Weekly Earnings Outlook

Update: 13 November

Shein Aims to Be a $90 Billion Fashion Unicorn in US IPO

Shein, the ultra-fast fashion giant, is reportedly targeting a valuation of up to $90 billion in a potential US IPO. This would make it one of the most valuable companies to go public in recent years, and a sign of the continued investor appetite for tech startups. Shein has been one of the fastest-growing companies in the world in recent years, thanks to its focus on affordable, trendy fashion and its efficient supply chain. The company is now one of the largest online retailers in the world, with sales estimated to have reached $22.7 billion in 2022.

Shein’s IPO plans have been in the works for some time, but the company has been delayed by market volatility and regulatory concerns. However, with the stock market starting to stabilize, Shein is reportedly preparing to file for an IPO in the near future. A $90 billion valuation would make Shein one of the most valuable companies in the world, and more valuable than many established fashion brands, such as Zara and H&M. It would also be a sign of the continued investor appetite for tech startups, even in the midst of a market downturn.

Dis-Chem Pharmacies Ltd (JSE: DCP)

Dis-Chem Pharmacies (DCP) released its results for the half-year ended 31 August 2023, showing a 9.4% increase in group revenue to R17.9 billion. However, earnings per share (EPS) and headline earnings per share (HEPS) decreased by 16.7% and 17.2% respectively to 58.3 cents and 58.2 cents per share.

The Group attributed the weaker earnings performance to a number of factors, including a tough trading environment, the base effects of the prior year’s performance, and the absence of COVID-19 vaccine administration and testing services in the current financial period.

Despite the weaker earnings performance, the Group is satisfied with its performance during the period and remains confident in its long-term growth prospects. The Group is focused on executing on its strategic priorities, including expanding its store network, growing its online business, and diversifying its product and service offering.

Walt Disney Co (NYSE: DIS)

Walt Disney Co reported its fourth-quarter and full-year earnings results on November 8, 2023. For the quarter, the company reported revenue of $21.24 billion, up 5% from the same period last year. Diluted earnings per share from continuing operations were $0.82, excluding certain items, beating analyst expectations of $0.70.

Disney+ added 7 million core subscribers in the quarter, bringing the total to 150.2 million. This was ahead of analyst expectations of 148.15 million. The company’s direct-to-consumer streaming businesses continued to lose money, with a combined loss of $387 million in the quarter. However, the losses were narrower than in the previous quarter. Disney’s parks and experiences business saw a strong rebound, with revenue up 13% from the same period last year. Operating income in the segment increased by 31%. ESPN’s revenue rose slightly to $3.8 billion, with operating income rising 16 percent to $987 million.

Disney CEO Bob Iger said that the company is now in a “building phase” as it continues to invest in its streaming business. He also said that the company is “very pleased” with the performance of its parks and experiences business.

Sources: Moneyweb; Bloomberg; Reuters; CNBC

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