Lululemon's Next Play 🌍

Plus, Dell's "significant tailwind."

August 30, 2024

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Today is Friday, August 30, 2024.

The Early Bird Index today is 72.15.

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Lululemon's Next Play 🌍

There were a lot of ugly details in the financial earnings results released by Lululemon Athletica (Nasdaq: LULU) on Thursday, but the stock still jumped by 4.24% in after-hours trading.

Financials: Lululemon reported earnings of $3.15 per share in the past quarter, which was better than expected. But revenue only reached $2.4 billion, which was lower than expected.

Details: Comparable sales in the Americas for the premium athletic apparel company decreased by 3%. Lululemon also lowered its financial outlook. 

Yes, But: International comparable sales skyrocketed 19%. Lululemon grew its revenue in China by 34%. Also, sales in the men’s division jumped 11%.

Early Bird’s Nest Egg Gains: Lululemon's international business has become increasingly important for the company's growth strategy and overall success.

  • International expansion allows Lululemon to reduce reliance on its core North American market and tap into emerging markets with growing middle-class populations.

  • The company plans to open dozens of international stores and aims to quadruple its international revenue by 2026.

Final Thoughts: Lululemon, down 48% this year, is leaning on international sales to turn the business around.

Notables

Notable Earnings Today: JinkoSolar (NYSE: JKS), Frontline PLS (NYSE: FRO), MINISO Group (NYSE: MNSO).

Notable IPOs Today: SIM Acquisition Corp. I Class A Ordinary Shares (Nasdaq: SIMA).

Notable Equity Crowdfunding Campaigns Ending Today: N/A.

Notable Economic Events Today: Core PCE Price Index / PCE Price Index (8:30 a.m. ET), Personal Spending (8:30 a.m. ET), Chicago PMI (9:45 a.m. ET), Michigan Consumer Expectations / Sentiment (10:00 a.m. ET).

Dell's "Significant Tailwind"

Dell Technologies (NYSE: DELL) jumped 3.30% in after-hours trading on Thursday after posting strong financial earnings results.

Financials: Dell reported earnings of $1.89 per share in the past quarter and revenue of $25 billion; both were better than expected.

Quote: “Our momentum in [the infrastructure solutions group] is a significant tailwind, with record revenue of $11.6 billion, up 38% year over year.” - CFO Yvonne McGill.

Final Thoughts: Boosted by its growing infrastructure and servers business, Dell is up 48% this year.

Marvell Technology’s Data Center Revenue

Marvell Technology (Nasdaq: MRVL) reported lower sales on Thursday, but shares of the semiconductor company still increased by 7.36% in after-hours trading.

Financials: Marvell reported earnings of 30 cents per share in the past quarter and revenue of $1.27 billion; both were better than expected.

Powering the Story: Net revenue fell 5% but data center revenue surged by 92%.

Final Thoughts: The stock was up 20% this year before these results.

AI Craze: Apple, Nvidia Are in Talks to Invest in OpenAI (Wall Street Journal)

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The contents of Early Bird are intended for informational and entertainment purposes only. They do not constitute trade or investment recommendations and they are not financial or legal advice. Readers are encouraged to consult licensed professionals for personalized guidance regarding their financial or legal situations.