1 00:00:02,520 --> 00:00:07,360 Speaker 1: Bloomberg Audio Studios, podcasts, radio news. 2 00:00:08,640 --> 00:00:13,040 Speaker 2: The Stock Movers podcast, your roundup of companies making moves 3 00:00:13,080 --> 00:00:16,480 Speaker 2: in the stock market, harnessing the power of Bloomberg Data. 4 00:00:17,600 --> 00:00:19,160 Speaker 1: Well, let's take a look at some of the stocks 5 00:00:19,200 --> 00:00:21,320 Speaker 1: on the move today in Europe. I'm Stephen Carroll and 6 00:00:21,360 --> 00:00:24,280 Speaker 1: I'm joined by Bloomberg's earnings reporter Chloe Melee. Chloe, good 7 00:00:24,280 --> 00:00:26,920 Speaker 1: morning to you. So Puma shares first of all, taking 8 00:00:26,960 --> 00:00:29,880 Speaker 1: a tumble as weak demand, outlook and tariffs throw the 9 00:00:30,280 --> 00:00:31,760 Speaker 1: sports wearmaker off track. 10 00:00:31,840 --> 00:00:33,839 Speaker 3: Perhaps, yes, absolutely so. 11 00:00:34,000 --> 00:00:38,360 Speaker 4: Puma is down a really, really quite a lot this morning. 12 00:00:38,600 --> 00:00:41,040 Speaker 4: It did cut its outlook, as you mentioned, so that's 13 00:00:41,080 --> 00:00:43,440 Speaker 4: on the beck of course, of tariff impact. It said 14 00:00:43,479 --> 00:00:46,360 Speaker 4: that the tariffs are going to hurt gross profits by 15 00:00:46,360 --> 00:00:50,680 Speaker 4: about eighty million euros, but also very weak demand for 16 00:00:50,880 --> 00:00:54,880 Speaker 4: sports and athlesia products. You know, this is a kind 17 00:00:54,880 --> 00:00:57,960 Speaker 4: of a major setback for the new CEO, Arthur Holder, 18 00:00:58,000 --> 00:01:00,760 Speaker 4: who just started. He started in July and he used 19 00:01:00,760 --> 00:01:02,720 Speaker 4: to work at Adidas. He's been kind of brought in 20 00:01:03,120 --> 00:01:07,040 Speaker 4: to lead this turnaround and he's really looking to reset 21 00:01:07,080 --> 00:01:10,280 Speaker 4: this brand that's really struggled to kind of connect with 22 00:01:10,520 --> 00:01:13,559 Speaker 4: consumers and it seems like that's not really worked yet. 23 00:01:14,440 --> 00:01:17,880 Speaker 4: Puma has been underperforming Adidas in Nike, which are kind 24 00:01:17,880 --> 00:01:21,480 Speaker 4: of its closest competitors by quite a wide margin over 25 00:01:21,520 --> 00:01:24,000 Speaker 4: the last few months. It's really not been able to 26 00:01:24,000 --> 00:01:26,920 Speaker 4: sort of roll out the kind of you know, sneakers 27 00:01:26,920 --> 00:01:29,559 Speaker 4: that are really popular. They kind of capture the zeitgeist, 28 00:01:29,640 --> 00:01:31,760 Speaker 4: like you know, the Samba sneaker from Adidas or the 29 00:01:31,800 --> 00:01:34,280 Speaker 4: Gazelle as well from Adidas. So it really needs that 30 00:01:34,400 --> 00:01:38,520 Speaker 4: kind of enthusiasm from consumers and hopefully if it does 31 00:01:38,560 --> 00:01:40,280 Speaker 4: get that, then they'll be able to kind of get 32 00:01:40,280 --> 00:01:41,520 Speaker 4: out of this. 33 00:01:42,800 --> 00:01:43,119 Speaker 3: Okay. 34 00:01:43,120 --> 00:01:45,840 Speaker 1: So that's with Puma. Let's turn to Remi Quantro next 35 00:01:45,959 --> 00:01:48,000 Speaker 1: toasting an improved profit outlook. 36 00:01:48,600 --> 00:01:50,640 Speaker 3: Yeah, so it lifted its profit. 37 00:01:50,400 --> 00:01:53,320 Speaker 4: Guidance for the year. So that's thanks to two different things. 38 00:01:53,320 --> 00:01:56,200 Speaker 4: So first of all, a rebound in cells of cognac 39 00:01:56,280 --> 00:01:59,360 Speaker 4: in the US, even though the cells in the EMEA 40 00:01:59,440 --> 00:02:02,560 Speaker 4: were a little weaker, and it also the fact that 41 00:02:02,600 --> 00:02:05,000 Speaker 4: it managed to kind of avoid the worst of the 42 00:02:05,040 --> 00:02:08,919 Speaker 4: tariff impact in China, so Remi Kanto and also some 43 00:02:08,960 --> 00:02:12,680 Speaker 4: of the other competitors in that space of Bernarical for example, 44 00:02:12,919 --> 00:02:16,840 Speaker 4: they avoided the worst case scenario on Cognac tariffs from 45 00:02:16,960 --> 00:02:18,800 Speaker 4: China because they agreed. 46 00:02:18,440 --> 00:02:20,280 Speaker 3: To a minimum price level. 47 00:02:20,840 --> 00:02:23,600 Speaker 4: So Remy Quantco said that the move would have a 48 00:02:24,120 --> 00:02:27,639 Speaker 4: maximum impact of ten million euros rather than the forty 49 00:02:27,680 --> 00:02:31,200 Speaker 4: million that it had anticipated before, so that is quite 50 00:02:31,200 --> 00:02:34,720 Speaker 4: positive there, however, managed to avoid the worst of the 51 00:02:34,720 --> 00:02:37,920 Speaker 4: impact in China with tariffs. But there's also there's still 52 00:02:37,919 --> 00:02:40,360 Speaker 4: the US tariffs to think about, and that is a 53 00:02:40,400 --> 00:02:43,600 Speaker 4: different story that will also could have a thirty five 54 00:02:43,680 --> 00:02:45,520 Speaker 4: million euro hit, so. 55 00:02:45,480 --> 00:02:47,200 Speaker 3: It's not completely out of the woods. 56 00:02:47,240 --> 00:02:51,320 Speaker 4: It also is dealing with inflation economic concertainty. That's also 57 00:02:51,360 --> 00:02:54,560 Speaker 4: weighing on sales of spirits of course, and you know 58 00:02:54,800 --> 00:02:57,799 Speaker 4: the weak segment in the EMEA kind of proved that 59 00:02:57,919 --> 00:03:00,520 Speaker 4: so pretty good and it lifted the shares, but you know, 60 00:03:00,680 --> 00:03:03,080 Speaker 4: not a fully positive story across the board. 61 00:03:03,400 --> 00:03:05,639 Speaker 1: Yeah, it shares up three point one percent have come 62 00:03:05,639 --> 00:03:07,919 Speaker 1: towards the end of the first hour of European trading. 63 00:03:08,280 --> 00:03:09,960 Speaker 1: We'll stay in France for our next story. We'll sort 64 00:03:10,040 --> 00:03:13,800 Speaker 1: of the French supermarket Giant carfor selling its Italian operations. 65 00:03:13,880 --> 00:03:16,240 Speaker 1: Was it a special off for kloy Yes. 66 00:03:16,160 --> 00:03:19,639 Speaker 4: So cap two sets of quite good news from Carfell 67 00:03:19,680 --> 00:03:23,760 Speaker 4: that kind of made investors are quite happy. First of all, 68 00:03:24,040 --> 00:03:26,720 Speaker 4: before we talk about the acquisition, there's a good set 69 00:03:26,720 --> 00:03:28,120 Speaker 4: of results reported. 70 00:03:28,200 --> 00:03:31,520 Speaker 3: Second quarter sales that beat and less estimates. It kind of. 71 00:03:31,440 --> 00:03:35,160 Speaker 4: Defied expectations of a decline in France, so that that 72 00:03:35,320 --> 00:03:37,240 Speaker 4: was quite quite positive. There's been quite a lot of 73 00:03:37,280 --> 00:03:40,520 Speaker 4: weakness in volumes in France, so that's that's quite good. 74 00:03:40,840 --> 00:03:42,560 Speaker 4: But the main thing, yes, as you mentioned, so it 75 00:03:42,640 --> 00:03:45,760 Speaker 4: is selling its Italian operations to New Princes, which is 76 00:03:45,760 --> 00:03:49,000 Speaker 4: an Italian food company, for an enterprise value of about 77 00:03:49,120 --> 00:03:53,720 Speaker 4: one billion euros. The CFO said said yesterday that the 78 00:03:53,760 --> 00:03:57,480 Speaker 4: transactions will have a positive impact on the net free 79 00:03:57,520 --> 00:04:00,720 Speaker 4: cash flow of the group because Italy was really a 80 00:04:00,800 --> 00:04:03,119 Speaker 4: drag on earnings and also a drag on net free 81 00:04:03,120 --> 00:04:05,600 Speaker 4: cash flow. It had a negative cash of one hundred 82 00:04:05,640 --> 00:04:09,360 Speaker 4: and eighty million euros last year. So all of this 83 00:04:09,400 --> 00:04:12,400 Speaker 4: is also part of a strategic review that the CEO 84 00:04:12,520 --> 00:04:15,760 Speaker 4: started to kind of improve the valuation. So we might 85 00:04:15,800 --> 00:04:19,320 Speaker 4: see more asset disposals as the year goes. 86 00:04:19,120 --> 00:04:21,120 Speaker 3: On, so we'll have to keep an eye on that. 87 00:04:21,200 --> 00:04:24,080 Speaker 4: It is quite positive for CAW for it had been struggling, 88 00:04:24,120 --> 00:04:27,080 Speaker 4: you know, the share price was down ten percent year 89 00:04:27,080 --> 00:04:30,760 Speaker 4: to day before today, but that boost today was probably 90 00:04:30,839 --> 00:04:31,480 Speaker 4: pretty welcome. 91 00:04:33,240 --> 00:04:37,400 Speaker 2: The Stock Movers podcast from Bloomberg Radio. 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