Speaker 1: Bloomberg Audio Studios, podcasts, radio news.
Speaker 2: The Stock Movers podcast, your roundup of companies making moves
Speaker 2: in the stock market, harnessing the power of Bloomberg data.
Speaker 3: Let's look at some of the individual stocks that are
Speaker 3: on the move today here in Europe. I'm Caroline Hepget
Speaker 3: and I'm joined by our Bloomberg Equities reported Chloe Malay. Chloe,
Speaker 3: good morning, Good morning. So thinking about European stocks, Adidas
Speaker 3: to shares are down.
Speaker 1: Why so, on the surface, the results from Adidas this
Speaker 1: morning were actually quite good to the profit be estimates.
Speaker 1: That was due to strong demand for its retro sneakers
Speaker 1: like the Samba sneakers. We see those all over London.
Speaker 1: But this wasn't really enough to have set invest a
Speaker 1: concern about two things in particular. So first of all,
Speaker 1: it reported weaker than expected revenue growth, so that was
Speaker 1: weighed down by the stronger euro and then also the
Speaker 1: end of the Easy franchise. And then secondly, and more importantly,
Speaker 1: it disappointed investors by only reaffirming and not raising its
Speaker 1: annual guidance. And that's obviously despite that uplift in profit
Speaker 1: during the second quarter that I mentioned. So that means
Speaker 1: that now the guidance actually sits below analysts expectations, and
Speaker 1: the reason why the CEO didn't want to raise that
Speaker 1: guidance is because of that continuing uncertainty around the impact
Speaker 1: of US tariffs. He said that he expects the associated
Speaker 1: costs of Adidas products for the US to reach as
Speaker 1: much as two hundred million euros this year, and of
Speaker 1: course that could have a knock on effect on consumer
Speaker 1: demand there So that was the kind of reasoning for
Speaker 1: not raising that forecast, but that of course disappointed investors.
Speaker 3: Gosh, I'm surprised that the Yeasy brand, the conclusion of
Speaker 3: that is still something that's weighing on addidus. I mean,
Speaker 3: that's a really sort of old story, isn't it quite
Speaker 3: interested in that? What about luxury names and shoppers are
Speaker 3: turning away from Cowing's largest brand, Gucci.
Speaker 1: Yeah, so in the luxury sector we had Carrying but
Speaker 1: also ammez and so this is quite interesting because we've
Speaker 1: seen with those two, we've seen a continuation of the
Speaker 1: trends that we have seen over the last few quarters.
Speaker 1: So high in luxury, like Almes is very resilient. You know,
Speaker 1: if you can buy it back in bag, you can
Speaker 1: buy it whenever, really, so you can buy anything even
Speaker 1: when the economy is not good. Whereas the more aspirational
Speaker 1: end of the market, so things that Gucci, they struggled
Speaker 1: a little bit more in terms of times of economic downturn.
Speaker 1: And so we saw that today. So Emmes revenue rose
Speaker 1: nine percent in the second quarter and carrying revenue fell
Speaker 1: fifteen percent in the second quarter, so we can see
Speaker 1: that divergence there, but the shares kind of responded in
Speaker 1: the opposite way. So carrying shares actually rose because the
Speaker 1: resources was just not as bad as it was expected.
Speaker 1: And then also there's a fair bit of enthusiasm for
Speaker 1: the arrival of the new CEO, Luca de Mero, who's
Speaker 1: coming in in September. There's enthusiasm and hope that he
Speaker 1: might turn around the fortunes of Caring, whereas AMA shars
Speaker 1: actually fell because it's been trading so strongly and the
Speaker 1: earnings momentum just does and look strong enough according to
Speaker 1: analysts to kind of justify it continue to justify such
Speaker 1: a high valuation.
Speaker 3: Yeah. Absolutely, And I mean, if you really want to
Speaker 3: be in with the in crowd, it's all about understanding
Speaker 3: what the new artistic director at Gucci Demna, he's going
Speaker 3: to deliver and we're going to get first hints of
Speaker 3: that in September. But then the big revere will be
Speaker 3: at Milan in mark Chare. So the fashionistas have told
Speaker 3: me I will have on. Yeah, let's see, okay, Danone
Speaker 3: that says that sales also beat expectations Activitia, yogurt and
Speaker 3: so on.
Speaker 1: Yeah, so Dan, and yeah, it did did really well
Speaker 1: this morning. Shares rose quite a bit, so volumes rose
Speaker 1: across all categories, but it was really led by high
Speaker 1: protein products. So it's really benefiting from the recent sort
Speaker 1: of protein trends. So that's driven of course by people
Speaker 1: on GLP ones that kind of need those high protein
Speaker 1: products like like yogurt, like dairy, et cetera, but then
Speaker 1: also just more generally health conscious consumers and there's a
Speaker 1: real drive for for protein products.
Speaker 2: That is.
Speaker 1: Those results were kind of really a vote of confidence
Speaker 1: in the turnaround from the CEO, Antoine south Afric, who
Speaker 1: took over from the previous year in twenty twenty one,
Speaker 1: and that was following kind of a decade of stagnation
Speaker 1: for the company. So it seems like he's really turning
Speaker 1: things around. Another strong unit was the medical nutrition business,
Speaker 1: so that includes infant formula but then also food for
Speaker 1: cancer patients and the elderly. That's been boosted by Devon
Speaker 1: and China, and there's quite a good growth outlook because
Speaker 1: of the aging population, so that's interesting to look at.
Speaker 1: And one negative spot was the water catchcrease, so every
Speaker 1: involvic Apparently people don't want to buy.
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