On this edition of Stock Movers:
- Broadcom (AVGO) shares slipped after the chip supplier delivered a revenue forecast for the current period that failed to impress some investors, a sign they were anticipating a bigger payoff from the AI boom. Sales will be about $17.4 billion in the fiscal fourth quarter, which runs through October, the company said in a statement Thursday. Analysts had projected $17.05 billion on average, though some estimates topped $18 billion, according to data compiled by Bloomberg. Expectations were high heading into the earnings report. Broadcom shares more than doubled since hitting a low in April, adding about $730 billion to the company’s market value and making them the third-best performer in the Nasdaq 100 Index.
- Lululemon (LULU) shares fell sharply after its latest earnings report showed the yogawear retailer is struggling to pull out of a sales slump after years of rapid growth. The company slashed its outlook, projecting sales in the range of $2.47 billion to $2.5 billion for the third quarter, lower than Wall Street had anticipated. For the full year, Lululemon lowered its earnings per share outlook to $12.77 to $12.97, down from as much as $14.78. The retailer also reduced its outlook for full year net revenue, now expecting it to be between $10.85 billion and $11 billion, down from as much as $11.3 billion projected in the first quarter. Shares of Lululemon fell more than 13% at 4:20 p.m. in New York on Thursday. “We are disappointed with our U.S. business results and aspects of our product execution,” Chief Executive Officer Calvin McDonald said in a statement.
- American Eagle (AEO) shares soared after the apparel company reported higher-than-expected quarterly sales and cited the success of its marketing campaign featuring Sydney Sweeney. “In just six weeks, the campaign has generated unprecedented new customer acquisition,” Chief Marketing Officer Craig Brommers said in a call with analysts. He said the company gained new shoppers in “every single county in the US” and saw sellouts of Sweeney’s signature jeans. “This momentum is national and it is pervasive,” he said.
See omnystudio.com/listener for privacy information.
