We think the resignation has more to do with the business that Margo Georgiadis inherited, rather than the business worsening beyond expectations.
Despite headwinds, the industry can still grow, and we think Mattel looks attractive today.
We're placing the retailer under review as earnings growth gets crushed by operating margin pressure.
We're lowering our fair value estimates for narrow-moat toy companies Mattel and Hasbro but still see value in former.
The retailer's liquidation doesn't change our long-term thesis or narrow moat rating for either toymaker.
Robust travel demand supports pricing growth for the cruise operator, driving profit gains.
By prioritizing inventory cleanup, the narrow-moat toymaker likely won't realize the full gains from its turnaround program as soon as originally expected.
The positive momentum the wide-moat company has captured through its brand positioning and supply chain is set to continue in 2018.
More dynamic merchandising, a faster supply chain, and better customer read-through from opportunities with its loyalty program have driven solid sales and recent share price gains.
Although some retailers continue to cede share to online peers, some protected businesses should deliver rising profitability.
We expect the company to continue to close stores through attrition and continue to invest in its online platform.
The narrow-moat toymaker expects operating margins to be 'significantly lower' than 2016's.
While we expect healthy operating margin gains in 2018, we operating margins will approach 10% over our long-term outlook.
We think Hasbro will gain market share but view Mattel as the more undervalued stock today.
While this marks another quarter in which Lowe's business lagged that of Home Depot, the performance was still solid.
Although top- and bottom-line results were better than we expected, we still view the shares as overvalued.
With elevated existing-homes sales and prices that help turnover remain inflated--along with overhang of storm-related sales--home improvement spending should persist.
Such speculation has fizzled in the past, and a similar fate could occur this go-round.
We're maintaining our $98 fair value estimate and view shares as modestly undervalued today.
E-commerce is growing at a more than 20% clip, but that’s not enough to protect the firm from total market share erosion.
The narrow-moat toymakers have some time to find alternate channels to distribute their products and prevent future sales shortages that may stem from degradation of the Toys 'R' Us channel.
Refocusing on the core business with more relevant inventory has put RH in better position to match supply and demand of product ahead.
After reporting weaker second-quarter results compared with larger competitor Home Depot, we find Lowe's shares attractively priced.
The narrow-moat retailer should see incremental market share gains ahead.
Labor changes continue to pressure operating margins at the wide-moat retailer more than management had anticipated.
The wide-moat retailer saw a solid quarter with same-store sales growth of 6.3%.
We still view the shares as overvalued after second-quarter results.
Meaningful pricing gains in the future will remain difficult to capture relative to the past, given the price sensitivity of the average consumer.
Earnings will remain depressed short term as the narrow-moat toymaker invests in brands and operations before resuming more normalized earnings levels.
CEO Margo Georgiadis' new strategy offers a more defined focus on expectations and priorities for the narrow-moat company.
Affordability could present a larger challenge over the longer term.
The wide-moat home-improvement retailer continues to outperform its brick-and-mortar comeptitors again -- and trends suggest it should continue to do so.
The long-term growth cadence of demand could be slowing, despite changes to the business.
The business is stabilizing, although it’s not quite out of the woods yet.
We don't plan any material change to our $91 fair value estimate for the narrow-moat toymaker.
The narrow-moat company's focus on improved analytics is not matching the speed of changing weather patterns that the company is competing against.
We plan to raise our fair value estimate on the narrow-moat company.
Smart marketing and merchandising differentiate the home furnishing retailer.
Efficiencies across the supply chain benefit the narrow-moat company's margins.
We plan to raise our current fair value estimate materially to account for faster sales growth, gross margin expansion, and better controlled expenses.
The strong economic environment bodes well for the wide-moat home improvement retailer.
We see shares of the narrow-moat toymaker as modestly undervalued as management works to kickstart its owned and licensed properties.
We plan to raise our fair value estimate of the narrow-moat firm to account for its ability to raise the top line again in the year ahead.
This no-moat retailer is trading well below our fair value estimate.
The narrow-moat firm's focus on driving demand for its products should help prevent incremental market share losses.
Discretionary companies have benefited from decreased uncertainty post-election as consumer expectations are set with the new administration.
The no-moat company has failed to generate sales growth commensurate with footprint expansion.
The narrow-moat retailer boasts strong brand equity and opportunity for international expansion.
We plan to lower our fair value estimate modestly on wide-moat Lowe's in response to sluggish results as well as the tempered outlook for the remainder of 2016.
Despite weakness from vendors in key categories like paint and appliances, the wide-moat home improvement retailer delivered stellar results.