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This Stock Movers report, your roundup of companies making moves in the stock market, harnessing the power of Bloomberg Data.
Let's take a look at some stocks on the move today. I'm Nathan Hager, joined by Bloomberg's Dan Curtis on a morning where continuing to see some rotation out of the AI names, but that doesn't seem to be paying off for Lululemon in a big way. This morning, Dan, Good morning.
Good morning, Nathan. That's right. Lululemon shares are down nearly thirteen percent in the pre market under ticker lu LU. The leisure company is lowering its annual forecast due to softening performance in North America. This company has had a hard time and it's not catching a break. Guidance for the first quarter was well below expectations as the company saw lower store lower traffic in the America's last quarter and an even smaller percentage of than normal of those
who go into the store left with purchases. So it's seeing a lot of push back on buying, on buying, you know, Lululemon apparel. It's blaming the lower traffic on negative commentary and media and social and traditional media and social media. And this is a couple of things that have happened recently. The company has been seeing fallout from
poor product launches such as see through leggings. Is also faced as a surprised probe from Texas over alleged use of Forever Chemicals, and founder Chip Wilson has been publicly criticizing the company. Now that's really weighing on the shares this morning. The company is looking to address the weakness by introducing new products, streamlining operations, and improving marketing, and that means there are going to be a lot of challenges for the incoming CEO, Heid O'Neil, who starts the
job in September. Just to give you context, a year ago, those shares were over three hundred dollars each. Right now in pre market they're one hundred and nine. So this has been on a down trend.
Sure has and continuing with the downward trend this morning is doc you sign after earnings?
Yeah, that's down four percent in pre market under ticker DOCU. First quarter bottom line top estimates, but the marginal revenue beat was smaller than its typical results. So the general takeaway from the earnings was just not strong enough. The bottom line was boosted by the largest quarterly stock repurchase in history, so they bought back some shares that boosted
the EPs results that were a stronger beat. The current quarter forecast was about in line with Wall Street's expectation, and the company very marginally lifted the bottom end of its full year sales guidance. This is just not enough to impress by to impress buyers. This morning, off the tail of this, the company saw price tarkets raised at
both Morgan Stanley and City. But as we said, you know, shares are under pressure this morning, and they've been under pressure all year, down twenty five percent.
All right, Well, let's talk about a stock that's actually doing well this morning, and I mean well, doesn't even begin to scratch the surface here. What is going on with Merlin's surge this morning.
So Merlin ticker MRLN is up nearly thirty percent in the pre market. And this is the first time I've seen this much volume on this name. It really stood out this morning. What it is is it's an aerospace defense company and it announced the successful completion of the critical design review for its C one thirty j autonomous program. Basically, that's a project to integrate what they call the Merlin prod pilot into a C one thirty, which is a
full sized four engine airplane called the Hercules. The idea is to eventually convert full sized aircrafts into planes that can fly atonas autonomously. So taking in kind of a normal military aircraft and letting it fly without anyone in it is kind of the end line, and this is catching a lot of people's attention this morning. The company is pre revenue, it hasn't booked any sales yet, but
we are watching defense names closely. Trump is trying to pass the one point five trillion dollars defense budget, so a lot of potential spending, and drones have been a huge focus on that with the rush of Ukraine War showing the large shift into unmanned vehicles. So definitely one that's getting the market's attention today.
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