After a brief research on each GICS classification, the aim is to read all the Yahoo Finance overviews for the S&P 500 companies that belong to the class. Furthermore, I will read the overview and MD&A of 10-K and the latest earnings call transcript for some select companies. Goal 1) See which companies fall under each sector. Goal 2) Be able to understand the overview of each business. Goal 3) Come up with my understanding to a reasonable depth, in an efficient way. Goal 4) Find out key metrics for each industry.
Consumer Discretionary
Source: S&P Global
Source: S&P Global, MSCI
GICS Consumer Discretionary sector accounts for 10% of S&P 500 index with 50 companies as of Nov 2024. Sector forward p/e ratio is 26x. This sector covers a broad spectrum of enterprises – Amazon, Tesla, Home Depot, Booking Holdings, Marriott, Nike, McDonald’s, D.R. Horton etc. Automobile manufacturers, apparel manufacturers, casino & resort operators, retailers & distributors, residential house builders all belong to this category. This sector is also called consumer cyclical. The hotel & casino conglomerates as well as online booking services landscape have been shaped by mergers and acquisitions. Marriott and Hilton both own a lot of labels under the parent company. The licensing model has allowed for asset light growth around the globe. This is similar to the tactics of McDonald’s and Starbucks. Sands, Caesars, and Wynn own various assets.
Source: Finviz
All company overview below are imported from Yahoo Finance. Data including market cap, p/e ratio, revenue are as of October 2024.
Automotive Parts & Equipment
• Yahoo Finance link
• Company website link
• Market cap, Historical p/e, Revenue (ttm): $17b, 5x, $20b
Yahoo Finance Description
Aptiv PLC engages in design, manufacture, and sale of vehicle components in North America, Europe, Middle East, Africa, the Asia Pacific, South America, and internationally. The company provides electrical, electronic, and safety technology solutions to the automotive and commercial vehicle markets. It operates through two segments, Signal and Power Solutions, and Advanced Safety and User Experience. The Signal and Power Solutions segment designs, manufactures, and assembles vehicle’s electrical architecture, including engineered component products, connectors, wiring assemblies and harnesses, cable management products, electrical centers, and hybrid high voltage and safety distribution systems. Its Advanced Safety and User Experience segment provides critical technologies and services for vehicle safety, security, comfort, and convenience, such as sensing and perception systems, electronic control units, multi-domain controllers, vehicle connectivity systems, application software, autonomous driving technologies, and end-to-end DevOps tools. The company was formerly known as Delphi Automotive PLC and changed its name to Aptiv PLC in December 2017. Aptiv PLC was incorporated in 2011 and is based in Dublin, Ireland.
Q: What exactly does Aptiv make?
Driving monitoring: Interior sensing through camera, image recognition.
Smart Vehicle Architecture: provide hardware, software and cloud-based tools to operate vehicle. Communicate with signals using IoT. Connecting audio, power windows and doors, infotainment, ADAS (Advanced Driver Assistance System). Power, processor, connectivity for all devices.
Self-driving cars: software, electric control units, etc.
Q: Who are Aptiv’s clients?
GM, Volkswagen, Fiat, Hyundai Motor
Q: What are the key metrics mentioned in the earnings call?
Revenue, EPS, operating income, adjusted EBITDA, operating margin, operating cash flow, capital expenditure, new business awards, new business bookings, revenue by segment, global vehicle production outlook, revenue by region – China, Europe, NA
• Yahoo Finance link
• Company website link
• Market cap, Historical p/e, Revenue (ttm): $8b, 10x, $14b
Yahoo Finance Description
BorgWarner Inc., together with its subsidiaries, provides solutions for combustion, hybrid, and electric vehicles worldwide. It offers turbochargers, eBoosters, eTurbos, timing systems, emissions systems, thermal systems, gasoline ignition technology, smart remote actuators, powertrain sensors, cabin heaters, battery modules and systems, battery heaters, and battery charging. The company provides power electronics, control modules, software, friction, and mechanical products for automatic transmissions and torque-management products. It sells its products to original equipment manufacturers of light vehicles, which comprise passenger cars, sport-utility vehicles, vans, and light trucks; commercial vehicles, including medium-duty and heavy-duty trucks, and buses; and off-highway vehicles, such as agricultural and construction machinery, and marine applications, as well as to tier one vehicle systems suppliers and the aftermarket for light, commercial, and off-highway vehicles. The company was formerly known as Borg-Warner Automotive, Inc. BorgWarner Inc. was incorporated in 1987 and is headquartered in Auburn Hills, Michigan.
Q: What is a turbocharger?
Supercharger and turbocharger is to deliver more air to the internal combustion engine, so that each cylinder can get a supply of compressed air to help with the ignition. Turbocharger gets the energy to supply such compressed air using the exhaust fumes the exit the engine. The heated, expanded exhaust fume is adequate for turning turbines, which on the other end will be bringing in external air. The external air will get compressed, but heated as a result. Before entering the engine, the external compressed air will go through an intercooler.
Q: What is an eBooster?
An electrically driven compressor. Alongside a turbocharger, the eBooster will supply additional external air through a separate electrically powered motor when the driver accelerates. The additional boost in supply of air aides the speeding up. After the speed has been reached, the higher force of exhaust fumes will naturally speed up the turbine in the turbocharger, subsequently turning off the eBooster.
Q: What are the key metrics mentioned in the earnings call?
Sales, revenue, operating margin, eps, FCF, share repurchase, impact of forex, organic growth (growth from existing operations excluding acquisitions), restructuring cost
Q: Who are Aptiv’s clients?
Ford, GM
Automotive Manufacturers
• Yahoo Finance link
• Company website link
• Market cap, Historical p/e, Revenue (ttm): $700b, 61x, $95b
Yahoo Finance Description
Tesla, Inc. designs, develops, manufactures, leases, and sells electric vehicles, and energy generation and storage systems in the United States, China, and internationally. The company operates in two segments, Automotive, and Energy Generation and Storage. The Automotive segment offers electric vehicles, as well as sells automotive regulatory credits; and non-warranty after-sales vehicle, used vehicles, body shop and parts, supercharging, retail merchandise, and vehicle insurance services. This segment also provides sedans and sport utility vehicles through direct and used vehicle sales, a network of Tesla Superchargers, and in-app upgrades; purchase financing and leasing services; services for electric vehicles through its company-owned service locations and Tesla mobile service technicians; and vehicle limited warranties and extended service plans. The Energy Generation and Storage segment engages in the design, manufacture, installation, sale, and leasing of solar energy generation and energy storage products, and related services to residential, commercial, and industrial customers and utilities through its website, stores, and galleries, as well as through a network of channel partners; and provision of service and repairs to its energy product customers, including under warranty, as well as various financing options to its solar customers. The company was formerly known as Tesla Motors, Inc. and changed its name to Tesla, Inc. in February 2017. Tesla, Inc. was incorporated in 2003 and is headquartered in Austin, Texas.
Q: “sells automotive regulatory credits”?
Governments especially in US and Europe set regulations for automakers to produce a certain number of zero-emission vehicles (ZEVs). Companies that produce a surplus than required can get credits. Automakers that do not meet the criteria must purchase credit from other companies.
10-K
“We earn tradable credits in the operation of our business under various regulations related to zero-emission vehicles (“ZEVs”), greenhouse gas, fuel economy and clean fuel. We sell these credits to other regulated entities who can use the credits to comply with emission standards and other regulatory requirements. Sales of these credits are recognized within automotive regulatory credits revenue in our consolidated statements of operations included elsewhere in this Annual Report on Form 10-K.”
Revenue from automotive regulatory credits amounted to $1.8b in 2023.
Q: What is the gross profit contribution for each segment?
Automotive segment revenue $91b, gross profit $17b. Energy generation and storage segment revenue $6b, gross profit $1b.
• Yahoo Finance link
• Company website link
• Market cap, Historical p/e, Revenue (ttm): $54b, 5x, $178b
Yahoo Finance Description
General Motors Company designs, builds, and sells trucks, crossovers, cars, and automobile parts; and provide software-enabled services and subscriptions worldwide. The company operates through GM North America, GM International, Cruise, and GM Financial segments. It markets its vehicles primarily under the Buick, Cadillac, Chevrolet, GMC, Baojun, and Wuling brand names. In addition, the company sells trucks, crossovers, cars, and automobile parts through retail dealers, and distributors and dealers, as well as to fleet customers, including daily rental car companies, commercial fleet customers, leasing companies, and governments. Further, it offers range of after-sale services through dealer network, such as maintenance, light repairs, collision repairs, vehicle accessories, and extended service warranties. Additionally, the company provides automotive financing; and software-enabled services and subscriptions. General Motors Company was founded in 1908 and is headquartered in Detroit, Michigan.
Q: What are the key metrics mentioned in the earnings call?
Revenue, EV deliveries, market share, ICE truck and pickup growth, battery costs, FCF, inventory
Q: What are some famous cars of GM?
Chevrolet, Buick, GMC, Cadillac
• Yahoo Finance link
• Company website link
• Market cap, Historical p/e, Revenue (ttm): $42b, 11x, $180b
Yahoo Finance Description
Ford Motor Company develops, delivers, and services a range of Ford trucks, commercial cars and vans, sport utility vehicles, and Lincoln luxury vehicles worldwide. It operates through Ford Blue, Ford Model e, and Ford Pro; Ford Next; and Ford Credit segments. The company sells Ford and Lincoln vehicles, service parts, and accessories through distributors and dealers, as well as through dealerships to commercial fleet customers, daily rental car companies, and governments. It also engages in vehicle-related financing and leasing activities to and through automotive dealers. In addition, the company provides retail installment sale contracts for new and used vehicles; and direct financing leases for new vehicles to retail and commercial customers, such as leasing companies, government entities, daily rental companies, and fleet customers. Further, it offers wholesale loans to dealers to finance the purchase of vehicle inventory; and loans to dealers to finance working capital and enhance dealership facilities, purchase dealership real estate, and other dealer vehicle programs. The company was incorporated in 1903 and is based in Dearborn, Michigan.
Q: Why did the company record a -30% EPS surprise in 24Q2?
Ford reported $1.1b loss in its EV segment. It was due to a significant rise in warranty cost, the cost incurred on the company’s end to service faulty vehicles still under warranty period.
Q: What are the key metrics mentioned in the earnings call?
Revenue, wholesales, EBIT, FCF, cash, liquidity, warranty reserves, capital expenditure, revenue by segment
Q: What is Ford Pro?
Ford Pro services the commercial customers that require a fleet of vehicles. It includes providing vehicles, charging, maintenance, data solutions, vehicle diagnostics, fuel management etc.
Q: What is Ford + strategy?
The plan announced in 2021 aims to gain leadership in EV space through Ford Model e segment, as well as maintain lead in internal combustion engine (ICE) space represented by Ford Blue.
Q: What are famous cars of Ford?
F-150, F-150 Lightning, F-150 Hybrid, Lincoln, Mustang, Bronco, Explorer.
Consumer Electronics
• Yahoo Finance link
• Company website link
• Market cap, Historical p/e, Revenue (ttm): $32b, 23x, $6b
Yahoo Finance Description
Garmin Ltd. designs, develops, manufactures, markets, and distributes a range of wireless devices worldwide. Its Fitness segment offers running and multi-sport watches; cycling products; smartwatch devices; scales and monitors; and fitness accessories. This segment also provides Garmin Connect and Garmin Connect Mobile, which are web and mobile platforms where users can track and analyze their fitness, activities and workouts, and wellness data; and Connect IQ, an application development platform. The company’s Outdoor segment offers adventure watches, outdoor handhelds and satellite communicators, golf devices, consumer automotive devices, and dog devices, as well as InReach and Gramin response communication device. Its Aviation segment designs, manufactures, and markets various aircraft avionics solutions, including integrated flight decks, electronic flight displays and instrumentation, navigation and communication products, automatic flight control systems and safety-enhancing technologies, audio control systems, engine indication systems, traffic awareness and avoidance solutions, ADS-B and transponders, weather information and avoidance solutions, datalink and connectivity solutions, and various services. The company’s Marine segment provides chartplotters and multi-function displays, cartography products, fishfinders, sonar products, autopilot systems, radars, compliant instrument displays and sensors, VHF communication radios, handhelds and wearable devices, sailing products, audio products and accessories, digital switching products, and trolling motors. Its Auto segment offers embedded domain controllers and infotainment units; and software, map database, cameras, wearables, and automotive solutions. The company sells its products through independent retailers, dealers, distributors, installation and repair shops, and original equipment manufacturers, as well as online webshop. Garmin Ltd. was founded in 1989 and is based in Schaffhausen, Switzerland.
Q: What are the key metrics mentioned in the earnings call?
Revenue, revenue by segment (fitness, outdoor, aviation, marine, auto OEM), gross margin, operating margin, operating income, EPS, revenue by region, FCF, capex, accounts receivable, inventory, dividends, share repurchase, effective tax rate
Q: A smart watch company makes aviation and marine devices?
Yes.
Q: What is the revenue contribution of each segment?
According to 24Q2 10-K, Fitness 28%, Outdoor 29%, Aviation 15%, Marine 18%, Auto OEM 10%.
Home Furnishings
• Yahoo Finance link
• Company website link
• Market cap, Historical p/e, Revenue (ttm): $10b, -, $11b
Yahoo Finance Description
Mohawk Industries, Inc. designs, manufactures, sources, distributes, and markets flooring products for residential and commercial remodeling, and new construction channels in the United States, Europe, Latin America, and internationally. It operates through three segments: Global Ceramic, Flooring North America, and Flooring Rest of the World. The company provides ceramic, porcelain, and natural stone tiles products for floor and wall applications; natural stones, porcelain slabs, and quartz countertops, as well as installation materials; floor covering products comprising broadloom carpets, carpet tiles, rugs and mats, carpet pads, laminates, medium-density fiberboards, wood floorings, luxury vinyl tiles, and sheet vinyl; and roofing panels, insulation boards, mezzanine flooring products, medium-density fiberboard, and chipboards. It also licenses its intellectual property to flooring manufacturers. The company sells its products under the American Olean, Daltile, Decortiles, Eliane, EmilGroup, KAI, Kerama Marazzi, Marazzi, Ragno, Aladdin Commercial, Durkan, Foss, IVC, Karastan, Mohawk, Mohawk Group, Mohawk Home, Pergo, Portico, Quick-Step, Feltex, GH Commercial, Godfrey Hirst, Hycraft, IVC Commercial, IVC Home, Lentex, Leoline, and Moduleo, Redbook, Unilin, and Vitromex brands. It offers its products to company-owned service centers and stores, company-operated distributors, floor covering retailers, wholesalers, mass merchandisers, department stores, shop at home, buying groups, ceramic tile specialists, e-commerce retailers, residential builders, independent distributors, commercial contractors, and commercial end users. The company was incorporated in 1988 and is headquartered in Calhoun, Georgia.
Homebuilding
• Yahoo Finance link
• Company website link
• Market cap, Historical p/e, Revenue (ttm): $60b, 12x, $37b
Yahoo Finance Description
D.R. Horton, Inc. operates as a homebuilding company in East, North, Southeast, South Central, Southwest, and Northwest regions in the United States. It engages in the acquisition and development of land; and construction and sale of residential homes in 118 markets across 33 states under the names of D.R. Horton, America’s Builder, Express Homes, Emerald Homes, and Freedom Homes. The company constructs and sells single-family detached homes; and attached homes, such as townhomes, duplexes, and triplexes. It also provides mortgage financing services; and title insurance policies, and examination and closing services, as well as engages in the residential lot development business. In addition, the company develops, constructs, owns, leases, and sells multi-family and single-family rental properties; and owns non-residential real estate, including ranch land and improvements. It primarily serves homebuyers. D.R. Horton, Inc. was founded in 1978 and is headquartered in Arlington, Texas.
Q: What are the key metrics mentioned in the earnings call?
EPS, revenue, pre-tax profit margin, homes closed, construction cycle, cancellation rate, gross margin, active selling communities, net sales orders, lot positions, rental property inventory.
Q: What is homes closed?
Number of homes that D.R. Horton has built and delivered in the term. In 24Q2 the company closed 24,155 homes generating $9.2b.
Q: What is active selling communities?
Active selling communities include inventory and homes under construction that buyers can purchase or visit model homes.
Q: What is the market share of homebuilding company?
https://www.builderonline.com/builder-100/builder-100-list/2024/
D.R. Horton ranks #1 with 90k closings in 2023. Lennar comes #2 with 73k. PulteGroup #3 with 29k. NVR #4 with 21k.
Q: What is buying from home inventory vs. building ground-up
Buying from inventory is buying houses that have already been built, or near finishing. Building ground-up involves building from scratch based, which is more customizable but more time consuming.
Q: What is a 6-month walkthrough?
It is the inspection that takes place 6 months after delivery where the homebuilder addresses issues with the house under the terms of house warranty.
• Yahoo Finance link
• Company website link
• Market cap, Historical p/e, Revenue (ttm): $48b, 12x, $36b
Yahoo Finance Description
Lennar Corporation, together with its subsidiaries, operates as a homebuilder primarily under the Lennar brand in the United States. It operates through Homebuilding East, Homebuilding Central, Homebuilding Texas, Homebuilding West, Financial Services, Multifamily, and Lennar Other segments. The company’s homebuilding operations include the construction and sale of single-family attached and detached homes, as well as the purchase, development, and sale of residential land; and development, construction, and management of multifamily rental properties. It also offers residential mortgage financing, title, insurance, and closing services for home buyers and others, as well as originates and sells securitization commercial mortgage loans. In addition, the company is involved in the fund investment activity. It primarily serves first-time, move-up, active adult, and luxury homebuyers. Lennar Corporation was founded in 1954 and is based in Miami, Florida.
Q: What are the key metrics mentioned in the earnings call?
Deliveries (closings), starts (beginning of construction), new orders, gross margin, SG&A, community count, average sales price, inventory turn, debt to total capital ratio, share repurchase.
Q: What are “communities”?
Communities consist of multiple homes with shared amenities like parks, playgrounds, or clubhouses. Smaller communities could be 50-100 homes.
Q: first-time, move-up, active adult?
First-time buyers usually seek affordable entry-level homes. Move-up buyers are upgrading to a larger or a more expensive home. Active adult buyers are usually aged 55+, looking for low-maintenance homes in communities that offer appealing amenities. The “active” factor refers to their desire to be engaged socially, mentally and physically through social clubs or fitness centers etc.
• Yahoo Finance link
• Company website link
• Market cap, Historical p/e, Revenue (ttm): $29b, 20x, $10b
Yahoo Finance Description
NVR, Inc. operates as a homebuilder in the United States. The company operates through, Homebuilding and Mortgage Banking segments. It engages in the construction and sale of single-family detached homes, townhomes, and condominium buildings under the Ryan Homes, NVHomes, and Heartland Homes names. The company markets its Ryan Homes products to first-time and first-time move-up buyers; and NVHomes and Heartland Homes products to move-up and luxury buyers. It also provides various mortgage related services to its homebuilding customers, as well as brokers title insurance; performs title searches in connection with mortgage loan closings; and sells mortgage loans to investors in the secondary markets on a servicing released basis. The company primarily serves in Maryland, Virginia, West Virginia, Delaware, New Jersey, Eastern Pennsylvania, New York, Ohio, Western Pennsylvania, Indiana, Illinois, North Carolina, Georgia, South Carolina, Florida, Tennessee, and Washington, D.C. NVR, Inc. was founded in 1980 and is headquartered in Reston, Virginia.
Q: What does NVR stand for?
North Virginia Homes
• Yahoo Finance link
• Company website link
• Market cap, Historical p/e, Revenue (ttm): $29b, 11x, $17b
Yahoo Finance Description
PulteGroup, Inc., through its subsidiaries, primarily engages in the homebuilding business in the United States. It acquires and develops land primarily for residential purposes; and constructs housing on such land. The company also offers various home designs, including single-family detached, townhomes, condominiums, and duplexes under the Centex, Pulte Homes, Del Webb, DiVosta Homes, John Wieland Homes and Neighborhoods, and American West brand names. In addition, the company arranges financing through the origination of mortgage loans primarily for homebuyers; sells the servicing rights for the originated loans; and provides title insurance policies, and examination and closing services to homebuyers. PulteGroup, Inc. was founded in 1950 and is headquartered in Atlanta, Georgia.
Q: How does D.R. Horton, Lennar, NVR, PulteGroup compare?
Seems more or less the same, each offering homes of different price range usually through different subsidiaries.
Leisure Products
• Yahoo Finance link
• Company website link
• Market cap, Historical p/e, Revenue (ttm): $10b, -, $5b
Yahoo Finance Description
Hasbro, Inc., together with its subsidiaries, operates as a toy and game company in the United States, Europe, Canada, Mexico, Latin America, Australia, China, and Hong Kong. The company operates through Consumer Products; Wizards of the Coast and Digital Gaming; Entertainment; and Corporate and Other segments. The Consumer Products segment engages in the sourcing, marketing, and sale of toy and game products. This segment also promotes its brands through the out-licensing of trademarks, characters, and other brand and intellectual property rights to third parties through the sale of branded consumer products, such as toys and apparel. Its toys and games include action figures, arts and crafts and creative play products, dolls, play sets, preschool toys, plush products, sports action blasters and accessories, vehicles and toy-related specialty products, games, and other consumer products; and licensed products, such as apparel, publishing products, home goods and electronics, and toy products. The Wizards of the Coast and Digital Gaming segment engages in the promotion of its brands through the development of trading cards, role-playing, and digital game experiences based on Hasbro and Wizards of the Coast games. The Entertainment segment engages in the development, production, and sale of entertainment content, including film, television, children’s programming, digital content, and live entertainment. The company sells its products to retailers, distributors, wholesalers, discount stores, specialty hobby stores, drug stores, mail order houses, catalog stores, department stores, and other traditional retailers, as well as e-commerce retailers; and directly to customers through its e-commerce websites under the MAGIC: THE GATHERING, Hasbro Gaming, PLAY-DOH, NERF, TRANSFORMERS, DUNGEONS & DRAGONS, PEPPA PIG, and other brand names. Hasbro, Inc. was founded in 1923 and is headquartered in Pawtucket, Rhode Island.
Q: What are the key metrics mentioned in the earnings call?
Revenue, revenue by segment (Wizards of the Coast, consumer products), adjusted operating profit, adjusted net earnings, adjusted EPS, operating margin, Wizards of the coast margin, operating cash flow, dividend.
Q: What are the company’s key strategies as per 24Q2 earnings call?
Enhance gaming leadership both tabletop and digital. Double-down on fewer, bigger brands. Drive new growth through direct to consumer and licensing.
Apparel, Accessories & Luxury Goods
• Yahoo Finance link
• Company website link
• Market cap, Historical p/e, Revenue (ttm): $122b, 23x, $50b
Yahoo Finance Description
NIKE, Inc., together with its subsidiaries, engages in the design, development, marketing, and sale of athletic footwear, apparel, equipment, accessories, and services worldwide. The company provides athletic and casual footwear, apparel, and accessories under the NIKE, Jumpman, Converse, Chuck Taylor, All Star, One Star, Star Chevron, and Jack Purcell trademarks. It also sells a line of performance equipment and accessories comprising bags, sport balls, socks, eyewear, timepieces, digital devices, bats, gloves, protective equipment, and other equipment for sports activities under the NIKE brand; and various plastic products to other manufacturers. In addition, the company markets apparel with licensed college and professional team, and league logos, as well as sells sports apparel; licenses unaffiliated parties to manufacture and sell apparel, digital devices, and applications and other equipment for sports activities under NIKE-owned trademarks; and operates digital platforms, including fitness and activity apps; sport, fitness, and wellness content; and digital services and features in retail stores. It sells its products to footwear stores; sporting goods stores; athletic specialty stores; department stores; skate, tennis, and golf shops; and other retail accounts through NIKE-owned retail stores, digital platforms, independent distributors, licensees, and sales representatives. The company was founded in 1964 and is headquartered in Beaverton, Oregon.
Q: How many stores does Nike have?
Excluding digital sales, and sales to wholesale accounts like Foot Locker and JD Sports, they have 377 stores in the US and 668 stores outside of the US (1,045 total). This includes NIKE brand factory stores, NIKE brand in-line stores, and Converse stores.
Q: What is the reason for Nike’s stock price slump since November 2021?
Nike is down 53% from the 2021 highs. The reason for the slump include focusing on digital direct sales channel and less on wholesale channels losing shelf space and suffering market share, new wave of sneaker brands getting popularity, waning consumer confidence in China.
Q: What’s the most important metric for Nike?
From 24Q2 earnings call transcripts, these metrics were mentioned: Nike Direct revenue, wholesale revenue, gross margin, SG&A, revenue by region, store count etc.
• Yahoo Finance link
• Company website link
• Market cap, Historical p/e, Revenue (ttm): $37b, 23x, $10b
Yahoo Finance Description
Lululemon Athletica Inc., together with its subsidiaries, designs, distributes, and retails athletic apparel, footwear, and accessories under the lululemon brand for women and men. It offers pants, shorts, tops, and jackets for healthy lifestyle, such as yoga, running, training, and other activities. It also provides fitness-inspired accessories. The company sells its products through a chain of company-operated stores; outlets; interactive workout platform; yoga and fitness studios, university campus retailers, and other partners; license and supply arrangements; and temporary locations, as well as through mobile apps and lululemon.com e-commerce website. It has operations in the United States, Canada, Mainland China, Australia, South Korea, Hong Kong, Japan, New Zealand, Taiwan, Singapore, Malaysia, Macau, Thailand, the Asia Pacific, the United Kingdom, Germany, France, Ireland, Spain, the Netherlands, Sweden, Norway, Switzerland, Europe, the Middle East, and Africa. Lululemon Athletica Inc. was founded in 1998 and is based in Vancouver, Canada.
Q: How many stores worldwide?
711 company-operated stores (428 in NA, 127 in China, 98 in rest of APAC, 48 in EMEA) and 39 licensed stores worldwide.
Q: What’s the most important metric for an apparel brand?
From 24Q2 earnings call transcripts, these metrics were mentioned: comparable sales, IMU (initial markup), product margin, revenue (by region, by sex), new store openings, square footage increase, gross margin, inventory, SG&A etc.
• Yahoo Finance link
• Company website link
• Market cap, Historical p/e, Revenue (ttm): $12b, 19x, $7b
Yahoo Finance Description
Ralph Lauren Corporation designs, markets, and distributes lifestyle products in North America, Europe, Asia, and internationally. The company offers apparel, including a range of men’s, women’s, and children’s clothing; footwear and accessories, which comprise casual shoes, dress shoes, boots, sneakers, sandals, eyewear, watches, fashion and fine jewelry, scarves, hats, gloves, and umbrellas, as well as leather goods, such as handbags, luggage, small leather goods, and belts; home products consisting of bed and bath lines, furniture, fabric and wallcoverings, floor coverings, lighting, tabletop, kitchen linens, floor coverings, dining, decorative accessories, and giftware; and fragrances. It sells apparel and accessories under the Ralph Lauren Collection, Ralph Lauren Purple Label, Polo Ralph Lauren, Double RL, Lauren Ralph Lauren, Polo Golf Ralph Lauren, Ralph Lauren Golf, RLX Ralph Lauren, Polo Ralph Lauren Children, and Chaps brands; women’s fragrances under the Ralph Lauren Collection, Woman by Ralph Lauren, Romance Collection, and Ralph Collection brand names; and men’s fragrances under the Ralph’s Club, Purple Label, Polo Blue, Polo Red, Polo Green, Polo Black, Polo 67, Safari, Polo Sport, and Big Pony Men’s brand names. The company’s restaurant collection includes The Polo Bar in New York City; RL Restaurant in Chicago; Ralph’s in Paris; The Bar at Ralph Lauren located in Milan; Ralph’s Bar located in Chengdu, China; and Ralph’s Coffee concept. It sells its products to department stores, specialty stores, and golf and pro shops, as well as directly to consumers through its retail stores, concession-based shop-within-shops, and its digital commerce sites. The company directly operates retail stores and concession-based shop-within-shops; and operates Ralph Lauren stores and stores and shops through licensing partners. Ralph Lauren Corporation was founded in 1967 and is headquartered in New York, New York.
Q: Why would Ralph Lauren be in the restaurant business?
Ralph Lauren aims to promote a lifestyle more than just fashion. The company operates more than 30 coffee shops and 5 restaurants globally.
Q: What’s the most important metric for Ralph Lauren?
From 24Q2 earnings call transcripts, these metrics were mentioned: PR impressions, social media following, DTC (direct-to-consumer) channel users, core product (shirts, sweaters etc.) revenue, inventory, hospitality business growth, sales by region.
Q: Does Ralph Lauren own and run the company?
From 10-K
“As of March 30, 2024, Mr. Ralph Lauren, or entities controlled by the Lauren family, held approximately 84% of the voting power of the outstanding common stock of our Company. In addition, Mr. R. Lauren serves as our Executive Chairman and Chief Creative Officer, Mr. R. Lauren’s son, Mr. David Lauren, serves as our Chief Branding and Innovation Officer, Strategic Advisor to the CEO, and Vice Chairman of the Board of Directors, and we employ other members of the Lauren family.”
• Yahoo Finance link
• Company website link
• Market cap, Historical p/e, Revenue (ttm): $11b, 13x, $7b
Yahoo Finance Description
Tapestry, Inc. provides luxury accessories and branded lifestyle products in North America, Greater China, rest of Asia, and internationally. The company operates in three segments: Coach, Kate Spade, and Stuart Weitzman. It offers women’s handbags; and women’s accessories, such as small leather goods which includes mini and micro handbags, money pieces, wristlets, pouches, and cosmetic cases, as well as novelty accessories including address books, time management and travel accessories, sketchbooks, and portfolios; and belts, key rings, and charms. The company also provides men products, which includes bag collections, such as business cases, computer bags, messenger-style bags, backpacks, and totes; small leather goods including wallets, card cases, travel organizers, and belts; and footwear, watches, fragrances, sunglasses, novelty accessories, and ready-to-wear items. In addition, it offers other products including women’s footwear and fragrances; eyewear and sunglasses; and jewelry, such as bracelets, necklaces, rings, and earrings, watches, and other women’s seasonal lifestyle apparel collections, including outerwear, ready-to-wear and cold weather accessories, such as gloves, scarves, and hats. Further, the company provides kids items, housewares, and home accessories, such as fashion bedding and tableware, stationery, and gifts. It offers its products through retail and outlet stores, brand e-commerce sites, and concession shop-in-shops, wholesale, and third-party distributors under the Coach, Kate Spade, and Stuart Weitzman brand names. The company was formerly known as Coach, Inc. and changed its name to Tapestry, Inc. in October 2017. Tapestry, Inc. was founded in 1941 and is headquartered in New York, New York.
Q: What are the key metrics mentioned in the earnings call?
New customers, Gen Z and Millennials customers, digital sales, brick-and-mortar sales, revenue by brand, wholesale revenue, AUR (Average Unit Retail) of core product – average price at which a product is sold to consumers factoring in discounts, inventory, square footage.
Q: How does gross profit margins compare – TJX, Nike, Lululemon, LVMH, Tapestry?
TJX 30%, Nike 45%, Lululemon 58%, LVMH 68%, Tapestry 73%.
Footwear
• Yahoo Finance link
• Company website link
• Market cap, Historical p/e, Revenue (ttm): $25b, 31x, $4b
Yahoo Finance Description
Deckers Outdoor Corporation, together with its subsidiaries, designs, markets, and distributes footwear, apparel, and accessories for casual lifestyle use and high-performance activities in the United States and internationally. The company offers premium footwear, apparel, and accessories under the UGG brand name; footwear, apparel, and accessories for ultra-runners and athletes under the HOKA brand name; and sandals, shoes, and boots under the Teva brand name. It also provides relaxed casual shoes and sandals under the Sanuk brand name; casual footwear fashion line under the Koolaburra brand name; and footwear under the AHNU brand name. The company sells its products through domestic and international retailers; international distributors; and directly to its consumers through its direct-to-consumer business, which includes e-commerce websites and retail stores. Deckers Outdoor Corporation was founded in 1973 and is headquartered in Goleta, California.
Q: What are the key metrics mentioned in the earnings call?
Revenue, gross margin, revenue by brand (HOKA, UGG, etc.), SG&A, inventory, cash and equivalents, share repurchase
Casinos & Gaming
• Yahoo Finance link
• Company website link
• Market cap, Historical p/e, Revenue (ttm): $39b, 25x, $11b
Yahoo Finance Description
Las Vegas Sands Corp., together with its subsidiaries, develops, owns, and operates integrated resorts in Macao and Singapore. It owns and operates The Venetian Macao Resort Hotel, the Londoner Macao, The Parisian Macao, The Plaza Macao and Four Seasons Hotel Macao, Cotai Strip, and the Sands Macao in Macao, the People’s Republic of China; and Marina Bay Sands in Singapore. The company’s integrated resorts feature accommodations, gaming, entertainment and retail malls, convention and exhibition facilities, celebrity chef restaurants, and other amenities. Las Vegas Sands Corp. was founded in 1988 and is based in Las Vegas, Nevada.
Q: What are the key metrics mentioned in the earnings call?
Revenue by location, Londoner renovation timeline, keys per hotel, visitation recovery by location.
Q: Why is it Las Vegas Sands when they only have operations in Macau and Singapore?
The company was originally founded in Las Vegas. Sands sold The Venetian, The Palazzo, Sands Expo and Convention Center in 2022 to Apollo Global Management and Vici Properties for $6.25b
Q: The Las Vegas Sands own Marina Bay Sands?
Yes, the company owns and operates the hotel.
• Yahoo Finance link
• Company website link
• Market cap, Historical p/e, Revenue (ttm): $12b, 15x, $17b
Yahoo Finance Description
MGM Resorts International, through its subsidiaries, owns and operates casino, hotel, and entertainment resorts in the United States and internationally. The company operates through three segments: Las Vegas Strip Resorts, Regional Operations, and MGM China. Its casino resorts offer gaming, hotel, convention, dining, entertainment, retail, and other resort amenities. The company’s casino operations include slots and table games, as well as online sports betting and iGaming through BetMGM. Its customers include premium gaming customers; leisure and wholesale travel customers; business travelers; and group customers, including conventions, trade associations, and small meetings. The company was formerly known as MGM MIRAGE and changed its name to MGM Resorts International in June 2010. MGM Resorts International was incorporated in 1986 and is based in Las Vegas, Nevada.
Q: What are the key metrics mentioned in the earnings call?
Revenue, room booking attributable to Marriott partnership, occupancy and room rate, market share, Macau gaming market recovery, FCF, room remodels, share repurchase, excess cash
Q: What’s the relationship between MGM Resorts and VICI Properties
VICI Properties is a REIT that focuses on assets in gaming, hospitality and entertainment. MGM has sold the physical real estate to VICI Properties with sale-leaseback agreements allowing MGM to rent the property. VICI assumes ownership and responsibility of maintenance. This allows MGM to focus on the operational side of the business while simply paying rent.
Q: What’s the relationship between MGM Resorts and MGM Studios
MGM, Metro-Goldwyn-Mayer Studios, was founded in 1924. MGM Studios expanded into resorts business through MGM Resorts. However, the company filed for bankruptcy in 2010. Ultimately, Amazon acquired MGM Studios in 2021. Since then, MGM Resorts license the lion logo from MSM Studios, but otherwise, the two companies are not related.
Q: What are famous resorts owned by MGM?
Bellagio, MGM Grand, ARIA Resort & Casino, Mandalay Bay, The Mirage, Park MGM, Luxor, Excalibur, MGM Macau
• Yahoo Finance link
• Company website link
• Market cap, Historical p/e, Revenue (ttm): $12b, 13x, $7b
Yahoo Finance Description
Wynn Resorts, Limited designs, develops, and operates integrated resorts. The company operates through four segments: Wynn Palace, Wynn Macau, Las Vegas Operations, and Encore Boston Harbor. The Wynn Palace segment operates private gaming salons and sky casinos; a luxury hotel tower with suites, and villas, including a health club, spa, salon, and pool; food and beverage outlets; retail space; meeting and convention space; and performance lake and floral art displays. The Wynn Macau segment operates casino space with private gaming salons, sky casinos, and a poker room; a luxury hotel tower, that include health clubs, spas, a salon, and a pool; food and beverage outlets; retail space; meeting and convention space; and Chinese zodiac-inspired ceiling attractions. The Las Vegas Operations segment operates casino space with private gaming salons, a sky casino, a poker room, and a race and sports book; a luxury hotel tower with suites, and villas, including swimming pools, private cabanas, full-service spas and salons, and a wedding chapel; food and beverage outlets; meeting and convention space; retail space; and theaters, nightclubs, a beach club. The Encore Boston Harbor segment operates casino space with gaming areas, and a poker room; a luxury hotel tower including a spa and salon; food and beverage outlets and a nightclub; retail space; meeting and convention space; and a waterfront park, floral displays, and water shuttle service. Wynn Resorts, Limited was incorporated in 2002 and is based in Las Vegas, Nevada.
• Yahoo Finance link
• Company website link
• Market cap, Historical p/e, Revenue (ttm): $10b, 11x , $11b
Yahoo Finance Description
Caesars Entertainment, Inc. operates as a gaming and company. The company owns, leases, or manages domestic properties in 18 states with slot machines, video lottery terminals and e-tables, and hotel rooms, as well as table games, including poker. It also operates and conducts retail and online sports wagering across 31 jurisdictions in North America and operates iGaming in five jurisdictions in North America; sports betting from our retail and online sportsbooks; and other games, such as keno. In addition, the company operates dining venues, bars, nightclubs, lounges, hotels, and entertainment venues; and provides staffing and management services. Caesars Entertainment, Inc. was founded in 1937 and is based in Reno, Nevada.
Q: What are the key metrics mentioned in the earnings call?
Revenue, Adjusted EBITDAR, Las Vegas segment, Caesar Digital segment, Sports Betting segment, parlay wagers growth, iGaming segment, FCF, Capex, hotel ADR (average daily rate – average revenue per available room on a given day), construction disruption, construction completion, WSOP
Q: What are handle, parlay, hold percentage, ADR
Handle: total amount of money wagered by bettors (on sports betting etc.)
Hold: hold percentage is the profit margin on the wagered handle. Hold was 7.2% in 24Q2.
Parlay: Multiple bets placed by a bettor that must all win to pay out.
ADR = Total Room Revenue / Number of Rooms Sold
Hotels, Resorts & Cruise Lines
• Yahoo Finance link
• Company website link
• Market cap, Historical p/e, Revenue (ttm): $143b, 30x, $22b
Yahoo Finance Description
Booking Holdings Inc., together with its subsidiaries, provides online and traditional travel and restaurant reservations and related services in the United States, the Netherlands, and internationally. The company operates Booking.com, which offers online accommodation reservations; and Priceline, which provides online travel reservation services, as well as consumers hotel, flight, activity, rental car reservation, vacation packages, cruises, and hotel distribution services. It also operates Agoda that offers online accommodation reservation, flight, ground transportation, and activities reservation services. In addition, the company operates KAYAK, an online meta-search service that allows consumers to search and compare travel itineraries and prices; OpenTable for booking online restaurant reservations, as well as reservation management services to restaurants; and Rentalcars.com. Further, it offers travel-related insurance products and restaurant management services to consumers, travel service providers, and restaurants; and advertising services. The company was formerly known as The Priceline Group Inc. and changed its name to Booking Holdings Inc. in February 2018. Booking Holdings Inc. was founded in 1997 and is headquartered in Norwalk, Connecticut.
Q: What are the key metrics mentioned in the earnings call?
Room nights, revenue, adjusted EBITDA, Adjusted EPS, capital return, alternative accommodations, flight bookings, genius loyalty program, merchant gross bookings, connected transactions, mobile app bookings, marketing expense, FCF
Q: What is merchant gross booking?
Merchant model is where the platform handles the transaction, that is to receive payment from the customer and deliver to the accommodation at a later date. This offers more opportunity for the platform to reap a fee and suggest optional add-ons. The opposite is the agency model where the platform only handles the booking and leave the transaction to happen between the guest and accommodation provider.
Q: What is connected transactions?
Transaction where guest books multiple travel related services through the platform – flight, rental car, hotel.
Q: Which company owns Skyscanner?
The Chinese company Trip.com acquired Skyscanner in 2016.
Q: Which company owns Hotels.com?
Expedia, Inc. owns Hotels.com.
• Yahoo Finance link
• Company website link
• Market cap, Historical p/e, Revenue (ttm): $85b, 18x, $11b
Yahoo Finance Description
Airbnb, Inc., together with its subsidiaries, operates a platform that enables hosts to offer stays and experiences to guests worldwide. The company’s marketplace connects hosts and guests online or through mobile devices to book spaces and experiences. It primarily offers private rooms, primary homes, and vacation homes. The company was formerly known as AirBed & Breakfast, Inc. and changed its name to Airbnb, Inc. in November 2010. Airbnb, Inc. was founded in 2007 and is headquartered in San Francisco, California.
Q: What are the key metrics mentioned in the earnings call?
Nights and experiences booked, revenue, net income, FCF, active listings, share repurchases, app-driven bookings, ADR (average daily rate), GBV (gross booking value)
Q: What are Airbnb “experiences”?
Airbnb lists experiences available in each city. Night photoshoot in Pike Palace, bar chocolate factory tour, mad scientist cocktail lab, tiny hears homestead are some examples.
• Yahoo Finance link
• Company website link
• Market cap, Historical p/e, Revenue (ttm): $74b, 26x, $6b
Yahoo Finance Description
Marriott International, Inc. engages in operating, franchising, and licensing hotel, residential, timeshare, and other lodging properties worldwide. It operates its properties under the JW Marriott, The Ritz-Carlton, The Luxury Collection, W Hotels, St. Regis, EDITION, Bvlgari, Marriott Hotels, Sheraton, Westin, Autograph Collection, Renaissance Hotels, Le Méridien, Delta Hotels by Marriott, Tribute Portfolio, Gaylord Hotels, Design Hotels, Marriott Executive Apartments, Apartments by Marriott Bonvoy, Courtyard by Marriott, Fairfield by Marriott, Residence Inn by Marriott, SpringHill Suites by Marriott, Four Points by Sheraton, TownePlace Suites by Marriott, Aloft Hotels, AC Hotels by Marriott, Moxy Hotels, Element Hotels, Protea Hotels by Marriott, City Express by Marriott, and St. Regis Longboat Key brand names, as well as operates residences, timeshares, and yachts. The company was founded in 1927 and is headquartered in Bethesda, Maryland.
Q: What are the key metrics mentioned in the earnings call?
Net rooms growth, revPAR, occupancy, group revPAR, Bonvoy members, pipeline, conversions, adjusted EBITDA, EPS.
Q: What is the ratio of hotels that are franchised?
74% of hotels (6,563 / 8,785), and 62% of rooms (994k / 1,597k) are franchised.
Q: What are conversions?
Conversion is existing hotels joining Marriott’s portfolio of brands.
Q: How does Marriott, Hilton, Airbnb’s profit and market cap compare?
Operating income in 2023 is $3.9b for Marriott, $2.2b for Hilton, $1.5b for Airbnb.
Market capitalization is $74b for Marriott, $59 for Hilton, $85b for Airbnb.
• Yahoo Finance link
• Company website link
• Market cap, Historical p/e, Revenue (ttm): $59b, 50x, $5b
Yahoo Finance Description
Hilton Worldwide Holdings Inc., a hospitality company, engages in managing, franchising, owning, and leasing hotels and resorts. It operates through two segments, Management and Franchise, and Ownership. The company engages in the hotel management and licensing of its brands. It operates luxury hotels under the Waldorf Astoria Hotels & Resorts, LXR Hotels & Resorts, and Conrad Hotels & Resorts brand; lifestyle hotels under the Canopy by Hilton, Curio Collection by Hilton, Tapestry Collection by Hilton, Tempo by Hilton, and Motto by Hilton brand; full service hotels under the Signia by Hilton, Hilton Hotels & Resorts, and DoubleTree by Hilton brand; service hotels under the Hilton Garden Inn, Hampton by Hilton, and Tru by Hilton brand; all-suite hotels under the Embassy Suites by Hilton, Homewood Suites by Hilton, and Home2 Suites by Hilton brand; and economy hotel under the Spark by Hilton brand, as well as Hilton Grand Vacations. The company operates in North America, South America, and Central America, including various Caribbean nations; Europe, the Middle East, and Africa; and the Asia Pacific. The company was founded in 1919 and is headquartered in McLean, Virginia.
Q: What are the key metrics mentioned in the earnings call?
Revenue per available room (RevPAR), system-wide RevPar, group RevPAR, net unit growth(NUG), opened hotels, total rooms, rooms in pipeline, Adjusted EBITDA, EPS, number of hotels, revPAR by region,
Q: What is RevPAR?
Revenue per available room. Average daily rate (ADR) x occupancy rate, or total room revenue / number of available rooms.
Q: Does Hilton do franchising?
Yes. According to 10-K, 88% of its hotels (6,679 / 7,530), and 77% of its rooms (915k / 1,182k)are franchised.
• Yahoo Finance link
• Company website link
• Market cap, Historical p/e, Revenue (ttm): $50b, 21x, $15b
Yahoo Finance Description
Royal Caribbean Cruises Ltd. operates as a cruise company worldwide. The company operates cruises under the Royal Caribbean International, Celebrity Cruises, and Silversea Cruises brands, which comprise a range of itineraries. As of February 21, 2024, it operated 65 ships. Royal Caribbean Cruises Ltd. was founded in 1968 and is headquartered in Miami, Florida.
Q: What are the key metrics mentioned in the earnings call?
Adjusted EPS, net yield, load factor, full-year fuel expense, dividend, cruise costs, booking trends, adjusted EBITDA, APCD (available passenger cruise day)
• Yahoo Finance link
• Company website link
• Market cap, Historical p/e, Revenue (ttm): $27b, 18x, $24b
Yahoo Finance Description
Carnival Corporation & plc engages in the provision of leisure travel services in North America, Australia, Europe, Asia, and internationally. The company operates through four segments: NAA Cruise Operations, Europe Cruise Operations, Cruise Support, and Tour and Other. It operates port destinations, private islands, and a solar park, as well as owns and operates hotels, lodges, glass-domed railcars, and motor coaches. The company offers its services under the Carnival Cruise Line, Princess Cruises, Holland America Line, Seabourn, Costa Cruises, AIDA Cruises, P&O Cruises, and Cunard brand. Additionally, it sells its cruises primarily through travel agents, tour operators, vacation planners, and websites. Carnival Corporation & plc was founded in 1972 and is headquartered in Miami, Florida.
Q: What are the key metrics mentioned in the earnings call?
Revenue, EBITDA, net income, return on invested capital (ROIC), capacity growth, customer deposits, onboard spending, same-ship yield growth, net yield, occupancy, cost savings, debt, debt-to-EBITDA
Q: What is PLC?
PLC stands for public limited company. It is used mainly in UK.
• Yahoo Finance link
• Company website link
• Market cap, Historical p/e, Revenue (ttm): $20b, 27x, $13b
Yahoo Finance Description
Expedia Group, Inc. operates as an online travel company in the United States and internationally. The company operates through B2C, B2B, and trivago segments. Its B2C segment includes Brand Expedia, a full-service online travel brand offers various travel products and services; Hotels.com for lodging accommodations; Vrbo, an online marketplace for the alternative accommodations; Orbitz, Travelocity, Wotif Group, ebookers, CheapTickets, Hotwire.com and CarRentals.com. The company’s B2B segment provides various travel and non-travel companies including airlines, offline travel agents, online retailers, corporate travel management, and financial institutions who leverage its travel technology and tap into its diverse supply to augment their offerings and market Expedia Group rates and availabilities to its travelers. Its trivago segment, a hotel metasearch website, which send referrals to online travel companies and travel service providers from hotel metasearch websites. In addition, the company provides brand advertising through online and offline channels, loyalty programs, mobile apps, and search engine marketing, as well as metasearch, social media, direct and personalized traveler communications on its websites, and through direct e-mail communication with its travelers. The company was formerly known as Expedia, Inc. and changed its name to Expedia Group, Inc. in March 2018. Expedia Group, Inc. was founded in 1996 and is headquartered in Seattle, Washington.
• Yahoo Finance link
• Company website link
• Market cap, Historical p/e, Revenue (ttm): $10b, 24x, $9b
Yahoo Finance Description
Norwegian Cruise Line Holdings Ltd., together with its subsidiaries, operates as a cruise company in North America, Europe, the Asia-Pacific, and internationally. The company operates through the Norwegian Cruise Line, Oceania Cruises, and Regent Seven Seas Cruises brands. It offers itineraries ranging from three days to a 180-days calling on various ports, including Scandinavia, Northern Europe, the Mediterranean, the Greek Isles, Alaska, Canada and New England, Hawaii, Asia, Tahiti and the South Pacific, Australia and New Zealand, Africa, India, South America, the Panama Canal, and the Caribbean. It distributes its products through retail/travel advisor and onboard cruise sales channels, as well as meetings, incentives, and charters. Norwegian Cruise Line Holdings Ltd. was founded in 1966 and is based in Miami, Florida.
Q: What are the key metrics mentioned in the earnings call?
Adjusted EBITDA, Adjusted EPS, net leverage, net yield, booking volume, advance ticket sales, pre-booked onboard revenue.
Q: What is net yield?
Net yield in the cruise industry is revenue generated per passenger cruise day (PCD). (total passenger ticket revenue + onboard revenue) / number of available passenger cruise days.
Restaurants
• Yahoo Finance link
• Company website link
• Market cap, Historical p/e, Revenue (ttm): $218b, 27x, $26b
Yahoo Finance Description
McDonald’s Corporation operates and franchises restaurants under the McDonald’s brand in the United States and internationally. It offers food and beverages, including hamburgers and cheeseburgers, various chicken sandwiches, fries, shakes, desserts, sundaes, cookies, pies, soft drinks, coffee, and other beverages; and full or limited breakfast, as well as sells various other products during limited-time promotions. The company owns and operates under various structures comprising conventional franchise, developmental license, or affiliate. McDonald’s Corporation was founded in 1940 and is based in Chicago, Illinois.
Q: What are the key metrics mentioned in the earnings call?
Loyalty membership members, loyalty members as a portion of sales, inflationary cost increase, digital sales penetration, average check, restaurant count, restaurant goal, EPS, effective tax rate, restaurant margin, adjusted operating margin.
Q: What are the company’s key strategies as per 24Q2 earnings call?
Strengthen value leadership, increase digital presence through loyalty membership and personalized customer data, expand menu innovation particularly in chicken, leverage franchise partnership to expand growth.
Q: How many restaurants does McDonald’s have?
As of 24Q2, the company had 42,406 restaurants worldwide, 2,168 of which were company-owned and operated.
Q: What’s the difference between conventional franchise, developmental license, and affiliate?
In a conventional franchise McDonald’s owns the land and building while franchisee operates the restaurant, pays royalty and rent to the corporation. In a developmental license, the licensee handles all the capital expenditure including securing real-estate, while paying a royalty. In a affiliate, McDonald’s enters a joint venture with local partners in international markets, sharing ownership and profits.
• Yahoo Finance link
• Company website link
• Market cap, Historical p/e, Revenue (ttm): $108b, 27x, $36b
Yahoo Finance Description
Starbucks Corporation, together with its subsidiaries, operates as a roaster, marketer, and retailer of coffee worldwide. The company operates through three segments: North America, International, and Channel Development. Its stores offer coffee and tea beverages, roasted whole beans and ground coffees, single serve products, and ready-to-drink beverages; and various food products, such as pastries, breakfast sandwiches, and lunch items. The company also licenses its trademarks through licensed stores, and grocery and foodservice accounts. The company offers its products under the Starbucks Coffee, Teavana, Seattle’s Best Coffee, Ethos, Starbucks Reserve, and Princi brands. Starbucks Corporation was founded in 1971 and is based in Seattle, Washington.
Q: What are the key metrics mentioned in the earnings call?
Revenue, global comp, NA comp, China comp, operating margin, EPS, cold share of beverage mix, Starbucks Rewards members US & China, new new stores, transaction growth via mobile, planned store openings, renovations, Siren Craft System deployed stores, employee turnover, average ticket growth, efficiency gain bps, capex.
Q: What are the company’s key strategies as per 24Q2 earnings call?
Enhance store operations, product innovation, expand digital through Starbucks Rewards and Mobile Pay & Order, expand internationally, especially China.
Q: How many stores does Starbucks have?
As of 24Q2, there are 39,477 Starbucks stores worldwide. 18,198 are in the US and 21,279 are international stores. 20,466 stores are company-operated and 19,011 stores are licensed.
• Yahoo Finance link
• Company website link
• Market cap, Historical p/e, Revenue (ttm): $80b, 58x, $11b
Yahoo Finance Description
Chipotle Mexican Grill, Inc., together with its subsidiaries, owns and operates Chipotle Mexican Grill restaurants. It sells food and beverages through offering burritos, burrito bowls, quesadillas, tacos, and salads. The company also provides delivery and related services its app and website. It has operations in the United States, Canada, France, Germany, Dubai, and the United Kingdom. Chipotle Mexican Grill, Inc. was founded in 1993 and is headquartered in Newport Beach, California.
Q: What are the key metrics mentioned in the earnings call?
Total sales, in-store sales, digital sales portion of total sales, same-store sales (comps), restaurant-level margin, adjusted EPS, new restaurant openings, guidance
Q: What are the company’s key strategies as per 24Q2 earnings call?
Enhance throughput and operational efficiency. Develop and retain talent. Innovate menu and LTO. Introduce new tech to workflow like dual-sided grills and automated makelines. Expand stores.
Q: How many stores does Chipotle operate?
Owned and operated 3,371 stores in the US and 66 international stores as of Dec 31, 2023. Absolute majority of Chipotle stores are company owned and operated.
• Yahoo Finance link
• Company website link
• Market cap, Historical p/e, Revenue (ttm): $38b, 25x, $1.5b
Yahoo Finance Description
Yum! Brands, Inc., together with its subsidiaries, develops, operates, and franchises quick service restaurants worldwide. The company operates through the KFC Division, the Taco Bell Division, the Pizza Hut Division, and the Habit Burger Grill Division segments. It also operates restaurants under the KFC, Pizza Hut, Taco Bell, and The Habit Burger Grill brands, which specialize in chicken, pizza, made-to-order chargrilled burgers, sandwiches, Mexican-style food categories, and other food products. The company was formerly known as TRICON Global Restaurants, Inc. and changed its name to Yum! Brands, Inc. in May 2002. Yum! Brands, Inc. was incorporated in 1997 and is headquartered in Louisville, Kentucky.
Q: What are the key metrics mentioned in the earnings call?
Core operating profit, comp, unit growth (store growth), system sales, KFC unit growth, Taco Bell system sales, digital sales growth, Taco Bell store margins, KFC comp, KFC digital sales, Pizza Hut system sales, Habit Burger Grill restaurant-level margins, G&A expense.
Q: What are the company’s key strategies as per 24Q2 earnings call?
Expand digital sales, promote value offerings, leverage franchise to expand internationally, enhance operational efficiency through the use of AI.
• Yahoo Finance link
• Company website link
• Market cap, Historical p/e, Revenue (ttm): $18b, 18x, $11b
Yahoo Finance Description
Darden Restaurants, Inc., together with its subsidiaries, owns and operates full-service restaurants in the United States and Canada. It operates under Olive Garden, LongHorn Steakhouse, Cheddar’s Scratch Kitchen, Yard House, The Capital Grille, Seasons 52, Bahama Breeze, Eddie V’s Prime Seafood, and Capital Burger brand names. Darden Restaurants, Inc. was incorporated in 1995 and is based in Orlando, Florida.
Q: What are the key metrics mentioned in the earnings call?
Sales, same-restaurant sales, net new restaurants, Olive Garden comp, LongHorn comp, restaurant-level EBITDA, adjusted EPS, adjusted EBITDA, adjusted G&A expense, dividend, share repurchase
Q: What are the company’s key strategies as per 24Q2 earnings call?
Introduce new menus. Offers like “Never Ending Pasta Bowl” that are strong in value. Uber Direct which allows restaurants to integrate uber delivery resource to their own channel.
Q: How many stores does Darden Restaurants operate?
2,181 stores, 2,031 of which are owned and operated by the company and 146 are franchised as of Dec 31, 2023.
• Yahoo Finance link
• Company website link
• Market cap, Historical p/e, Revenue (ttm): $15b, 26x, $5b
Yahoo Finance Description
Domino’s Pizza, Inc., through its subsidiaries, operates as a pizza company in the United States and internationally. The company operates through three segments: U.S. Stores, International Franchise, and Supply Chain. It offers pizzas under the Domino’s brand name through company-owned and franchised stores. It also provides oven-baked sandwiches, pastas, boneless chicken and chicken wings, breads and dips, desserts, and soft drink products, as well as loaded tots and pepperoni stuffed cheesy breads. Domino’s Pizza, Inc. was founded in 1960 and is headquartered in Ann Arbor, Michigan.
Q: What are the key metrics mentioned in the earnings call?
US retail sales, US comp, order count growth, carryout comp, delivery comp, Uber sales mix, pricing impact of sales, net new stores, international comp
Q: What are the company’s key strategies as per 24Q2 earnings call?
Capture more market share and increase comp by value promotions. Introduce new menus like mac & cheese. Expand partnership with Uber (Domino’s only started service on Uber in July 2023). Expand internationally.
Q: How many restaurants does Domino’s have?
Domino’s had 21,002 stores worldwide as of Sep 2024. 291 were US company-owned. 6,639 were US franchised, and 14,072 were international stores. Domino’s international stores are primarily franchised.
Distributors
• Yahoo Finance link
• Company website link
• Market cap, Historical p/e, Revenue (ttm): $19b, 16x, $23b
Yahoo Finance Description
Genuine Parts Company distributes automotive replacement parts, and industrial parts and materials. It operates in two segments: Automotive Parts Group and Industrial Parts Group segments. The company distributes automotive replacement parts for hybrid and electric vehicles, trucks, SUVs, buses, motorcycles, recreational vehicles, farm vehicles, small engines, farm equipment, marine equipment, and heavy duty equipment; and equipment and parts used by repair shops, service stations, fleet operators, automobile and truck dealers, leasing companies, bus and truck lines, mass merchandisers, farms, and individuals. It also distributes industrial replacement parts and related supplies, such as abrasives, adhesives, sealants and tape, bearings, chemicals, cutting tools, electrical, facility maintenance, hose and fittings, hydraulics, janitorial, mechanical power transmission, pneumatics, process pumps and equipment, safety, seals and gaskets, and tools and testing instruments, as well as maintenance, repair, and operation customers in aggregate and cement, automotive, chemical and allied products, equipment and machinery, equipment rental and leasing, fabricated metals, food and beverage, iron and steel, lumber and wood, oil and gas, pulp and paper, and rubber products. In addition, the company provides various services and repairs comprising gearbox and fluid power and process pump assembly and repair, hydraulic drive shaft repair, electrical panel assembly and repair, hose and gasket manufacture and assembly. It operates in the United States, Canada, France, the United Kingdom, Ireland, Germany, Poland, the Netherlands, Belgium, Spain, Portugal, Australia, New Zealand, Mexico, Indonesia, and Singapore. The company was incorporated in 1928 and is headquartered in Atlanta, Georgia.
Q: What are the key metrics mentioned in the earnings call?
Sales, segment sales (automotive, industrial), gross margin, FCF, capex, SG&A, restructuring cost
Q: Why isn’t Genuine Parts Company classified as Automotive Retail sub-industry?
GPC also has a considerable industrial parts distribution business through Motion Industries.
• Yahoo Finance link
• Company website link
• Market cap, Historical p/e, Revenue (ttm): $14b, 30x, $5b
Yahoo Finance Description
Pool Corporation distributes swimming pool supplies, equipment, and related leisure products in the United States and internationally. The company offers maintenance products, including chemicals, supplies, and pool accessories; repair and replacement parts for pool equipment, such as cleaners, filters, heaters, pumps, and lights; and building materials, such as concrete, plumbing and electrical components, functional and decorative pool surfaces, decking materials, tiles, hardscapes, and natural stones for pool installations and remodeling. It also provides pool equipment and components for new pool construction and the remodeling of existing pools; irrigation and related products, such as irrigation system components, and professional turf care equipment and supplies; commercial products, including heaters, safety equipment, commercial decking equipment, and commercial pumps and filters. In addition, the company offers fiberglass pools, and hot tubs and packaged pool kits comprising walls, liners, braces, and coping for in-ground and above-ground pools; and other pool construction and recreational products comprising discretionary recreational and related outdoor living products, such as grills and components for outdoor kitchens. It serves swimming pool remodelers and builders; specialty retailers that sell swimming pool supplies; swimming pool repair and service businesses; irrigation construction and landscape maintenance contractors; and commercial pool operators and pool contractors. Pool Corporation was incorporated in 1993 and is headquartered in Covington, Louisiana.
Q: What are the key metrics mentioned in the earnings call?
Revenue, gross margin, operating income, EPS, chemical sales, equipment sales, digital sales.
• Yahoo Finance link
• Company website link
• Market cap, Historical p/e, Revenue (ttm): $10b, 14x, $15b
Yahoo Finance Description
LKQ Corporation engages in the distribution of replacement parts, components, and systems used in the repair and maintenance of vehicles and specialty vehicle aftermarket products and accessories. It operates through four segments: Wholesale-North America, Europe, Specialty, and Self Service. The company distributes bumper covers, automotive body panels, and lights, as well as mechanical automotive parts and accessories; salvage products, including mechanical and collision parts comprising engines; transmissions; door assemblies; sheet metal products, such as trunk lids, fenders, and hoods; lights and bumper assemblies; scrap metal and other materials to metals recyclers; and brake pads, discs and sensors, clutches, steering and suspension products, filters, and oil and automotive fluids, as well as electrical products, including spark plugs and batteries. In addition, the company distributes recreational vehicle appliances and air conditioners, towing hitches, truck bed covers, vehicle protection products, marine electronics, cargo management products, wheels, tires, and suspension products. It serves collision and mechanical repair shops, and new and used car dealerships, as well as retail customers. The company operates in the United States, Canada, the United Kingdom, Germany, Belgium, the Netherlands, Luxembourg, Italy, the Czech Republic, Austria, Poland, Slovakia, Taiwan, and other European countries. LKQ Corporation was incorporated in 1998 and is headquartered in Chicago, Illinois.
Q: Why isn’t Genuine Parts Company classified as Automotive Retail sub-industry like AutoZone and O’Reilly?
LKQ Corporation is focused on distribution than retail. Its focus is in alternative and recycled auto parts, salvage operations which focus on B2B wholesale operation serving repair shops, dealerships and insurance companies. Their commercial clients repair and maintain vehicles.
Q: What does LKQ stand for?
Like, Kind, Quality.
Broadline Retail
• Yahoo Finance link
• Company website link
• Market cap, Historical p/e, Revenue (ttm): $1,980b, 45x, $604b
Yahoo Finance Description
Amazon.com, Inc. engages in the retail sale of consumer products, advertising, and subscriptions service through online and physical stores in North America and internationally. The company operates through three segments: North America, International, and Amazon Web Services (AWS). It also manufactures and sells electronic devices, including Kindle, Fire tablets, Fire TVs, Echo, Ring, Blink, and eero; and develops and produces media content. In addition, the company offers programs that enable sellers to sell their products in its stores; and programs that allow authors, independent publishers, musicians, filmmakers, Twitch streamers, skill and app developers, and others to publish and sell content. Further, it provides compute, storage, database, analytics, machine learning, and other services, as well as advertising services through programs, such as sponsored ads, display, and video advertising. Additionally, the company offers Amazon Prime, a membership program. The company’s products offered through its stores include merchandise and content purchased for resale and products offered by third-party sellers. It serves consumers, sellers, developers, enterprises, content creators, advertisers, and employees. Amazon.com, Inc. was incorporated in 1994 and is headquartered in Seattle, Washington.
Q: How and why did Amazon get into cloud services?
Amazon internally needed greater compute power, especially during holidays when traffic is higher. They expanded the use of internal solutions to service other businesses, offering computing power and storage.
Q: What are the key metrics mentioned in the earnings call?
Revenue, operating income, FCF, AWS revenue, annualized revenue run rate, advertising revenue, prime delivery count, revenue by region
Q: What kind of AI solutions does the company offer?
Partnership with Nvidia offering Nvidia instances over cloud, custom AI chips like Trainium and Inferentia, Amazon Bedrock offers Anthropic, Meta and Mistral and allows customization using own data, Amazon Q helps software development through generative AI, Rufus is a generative AI shopping assistant.
Q: What is the market share of cloud service providers?
According to Statista, AWS has 31%, Azure has 25%, Google Cloud has 11%, Alibaba Cloud has 4%, Salesforce has 3%, IBM Cloud has 2%, Oracle has 2%, and Tencent Cloud has 2%, based on 24Q1 revenue.
• Yahoo Finance link
• Company website link
• Market cap, Historical p/e, Revenue (ttm): $32b, 13x, $10b
Yahoo Finance Description
eBay Inc., together with its subsidiaries, operates marketplace platforms that connect buyers and sellers in the United States, the United Kingdom, China, Germany, and internationally. The company’s marketplace platform includes its online marketplace at ebay.com, off-platform businesses, and the eBay suite of mobile apps. Its platforms enable users to list, sell, and buy various products. The company was founded in 1995 and is headquartered in San Jose, California.
Q: What are the key metrics mentioned in the earnings call?
California. Gross merchandise volume, revenue, operating margin, EPS, focus category GMV growth, eBay refurbished GMV growth, authenticated items, advertising revenue, active buyers, enthusiastic buyers, total listings, FCF, stock repurchase.
Apparel Retail
• Yahoo Finance link
• Company website link
• Market cap, Historical p/e, Revenue (ttm): $128b, 27x, $55b
Yahoo Finance Description
The TJX Companies, Inc., together with its subsidiaries, operates as an off-price apparel and home fashions retailer in the United States, Canada, Europe, and Australia. It operates through four segments: Marmaxx, HomeGoods, TJX Canada, and TJX International. The company sells family apparel, including footwear and accessories; home fashions, such as home basics, furniture, rugs, lighting products, giftware, soft home products, decorative accessories, tabletop, and cookware, as well as expanded pet, and gourmet food departments; jewelry and accessories; and other merchandise. It offers its products through stores and e-commerce sites. The TJX Companies, Inc. was incorporated in 1962 and is headquartered in Framingham, Massachusetts.
Q: How many stores does TJX have?
4,900 stores worldwide, including 2,500 stores under TJ Maxx and Marshalls, and 900 HomeGoods stores in the US.
Q: What’s the difference between TJ Maxx and TK Maxx.
TK Maxx operates in Europe and Australia. The name was changed to avoid confusion with the British T.J. Hughes.
• Yahoo Finance link
• Company website link
Yahoo Finance Description
Ross Stores, Inc., together with its subsidiaries, operates off-price retail apparel and home fashion stores under the Ross Dress for Less and dd’s DISCOUNTS brand names in the United States. Its stores primarily offer apparel, accessories, footwear, and home fashions. The company’s Ross Dress for Less stores sell its products at department and specialty stores to middle income households; and dd’s DISCOUNTS stores sell its products at department and discount stores for households with moderate income. Ross Stores, Inc. was incorporated in 1957 and is headquartered in Dublin, California.
Q: How many stores does Ross Stores have?
Ross has 1,794 locations. dd’s DISCOUNTS stores have 345 locations.
Q: Where do they get the cloths from?
Directly from manufacturers, opportunistic purchases like brand overruns and cancelled orders, buying merchandise later in the cycle, packaway merchandise purchasing for clothes intended to keep in inventory for the season to return next year.
Computer & Electronics Retail
• Yahoo Finance link
• Company website link
• Market cap, Historical p/e, Revenue (ttm): $21b, 17x, $43b
Yahoo Finance Description
Best Buy Co., Inc. engages in the retail of technology products in the United States, Canada, and international. Its stores provide computing and mobile phone products, such as desktops, notebooks, and peripherals; mobile phones comprising related mobile network carrier commissions; networking products; tablets covering e-readers; smartwatches; and consumer electronics consisting of digital imaging, health and fitness products, portable audio comprising headphones and portable speakers, and smart home products, as well as home theaters, which includes home theater accessories, soundbars, and televisions. The company’s stores also offer appliances, such as dishwashers, laundry, ovens, refrigerators, blenders, coffee makers, vacuums, and personal care; entertainment products consisting of drones, peripherals, movies, and toys, as well as hardware and software, and virtual reality and other software products; and other products, such as baby, food and beverage, luggage, outdoor living, and sporting goods. In addition, it provides delivery, installation, memberships, repair, set-up, technical support, health-related, and warranty-related services. The company offers its products through stores and websites under the Best Buy, Best Buy Ads, Best Buy Business, Best Buy Health, Buy Mobile, CST, Current Health, Geek Squad, Lively, Magnolia, Pacific Kitchen, Home, TechLiquidators, and Yardbird brands, as well as domain names comprising bestbuy.com, currenthealth.com, lively.com, techliquidators.com, yardbird.com, and bestbuy.ca. The company was formerly known as Sound of Music, Inc. Best Buy Co., Inc. was incorporated in 1966 and is headquartered in Richfield, Minnesota.
Q: What are the key metrics mentioned in the earnings call?
Comp, operating income, gross profit, revenue, average selling price (ASP), SG&A, share repurchase, capital expenditure, member retention rate.
Q: How does Best Buy get their products?
Direct partnerships with manufacturers like Apple, Samsung, Sony, Microsoft, private label products like Insignia, third-party sellers, etc.
Home Improvement Retail
• Yahoo Finance link
• Company website link
• Market cap, Historical p/e, Revenue (ttm): $410b, 28x, $152b
Yahoo Finance Description
The Home Depot, Inc. operates as a home improvement retailer in the United States and internationally. It sells various building materials, home improvement products, lawn and garden products, and décor products, as well as facilities maintenance, repair, and operations products. The company also offers installation services for flooring, water heaters, bath, garage doors, cabinets, cabinet makeovers, countertops, sheds, furnaces and central air systems, and windows. In addition, it provides tool and equipment rental services. The company primarily serves homeowners; and professional renovators/remodelers, general contractors, maintenance professionals, handymen, property managers, and building service contractors, as well as specialty tradesmen, such as electricians, plumbers, and painters. It sells its products through websites, including homedepot.com; homedepot.ca and homedepot.com.mx; blinds.com, justblinds.com, and americanblinds.com for custom window coverings; thecompanystore.com, an online site for textiles and décor products; hdsupply.com for maintenance, repair, and operations (MRO) products and related services; and The Home Depot stores. The Home Depot, Inc. was incorporated in 1978 and is headquartered in Atlanta, Georgia.
Q: What are the key metrics mentioned in the earnings call?
Revenue, comp transactions, comp average ticket, gross margin, operating margin, inventory, inventory turnover, new stores, return on invested capital (ROIC), capex
Q: Does Mohawk sell flooring through Home Depot?
Yes.
• Yahoo Finance link
• Company website link
• Market cap, Historical p/e, Revenue (ttm): $156b, 23x, $84b
Yahoo Finance Description
Lowe’s Companies, Inc., together with its subsidiaries, operates as a home improvement retailer in the United States. The company offers a line of products for construction, maintenance, repair, remodeling, and decorating. It also provides home improvement products, such as appliances, seasonal and outdoor living, lawn and garden, lumber, kitchens and bath, tools, paint, millwork, hardware, flooring, rough plumbing, building materials, décor, and electrical. In addition, the company offers installation services through independent contractors in various product categories; and extended protection plans and repair services. It sells its national brand-name merchandise and private brand products to professional customers, homeowners, renters, businesses, and government. The company also sells its products through Lowes.com website; and through mobile applications. Lowe’s Companies, Inc. was founded in 1921 and is based in Mooresville, North Carolina.
Q: What are the key metrics mentioned in the earnings call?
Loh-z
Q: How does Lowe’s compare to Home Depot?
They are both home improvement retilers. Home Depot’s average store size is bigger. Lowe’s focus more on installation and repair for professionals. Home Depot has 2,300 stores globally. Lowe’s has 1,700 stores. Home Depot has more presence internationally.
Automotive Retail
• Yahoo Finance link
• Company website link
• Market cap, Historical p/e, Revenue (ttm): $69b, 30x, $16b
Yahoo Finance Description
O’Reilly Automotive, Inc., together with its subsidiaries, operates as a retailer and supplier of automotive aftermarket parts, tools, supplies, equipment, and accessories in the United States, Puerto Rico, and Mexico. The company provides new and remanufactured automotive hard parts and maintenance items, such as alternators, batteries, brake system components, belts, chassis parts, driveline parts, engine parts, fuel pumps, hoses, starters, temperature control, water pumps, antifreeze, appearance products, engine additives, filters, fluids, lighting products, and oil and wiper blades; and accessories, including floor mats, seat covers, and truck accessories. It also offers auto body paint and related materials, automotive tools, and professional service provider service equipment. In addition, the company provide enhanced services and programs comprising used oil, oil filter, and battery recycling; battery, wiper, and bulb replacement; battery diagnostic testing; electrical and module testing; check engine light code extraction; loaner tool program; drum and rotor resurfacing; custom hydraulic hoses; and professional paint shop mixing and related materials. Further, it offers do-it-yourself and professional service for domestic and imported automobiles, vans, and trucks. The company was founded in 1957 and is headquartered in Springfield, Missouri.
Q: Why has the AutoZone and O’Reilly Automotive performed so well?
Good aftermarket parts demand, aging vehicle fleet, DIY market trend, strong supply chain and distribution, economies of scale, store expansion, digital sales, more driving since pandemic.
Q: What are the key metrics mentioned in the earnings call?
Comp, EPS, sales by month, sales by segment, gross margin, SG&A, inventory per store, store growth, capex, debt-to-EBITDAR, share repurchase, effective tax rate, accounts payable as a percentage of inventory.
• Yahoo Finance link
• Company website link
• Market cap, Historical p/e, Revenue (ttm): $53b, 21x, $18b
Yahoo Finance Description
AutoZone, Inc. retails and distributes automotive replacement parts and accessories in the United States, Mexico, and Brazil. The company provides various products for cars, sport utility vehicles, vans, and light trucks, including new and remanufactured automotive hard parts, maintenance items, accessories, and non-automotive products. It also offers A/C compressors, batteries and accessories, bearings, belts and hoses, calipers, chassis, clutches, CV axles, engines, fuel pumps, fuses, ignition and lighting products, mufflers, radiators, starters and alternators, thermostats, and water pumps, as well as tire repairs. In addition, the company provides maintenance products, such as antifreeze and windshield washer fluids; brake drums, rotors, shoes, and pads; brake and power steering fluids, and oil and fuel additives; oil and transmission fluids; oil, cabin, air, fuel, and transmission filters; oxygen sensors; paints and accessories; refrigerants and accessories; shock absorbers and struts; spark plugs and wires; and windshield wipers. Further, it offers air fresheners, cell phone accessories, drinks and snacks, floor mats and seat covers, interior and exterior accessories, mirrors, performance products, protectants and cleaners, sealants and adhesives, steering wheel covers, tools, vehicle entertainment systems, and wash and wax products, as well as towing services. Additionally, the company provides a sales program that offers commercial credit and delivery of parts and other products; sells automotive diagnostic and repair software under the ALLDATA brand through alldata.com and alldatadiy.com; and automotive hard parts, maintenance items, accessories, and non-automotive products through autozone.com. AutoZone, Inc. was founded in 1979 and is headquartered in Memphis, Tennessee.
Q: What are the key metrics mentioned in the earnings call?
Revenue, sales, comp, commercial sales, sales by region, store growth, gross margin, SG&A, EPS, FCF, share repurchase, interest expense, leverage ratio, inventory, inventory per store, impact of forex,
Q: “Automotive hard parts”?
Hard parts include engine components, transmission parts, braking components etc. These refer to the physical, mechanical components and differ from soft parts like fluids, upholstery etc.
• Yahoo Finance link
• Company website link
• Market cap, Historical p/e, Revenue (ttm): $11b, 27x, $28b
Yahoo Finance Description
CarMax, Inc., through its subsidiaries, operates as a retailer of used vehicles and related products in the United States. It operates in two segments: CarMax Sales Operations and CarMax Auto Finance. The CarMax Sales Operations segment offers customers a range of makes and models of used vehicles, including domestic, imported, and luxury vehicles, as well as hybrid and electric vehicles; used vehicle auctions; extended protection plans to customers at the time of sale; and reconditioning and vehicle repair services. The CarMax Auto Finance segment provides financing alternatives for retail customers across a range of credit spectrum and arrangements with various financial institutions. The company was founded in 1993 and is based in Richmond, Virginia.
Q: What are the key metrics mentioned in the earnings call?
Sales, retail unit sales, used unit comps, average retail selling price, wholesale gross profit per unit, vehicles bought, online transactions, used retail margin, CAF income, SG&A, occupancy cost, share repurchase, third-party tier 2,3 penetration and volume, total securitized portfolio
Q: What is CAF
CarMax Auto Finance provides financing solutions for customers who wish to purchase vehicles. CAF engages in securitization of its loans, where ABS are issued.
Q: What is tier 2 and 3?
Tier refers to the credit quality of loan borrowers. Tier 1 is highest with scores above 700.
Written from scratch by Meston Ecoa.
May contain incorrect data and information.
Company overview and data from Yahoo Finance. Earnings call transcripts from Seeking Alpha. Answers for self-devised questions are summaries of Google and ChatGPT search results.