Alibaba’s celebrated online second-hand goods trading platform, Xianyu, is poised to unveil its inaugural “all-category” bricks-and-mortar store in the vibrantly bustling Gongshu district of Hangzhou, China.
The store, referred to as the Xianyu Recycle Shop, initiates a consignment model enabling customers to seamlessly sell or purchase pre-loved items.
Among the myriad of wares available, shoppers can peruse shoes, apparel, accessories, and luxury goods, although the trading of gold, jewelry, food, pets, and plants will be emphatically prohibited.
The physical store promises a burden-free endeavor for patrons, eliminating the perpetual need to monitor and respond to buyer inquiries through the app.
Anticipated to spark solid traction across resellers in China, Alibaba’s foray is poised to be a formidable development in its commercial landscape.
Alibaba Group Holding Limited Price and Consensus
The latest milestone neatly aligns with Alibaba’s ongoing endeavor to fortify its Taobao and Tmall Group segment’s offerings.
During the Tmall Double 11 Global Carnival Season, Taotian Group introduced advanced experiences, including the AI smart assistant “Taobao Ask” and ten cost-free tools to enhance merchant efficiency and curtail content production expenses.
Moreover, Taobao PLUS, a burgeoning border services brand, recently unveiled enhanced services in various regions such as Hong Kong, Macao, Taiwan, Singapore, and Malaysia, featuring reduced free shipping thresholds, local refund options, and exclusive customer service.
Furthermore, Taobao and Tmall’s “Hangzhou Asian Games Official Flagship Store” expanded its product categories, offering almost 400 Hangzhou Asian Games licensed products, 3D experience halls, and commemorative tops and backpacks, enriching its expansive repertoire.
Strengthening Taobao and Tmall Group Segment
Altogether, these concerted endeavors serve to bolster the Taobao and Tmall Group segments, potentially revamping the company’s financial performance in the immediate future.
The Zacks Consensus Estimate for BABA’s fiscal 2024 revenues hovers at $132.68 billion, underpinning a prospective year-on-year growth of 5.3%.
The consensus mark for earnings stands at $8.86 per share, representing an anticipated year-on-year expansion of 11.6%.
Nevertheless, prevailing market volatilities in China, a slackening in the China Commerce business, and a downturn in the online physical goods’ gross merchandise volume at Taobao and Tmall marketplaces remain pivotal concerns for Alibaba. Its shares have dwindled by 38% over the past year, trailing the Zacks Retail-Wholesale sector’s ascent of 18.4%.
To Conclude
Despite the odds, these concerted measures designed to reinforce the Taobao and Tmall Group segments may potentially culminate in fortifying the company’s overall financial standing in the immediate term.
Zacks Rank & Stocks to Consider
As it stands, Alibaba carries a Zacks Rank #5 (Strong Sell).
Comparatively, other better-positioned stocks within the sector include The Gap (GPS), Darden Restaurants (DRI), and Fastenal (FAST). The Gap commands a Zacks Rank #1 (Strong Buy), while Darden Restaurants and Fastenal each hold a Zacks Rank #2 (Buy). Peruse the complete list of today’s Zacks #1 Rank stocks here.
The Gap has soared by 86.7% over the bygone year, and its long-term earnings growth rate is etched at 12%.
Darden Restaurants’ shares have ascended by 75.9% over the prior year, and its long-term earnings growth rate is marked at 7.96%.
Meanwhile, Fastenal’s shares have surged by 75.9% over the past year, while its long-term earnings growth rate stands at a commendable 9%.
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