1
00:00:02,520 --> 00:00:08,680
Speaker 1: Bloomberg Audio Studios, podcasts, radio News, The.

2
00:00:08,720 --> 00:00:12,560
Speaker 2: Stock Movers Report, your roundup of companies making moves in

3
00:00:12,600 --> 00:00:15,880
Speaker 2: the stock market, harnessing the power of Bloomberg Data.

4
00:00:16,640 --> 00:00:18,840
Speaker 1: Let's take a look now at some stocks making news

5
00:00:18,840 --> 00:00:21,440
Speaker 1: in the week ahead. I'm Nathan Hager, joined by Bloomberg

6
00:00:21,480 --> 00:00:25,680
Speaker 1: Equities reporter Alexandra Semenova, getting us ready for some stocks

7
00:00:25,680 --> 00:00:29,040
Speaker 1: that are going to make news on earnings, starting this Tuesday.

8
00:00:29,080 --> 00:00:30,160
Speaker 2: With Nike.

9
00:00:30,600 --> 00:00:33,720
Speaker 1: You know, alex that the struggle for this company has

10
00:00:33,880 --> 00:00:34,760
Speaker 1: been real.

11
00:00:35,440 --> 00:00:36,000
Speaker 2: Yeah, Nathan.

12
00:00:36,240 --> 00:00:38,840
Speaker 3: It is going to be an important company for investors

13
00:00:38,840 --> 00:00:42,800
Speaker 3: to watch, giving its role as a retail and consumer bellweather.

14
00:00:43,240 --> 00:00:46,519
Speaker 3: Its results will test whether its long promise turnaround is

15
00:00:46,520 --> 00:00:50,440
Speaker 3: gaining traction or not. So all in all, Nike anticipates

16
00:00:50,479 --> 00:00:54,080
Speaker 3: low single digit revenue declines in a gross margin contraction

17
00:00:54,240 --> 00:00:57,320
Speaker 3: year over year for the fiscal third quarter, and analysts

18
00:00:57,360 --> 00:01:01,840
Speaker 3: are also anticipating soft global sales inventum through March. China,

19
00:01:01,960 --> 00:01:05,600
Speaker 3: of course, remains the swing factor for this company. Its

20
00:01:05,640 --> 00:01:08,720
Speaker 3: turnaround still runs through China, where sales have been deeply

21
00:01:08,800 --> 00:01:13,200
Speaker 3: negative and remain a major drag on both revenue and earnings.

22
00:01:13,480 --> 00:01:16,880
Speaker 3: So any sign of stabilization for that sector, even something

23
00:01:16,920 --> 00:01:21,400
Speaker 3: that is just less bad could shifts sentiment quickly. Sales

24
00:01:21,400 --> 00:01:24,480
Speaker 3: in China are estimated to be down sixteen percent, with

25
00:01:24,600 --> 00:01:28,200
Speaker 3: operating margin down five hundred basis points, and in North

26
00:01:28,200 --> 00:01:32,120
Speaker 3: America there are early signs of improvement helping offset some

27
00:01:32,200 --> 00:01:35,680
Speaker 3: of the weakness in direct to consumer and international markets.

28
00:01:35,920 --> 00:01:38,839
Speaker 3: When it comes to the stock reaction that people anticipate

29
00:01:38,880 --> 00:01:42,520
Speaker 3: on the earnings, options markets are implying a seven point

30
00:01:42,640 --> 00:01:45,280
Speaker 3: six percent share move post earning, so going to be

31
00:01:45,560 --> 00:01:48,520
Speaker 3: interesting to see the market reaction to its results. And

32
00:01:48,600 --> 00:01:51,520
Speaker 3: looking at some of the Wall Street analyst reactions ahead

33
00:01:51,520 --> 00:01:55,120
Speaker 3: of the reports, UBS lowered its price target on the company.

34
00:01:55,240 --> 00:01:56,840
Speaker 3: Deutsche Bank did as well.

35
00:01:56,920 --> 00:01:59,960
Speaker 1: Okay, so it sounds like the bar is pretty low

36
00:02:00,240 --> 00:02:02,720
Speaker 1: when it comes to Nike, right, I mean, if they

37
00:02:03,000 --> 00:02:06,280
Speaker 1: can come out and you know, beat earnings, does that

38
00:02:07,160 --> 00:02:10,800
Speaker 1: imply that we could see a pretty significant boom for Nike.

39
00:02:11,040 --> 00:02:15,000
Speaker 3: It certainly does, you know, indicate that if they do

40
00:02:15,120 --> 00:02:18,280
Speaker 3: surprise to the upside, if they say anything positive, then

41
00:02:18,320 --> 00:02:21,040
Speaker 3: we could see a pretty strong reaction from the results.

42
00:02:21,080 --> 00:02:24,720
Speaker 3: Hence that nearly eight percent move that investors are pricing in.

43
00:02:25,000 --> 00:02:28,560
Speaker 1: Also on Tuesday, we hear from beyond Meat or are

44
00:02:28,560 --> 00:02:31,280
Speaker 1: they calling themselves beyond now? Did they drop the meat

45
00:02:31,320 --> 00:02:33,720
Speaker 1: from that? I can't remember, Yeah, I can't remember.

46
00:02:33,800 --> 00:02:35,919
Speaker 3: It's hard to keep up. So they have a new

47
00:02:35,960 --> 00:02:40,360
Speaker 3: overhand that we are monitoring, which is accounting and control issues.

48
00:02:40,639 --> 00:02:44,760
Speaker 3: So they delayed their earnings results after identifying accounting errors

49
00:02:45,000 --> 00:02:49,400
Speaker 3: and material weakness tied to inventory. That's raised questions about

50
00:02:49,400 --> 00:02:53,000
Speaker 3: its internal controls and for investors now the focus isn't

51
00:02:53,080 --> 00:02:55,960
Speaker 3: just on the fundamentals from the earnings report, but about

52
00:02:56,240 --> 00:02:59,320
Speaker 3: governance and execution risk as well, depending on what they

53
00:02:59,400 --> 00:03:01,960
Speaker 3: say about those issues. So the company had found errors

54
00:03:02,120 --> 00:03:05,880
Speaker 3: and it's previously issued financial statements for the first three

55
00:03:05,960 --> 00:03:09,480
Speaker 3: quarters of twenty twenty five. Management had tried to assure

56
00:03:09,520 --> 00:03:13,880
Speaker 3: investors that these aren't material errors and they're going to

57
00:03:13,880 --> 00:03:16,840
Speaker 3: get them fixed pretty quickly. But investors will be keen

58
00:03:17,080 --> 00:03:19,400
Speaker 3: to hear what they say during the earnings call about

59
00:03:19,400 --> 00:03:23,280
Speaker 3: those accounting mishaps. And then on the fundamental side, Beyond

60
00:03:23,280 --> 00:03:27,600
Speaker 3: Me is facing shrinking sales and ongoing losses. The company

61
00:03:27,639 --> 00:03:31,400
Speaker 3: expects preliminary net revenues of about sixty one million for

62
00:03:31,440 --> 00:03:34,320
Speaker 3: the fourth quarter of twenty twenty five. That aligns with

63
00:03:34,400 --> 00:03:38,320
Speaker 3: prior guidance of between sixty million and sixty five million dollars,

64
00:03:38,560 --> 00:03:41,080
Speaker 3: and the company is still expecting to post a loss,

65
00:03:41,400 --> 00:03:45,960
Speaker 3: highlighting how far it remains from any sustained profitability. This comes,

66
00:03:45,960 --> 00:03:49,040
Speaker 3: of course, as consumers just pull back from their product

67
00:03:49,480 --> 00:03:53,880
Speaker 3: due to higher prices, competition from cheaper animal protein, and

68
00:03:54,000 --> 00:03:56,600
Speaker 3: a broader shift toward less processed food.

69
00:03:56,840 --> 00:03:58,720
Speaker 1: Yeah, I mean it's it's got to be tough, just

70
00:03:58,840 --> 00:04:02,960
Speaker 1: from the fact that traditional meats have gotten more expensive

71
00:04:02,960 --> 00:04:06,040
Speaker 1: these days as well, So definitely keeping an eye on

72
00:04:06,080 --> 00:04:09,160
Speaker 1: that stock as well. And then on Thursday we get

73
00:04:09,200 --> 00:04:12,000
Speaker 1: results from ourh I think a lot of us might

74
00:04:12,000 --> 00:04:14,960
Speaker 1: remember this one better is restoration Hardware, but this could

75
00:04:15,000 --> 00:04:17,919
Speaker 1: be really interesting to hear from a furniture maker in

76
00:04:17,920 --> 00:04:18,640
Speaker 1: this environment.

77
00:04:18,960 --> 00:04:22,080
Speaker 3: It certainly will be because this company was kind of

78
00:04:22,120 --> 00:04:25,240
Speaker 3: at the center of some of the tariff volatility last year.

79
00:04:25,600 --> 00:04:29,000
Speaker 3: So our Age is expected to experience sales gains extending

80
00:04:29,040 --> 00:04:32,120
Speaker 3: into twenty twenty six, a positive they are given its

81
00:04:32,200 --> 00:04:36,000
Speaker 3: unique position with high end consumers and a small share

82
00:04:36,040 --> 00:04:39,599
Speaker 3: of the home furnishings market, and sales growth is projected

83
00:04:39,720 --> 00:04:42,960
Speaker 3: to slow a bit to a six quarter low in

84
00:04:43,000 --> 00:04:46,200
Speaker 3: the fiscal fourth quarter falling a slight softening in twenty

85
00:04:46,240 --> 00:04:49,960
Speaker 3: twenty five. Our Age is moving forward with its hospitality

86
00:04:50,040 --> 00:04:53,960
Speaker 3: and international expansion strategies, so investors will be keen to

87
00:04:54,000 --> 00:04:57,680
Speaker 3: hear what updates they have on that. Those of course,

88
00:04:57,720 --> 00:05:01,400
Speaker 3: could lead to stronger market share, but they also involve

89
00:05:01,560 --> 00:05:05,760
Speaker 3: execution risk and concerns still remain about the impact from

90
00:05:05,960 --> 00:05:09,839
Speaker 3: tariffs and any ongoing investment spending. You might remember that

91
00:05:10,279 --> 00:05:14,480
Speaker 3: the company had trimmed its fullier outlook before citing pressures

92
00:05:14,520 --> 00:05:18,400
Speaker 3: from tariffs, and famously, last April, its CEO drew attention

93
00:05:18,600 --> 00:05:22,760
Speaker 3: during the company's earnings call after blurting out a curse

94
00:05:22,839 --> 00:05:26,440
Speaker 3: word watching their stock decline as tariffs were implemented. So

95
00:05:26,920 --> 00:05:29,080
Speaker 3: that's an interesting one to remember, and it's going to

96
00:05:29,080 --> 00:05:32,120
Speaker 3: be really important to hear what they say about tariffs.

97
00:05:32,360 --> 00:05:36,520
Speaker 1: Yeah, a lot of potential headwinds still for all of

98
00:05:36,560 --> 00:05:40,760
Speaker 1: these companies. It sounds like the bar is pretty high

99
00:05:40,960 --> 00:05:41,600
Speaker 1: all around.

100
00:05:42,120 --> 00:05:44,599
Speaker 3: Yeah, I mean, the earnings reports will be a make

101
00:05:44,760 --> 00:05:48,839
Speaker 3: or break moment for equity investors given all the updates

102
00:05:48,880 --> 00:05:51,560
Speaker 3: we're expected to get on the impact of oil prices

103
00:05:51,560 --> 00:05:55,360
Speaker 3: on their businesses and on the continued unwind of tariffs.

104
00:05:57,080 --> 00:06:01,080
Speaker 2: This stock mover's report from Bloomberg Radio. Check back with

105
00:06:01,160 --> 00:06:03,760
Speaker 2: us throughout the day for the latest roundup of companies

106
00:06:03,800 --> 00:06:06,920
Speaker 2: making news on Wall Street and for the latest market

107
00:06:06,960 --> 00:06:11,440
Speaker 2: moving headlines. Listen to Bloomberg Radio Live, catch us on YouTube,

108
00:06:11,520 --> 00:06:15,000
Speaker 2: Bloomberg dot com, and on Applecarplay and Android Auto with

109
00:06:15,080 --> 00:06:16,559
Speaker 2: the Bloomberg Business app.