BABA: Alibaba is often referred to as the Amazon of China, but unlike Amazon, the company is having a volatile year. Last quarter resulted in negative growth and a large miss on the bottom line. Revenue growth is steadily improving but not at the pace investors were expecting. The company is working tirelessly to expand into mobile and new ventures. Its efforts towards mobile have begun to pay off as mobile gross merchandise value to total GMV increases incrementally. Besides ecommerce, Alibaba offers a number of comprehensive services including e-payments- (AliPay), logistics and cloud services. The company also signed a partnership with Fitbit and Mondelez to expand its worldwide presence.
M: The largest department store is also the worst performing one. The past few quarters have been nothing short of a disaster. In each of the past 5 quarters Macy’s delivered negative comparisons due to a shift in consumer preferences, weak spending and the rise of ecommerce. Management indicated that the upcoming report could see sluggish growth on weak sales and built up inventory. Macy’s already cut guidance following a steep decline in comparable store sales during the first quarter. Macy’s isn’t going down without a fight. Developments to its ecommerce platform and expanding its off price business are expected to be beneficial in the long term.
KSS: Last quarter both bottom and top line growth underwhelmed investors, dropping by 51% and 4%, respectively. The sluggish consumer environment is largely to blame for waning demand and negative comparable store sales. Its turnaround strategy, started in 2014, has also hit its first roadblock, raising concerns that future quarters could get worse. Shares ares down 35% in the past 12 months with minimal signs of improving in the near future.
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