Retail Shares on the Move - podcast episode cover

Retail Shares on the Move

May 27, 20264 min
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Episode description

Today's biggest winners and losers in the stock market.
On this episode of Stock Movers:
- Dick's Sporting Goods (DKS) shares are lower after it forecast earnings per share for the full year of $13.27 to $14.27.
- Lululemon (LULU) is up as it agreed to resolve a long-simmering dispute with founder Chip Wilson by overhauling its board with three new directors. The company will name two of Wilson’s nominees to the board in Laura Gentile, a former ESPN executive, and Marc Maurer, the previous co-chief executive officer of sneaker maker On. A third new director will be announced by Oct. 1.
- Bath and Body Works (BBWI) shares are higher after it reported lower first quarter sales and says it's overhauling its strategy to return to growth. Sales were still better than expected.

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Transcript

Speaker 1

Bloomberg Audio Studios, podcasts, radio news.

Speaker 2

The Stock Movers Report, your roundup of companies making moves in the stock market, harnessing the power of Bloomberg Data.

Speaker 1

Stock Moves It's a podcast.

Speaker 3

No Pressure or alexis the bar is high? All right, Let's start with Dick's Sporting Goods. This stock is down two percent right now, but up eighteen percent year to date, so it's been doing pretty well. And in the past year it's up thirty four percent. Dix posted in earning's miss for last quarter. It is trying to get foot

locker back to growth. Remember it bought the legacy sneaker store back in September for about two and a half billion dollars, so it incurred over ninety six million dollars in charges related to that acquisition last quarter, and so those can expenses contributed to a miss on Dick's bottom line. Top line results, though, did beat expectations, and this is coming from analysis at Bloomberg Intelligence. They say Dick's Sporting Goods has strong momentum for its legacy business heading into

the summer and the back to school shopping season. My goodness, back to school. We didn't even finish this school season and then the World Cup, a possible catalyst for more same store sales surprises. Apparently that merch is already out for the stores.

Speaker 1

So we're talking to merch. I mean the stock's down right, yeah. So I'm sitting in the food coat yesterday having my English breakfast full English. An Mary Horden comes up to me and she's dressed in this gazillion, multiple, one hundred dollars sparkle. I'm sitting in the first row Nick's jacket. Love it, and she goes, doesn't work, And I said, well, it's the knicks. It's gotta work. I mean, can you imagine them?

Speaker 3

They get one to test.

Speaker 1

She got it at Dick's Sporting's good.

Speaker 3

All right, Okay, there you go.

Speaker 1

Oh let's go.

Speaker 3

Let's stick with retail into a little Lulu Lemon. So this stock is up better than three percent right now. And we know they've been going through it. I mean it's down thirty nine percent year to date, down sixty percent in the past year. They're trying to get their sales up. There have been executive changes at Lululemon. Well now the company's making with its founder Chip Wilson. Just this morning it entered an agreement with Wilson to end

their messy proxy fight. Wilson started that back in December. He is their largest shareholder. Under terms of the deal, Wilson's going to get two board seats and in exchange, he is not going to bad mouth Lululemon. It says any agreement for around a year and a half. So what happens after that, and you can trash the place. I don't know what the lawyers were thinking about there, but Lulu Lemon. Yeah, it's the stock is getting a

nice bump today. And then Bath and body Works. Oh, I just realized they're all retail stocks.

Speaker 1

It's a time of year.

Speaker 3

It's so true. So this is this soap and candle retailer you smell at the minute you walk into the stores. Stock is up twelve percent here today. It reported lower first quarter sales. The company is overhauling its strategy to return to growth. But you know what, even though sales fell, they still came in better than expected. Also guidance match Street estimates. Full your guidance maintained, and their CFO has stick down and they're they're naming somebody else on an

interim basis. They expect to generate freak cash flow of about six hundred million dollars. But I did not get this. I did not know this, td count analyst saying there is more downside risk for Bath and Body Works given their exposure to the Middle East. Do you know they get five percent of their sales from the Middle East.

Speaker 1

I've never gotten the company. I mean, I I don't care because I'm in the triple leverage all cash.

Speaker 3

But it just candles are not your thing, Tom, No, they're not.

Speaker 1

You know, It's okay. And I guess the markups like four. You got anything else?

Speaker 3

I mean, I can do a little target for you.

Speaker 1

Je I got, I got the an Marie coat. Here. I can see you with this. Alexis the pro standard Woman's New York Knicks black Legacy Varsity jets.

Speaker 3

Oh a Varsity jet like with the big letters there, like a big letters. And you know, do you think I can expense it?

Speaker 1

I would? I think expense and marine horders job expense. I mean the same with Alexis Postophores.

Speaker 2

This stock mover's report from Bloomberg Radio. Check back with us throughout the day for the latest roundup of companies making news on Wall Street and for the latest market moving headlines. Listen to Bloomberg Radio Live. Catch us on YouTube, Bloomberg dot com, and on Applecarplay and Android Auto with the Bloomberg Business app.

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