WEBVTT - Nike Slumps; RH Falls; Disney Rises

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<v Speaker 1>Bloomberg Audio Studios, podcasts, radio news. The Stock Movers Report,

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<v Speaker 1>your roundup of companies making moves in the stock market,

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<v Speaker 1>harnessing the power of Bloomberg Data.

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<v Speaker 2>Let's take a look at some stocks on the move today.

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<v Speaker 2>I'm Nathan Hager, joined by Bloomberg's Isabelle Lee. On a

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<v Speaker 2>positive morning for the broader market, but not so for

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<v Speaker 2>the latest companies to report earnings, including Nike. A big

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<v Speaker 2>swush to the downside is a bel good morning.

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<v Speaker 3>Definitely a big swush, down by almost ten percent in

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<v Speaker 3>pre market trading. So the company said it expects revenue

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<v Speaker 3>for the fourth quarter to be down some two to

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<v Speaker 3>four percent and it will be lower in the low

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<v Speaker 3>digits for the rest of the calendar year. So this

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<v Speaker 3>is actually very surprisingly gloomy. It's an outlook that I

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<v Speaker 3>think surprised a lot of analysts because Nike has been

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<v Speaker 3>trying to regain market dominance after a sales slump, but

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<v Speaker 3>now it's facing a lot of challenges, and of course

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<v Speaker 3>it's really hard to ignore the in the Middle East,

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<v Speaker 3>and they did say that, they said the company is

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<v Speaker 3>seeing a lot of inventories in Europe and the Middle East,

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<v Speaker 3>and of course you have the traffic disruption from the war,

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<v Speaker 3>so that could lead to more volatility in the business.

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<v Speaker 3>So even if we saw really strong results in North America,

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<v Speaker 3>of course we know that it was the holidays a

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<v Speaker 3>lot of people shop. Those challenges in the Middle East

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<v Speaker 3>as well as the weakness, the continued weakness in China

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<v Speaker 3>really overshadowed the strong results we saw in North American

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<v Speaker 3>region and through to this Clothes the stock has dropped

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<v Speaker 3>some seventeen percent this year. The ten around plan really

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<v Speaker 3>is taking longer than originally planned, especially under the CEO

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<v Speaker 3>Elliott Hills.

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<v Speaker 2>Yeah, longer than a lot of investors were really hoping for.

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<v Speaker 2>With Elliott Hill returning to the helmet Nike and even

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<v Speaker 2>bigger decline this morning for our Ah the furniture maker.

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<v Speaker 3>I know we're really getting gloomy. Here are a run

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<v Speaker 3>almost twenty percent. This is a home furnishing company. The

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<v Speaker 3>revenue forecast for the first quarter missed the average estimates

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<v Speaker 3>are saying that the forecast is pressured by execution and

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<v Speaker 3>again supply chain disruptions. It's giving us flashback to the

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<v Speaker 3>COVID days. Bloomberg Intelligence analysts Lindsay Dutch saying that the

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<v Speaker 3>outlook for our Age is for a two to four

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<v Speaker 3>percent decline in the first quarter for revenue, and that's

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<v Speaker 3>after following a fourth quarter miss. So this point is

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<v Speaker 3>really just a sharp job in demand that could extend

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<v Speaker 3>beyond the first quarter. And we saw actually a couple

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<v Speaker 3>of price cuts from Stifo and Barclays. It's not looking

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<v Speaker 3>good for our Age and it looks to be It

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<v Speaker 3>looks to point to an open and the reds for

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<v Speaker 3>our Age. Well.

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<v Speaker 2>Of course, on a mostly positive morning, we got to

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<v Speaker 2>talk about some stocks in the green. One of those

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<v Speaker 2>includes the Walt Disney Company.

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<v Speaker 1>Of all companies, isn't well.

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<v Speaker 3>We have to end it on a positive note, be

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<v Speaker 3>trying to be positive. Walt Disney tick our Ds. The

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<v Speaker 3>stock is up some one and a half percent in

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<v Speaker 3>pre market rate. We have Raymond Jims upgrading the stock

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<v Speaker 3>to outperform from market perform. They really just cited an

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<v Speaker 3>attractive entry point for the stock. So the analyst there

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<v Speaker 3>said that the current macro backdrop and international visitation headwinds

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<v Speaker 3>are the reasons for this. It's an opportunity to opportunity

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<v Speaker 3>to invest at an attractive valuation. So they set the

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<v Speaker 3>price target to one hundred and fifteen dollars per share.

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<v Speaker 3>In related news, Disneyland Paris unbuilt an expansion dedicated to

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<v Speaker 3>the world of Frozen. So this is no princess that

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<v Speaker 3>a lot of kids love. This is a key part

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<v Speaker 3>of really a billion dollar effort to boost visits at

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<v Speaker 3>the Team Park, which is really facing intense competition in Europe.

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<v Speaker 3>And so Na said, how many steam parks do you

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<v Speaker 3>think Disney has?

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<v Speaker 1>Oh, you're going to.

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<v Speaker 2>Put me on a trivia course to agree. I'm going

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<v Speaker 2>to go with ten.

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<v Speaker 3>Okay, there are six independent operated Disney Resorts locations, but

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<v Speaker 3>twelve individual steam parks. Wow, friend lead missions to try

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<v Speaker 3>to go to all the parks in.

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<v Speaker 1>The stockmover's report from Bloomberg Radio. Check back with us

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