit margins, which relate to their business models.
- The fact that few companies have taken steps to shift to higher value-added products and services is why the yen rate remains a key factor in stock valuations.
Cable One’s Billion-Dollar Bet: Can Tech Upgrades & Customer Gains Help Them Outrun the Competition?
- Cable One’s recent earnings presented a mixed set of financial results for its fourth quarter and full-year 2024.
- The company, while navigating competitive pressures and changes in subscriber programs, managed to demonstrate some resilience in strategies aimed at stabilizing its business.
- On the positive side, Cable One reported growth in its business broadband revenue by 2.6% year-over-year, driven by rising demand across its carrier, enterprise, and wholesale segments.
GameStop’s Secret Weapon: How Smart Vendor Deals Could Revive Its Fortunes!
- GameStop Corporation reported its fourth-quarter and full-year financial results for 2022 with a noticeable shift toward profitability and efficient operations amidst a challenging retail environment.
- The company’s transformation over the past couple of years has been a story of significant restructuring and strategic shifts aimed at revitalizing its financial health and market positioning.
- A notable positive from the results is GameStop’s turnaround from a net loss in the fourth quarter of 2021 to a net income of $48.2 million in the same period of 2022.
Lululemon Athletica Faces New Tariff Pressures Through Vietnam
- Lululemon Athletica Inc. recently reported its fourth-quarter and full-year financial results, marking another year of growth, while also spotlighting both achievements and challenges.
- The company reported total revenue for the fourth quarter, excluding the 53rd week, increased by 8% year-over-year, or 9% on a constant currency basis.
- Operating margin expanded by 40 basis points to 28.9%, and earnings per share rose by 16%.
PVH Corporation’s Mixed Bag: Calvin Klein & Tommy Hilfiger Shine But Global Headwinds & China Are A Cause Of Concern!
- PVH Corp’s recent earnings reflects a mix of achievements and challenges in the fiscal year 2024 and sets cautious expectations for 2025.
- The company, which owns iconic brands Calvin Klein and Tommy Hilfiger, surpassed its initial 2024 guidance both in terms of revenue and non-GAAP EPS.
- However, it faced a decrease in overall revenue compared to previous years, largely attributed to divestitures and external economic factors.
What’s New(s) in Amsterdam – 8 April (InPost | Acomo)
- In this edition: • InPost | Royal Mail to roll out lockers at Sainsbury’s in the UK • Acomo | presents growth and financial strategy at CMD
McCormick Battles Tariff Turmoil With A New Diversification Strategy But Will It Work?
- McCormick & Company recently presented their results for the first quarter of 2025.
- The report indicated mixed outcomes, with organic sales showing modest growth and some challenges in profitability.
- The company’s total organic sales grew by 2%, primarily driven by volume and product mix growth.
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