WEBVTT - Brunello Cucinelli Rises, Sodexo Plunges, Reply Gains

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<v Speaker 1>Bloomberg Audio Studios, Podcasts, radio News.

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<v Speaker 2>The Stock Movers Report, your roundup of companies making moves

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<v Speaker 2>in the stock market, harnessing the power of Bloomberg Data.

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<v Speaker 3>Let's take a look at some of the stocks on

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<v Speaker 3>the move today in Europe. I'm Rich Levans with Stephen

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<v Speaker 3>Carroll and we're joined by our reporter tiwa Adabio. Let's

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<v Speaker 3>start with Brunello Cucinelli. That the luxury stock has gained

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<v Speaker 3>as much as six point six percent following some robust earnings.

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<v Speaker 3>What's the latest move.

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<v Speaker 4>Yeah, it's a good day for Brunello Cucinelli. Shares moving

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<v Speaker 4>up this morning, and they're moving on the announcement of

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<v Speaker 4>their first quarter results. So they've said they're boasting strong earnings.

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<v Speaker 4>It's thanks to strong retail sales. But in particular, analysts

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<v Speaker 4>are calling out the firm's strong performance relative to their peers.

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<v Speaker 4>So it hasn't been the easiest time for the luxury sector.

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<v Speaker 4>Some firms of face supply chain disruption, sales disruption due

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<v Speaker 4>to the war in the Middle East. Of Jeffres have

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<v Speaker 4>called this trading update impressive, and actually they've noted that

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<v Speaker 4>there's growth outside of the Middle East, which has made

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<v Speaker 4>up for the impact from the conflict in the region

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<v Speaker 4>which dented March sales. Others at Morgan Stanley, for example,

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<v Speaker 4>highlighting a very strong January for the company, and Brunello

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<v Speaker 4>are optimistic looking quite far ahead. Actually, they said their

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<v Speaker 4>strong belief in their business model means they're forecasting revenue

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<v Speaker 4>growth of around ten percent for twenty twenty seven, so

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<v Speaker 4>investors certainly quite convinced by their case.

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<v Speaker 1>This morning a tantalizing glimpse into what we're going to

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<v Speaker 1>be learning from earning season as well as things heat

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<v Speaker 1>up from next week to let's go to the catering

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<v Speaker 1>company Sedexo next a different story from then. Those shares

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<v Speaker 1>den sharply currently down thirteen percent in Paris.

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<v Speaker 4>Yeah, almost the opposite for Sedecta. They're leading losses on

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<v Speaker 4>the stock six hundred this morning. Like Brunello, this is

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<v Speaker 4>a result story, but is very much moving in the

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<v Speaker 4>opposite direction. So Sedexo issued weaker than expected guidance for

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<v Speaker 4>organic revenue growth and underlying operating margin. They're also blaming

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<v Speaker 4>the uncertain external environments, so geopolitical tensions and war, and

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<v Speaker 4>the war did come at a tricky time anyway for

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<v Speaker 4>the firm. They had just appointed a new CEO in October,

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<v Speaker 4>but actually some of the analysts commentary about that this morning,

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<v Speaker 4>noting that many had actually feared that that new CEO's

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<v Speaker 4>arrival would be accompanied by a sharp drop in earnings.

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<v Speaker 4>That seems to have materialized and some investors don't have

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<v Speaker 4>a great deal of confidence in this new leader as seems,

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<v Speaker 4>but attention will shift onto whether or not he can

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<v Speaker 4>get the company back on track. All eyes at the

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<v Speaker 4>moment are on the capital market state, which are scheduled

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<v Speaker 4>for July sixteenth, Say a mark that in your calendars.

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<v Speaker 3>Doing that right now. And finally, we've seen some gains

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<v Speaker 3>for Italian digital services firm. Reply, what's been going on there?

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<v Speaker 4>Yes? Reply, also leading gains for the stock six hundred

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<v Speaker 4>This morning it's up as much as eight percent. Shares

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<v Speaker 4>have gained the most in about a year, So significant

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<v Speaker 4>move there is coming really after they announced Amega five

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<v Speaker 4>hundred and fifty million share buy back, which one analyst

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<v Speaker 4>says is the first substantial buyback for the company, so

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<v Speaker 4>perhaps quite an important milestone here. But the thinking here

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<v Speaker 4>is that this move will allow better use of cash,

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<v Speaker 4>but also it does show quite a vote of confidence

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<v Speaker 4>from the management team. And that's even though replies valuation

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<v Speaker 4>is actually sitting out of record low at the moment.

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<v Speaker 4>Should mention that despite today's jump, the company is still

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<v Speaker 4>down twenty six percent year to date, but perhaps some

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<v Speaker 4>more positive news in the future of reply.

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