Adidas stock falls despite raised Q3 outlook
adidas Shares fell 4% by 8:18 a.m. London time, even as Europe’s largest sportswear maker raised its full-year profit and sales outlook on Tuesday on the back of better-than-expected third-quarter profits.
Adidas now expects currency-neutral revenue to increase 10% this year, compared to its previous forecast of low single digits. It also expects operating profit to reach about 1.2 billion euros ($1.31 billion) this year, compared with 1 billion euros a year ago.
The company reported third-quarter sales growth of 10% year over year on a currency-neutral basis, and gross margin increased 2 percentage points to 51.3% in the same period.
The brand has been recovering since its partnership with American rapper Ye fell apart and its collaboration line with popular Yeezy ended. The company said on Tuesday it assumed it could sell remaining Yeezy inventory “at average cost,” increasing sales by 50 million euros.
— Ruxandra Iordache
LVMH shares fall 6.3% as Q3 results disappoint
Bernard Arnault, Chairman and CEO of LVMH Moët Hennessy Louis Vuitton, speaks at LVMH’s 2023 annual results press conference in Paris, France, January 25, 2024. .
Gonzalo Fuentes | Reuters
shares of LVMH Shares fell 6.3% on Wednesday after the luxury goods group reported a 3% drop in third-quarter sales.
LVMH said on Tuesday that sales for the three months to September were 19.08 billion euros ($20.8 billion), down 3% from a year earlier on an organic basis.
“The slight decline in sales in the third quarter was primarily due to slower growth seen in Japan, primarily due to the stronger yen,” the company said in its earnings report.
It added: “In an uncertain economic and geopolitical environment, the Group remains confident and maintains a strategy focused on continuously increasing brand favorability.”
In addition to Louis Vuitton and Moët Hennessy, LVMH owns brands such as Christian Dior, Bvlgari, Givenchy, and Fendi.
— Holly Ellyatt, Reuters
ASML stock is attracting attention as sales forecasts were disappointing.
ASML’s logo is seen at its headquarters in Veldhoven, Netherlands, on June 16, 2023.
Piroshka van de Waurreuter | Piroshka van de Waurreuther
shares of ASML Results will be closely watched on Wednesday after the Dutch semiconductor company announced its results a day early and issued disappointing sales forecasts.
Veldhoven, Netherlands-based ASML expects 2025 net sales to be between 30 billion euros and 35 billion euros ($32.7 billion to $38.1 billion), below the range it had previously provided. He said it would be halved.
The company said net bookings for the September quarter were 2.6 billion euros ($2.83 billion), well below the LSEG consensus estimate of 5.6 billion euros. However, net sales exceeded expectations of 7.5 billion euros.
Read more: Semiconductor company ASML shares plunge 16% after initial release warns of weak Chinese sales
— Ryan Braun
UK inflation rate plunges to 1.7% in September
Shoppers walk down a high street in Rochester, England, Tuesday, July 16, 2024.
Chris Ratcliffe | Bloomberg | Getty Images
Britain’s inflation rate plunged to 1.7% in September, the Office for National Statistics said on Wednesday.
Economists polled by Reuters expect headline interest rates to rise 1.9% in the month, the first time they have fallen below the Bank of England’s 2% target since April 2021.
Inflation has hovered around that level for the past four months, hitting 2.2% in August.
Read more: UK inflation plummets to 1.7%, below Bank of England target for first time in three years
— Jenny Reid
CNBC Pro: Citi names ‘undervalued’ AI stock a ‘top priority’ – giving it 25% upside potential
Citi has named the lesser-known company one of its new Top Picks, citing its “undervalued” artificial intelligence story and attractive valuation.
The tech company’s stock has risen more than 50% since the beginning of the year, outpacing the broader industry. iShares Expansion Technology and Software Sector ETFup nearly 14% this year.
The Wall Street bank also said the company reported a “strong” set of financial results in the second quarter.
CNBC Pro subscribers can read more here.
— Ganesh Rao
Semiconductor stocks were the biggest cause of the Nasdaq 100’s decline on Tuesday.
of Nasdaq 100 It fell 1.37% on Tuesday, making semiconductors one of the biggest contributors to the index’s decline.
Nasdaq 100 for the past 5 business days
CNBC Pro: Interest rates won’t be cut at an aggressive pace — here’s how to position, according to strategists
Market participants say it is unlikely that U.S. interest rates will be cut at an aggressive pace.
The Fed began its easing cycle in September with a massive 50 basis point (bp) rate cut, but subsequent rate cuts will likely be more modest, they said.
They explain why and say how investors should take positions.
CNBC Pro subscribers can read more here.
— Tan Weizhen
European Market: Click here for opening call
European markets are expected to open lower on Wednesday.
british FTSE100 The index is expected to open six points lower at 8,249. dachshund France decreased by 35 points to 19,482 CAC Italy, down 59 points to 7,469 FTSE MIB According to IG data, it decreased by 137 points to 34,246.
Inflation figures for the UK and Italy will be released today.
Correction: This post has been updated to reflect the timing of ASML’s earnings release.
— Holly Ellyatt
