WEBVTT - Week Ahead: FedEx, Macy's, Lululemon

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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 1>Let's take a look. Now, it's some stocks making news

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<v Speaker 1>in the week ahead. I'm Nathan Hager, joined by Bloomberg

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<v Speaker 1>News Cross asset Reporterdnitza Sikova. Earnings, Denisa, let's start with

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<v Speaker 1>the one that's coming on Thursday, a pretty big bell

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<v Speaker 1>weather on economic activity. What are we expecting from FedEx?

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<v Speaker 3>FedEx definitely a big one. We actually had a great

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<v Speaker 3>story this week on the termino. FedEx has eclipsed their

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<v Speaker 3>rival ups and it has become the largest US parcel

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<v Speaker 3>carrio by market value for the first time. Definitely an

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<v Speaker 3>interesting thing going into the earnings. What we're seeing for

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<v Speaker 3>this earning season is that the company raised the low

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<v Speaker 3>end of its full yer adjusted EPs, so now current

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<v Speaker 3>is about seventeen doors and eighty cents. But it increased

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<v Speaker 3>the full year revenue growth range to five six percent,

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<v Speaker 3>so definitely some optimism there. The company is actually up

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<v Speaker 3>twenty four percent this year. The ticker, of course, is

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<v Speaker 3>FDx for FedEx. This has been the latest sign that

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<v Speaker 3>the company's management has won investors over with plans to

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<v Speaker 3>trim costs, boost margins, and spin off its freight business.

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<v Speaker 3>I'm sure investors will be looking for all that. Another

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<v Speaker 3>interesting metric analyst we're expecting is FedEx is expected to

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<v Speaker 3>face approximately six hundred million headwinds in the second half

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<v Speaker 3>of the year. About two hundred and sixty five million

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<v Speaker 3>are attributed to higher variable compensation. So that's one interesting

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<v Speaker 3>number that could perhaps way on the super positive outlook

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<v Speaker 3>going into the earning season.

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<v Speaker 1>Yeah, to your point, I mean, the outlook has been

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<v Speaker 1>strong and this stock has been on a tear as well.

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<v Speaker 1>Does that set the bar even higher for FedEx to outperform?

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<v Speaker 4>For sure?

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<v Speaker 3>And obviously we're in very high market volativity. Reporting even

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<v Speaker 3>just the basic earnings reports in the current marketing environment

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<v Speaker 3>is hard. Obviously, we talked about ups and the FedEx competition,

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<v Speaker 3>and investors have been reacting way more possibly to FedEx

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<v Speaker 3>and have been quite punishing to EPs. So I'm sure

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<v Speaker 3>those tides could turn quickly, But for now, you know,

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<v Speaker 3>up more than twenty percent this year.

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<v Speaker 1>Yeah, on a tair, like we say, and a day

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<v Speaker 1>before FedEx we're going to get results from Macy's on Wednesday.

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<v Speaker 1>Of course, we saw this stock drop after Coals reported

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<v Speaker 1>its results this past week, So what should we expect

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<v Speaker 1>from Macy's this week?

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<v Speaker 3>Quite the opposite story on Macy's. The company is down

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<v Speaker 3>twenty two percent this year. Of course, the ticker is

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<v Speaker 3>the last time reported they reported earning, shares declined rapidly

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<v Speaker 3>their forecasts. Their profit forecast for the quarter was disappointing,

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<v Speaker 3>even though the earnings reports was pretty solid. What we

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<v Speaker 3>expected this time is net sales are projected to be

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<v Speaker 3>around seven point five billion. Comparable sales are expected to

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<v Speaker 3>increase about one hundred two percent, potentially exceeding the consensus.

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<v Speaker 3>We're obviously coming into this earning system with pretty bearish

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<v Speaker 3>pricing of the company. Blooming Dels is expected to be

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<v Speaker 3>a strong performance. Sales are projected to rise approximately seven percent.

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<v Speaker 3>Everyone will looking for the earning scoll. It's expected to

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<v Speaker 3>focus on the progress of its makeover. And one thing

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<v Speaker 3>we've been talking a lot about is the potential sex

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<v Speaker 3>store acquisition, so I'm sure everyone will be listening about

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<v Speaker 3>that as well.

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<v Speaker 1>Oh definitely, that's one to scoop up after their bankruptcy

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<v Speaker 1>for sure, and before both those names report Deny. So

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<v Speaker 1>we're going to hear from Lulu Lemon on Tuesday. Talk

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<v Speaker 1>about struggles. This company seems to exemplify it.

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<v Speaker 3>Yeah, the company has really suffered a lot, anything from

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<v Speaker 3>just so many scandals about different leggings and whether they're

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<v Speaker 3>transparent or not, to just kind of broader challenges. Lul

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<v Speaker 3>Lemon stocks are down almost seventy percent since the start

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<v Speaker 3>of twenty twenty four. Activist investor Elliott Investment has amassed

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<v Speaker 3>a more than one billion stake in the company. We

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<v Speaker 3>had the company founder, Chip Wilson stepping up his campaign

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<v Speaker 3>against the company's board in the midst of search of

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<v Speaker 3>a new CEO. So we have all this tension going

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<v Speaker 3>into the earning season. Of course, the ticker is Lulu

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<v Speaker 3>lul Lemon updated guidance engineering indicating that net revenue and

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<v Speaker 3>diluted earnings per share for the fourth quarter will be

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<v Speaker 3>towards the higher ends, so definitely some optimism there. They

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<v Speaker 3>expect between three point five billion and a little bit

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<v Speaker 3>higher than this. Tariff risks, which what everyone has been

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<v Speaker 3>looking at, unless you're saying that tariff risks have been reduced,

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<v Speaker 3>so that could support the company.

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<v Speaker 4>But we have that CEO Search.

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<v Speaker 3>We have all those candles this year, so it's a

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<v Speaker 3>high bar for investors to be impressed.

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<v Speaker 1>Yeah, you know for all these companies, DENIZI you might

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<v Speaker 1>think that there's a risk around tariffs as well as

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<v Speaker 1>you know, some of the geopolitical risk that we're seeing

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<v Speaker 1>on the war in the Middle East as well. I mean,

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<v Speaker 1>how all that play out into some of these earnings

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<v Speaker 1>that we're expecting this way.

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<v Speaker 4>For sure, that's adding a lot of tension.

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<v Speaker 3>I feel don't how tariffs has taken a step back,

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<v Speaker 3>and everyone's worried about others thing. The consumers are not

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<v Speaker 3>doing so well. For example, Macy's in their last reports

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<v Speaker 3>it was all about the consumer. They said that those

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<v Speaker 3>low income consumers are stepping back, but still they're seeing

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<v Speaker 3>a lot of support from their mido income to high

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<v Speaker 3>income consumer. And I'm sure a lot of those brands

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<v Speaker 3>and companies we talked about are dealing with the same thing.

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<v Speaker 4>Are our low income customers coming.

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<v Speaker 3>Back, our middle income and high income customers spending enough to.

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<v Speaker 4>Compensate for that laws of low income spending?

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<v Speaker 2>The stock Mover's report from Bloomberg Radio. Check back with

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