WEBVTT - Adidas Gains, Swatch Rises, Signify Slumps

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

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

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

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<v Speaker 1>Well, let's take a look at some stocks on the

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<v Speaker 1>move today in Europe. I'm Stephen Caroll with Lizzie Burdon,

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<v Speaker 1>and we're joined by Bloomberg reporter Chloe Melee Chloy. Good morning,

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<v Speaker 1>Good morning. Let's start then with a jump for adi

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<v Speaker 1>Das after their latest results.

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<v Speaker 3>Yes, it's a great day for Eddides today. They reported

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<v Speaker 3>stronger than expected profit, also announced a new buyback and

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<v Speaker 3>this really helped to reassure investors after quite a lot

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<v Speaker 3>of weakness in those shares lately. There was a lot

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<v Speaker 3>of concerns among investors that currency headwinds and in taris

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<v Speaker 3>would really start to weigh on performance. So there may

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<v Speaker 3>be the momentum behind some of the flagship products that

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<v Speaker 3>Edidas has would start to slow down a little bit.

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<v Speaker 3>But the strong results that we have this morning and

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<v Speaker 3>then the buyback were really reassuring, and now an listener

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<v Speaker 3>saying that momentum could actually go even further in twenty

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<v Speaker 3>twenty six, given that there's actually, of course quite a

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<v Speaker 3>lot of sports this year. You know, things like the

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<v Speaker 3>Football World Cup will be really great for Adidas. There

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<v Speaker 3>was really something to capitalize on for them. And the

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<v Speaker 3>company is also now really trying to diversify some of

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<v Speaker 3>its growth drivers. You know, for a while, it has

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<v Speaker 3>really relied on how popular it's retro sneakers were, so

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<v Speaker 3>we saw the sambur and the Gazelle everywhere in London,

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<v Speaker 3>for example. But now it wants to tap a little

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<v Speaker 3>bit more into running into football demandster kind of refocusing

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<v Speaker 3>on sports over fashion perhaps a little bit. And investors

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<v Speaker 3>and analysts have said that there are signs that the

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<v Speaker 3>sneaker boom is slowing down a little bit, so it

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<v Speaker 3>might be actually a perfect time for Adidas to kind

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<v Speaker 3>of go back to those sports routes.

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<v Speaker 2>Yeah, Bloomberg Opinion, Calmus Andrea Felsted was telling us that

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<v Speaker 2>the trainers are dead.

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<v Speaker 1>Feel like that's going to make people look a bit

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<v Speaker 1>fuddy dotty if they're still wearing them in the office.

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<v Speaker 1>Trainers used to make you look useful.

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<v Speaker 3>But speaking of stocks to watch, Swatch also on your

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<v Speaker 3>radar this morning. Yeah, it seems for Swatch that twenty

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<v Speaker 3>six will be a very different year to twenty twenty five.

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<v Speaker 3>So if we look at the results for twenty twenty five,

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<v Speaker 3>the profit fell more than fifty percent and miss expectations

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<v Speaker 3>by quite a large margin, and that was because of

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<v Speaker 3>a lot of weakness in China and then of course

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<v Speaker 3>tariffs from the US, which meant that the US market

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<v Speaker 3>was also a lot weaker. But then Swatch said this

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<v Speaker 3>morning that it actually expects really substantial growth for twenty

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<v Speaker 3>twenty six, and it said that it had seen a

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<v Speaker 3>rebound in demand over the second half of the year,

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<v Speaker 3>that it had had a particularly good fourth quarter, and

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<v Speaker 3>so that boads really well for this year. And it's

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<v Speaker 3>obviously been an interesting few months, an interesting year for

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<v Speaker 3>the watchmaking industry. We had, of course Trump imposing thirty

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<v Speaker 3>nine percent tariffs on Switzerland and walking those back, and

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<v Speaker 3>it seems that the reduction of tariffs actually meant that

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<v Speaker 3>Swiss watch exports returned to growth in December because brands

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<v Speaker 3>were rushing to send inventory to the US after the

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<v Speaker 3>tariffs were eased. And so it seems that now that

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<v Speaker 3>watchmaking industry is kind of turning a corner. We had

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<v Speaker 3>a reach more earlier in this earning sea, which is

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<v Speaker 3>also another big Swiss watchmaker reporting a pretty good quarter,

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<v Speaker 3>pretty up bey outlook, so definitely good news for that sector.

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<v Speaker 1>Okay, I'm going to do my best impression of a

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<v Speaker 1>comedy radio show house. Now, who's not in the mood

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<v Speaker 1>for lighter news this morning?

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<v Speaker 2>It's like the Irish alon park.

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<v Speaker 3>Yeah, I chose this dog just because of the pun potential.

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<v Speaker 3>So Signify as a lamp maker and not very bright

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<v Speaker 3>results for Signify this morning. Just issued a profit warning

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<v Speaker 3>and decided not to provide revenue guidance at this point.

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<v Speaker 3>It started a cost reduction program that will impact about

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<v Speaker 3>nine hundred jobs, said that I'll be pausing share buyer

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<v Speaker 3>backs for the foreseeable and it also said that those

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<v Speaker 3>difficult conditions would continue throughout the year. So, according to analyst,

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<v Speaker 3>there's a few reasons why this company is currently in

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<v Speaker 3>the situation that it's finding itself in, and it is

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<v Speaker 3>because there's lower demand. You know, it's exposed to the

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<v Speaker 3>construction market, so if there are few things to being built,

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<v Speaker 3>there's less need for lights being installed. This tariffs as

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<v Speaker 3>well weighing on the company and this pricing pressure, and

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<v Speaker 3>so Morgan Stanley analyst said that the results were a

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<v Speaker 3>material negative for a stock that investors were already quite

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<v Speaker 3>cautious on, and so we saw the Shes really tumbling

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<v Speaker 3>this morning, and it's probably going to be quite hard

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<v Speaker 3>for Signified to come back from them.

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<v Speaker 2>The Stock Movers Report from Bloomberg Radio. Check back with

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