Latest news with #premiumization
Reuters
22-07-2025
- Business
- Reuters
India's United Breweries posts higher Q1 profit on premium growth, lower costs
July 22 (Reuters) - United Breweries ( opens new tab, India's largest beer maker, reported a nearly 6% rise in quarterly profit on Tuesday, benefiting from lower excise duty costs and strong demand for its premium beers. The Kingfisher beer maker's consolidated profit came in at 1.84 billion rupees ($21.30 million) for the quarter ended June 30, up from 1.74 billion rupees a year earlier. United Breweries, majority-owned by Dutch brewer Heineken ( opens new tab, posted a nearly 16% rise in net sales, led by a 11% growth in volumes, higher pricing and premiumisation. Total expenses fell 7.8%, driven by lower excise duty costs. Beer makers in India are riding a wave of resilient premium consumption, as upper middle-class and affluent consumers, largely insulated from the rising living costs in metros, continue to spend freely on higher-end goods, including pricier brews. The shift toward premiums has helped offset broader inflationary pressures and subdued demand at the mass-market level, fuelling earnings growth for players in the alcohol and lifestyle segments. Spirits-maker Radico Khaitan ( opens new tab, retail chain Shoppers Stop ( opens new tab and beauty retailer Nykaa ( opens new tab have capitalised on this trend in recent quarters, reporting strong gains driven by their premium portfolios. Premium segment grew 46% in the reported quarter, higher than the overall volume growth of 11%. PEER PERFORMANCE * The mean of analysts' ratings standardised to a scale of Strong Buy, Buy, Hold, Sell, and Strong Sell ** The ratio of the stock's last close to analysts' mean price target; a ratio above 1 means the stock is trading above the PT APRIL TO JUNE STOCK PERFORMANCE -- All data from LSEG -- $1 = 86.3650 Indian rupees
Yahoo
15-07-2025
- Business
- Yahoo
IMAX Corporation (IMAX): A Bull Case Theory
We came across a bullish thesis on IMAX Corporation on Raging Bull Investments's Substack. In this article, we will summarize the bulls' thesis on IMAX. IMAX Corporation's share was trading at $27.96 as of June 30th. IMAX's trailing and forward P/E were 60.78 and 26.88 respectively according to Yahoo Finance. An audience of moviegoers inside a theatre, savoring the latest cinematic experience. IMAX Corp. stands out as the premier player in the ongoing 'premiumization' trend reshaping the cinema industry, driven by audience demand for elevated theatrical experiences and higher per-patron spend. The company's core strength lies in its dual business model: remastering films into the proprietary IMAX format, and providing or leasing enhanced theatre systems globally. In exchange for converting films into IMAX format, the company earns ~11% of box office revenues from studios. On the systems side, IMAX monetizes its offerings via sale, lease, or increasingly popular revenue-sharing models, in which it provides the system and installation at its own cost and earns ~7% of box office revenue from exhibitors. With just under 1% of global screens, IMAX commands 3.5% of the global box office—a market share that has grown over 40% since 2018. This reflects both strong demand and the format's success in drawing premium-paying audiences. IMAX has grown its global system base from 863 in 2012 to 1,738 today across 89 countries, with over 350 systems in the backlog and significant runway remaining. Studios are increasingly releasing tentpole films in IMAX, and directors are now shooting directly with IMAX cameras to leverage its superior quality and revenue potential—leading to higher take rates for IMAX. With a robust moat built on proprietary technology, brand strength, and high switching costs for exhibitors, IMAX is uniquely positioned in the PLF market. Its royalty-like business model, operating leverage, and alignment with studios and exhibitors make it a compelling investment opportunity. Previously we covered a bullish thesis on The Marcus Corporation by Waterboy Investing in October 2024, which highlighted the company's strong cinema and hotel segments, along with valuable real estate holdings. The company's stock price has appreciated by approximately 9% since our coverage. This is because the hotel segment grew steadily. Raging Bull Investments shares a similar view but emphasizes IMAX's premium format leadership. IMAX isn't on our list of the 30 Most Popular Stocks Among Hedge Funds. While we acknowledge the risk and potential of IMAX as an investment, our conviction lies in the belief that some AI stocks hold greater promise for delivering higher returns and have limited downside risk. If you are looking for an extremely cheap AI stock that is also a major beneficiary of Trump tariffs and onshoring, see our free report on the best short-term AI stock. READ NEXT: 8 Best Wide Moat Stocks to Buy Now and 30 Most Important AI Stocks According to BlackRock. Disclosure: None. This article was originally published at Insider Monkey.
Skift
10-07-2025
- Business
- Skift
Oyo Partners With Yatra to Ride India's Business Travel Boom
As India's spending power increases, IPO-bound Oyo has been expanding beyond its traditional franchise and economy model. Along with its premiumization push, the company has now set its sights on the Indian business travel segment. Hospitality company Oyo Thursday said it has partnered with online travel company Yatra to tap into the Indian business travel market segment. The partnership focuses on key business centers like Delhi-NCR, Mumbai, Bengaluru, Chennai, Kolkata, Ahmedabad and 'major industrial hubs and transit corridors,' Oyo said in a statement. Yatra's platform has already onboarded more than 500 of Oyo's company-serviced hotels. These include mid-premium and premium brands such as Sunday, Palette, Clubhouse, Townhouse, Townhouse Oak, and Collection O. Oyo is planning to add another 1,000 company-serviced hotels to the Yatra platform by September. Oyo said the move will strengthen Yatra's inventory, especially in emerging metros where the demand for quality accommodation is surging due to increased business travel. 'While direct demand continues to be our main
Yahoo
27-06-2025
- Business
- Yahoo
Will Constellation Brands' Focus on Core Brands Deliver in 2025?
Constellation Brands, Inc. STZ is a powerhouse in the alcoholic beverage industry, with balanced presence across beer, wine and spirits. The company continues to prioritize premiumization, brand strength and portfolio optimization as a central theme of its growth strategy. Armed with a portfolio of consumer-led, top-notch brands such as Modelo Especial, Corona Extra, Pacifico, Robert Mondavi Winery, Kim Crawford, The Prisoner Wine Company, High West, Casa Noble and Mi CAMPO, STZ is poised well to serve the evolving tastes of is sharpening its focus on high-performing core brands in high-margin categories, particularly beer, which makes up roughly 83% of total sales. STZ is capitalizing on favorable U.S. beer trends, especially the rising demand for Mexican imports and premium offerings. Modelo, now the top-selling beer in the US, continues to be a standout performer. Corona and Pacifico are the other beer brands that are performing well. For fiscal 2026, the company anticipates sales growth of 0–3% for the beer segment. In the wine and spirits business, the portfolio continues to evolve toward higher-end offerings, with premium brands like The Prisoner, Kim Crawford and Meiomi driving growth. The company is investing in innovation, flavor extensions and omnichannel capabilities to strengthen consumer engagement, particularly among younger, tech-savvy audiences. Additionally, STZ is divesting lower-performing assets and streamlining operations to drive margin expansion and enhance long-term near-term challenges like inflation and channel shifts persist, Constellation Brands' disciplined focus on fewer, stronger brands and strategic execution provides a solid foundation for sustainable growth in 2025 and beyond. As Constellation Brands doubles down on its core portfolio strategy, a closer look at how peers like Anheuser-Busch InBev SA/NV BUD, The Boston Beer Company, Inc. SAM and Molson Coors Beverage Company TAP manage their core brand playbooks offers key insights into competitive positioning and evolving industry InBev SA/NV, alias AB InBev, has been gaining from continued consumer demand for its brand portfolio. The company's premiumization strategy is a key growth lever. AB InBev has been focused on premium beer offerings, aligning with consumer preferences in the alcohol industry. Among the above-core brands, Corona has been leading the performance, delivering low-teens revenue growth outside of Mexico. BUD has been focused on expanding its Beyond Beer portfolio as well. Boston Beer remains focused on product innovations and brand development to strengthen its market position and drive operational performance. Among the most iconic brands in American craft brewing, Samuel Adams is the keystone of Boston Beer. The company has diversified its lineup with beverages like Truly Hard Seltzer and has grown beyond traditional beer. SAM's diversification strategy centers on expanding its 'Beyond Beer' portfolio, including hard seltzers, ciders and other alternative alcoholic beverages, to capitalize on the evolving consumer taste, reducing reliance on the traditional beer Coors remains committed to bolstering growth through innovation and premiumization. To accelerate portfolio premiumization, the company has been aggressively growing its above-premium portfolio. It remains focused on stabilizing its larger above-premium brands in the US, while simultaneously pursuing meaningful growth opportunities for its most strategic, high-performing brands. The company intends to invest in iconic brands and growth opportunities in the above-premium beer space and expand in adjacencies and beyond beer. Shares of Constellation Brands have lost 25.9% year to date against the industry's growth of 2.2%. Image Source: Zacks Investment Research From a valuation standpoint, STZ trades at a forward price-to-earnings ratio of 12.34X compared with the industry's average of 15.23X. Image Source: Zacks Investment Research The Zacks Consensus Estimate for STZ's fiscal 2026 earnings implies a year-over-year decline of 7.9%, while that for fiscal 2027 indicates growth of 8.5%. The company's EPS estimate for fiscal 2026 and fiscal 2027 has moved down in the past 30 days. Image Source: Zacks Investment Research Constellation Brands stock currently carries a Zacks Rank #3 (Hold). You can see the complete list of today's Zacks #1 Rank (Strong Buy) stocks here. Want the latest recommendations from Zacks Investment Research? Today, you can download 7 Best Stocks for the Next 30 Days. Click to get this free report Molson Coors Beverage Company (TAP) : Free Stock Analysis Report Constellation Brands Inc (STZ) : Free Stock Analysis Report Anheuser-Busch InBev SA/NV (BUD) : Free Stock Analysis Report The Boston Beer Company, Inc. (SAM) : Free Stock Analysis Report This article originally published on Zacks Investment Research ( Zacks Investment Research
Yahoo
27-06-2025
- Business
- Yahoo
Should You Consider Ralph Lauren Stock Despite Its Elevated Valuation?
Ralph Lauren Corporation RL is currently trading at a forward 12-month price-to-earnings (P/E) ratio of 19.54x, notably higher than the industry average of 11.2x. This premium valuation reflects investor confidence in the company's robust brand equity, successful execution of its strategic transformation, and consistent performance across geographies and channels. RL's strong pricing power, margin expansion, disciplined inventory and real estate management further support its elevated valuation. Image Source: Zacks Investment Research In contrast, peers such as Duluth Holdings DLTH, Guess? Inc. GES and Gildan Activewear GIL trade at lower forward P/E ratios of 7.59x, 7.59x and 13.21x, respectively. These lower valuations of Duluth Holdings, Guess? and Gildan Activewear are a reflection of the company-specific challenges, such as inconsistent earnings performance, lower pricing power, greater exposure to price-sensitive customers or weaker brand Ralph Lauren, which has successfully leaned into premiumization and digital transformation, these peers operate with more constrained growth profiles, narrower international footprints and less diversified product offerings.A key factor behind Ralph Lauren's elevated P/E ratio is its impressive stock performance. In the past year, shares of the company have climbed 55.5%, significantly outperforming the industry, which declined by 13.5%. It has also outperformed the broader sector and the S&P 500 index, which posted growth of 19.8% and 10.8%, respectively. Image Source: Zacks Investment Research RL's stock performance stands out among apparel stocks. In the past year, Duluth Holdings and Guess? have declined 48.3% and 41%, respectively, whereas Gildan Activewear gained 27.6%. Ralph Lauren continues to demonstrate exceptional strength, closing fiscal 2025 with robust performance that exceeded expectations across all regions and channels. The company's global desirability remains its most powerful asset, underpinned by its iconic brand identity and elevated product portfolio. With a lifestyle approach that resonates across generations and geographies, Ralph Lauren has effectively executed its key city ecosystem model, combining physical stores, digital flagships and selective wholesale Lauren's digital transformation continues to be a significant growth lever, with direct-to-consumer (DTC) channels now making up two-thirds of the business. Digital comps grew in the double digits globally in the fourth quarter, supported by targeted marketing activations, improved site experiences and increasing traction on social media platforms. The company added nearly 6 million new DTC consumers in fiscal 2025, with growth led by younger, female and less price-sensitive like predictive buying and AI-enabled planning are improving inventory efficiency and responsiveness. Across platforms owned, wholesale and social, Ralph Lauren is not just keeping pace with digital trends but actively shaping them, creating immersive, emotionally resonant brand experiences that fuel both consumer loyalty and higher-margin company's multi-year strategy, centered on three pillars — brand elevation, driving the core while expanding for more and winning in key cities — has delivered tangible results. Ralph Lauren's core products, which represent about 70% of the business, saw low double-digit growth in the fourth quarter, led by strong demand for knitwear, outerwear and company's strategic pricing actions, product elevation and discount discipline helped drive average unit retail growth while reinforcing luxury and value perceptions. Ralph Lauren is also making smart investments in prime real estate to future-proof its presence, such as acquiring its Polo flagship in SoHo, aligning with a broader DTC-led growth strategy that continues to strengthen profitability. Reflecting positive sentiment around Ralph Lauren, the Zacks Consensus Estimate for earnings per share has seen upward revisions. In the past 30 days, the consensus estimate has risen 6 cents to $13.69 and 7 cents to $15.03 for 2026 and 2027, respectively. These estimates indicate expected year-over-year growth rates of around 11% and 9.8% for 2026 and 2027, respectively. (Find the latest EPS estimates and surprises on Zacks Earnings Calendar.) Image Source: Zacks Investment Research Despite its strong performance, Ralph Lauren faces mounting challenges from an increasingly volatile global macroeconomic environment. Consumer sentiment remains pressured across key markets such as the United States, the U.K. and China due to persistent inflation, geopolitical tensions and uncertainty around trade policy, particularly new cost inflation is an evolving concern, with the company expecting gross margin pressures to intensify in the second half of fiscal 2026. Ralph Lauren has proactively implemented selective pricing actions and diversified its supply chain, ensuring no single country exceeds 20% of production tariffs. However, tariffs are expected to pose risks to its cost structure and pricing power in the near term. Ralph Lauren remains a compelling investment, supported by its strong brand positioning, lifestyle-driven product strategy and expanding global footprint. The company's focus on premiumization, digital transformation and disciplined execution has fueled consistent performance across regions and channels. Its success in driving brand desirability, coupled with ongoing investments in high-growth categories and key markets, underpins long-term growth the stock's premium valuation reflects high investor expectations, which could be tested amid ongoing macroeconomic uncertainty, shifting consumer sentiment and evolving tariff risks. Current investors should retain their positions in RL stock, while new investors might wait for a more favorable entry point. Ralph Lauren currently carries a Zacks Rank #3 (Hold). You can see the complete list of today's Zacks #1 Rank (Strong Buy) stocks here. Want the latest recommendations from Zacks Investment Research? Today, you can download 7 Best Stocks for the Next 30 Days. Click to get this free report Ralph Lauren Corporation (RL) : Free Stock Analysis Report Guess?, Inc. (GES) : Free Stock Analysis Report Gildan Activewear, Inc. (GIL) : Free Stock Analysis Report Duluth Holdings Inc. (DLTH) : Free Stock Analysis Report This article originally published on Zacks Investment Research ( Zacks Investment Research
