BURBY

Valuentum: Outlook for Europe, China Is Bleak

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Video: Valuentum’s Associate Director of Research and Co-Portfolio Manager of the simulated newsletter portfolios, Callum Turcan, shares his thoughts about the global economy. Europe is facing considerable pressure from energy prices, while China may face a mortgage meltdown. Join Valuentum for this brief 6 minute video to get up to speed on the goings-on of the global economy and what troubles may be lurking ahead. –——— Brian Nelson owns shares in SPY, SCHG, QQQ, DIA, VOT, BITO, and IWM. Valuentum owns SPY, SCHG, QQQ, VOO, and DIA. Brian Nelson’s household owns shares in HON, DIS, HAS, NKE. Some of the other securities written about in this article may be included in Valuentum’s simulated newsletter portfolios. Contact Valuentum for more information … Read more

LVMH Posts Record Sales Performance

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Image Source: LVMH Moët Hennessy Louis Vuitton – October 2021 IR Presentation By Callum Turcan The France-based luxury goods company LVMH Moët Hennessy Louis Vuitton (LVMUY) provided an update on its sales performance during the first three quarters of 2021 on October 12. For housekeeping purposes, please note LVMH reports its financials in accordance with IFRS accounting standards, and that LVMH acquired luxury jeweler Tiffany in January 2021 through a ~$15.8 billion deal.  LVMH’s revenues grew by 46% year-over-year, reaching EUR44.2 billion (a record for the company), and organic sales were up 40% year-over-year during the first nine months of 2021. The company’s ‘Fashion & Leather Goods’ segment, responsible for a little under half of its total sales, saw its … Read more

L Brands Continues to Bounce Back

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Image Source: L Brands Inc – Third Quarter of Fiscal 2020 IR Earnings Presentation By Callum Turcan L Brands Inc (LB) is home to the Victoria’s Secret, PINK and Bath & Body Works retail brands (PINK is included within its Victoria’s Secret umbrella). The company has ~2,700 company-operated stores in Canada, the Greater China region, and the US along with more than 700 franchised locations worldwide. Sometime in 2021, L Brands intends to separate Bath & Body Works from its other operations, a plan management reiterated during a virtual December 2020 investor presentation. Bath & Body Works has been growing at a brisk pace of late, while Victoria’s Secret has been a drag on company-wide performance at L Brands. Though … Read more

In the News: Sears Nears Bankruptcy, Luxury Apparel Weakens, Fastenal Reports, and Financial Tech Stocks Take Hit

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In what was a long-time coming, Sears looks to finally be succumbing to the pressures of the brick-and-mortar retailing business. It won’t be the last big-name retailer to fail, and it certainly wasn’t the first. Luxury stocks are reeling as a result of worries in China. Financial tech stocks gave back a fraction of their huge gains more recently, as investors size up credit risk at this stage of the economic cycle. We continue to believe financial tech is the place to be, however, with PayPal and Visa as two of our top considerations. By Brian Nelson, CFA Sears Holdings (SHLD) is now nothing more than a penny stock, trading at about $0.40 per share, as CNBC reported that the … Read more

Coach’s Fundamentals Improving But We’re Growing Concerned About Dividend Amid Rumored M&A Talks

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Dividend Growth Newsletter portfolio holding Coach turned in a strong finish to calendar 2016, but we’re worried about rumored M&A activity. Let’s dig in. By Kris Rosemann We’ve been keeping a close eye on the speculative luxury goods ideas in the newsletter portfolios, and it hasn’t all been smooth sailing as Coach (COH) and Michael Kors (KORS) work to reposition their brands in the North American markets. Though we continue to see an opportunity for capital appreciation in shares of Coach (based on our fair value estimate of $41 per share), which is yielding ~3.7% at recent price levels, we’re growing concerned about the implications that M&A (if rumors come to fruition) will have on the long-term health of the … Read more

Around Retail: Aspirational Brands Battle Consumer Perception

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Summary · After positive data reads in the months of October and November, things may finally be looking up for retail spending, but the impact of discounting looms large for many in the space. There are pockets of weakness and strength. · Aspirational and luxury goods manufacturers and retailers are not only subject to the pressures of the promotional retail environment, but also are subject to additional outside forces such as tourism and brand perception. While not dead, mall traffic has been challenging. · Whether it is next-generation wearable technology, a refined online presence, a reduction in markdown allowances, or an enhanced shopping experience, luxury goods companies continue to invest for sustainable growth. Fossil and Richemont have been caught by … Read more

Dividend Increases/Decreases for the Week Ending May 20

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Below we provide a list of firms that raised/lowered their dividends during the week ending May 20. The dividend reports of covered firms on this list will be updated shortly with the new information. To access our dividend reports use the ‘Symbol’ search box in our website header. Firms Raising Their Dividends This Week Blue Hills Bancorp (BHBK): now $0.03 per share quarterly dividend, was $0.02. Burberry Group Plc ADR (BURBY): now £37 per share annual dividend, was £35.2 Carriage (CSV): now $0.05 per share quarterly dividend, was $0.025. Cato (CATO): now $0.33 per share quarterly dividend, was $0.30. Chubb (CB): now $0.69 per share quarterly dividend, was $0.67. Cineplex (CPXGF): now C$0.135 per share monthly dividend, was C$0.13. Clorox … Read more

Tiffany and Nike Disappoint in China

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Valuentum previously outlined the importance of brand strength in its comprehensive piece: “Valuentum’s Comprehensive Report on Retail Brands.” This article will focus on Tiffany’s (TIF) and Nike’s (NKE) performance in the Asia-Pacific, and where applicable, China, a country that we believe is vital for long-term expansion and to support our fair value estimates of both firms. Recent reports have put a damper on the outlook for luxury spending in China during 2014. Though the outlook is consistent with data points we’ve received with respect to slowing, but still robust, economic expansion in China, the commentary is worth nothing: Wealthy Chinese are likely to buy fewer luxury goods again this year after the steepest cut-back on spending in at least five … Read more

Dividend Increases/Decreases for the Week of December 16

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Below we provide a list of firms that raised their dividends during the week ending December 16. The dividend reports of covered firms on this list will be updated shortly with the new information. To access our dividend reports use the ‘Symbol’ search box in our website header. Firms Raising Their Dividends This Week                Absecon Bancorp (ASCN): now $2.20 per share annual dividend, was $2.10. Algoma Central Corporation (ALC:CA): now CAD 1.35 per share special dividend, was CAD 0.17. Alpha Metallurgical (AMR): now $0.418 per share quarterly dividend, was $0.392. Ambev (ABEV): now $0.1457 per share annual dividend, was $0.08. AMEN Properties (AMEN): now $12.50 per share quarterly dividend, was $10.00. American Vanguard (AVD): now $0.03 per share quarterly … Read more

Dividend Increases/Decreases for the Week of June 28

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Below we provide a list of firms that raised their dividends during the week ending June 28. The dividend reports of covered firms on this list will be updated shortly with the new information. To access our dividend reports use the ‘Symbol’ search box in our website header. Firms Raising Their Dividends This Week                          The Adirondack Trust Company (ADKT): now $29.00 per share semi-annual dividend, was $28.75. B3 S.A. – Brasil, Bolsa, Balcão (BOLSY): now $0.0249 per share quarterly dividend, was $0.0235. Bank of America (BAC): now $0.26 per share quarterly dividend, was $0.24. Bankinter, S.A. (BKNIY): now $0.0967 per share quarterly dividend, was $0.0946. The Bank of New York Mellon (BK): now $0.47 per share quarterly dividend, … Read more