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Lululemon’s “Strong Momentum”

And, Five Below’s “disappointing” sales.

Today is Thursday, June 6, 2024.

The Early Bird Index today is 73.60.

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Lululemon’s “Strong Momentum”

Lululemon Athletica (Nasdaq: LULU) finally had some good news in 2024, posting good earnings and jumping 9.72% in after-hours trading on Wednesday.

Financials: Lululemon reported earnings of $2.54 per share in the past quarter and revenue of $2.2 billion; both were better than expected.

Details: Revenue jumped 10% in the past quarter. Comparable sales increased 6%, which was lower than expected.

Also: The company increased its stock buyback program by $1 billion.

Quote: “In the first quarter, we saw strong momentum in our international markets, demonstrating how our brand continues to resonate around the world.” - CEO Calvin McDonald.

Outlook: Lululemon expects sales to grow 9% to 10% in the current quarter, which is better than expected.

Final Thoughts: It’s been a bad year for Lulelemon. The stock was down 39% as consumer spending fell. Now the company might be making a positive turn.

TheoTradeFinancial Newsletter


Notable Earnings Today: Ciena (NYSE: CIEN), Nio (NYSE: NIO), DocuSign (Nasdaq: DOCU), Samsara (NYSE: IOT), Big Lots (NYSE: BIG), G-III Apparel (Nasdaq: GIII), The Toro Company (NYSE: TTC), Braze (Nasdaq: BRZE), J.M. Smucker (NYSE: SJM), Vail Resorts (NYSE: MTN), ABM Industries (NYSE: ABM), Zumiez (Nasdaq: ZUMZ), Mission Produce (Nasdaq: AVO), Addex Therapeutics (Nasdaq: ADXN), Argan (NYSE: AGX), NGL Energy Partners (NYSE: NGL), Orion Energy Systems (Nasdaq: OESX), Planet Labs (NYSE: PL), QuantaSing Group (Nasdaq: QSG), Rent the Runway (Nasdaq: RENT), Secureworks (Nasdaq: SCWX), Tilly’s (NYSE: TLYS).

Notable IPOs Today: Novelis (NYSE: NVL), Fly-E Group, Inc. Common Stock (Nasdaq: FLYE), Life360, Inc. Common Stock (Nasdaq: LIF), Gauzy Ltd. Ordinary Shares (Nasdaq: GAUZ).

Notable Equity Crowdfunding Campaigns Ending Today: Charis Winery & Distillery (Honeycomb), Jungle Juice (Honeycomb).

Notable Economic Events Today: Jobless Claims (8:30 a.m. ET), Trade Balance / Imports / Exports (8:30 a.m. ET), Nonfarm Productivity (8:30 a.m. ET), Unit Labor Costs (8:30 a.m. ET), Fed's Balance Sheet (4:30 p.m. ET).

Five Below’s “Disappointing” Sales

Logo GIF by Five Below

Gif by FiveBelow on Giphy

Bad financial results caused discount retailer Five Below (Nasdaq: FIVE) to drop by 15.47% in after-hours trading on Wednesday.

Financials: Five Below reported earnings of 60 cents per share in the past quarter and revenue of $811.9 million; both were below estimates.

Quote: “While our first quarter sales were disappointing, disciplined cost management enabled us to deliver adjusted EPS within our earnings outlook.” - CEO Joel Anderson.

Final Thoughts: Five Below, down 38% this year, is struggling because low-end consumers (AKA its customers) are spending less.

Sprinklr Cuts Outlook

Despite posting good financial results on Wednesday, software company Sprinklr (NYSE: CXM) plummeted 18.36% in after-hours trading after cutting its guidance.

Outlook: Sprinklr only expects sales in the current quarter to be between $177.5 million and $178.5 million, which is lower than the previous quarter.

Final Thoughts: Sprinklr’s CEO blamed the “challenging macro environment.” The stock is down 8% in 2024.

New Price Target: VanEck Sees Ether Hitting $22K by 2030 (CoinDesk)

Lagging: How Apple Fell Behind in the AI Arms Race (Wall Street Journal)

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