Speaker 1: Bloomberg Audio Studios, podcasts, radio news.
Speaker 2: The Stock Movers Report, your roundup of companies making moves
Speaker 2: in the stock market, harnessing the power of Bloomberg Data.
Speaker 3: Let's have a look at some of the stocks they'll
Speaker 3: move today here in Europe. I'm Caroline Hepka and were
Speaker 3: joined Barbluberg reporter Cloimba La. Good morning, coy. So let's
Speaker 3: start with Ammes not Immune. How investors thinking about the
Speaker 3: latest results.
Speaker 1: Yeah, it's a very tough morning for luxury as a whole.
Speaker 1: So we had MS, which is traditionally quite a resilient
Speaker 1: luxury company that has been really able to withstand some
Speaker 1: other downturns in the industry today reporting results that were
Speaker 1: quite disappointing. And we also had Caring last night with
Speaker 1: the sales at Gucci excuse me, falling by more than
Speaker 1: expected and than the day before. Was alvim Mahor of course,
Speaker 1: with which also did worse than anticipated. So the common
Speaker 1: theme for all three companies is that they are really
Speaker 1: feeling the impact of the conflict in the Middle East
Speaker 1: on those sales. And so that's both because there was
Speaker 1: much weaker demand in the shopping hubs like to buy
Speaker 1: for example, but also because the impact has reverberated across
Speaker 1: other markets and really hurting consumer confidence and travel globally
Speaker 1: as well. And so for example, for MMES, it said
Speaker 1: that stores in France were hit by much lower tourism
Speaker 1: spent buying Middle Eastern shoppers, for example. So for a
Speaker 1: luxury sector as a whole, this is really kind of
Speaker 1: doing hopes of a rebound after some signs of the
Speaker 1: previous earning season that things were actually getting a little
Speaker 1: bit better. So this is definitely a big setback, and
Speaker 1: it seems that it is impacting everyone, included MS, which
Speaker 1: someone expected to be a little bit more resilient to this.
Speaker 3: Yes, Irmes is share price falling the most on RACLE,
Speaker 3: but you're right, it's got to read across because Kerring, Berbery, Reschmart,
Speaker 3: they're all in those worse performing ten stocks, More Claire
Speaker 3: as well today, so it's really quite broad across that
Speaker 3: luxury sector. Now, news of some turnaround signs from Atlantis
Speaker 3: our investors optimistic.
Speaker 1: Yeah, it seems like they are.
Speaker 3: So.
Speaker 1: Silantra's reported to quite a big rise in shipments for
Speaker 1: the first quarter and that was particularly led by North America,
Speaker 1: so that's being taken as a sign that the ongoing
Speaker 1: turnaround is taking shape. So the CEO, Antonio Felosa, took
Speaker 1: over in June, and he's launched quite wide ranging efforts
Speaker 1: to kind of get Stilanta's back on track. He's rolled
Speaker 1: back on electric vehicle plans, he's worked on more hybrid
Speaker 1: models and then as also cut prices to regain some
Speaker 1: market share. And another big part of the strategy was
Speaker 1: also to refocus on the US market, getting Americans back
Speaker 1: in jeeps, for example, and so that seems to be
Speaker 1: working and Stillanta's grew actually in all regions, including in Europe.
Speaker 1: So overall it's a very positive picture, and that's especially
Speaker 1: in the context of the company earlier this year in
Speaker 1: February shocking markets with surprise write downs and charges of
Speaker 1: twenty two billion euros. A lot of that was linked
Speaker 1: to unwinding the ev strategy that was put in place
Speaker 1: by the previous CEO, and that triggered a really massive
Speaker 1: slump in the shares back in February. So Silantis has
Speaker 1: much further to go now to kind of erase those losses.
Speaker 1: But now it seems like maybe the worst is behind it,
Speaker 1: and it's quite encouraging for investors.
Speaker 3: Okay, that's so interesting. So what about ASMOL, obviously the
Speaker 3: biggest company in Europe, very important earnings out today.
Speaker 1: Yeah, so it raised its four year sales guidance, but
Speaker 1: at the same time it also provided a second quarter
Speaker 1: sales forecast that was a little lighter than expected. Overall,
Speaker 1: the outlook does seem definitely quite strong. The CEO said
Speaker 1: that growth in the semiconductor industry was continuing to solidify,
Speaker 1: that customers were accelerating those investments in AI. But shares
Speaker 1: have not reacted the way you'd expect with a guidance raise,
Speaker 1: so they were down slightly at the open, fluctuating within
Speaker 1: quite a narrow range since then, and that is likely
Speaker 1: because that guidance raise was actually expected by investors, and
Speaker 1: the positive outlook is already reflected in a stock price
Speaker 1: that has jumped almost forty percent since the start of
Speaker 1: the year. But overall, though there is clearly some strong
Speaker 1: confidence the AI boost is looking like it's there to stay,
Speaker 1: and the focus is now really shifting to twenty twenty
Speaker 1: seven and whether the SMaL is able to really sustain
Speaker 1: that momentum.
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