Lowering Estimates To Reflect Challenging Comp; Maintain Buy CITI'S TAKE In light of steepening decline of home appliances sales evidenced by NBS Nov sales and our expectation that Dec sales could further weaken vs Nov, we lower our estimates for JD.com to reflect softer-than-expected 4Q25 JD Retail sales and possible continued challenging base into 1H26 despite latest trade-in program extension for 2026. We now assume 4Q25 electronics product sales to decline 12.6% yoy to Rmb152bn partially offset by 10% g ...

Core Insights - Walmart raised its annual forecasts for the second time this year, indicating strong performance and confidence as it approaches the holiday season [1] Group 1 - The company experienced another strong quarter, primarily driven by surging online sales [1]

Core Insights - THG has reported a significant improvement in trading momentum, with organic growth reaching its highest rate since COVID, and overall revenue growth of 6.3% in Q3 2025 [1] THG Beauty - THG Beauty has returned to growth, driven by a successful advent calendar launch and strong performance in U.K. retail, including double-digit revenue growth for Lookfantastic [2] - The U.S. market showed improved performance with increased customer loyalty through subscriptions and growth in categories outside of core prestige skincare [2] THG Nutrition - Myprotein, a segment of THG Nutrition, achieved a revenue growth of 10%, with positive results in both online and offline channels [2] - Social commerce and marketplace channels are performing particularly well, with exclusive product launches on platforms like TikTok, including the new Myprotein and Jimmy's Iced Coffee Impact whey protein [2][3]

Core Insights - Card Factory has a strategic opportunity to enhance its online presence through the acquisition of Funkypigeon, which has strong brand recognition and a loyal customer base, unlike its previous venture, Getting Personal [1] - The online stationery and greeting cards market is projected to grow, presenting a chance for both Funkypigeon and Card Factory to increase market share if operational issues are resolved [1] Group 1: Funkypigeon's Performance - Funkypigeon experienced a modest 1.5% compound annual growth rate (CAGR) from 2019 to 2024, which is significantly lower than the online market's CAGR of 6.3% and Moonpig's impressive 17% [2] - Delivery issues have been a major concern for Funkypigeon, with consumer reviews indicating frequent delays in order arrivals, which negatively impacts brand trust and market share [2] Group 2: Operational Strengths of Card Factory - Card Factory's robust manufacturing and distribution infrastructure can facilitate improvements for Funkypigeon, leveraging operational synergies to reduce costs and enhance delivery speed [3] - As the leading greetings card retailer in the UK, Card Factory has the market share and scale necessary to support Funkypigeon's growth and improve its online positioning [3] Group 3: Need for Product Innovation - Card Factory must focus on innovating Funkypigeon's product offerings to capture market share, as competitor Moonpig's 10% revenue growth was attributed to investments in personalization technology [4] - The product range is crucial for UK greeting card shoppers, with 88.7% rating it as highly important, indicating that innovation in this area can significantly enhance customer engagement [4]

Group 1: Shopify - Shopify's shares are down 8% this year despite strong fourth-quarter results and solid earnings growth [3][5] - The company has captured over 10% of the U.S. e-commerce market, creating switching costs that should help retain customers [6] - Shopify aims to benefit from the ongoing shift to online retail over the next decade, positioning itself as a long-term investment opportunity [7][8] Group 2: Apple - Apple's shares are down 16% year to date due to economic challenges and geopolitical tensions, particularly with China [9] - The company generates significant free cash flow, with a recent $500 billion investment in the U.S. aimed at reducing exposure to China [11] - Apple's services segment is expected to grow significantly faster than its hardware business, with over a billion paid subscriptions already in place [12][13] - The company has consistently raised its dividend payouts by 92.3% over the past decade, indicating potential for future dividend growth [15]