Speaker 1: Bloomberg Audio Studios, Podcasts, radio News.
Speaker 2: The Stock Movers Report, your roundup of companies making moves
Speaker 2: in the stock market, harnessing the power of Bloomberg Data.
Speaker 1: I've been stati back along with Carol Masser. We're joined
Speaker 1: by Red Brown. He's Bloomberg News earnings reporter. He's also
Speaker 1: got his ion stocks on the move today, Red, what's
Speaker 1: on your radar?
Speaker 3: Yeah, first one is actually Broadcom the big kind of
Speaker 3: earnings report from this evening, and the ticker for that
Speaker 3: is a v g O. Shares were sort of bouncing
Speaker 3: around after the report there. I think it's kind of
Speaker 3: giving me the same vibe as in the video where
Speaker 3: we're trying of waiting for more of the commentary during
Speaker 3: the call. But again, it's it's this idea that you know,
Speaker 3: the enthusiasm for AI is gone, not gone, but it's
Speaker 3: like it's well understood at this point.
Speaker 1: Right.
Speaker 3: Yeah, So you know, the company gave they reported sales
Speaker 3: pretty in line. They gave an outlook that was pretty
Speaker 3: It was above estimate six point two billion for the
Speaker 3: upcoming quarter versus estimates five point eight two billion. So
Speaker 3: there is still growth there, There is still demand. But
Speaker 3: I think we're just starting to kind of enter this
Speaker 3: period of normalization. So I think that's maybe why we're
Speaker 3: seeing the share sort of temper.
Speaker 4: Yeah, I got it, I got it, I got it right, Yeah,
Speaker 4: you're right. I mean, right now we're looking at shares
Speaker 4: a broadcom very little changed here in the after hours.
Speaker 1: Right Lulu, what's going on there? I mean a struggle.
Speaker 3: What a eye opening report from from Lulu today. You know,
Speaker 3: I go through I've been through hundreds, probably thousands of
Speaker 3: earnings releases, and I don't think I've seen sort of
Speaker 3: like such.
Speaker 4: I thought I was gonna say, I've been through one
Speaker 4: hundred thousands of like yoga pants its protesting.
Speaker 2: Yeah, not not going here though, Okay, go ahead.
Speaker 3: But it's rare to see a CEO be like this
Speaker 3: sort of vocal about using this sort of strong language
Speaker 3: about the lack of execution that he's seeing and the
Speaker 3: disappointment within that the results and things like that. So
Speaker 3: I think that really speaks to where Lulu's ad at
Speaker 3: the moment. Shares it down I think forty seven percent
Speaker 3: last time I checked for the year. That makes it
Speaker 3: the fourth worst stock in the S and P five hundred.
Speaker 3: So yeah, a really sort of eye opening report from
Speaker 3: the company, and the weakness is that it's the US.
Speaker 3: It's the US business. Shares fell three times more than
Speaker 3: an excuse me, sales fell three times more than expected
Speaker 3: or faster than expected in the US. But then if
Speaker 3: you look outside the US, shares jumped seventeen thirteen percent.
Speaker 3: But the problem is they get two thirds of the
Speaker 3: revenue here. So yeah, it's really struggling with the US
Speaker 3: market at the moment.
Speaker 1: We're hearing from the company executives right now on the
Speaker 1: call Demninimus closure hit profit guidance. The CEO says product
Speaker 1: cycles too long, assortment stale. The company said expects twenty
Speaker 1: to twenty five percent growth in China, one to two
Speaker 1: percent revenue decline in the US, and markdowns increased more
Speaker 1: than expected in the second quarter.
Speaker 4: So stock down like thirteen percent here in the aftermarket
Speaker 4: to get hammered in a big way. American Eagle, that's
Speaker 4: a stock that we saw move in a big way
Speaker 4: in the regular session.
Speaker 3: Yeah, actually had its best day ever in I think
Speaker 3: it's almost thirty years now that they've been public, so
Speaker 3: I think surge around thirty eight percent last time I checked,
Speaker 3: before I came up here, and yeah, I don't know.
Speaker 3: I think it's more evidence that the Y two K
Speaker 3: kind of brands are coming back. Here. It seems like
Speaker 3: the company is pointing to their obviously their ads that
Speaker 3: everyone sawalking about with Sidney Sweety also Travis Kelcey seems
Speaker 3: to be really paying dividends. Actually, I mean all the
Speaker 3: controversy that that first ads started up, sounds like the
Speaker 3: company said they this was an incredible quote as well,
Speaker 3: they saw new shoppers in every county in the US.
Speaker 3: I think that that was just really incredible to see
Speaker 3: just how wide spread this is. That's it when you
Speaker 3: think about, you know, all the different sort of counties
Speaker 3: in the US and held like you know, socially they
Speaker 3: are different, and that this ad seems to just like
Speaker 3: cut through all of that. So yeah, very very strong report.
Speaker 3: Very this seems like them is going to continue and obviously,
Speaker 3: I mean no brainer company is going to continue these
Speaker 3: relationships with both of these celebrities. I mean, he would
Speaker 3: lose his job if he didn't, I guess. But yeah,
Speaker 3: very very strong report.
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