Adidas shares fall despite boost from third-quarter guidance
Adidas Shares in Europe’s largest sportswear maker fell 4% on Tuesday as of 8:18 a.m. London time Full-year profit and sales guidance raised Thanks to better-than-expected third-quarter earnings.
Adidas now expects revenue before currency factors to grow 10% this year, compared with the previous forecast of high single digits. The company also now expects operating profit to be around 1.2 billion euros ($1.31 billion) this year, compared with 1 billion euros previously.
The company reported that third-quarter revenue increased 10% annually on a currency-neutral basis, with gross profit margin growing 2 percentage points during the period to 51.3%.
The brand has been on the rebound since its partnership with American rapper Ye collapsed, ending their popular Yeezy collaborations. The company said on Tuesday it expected to be able to sell remaining Yeezy inventory “at average cost price,” adding 50 million euros to sales.
— Ruksandra Jordash
LVMH shares opened down 6.3% after disappointing third-quarter results
On January 25, 2024, LVMH Moet Hennessy Louis Vuitton Chairman and CEO Bernard Arnault delivered a speech at the LVMH 2023 annual results press conference in Paris, France.
Gonzalo Fuentes | Reuters
shares LVMH The luxury goods group reported a 3% drop in third-quarter sales and opened down 6.3% on Wednesday.
LVMH announced on Tuesday that its revenue in the three months to September was 19.08 billion euros ($20.8 billion), down 3% from organic growth in the same period last year.
in the income statement“Third-quarter revenue declined slightly, primarily due to slower economic growth in Japan, with a stronger yen being the primary cause,” the company said.
It added, “Amidst the uncertain economic and geopolitical environment, the group remains confident and will maintain its strategy of focusing on continuously improving the attractiveness of its brands.”
In addition to Louis Vuitton and Moët Hennessy, LVMH also owns brands such as Dior, Bulgari, Givenchy and Fendi.
—Holly Eliat, Reuters
ASML stock in focus after disappointing sales forecast
On June 16, 2023, the ASML logo was located at the headquarters in Veldhoven, the Netherlands.
Piroschka Van De Wouw | Piroschka Van De Wouw Reuters
shares ASML Wednesday will be closely watched after the Dutch chip company reported financial results a day early and issued a disappointing sales forecast.
Veldhoven, Netherlands-based ASML said it expected net sales in 2025 to be between 30 billion euros and 35 billion euros ($32.7 billion to $38.1 billion), in the lower half of a previously provided range.
The company said net bookings for the September quarter were 2.6 billion euros ($2.83 billion), well below LSEG’s consensus estimate of 5.6 billion euros. However, net sales reached 7.5 billion euros, exceeding expectations.
Read more: Chip company ASML’s stock price plunged 16% after warning of weak sales in China earlier
— Ryan Brown
UK inflation fell sharply to 1.7% in September
Shoppers walk along a high street in Rochester, England, on Tuesday, July 16, 2024.
Chris Ratcliffe | Bloomberg | Getty Images
The Office for National Statistics said on Wednesday that UK inflation fell sharply to 1.7% in September.
Economists polled by Reuters had expected headline interest rates to rise to 1.9% this month, below the Bank of England’s 2% target for the first time since April 2021.
Inflation has hovered around this level for the past four months. It was 2.2% in August.
Read more: UK inflation fell sharply to 1.7%, below the Bank of England target for the first time in more than three years
—Jenny Reed
CNBC Pro: Citi names “undervalued” artificial intelligence stock as a “top pick” — giving it 25% upside
Citigroup has named a little-known company one of its new “top picks,” citing an “underappreciated” artificial intelligence story and attractive valuation.
Shares of the tech company have soared more than 50% so far this year, outperforming the broader market iShares expands technology software sector ETFan increase of nearly 14% this year.
The Wall Street bank also said the company reported “strong” financial results for the second quarter.
CNBC Pro subscribers can read more here.
— Ganesh Rao
Chip stocks were biggest culprits in Tuesday’s Nasdaq 100 decline
this Nasdaq 100 Index Semiconductors were one of the biggest drivers of the index’s decline, down 1.37% on Tuesday.
Nasdaq 100 Index over the past five trading days
CNBC Pro: Rates won’t be cut at an aggressive pace, strategists say — here’s how to position yourself
Market observers say the U.S. is unlikely to cut interest rates significantly.
They said that the Federal Reserve cut interest rates sharply by 50 basis points in September, kicking off the easing cycle, but subsequent interest rate cuts will be more moderate.
They explain why and how investors should position themselves.
CNBC Pro subscribers can read more here.
— Weizhen Tan
European Markets: Here are the opening calls
European markets are expected to open lower on Wednesday.
British FTSE 100 German stocks are expected to open 6 points lower at 8,249 German DAX Index France fell 35 points to 19,482 CAC Down 59 points to 7,469 points, Italy FTSE MIB It fell 137 points to 34,246, according to IG data.
UK and Italian inflation data are released today.
Correction: This article has been updated to reflect the timing of ASML’s earnings release.
— Holly Elliot
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