4.55k followers • 10 symbols Watchlist by Yahoo Finance
This basket consists of stocks gaining popularity from health and wellness.
Lululemon Athletica Inc.
Under Armour, Inc.
Herbalife Nutrition Ltd.
Dick's Sporting Goods, Inc.
Foot Locker, Inc.
GNC Holdings, Inc.
The latest U.S-China trade war news that includes a positive tweet from President Trump that helped lift stocks to new highs. A look at LULU's earnings. And why Vertex Pharmaceuticals (VRTX) is a Zacks Rank 1 (Strong Buy) stock right now...
Nike (NKE) doesn't possess the right combination of the two key ingredients for a likely earnings beat in its upcoming report. Get prepared with the key expectations.
lululemon (LULU) delivers solid third-quarter fiscal 2019 results on positive customer response to merchandise assortments as well as continued investments to drive business growth.
Best Buy's (BBY) Building the New Blue: Chapter Two plan and buyouts are likely to keep its momentum alive in the near future. Also, a raised view for fiscal 2020 bodes well.
(Bloomberg) -- Lululemon Athletica Inc. fell by the most in more than six months on Thursday, after the yoga-wear maker’s fourth-quarter comparable sales forecast disappointed traders. The shares hit a record high Wednesday before the earnings report.Analysts were broadly positive on the quarterly results and called the forecasts “conservative.” Estimates for sales and earnings were increased, and a number of firms also boosted their share-price targets. Bloomberg Intelligence’s Poonam Goyal wrote that “while management’s fourth-quarter EPS outlook is short of consensus at its midpoint, it may have upside if the pace seen over Thanksgiving weekend and limited markdowns carry through the quarter.”Stifel’s Jim Duffy sought to clear up the fourth-quarter misconception for his clients, telling them that the consensus estimates ahead of Wednesday’s report “failed to properly account for lapping the 14th week and having six fewer selling days between Thanksgiving and Christmas.”Shares fell as much as 6.4%, the biggest intraday drop since May 29, paring the year-to-date advance to 80%.Here’s more of what analysts had to say following the results:Susquehanna, Sam PoserThe “impressive” 3Q results, “up and down the P&L,” are evidence that “momentum, driven by PEP (Product, Engagement, Process), is in full swing,” the analyst wroteBelieves there is upside potential to Lulu’s raised, but still conservative, year forecast“Despite the 3Q19 beat and raise, exceptionally high expectations (likely above Street estimates) heading into the print and an ~15% run-up in the stock since the 2Q19 print in September are resulting in downward pressure on the stock”Poser doesn’t believe the weakness is a “reflection of declining fundamentals,” and sees momentum continuing “for the foreseeable future”Rates positive, raises price target to $260 from $222What Bloomberg Intelligence Says:“Lululemon’s momentum, driven by an appetite for experience and mindfulness, with innovation in fabric, should extend into 4Q with the potential for same-store sales to gain more than the projected low-double-digit range,” analyst Poonam Goyal wrote in a noteShe believes the company’s expectations for double-digit earnings gains through 2023, fueled by margin expansion and low-teens sales growth, “could prove conservative as personal care, experiential retailing and footwear spur sales.”Cowen, John KernanThere is “so much to like” with Lulu, Kernan wrote, noting that the company “continues to produce not only a sector best,multi-category product cycle, but also is forming some of the deepest connections with consumers in the entire global athletic, softlines industry through great product and experiences”He believes Lulu’s sales and margin trajectory indicate that the fourth-quarter forecasts appear “conservative”Management appears “increasingly confident” in China and Europe, “with emerging stores and brand activations across Tier II China as well as Paris”Rates buy, price target $250Stifel, Jim Duffy“Some may mistakenly interpret” the fourth-quarter comparable sales guidance for low double-digit growth (constant currency) as a “sharp deceleration,” but Duffy noted that with the year ago’s 14th week and six fewer holiday shopping days this year, the forecast is an “endorsement of momentum”Remains bullish on the prospects for return on growth investments, and sees the stock as “deserving of a premium multiple”Rates buy, price target $273RBC Capital Markets, Kate FitzsimonsContinues to see upside to comparable sales and earnings into the fourth quarter and next year, with “slight multiple expansion as the brand leverages its innovation and customer engagement focuses”“We would be buyers on any short-term weakness given Lulu’s open-ended growth story”Rates outperform, price target $250CFRA, Camilla Yanushevsky“Strong profit reports have become the norm for Lulu and, as expected, Lulu posted another solid quarter with stellar comps and robust gross margin expansion”The U.S. consumer “may be running out of steam,” but Lululemon is “full steam ahead”Maintains buy rating, price target to $255 from $220B. Riley FBR, Susan Anderson“We are impressed with LULU’s ability to continue to “innovate and create newness with a solid new product pipeline, which is driving market share gains”Growing men’s business, category expansion, and international growth should continue to drive “solid revenue growth over the next several years”Maintains her neutral rating, awaiting a better entry point; lifts price target to $218 from $182(Updates to reflect regular session trading in first and fourth paragraphs, and chart)To contact the reporter on this story: Janet Freund in New York at firstname.lastname@example.orgTo contact the editors responsible for this story: Catherine Larkin at email@example.com, Scott SchnipperFor more articles like this, please visit us at bloomberg.com©2019 Bloomberg L.P.
(Bloomberg Opinion) -- Many of the retail industry’s challenges in 2020 will be familiar, such as adapting to the rise of e-commerce and trade-related uncertainty from Washington. But the lineup of CEOs navigating those conditions will include many new faces.There were more CEO exits in the retail industry in 2019 than in any year since at least 2010, according to data from Challenger, Gray & Christmas.(1)The leadership shake-ups in retail don’t appear to fit any particular pattern. There were carefully choreographed, harmonious baton passes, such as Best Buy Co. naming Corie Barry to succeed Hubert Joly. There were bombshells such as Steve Easterbrook’s abrupt ouster from McDonald’s Corp. over an inappropriate relationship with an employee. There were rebukes of poor performance, such as Art Peck’s departure from Gap Inc. And there were some left-field surprises, such as Tractor Supply Co. poaching Hal Lawton from Macy’s Inc.Retail’s recent bout of turbulence at the top is not such an outlier in corporate America; Bloomberg Opinion’s Stephen Mihm recently noted an uptick in CEO departures overall in the past few months. But it adds a certain intrigue about which retailers will end up in the winners’ circle next year.Here are predictions for how some of the more high-profile episodes of C-suite musical chairs will play out.CEO changes that are reason for optimism: By the time activist investor pressure finally led Bed Bath & Beyond Inc. to dump longtime CEO Steven Temares, the move was long overdue. But the board has scored by luring Mark Tritton — the chief merchant at its on-fire competitor, Target Corp. — for the job. Tritton’s experience creating covetable private-label brands and reimagining store displays are exactly what the big-box home goods chain needs. Meanwhile, though Gap has not yet named a permanent successor for the now-departed Peck, the company may be better off without a leader who tried but failed for five years to revive its flagship brand.CEO changes that are reason for pessimism: The biggest headscratcher comes from Nike Inc., which announced that CEO Mark Parker is to be replaced in January by John Donahoe, a former ServiceNow and eBay Inc. executive. Sure, Donahoe knows Nike’s business from serving on its board, but his tech-centric resume is a weird fit for a company that thrives on its marketing savvy and merchandising expertise. There is potential for trouble, too, in the leadership plans of Under Armour Inc., where founder Kevin Plank is set to relinquish the CEO title to COO Patrik Frisk in the new year. Plank is to become chairman and “brand chief,” and Frisk will still report to Plank. This set-up is reminiscent of when Ralph Lauren first tried to step back from the CEO role of his namesake company while staying on in a creative position. The fashion mogul clearly had trouble releasing the reins, and it cost the company a highly capable CEO, Stefan Larsson.(2)Elsewhere in the apparel world, Ascena Retail Group Inc., corporate parent of Ann Taylor, Lane Bryant and other brands, probably will regret tapping an insider, Gary Muto, to replace David Jaffe. This company needs the kind of total overhaul that an outsider would be better equipped to pull off.CEO changes that promise business as usual: Electronics giant Best Buy is in good hands under Barry, a veteran executive of the chain who had served as its CFO and chief strategic growth officer. Thing is, the electronics giant was already in good hands under Joly, who had steered the chain through an improbable comeback. So expect steadiness for the retailer in the year ahead —by no means a bad thing. Same goes for McDonald’s: Even though it said goodbye to a successful CEO under far more soap-operatic circumstances, his replacement, Chris Kempczinski, is a close lieutenant poised to stick to the same playbook that has fueled the fast-food giant’s recent strength.CEO change wild card: It’s understandable that Tapestry Inc.’s board had lost confidence in recently departed CEO Victor Luis. The company that used to be named Coach has been struggling to boost the Kate Spade brand it acquired in 2017, a bad sign for a company intent on transforming into a luxury conglomerate. Luis has been replaced by Jide Zeitlin, a longtime Tapestry board member. He has little experience in the retail or fashion worlds, which is concerning. But his finance industry chops could prove invaluable in future deal-making — an essential ingredient in the company’s quest for growth.(1) The Challenger data in the chart is for the retail sector only. The apparel industry, which includes manufacturers such as Nike, is a separate category that also saw a particularly high number of exits in 2019. So far, apparel has 12 CEO exits, matching the 2015 annual total that was the highest this decade. Restaurants such as McDonald’s are included in the entertainment and leisure category in Challenger’s data.(2) Lauren seems to have settled into his new role alongside current CEO Patrice Louvet, who took that job in 2017 after Larsson’s exit.To contact the author of this story: Sarah Halzack at firstname.lastname@example.orgTo contact the editor responsible for this story: Michael Newman at email@example.comThis column does not necessarily reflect the opinion of the editorial board or Bloomberg LP and its owners.Sarah Halzack is a Bloomberg Opinion columnist covering the consumer and retail industries. She was previously a national retail reporter for the Washington Post.For more articles like this, please visit us at bloomberg.com/opinion©2019 Bloomberg L.P.
Lululemon (LULU) delivered earnings and revenue surprises of 3.23% and 1.87%, respectively, for the quarter ended October 2019. Do the numbers hold clues to what lies ahead for the stock?
(Bloomberg) -- Lululemon Athletica Inc. reported another quarter of double-digit sales growth -- but that wasn’t enough to boost a stock that’s already almost doubled this year. Shares fell in late trading.Lululemon sees profit of $2.10 to $2.13 a share in the fourth quarter, below analysts’ estimate of $2.13 a share. Meanwhile, the closely watched metric of comparable-store sales rose 17% on a constant-currency basis in the latest quarter, beating the 14.2% estimate compiled by Consensus Metrix. That represents eight straight quarters of double-digit growth for the measure.Key InsightsDespite its 11th consecutive profit beat, the Vancouver-based company is suffering from investors’ expectations for perfection. Citigroup analyst Paul Lejuez warned in October that “the market expects results to be flawless, leaving little room for disappointment.”Consumers’ appetite for the brand’s $178 cardigans and $98 yoga pants is growing online, where comparable sales increased 30%, when adjusted to exclude currency effects. Lululemon has revamped some of its websites and is adding others as it expands overseas. But since these sites relatively young, comparisons may be getting tougher going forward.Chief Executive Officer Calvin McDonald told analysts he sees significant opportunities to further expand in China after doubling its store base this year. E-commerce grew more than 60% there during the quarter, with a surge in business on Singles Day that surpassed last year’s volume after just 69 minutes, he said.Investors may be concerned by the upcoming departure of Chief Operating Officer Stuart Haselden, a key member of management who was in charge of international expansion. The company won’t rush into finding a replacement for Haselden and will seek someone with experience in the Asia-Pacific region, McDonald said.Market reactionLululemon shares fell as much as 7.8% in late trading, before paring some of the decline. The stock has advanced 92% this year through Wednesday’s close.For company statement, click here.(Adds CEO comments on China in third bullet under Key Insights.)To contact the reporter on this story: Sandrine Rastello in Montreal at firstname.lastname@example.orgTo contact the editors responsible for this story: David Scanlan at email@example.com, Jonathan Roeder, Sally BakewellFor more articles like this, please visit us at bloomberg.com©2019 Bloomberg L.P.
The traditional approaches to retirement planning are longer covering all expenses in nest egg years. So what can retirees do? Thankfully, there are alternative investments that provide steady, higher-rate income streams to replace dwindling bond yields.
(Bloomberg) -- Want to receive this post in your inbox every morning? Sign up hereFed day, the first day of trading for the world's biggest listed stock and the last day of campaigning for the U.K. election. Here are some of the things people in markets are talking about today.Decision dayNot a single economist surveyed by Bloomberg expects the Federal Reserve to announce a change in interest rates at 2:00 p.m. Eastern Time today. For investors the decision will be all about the outlook, with the Federal Open Market Committee updating its rate forecast through 2022. Chairman Jerome Powell will give a press conference at 2:30 p.m. where he is expected to maintain his recent upbeat tone economic expansion. Biggest everSaudi Aramco successfully became the world’s most valuable public company after raising $25.6 billion in its record IPO and jumping by the daily 10% limit when the stock started trading this morning, giving the oil producer a market valuation of $1.88 trillion. The decision to list on the Riyadh stock exchange pushed the regional bourse into the world’s top 10. There are a lot of unusual things about the IPO, not least of which is the tiny free-float that will give shareholders little or no say over how the company is run. Last dayParty leaders in the U.K. are touring marginal constituencies on the final day of campaigning ahead of tomorrow’s election. A key poll released yesterday showed that while Prime Minister Boris Johnson remains on track for an overall majority, his lead is shrinking. The pound dropped after the survey was released. Anti-Brexit campaigners are putting their efforts into a tactical vote campaign in the hopes of stopping Johnson’s Conservative Party gaining a majority. Markets mixed Equity investors are not making any big decisions as they wait for trade, monetary and political events to play out over the next few days. Overnight, the MSCI Asia Pacific Index gained 0.3% while Japan’s Topix index closed 0.3% lower. In Europe, the Stoxx 600 Index had slid 0.2% by 5:50 a.m. in a fairly subdued session so far. S&P 500 futures pointed to a small loss at the open, the 10-year Treasury yield was at 1.816% and gold was higher. Coming up…U.S. inflation is expected to have picked up to 2% in November, with the core reading remaining unchanged at 2.3% when the data is published at 8:30 a.m. The U.S. crude oil inventory report is released at 10:30 a.m. As well as the Fed decision at 2:00 p.m., the U.S. November budget statement is published. Among the companies reporting earnings today are Lululemon Athletica Inc., American Eagle Outfitters Inc. and United Natural Foods Inc. What we've been readingThis is what's caught our eye over the last 24 hours.Traders buy hedges “like the world is about to end.” The $11 trillion emerging-markets rally has big backing for 2020. China’s curing cancer faster and cheaper than anywhere else. Swiss stocks may be boring but they are matching the S&P 500. Ken Griffin has another money machine to rival his hedge fund. Apple’s new Mac Pro can cost $52,000. That’s without the $400 wheels. Is Earth getting bigger over time?To contact the author of this story: Lorcan Roche Kelly in Dublin at firstname.lastname@example.orgTo contact the editor responsible for this story: Cecile Gutscher at email@example.com, Sid VermaFor more articles like this, please visit us at bloomberg.com©2019 Bloomberg L.P.
Investors are bracing for a busy Wednesday. The Federal Open Market Committee (FOMC) will deliver its final rate decision of the year, and CPI data and Lululemon earnings are also on tap.
Articles of impeachment against Trump. House Democrats support the new U.S., Mexico, and Canada trade deal. What's next on the U.S.-China trade war front. Some quarterly earnings news. And why Tilly's is a Zacks Rank 1 (Strong Buy) stock...
Target is Yahoo Finance's 2019 Company of the Year. Target COO John Mulligan explains some of the big changes he has made to Target's business this year.
Stitch Fix (SFIX) reports better-than-expected results in first-quarter fiscal 2020, backed by gains from the direct-buy initiative and active client growth.
Tesla, Eldorado Resorts, Dick???s Sporting Goods, Gaming and Leisure Properties and Target highlighted as Zacks Bull and Bear of the Day
NIKE's (NKE) second-quarter fiscal 2020 results are expected to reflect strength across its digital platform and gains from innovation pipeline. Higher costs and tariffs might have been drags.