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Let's take a look. Now, it's some stocks making news in the week ahead. I'm Nathan Hager, joined by Bloomberg News Cross asset Reporterdnitza Sikova. Earnings, Denisa, let's start with the one that's coming on Thursday, a pretty big bell weather on economic activity. What are we expecting from FedEx?
FedEx definitely a big one. We actually had a great story this week on the termino. FedEx has eclipsed their rival ups and it has become the largest US parcel carrio by market value for the first time. Definitely an interesting thing going into the earnings. What we're seeing for this earning season is that the company raised the low end of its full yer adjusted EPs, so now current is about seventeen doors and eighty cents. But it increased the full year revenue growth range to five six percent,
so definitely some optimism there. The company is actually up twenty four percent this year. The ticker, of course, is FDx for FedEx. This has been the latest sign that the company's management has won investors over with plans to trim costs, boost margins, and spin off its freight business. I'm sure investors will be looking for all that. Another interesting metric analyst we're expecting is FedEx is expected to face approximately six hundred million headwinds in the second half
of the year. About two hundred and sixty five million are attributed to higher variable compensation. So that's one interesting number that could perhaps way on the super positive outlook going into the earning season.
Yeah, to your point, I mean, the outlook has been strong and this stock has been on a tear as well. Does that set the bar even higher for FedEx to outperform?
For sure?
And obviously we're in very high market volativity. Reporting even just the basic earnings reports in the current marketing environment is hard. Obviously, we talked about ups and the FedEx competition, and investors have been reacting way more possibly to FedEx and have been quite punishing to EPs. So I'm sure those tides could turn quickly, But for now, you know, up more than twenty percent this year.
Yeah, on a tair, like we say, and a day before FedEx we're going to get results from Macy's on Wednesday. Of course, we saw this stock drop after Coals reported its results this past week, So what should we expect from Macy's this week?
Quite the opposite story on Macy's. The company is down twenty two percent this year. Of course, the ticker is the last time reported they reported earning, shares declined rapidly their forecasts. Their profit forecast for the quarter was disappointing, even though the earnings reports was pretty solid. What we expected this time is net sales are projected to be
around seven point five billion. Comparable sales are expected to increase about one hundred two percent, potentially exceeding the consensus. We're obviously coming into this earning system with pretty bearish pricing of the company. Blooming Dels is expected to be a strong performance. Sales are projected to rise approximately seven percent. Everyone will looking for the earning scoll. It's expected to
focus on the progress of its makeover. And one thing we've been talking a lot about is the potential sex store acquisition, so I'm sure everyone will be listening about that as well.
Oh definitely, that's one to scoop up after their bankruptcy for sure, and before both those names report Deny. So we're going to hear from Lulu Lemon on Tuesday. Talk about struggles. This company seems to exemplify it.
Yeah, the company has really suffered a lot, anything from just so many scandals about different leggings and whether they're transparent or not, to just kind of broader challenges. Lul Lemon stocks are down almost seventy percent since the start of twenty twenty four. Activist investor Elliott Investment has amassed a more than one billion stake in the company. We had the company founder, Chip Wilson stepping up his campaign against the company's board in the midst of search of
a new CEO. So we have all this tension going into the earning season. Of course, the ticker is Lulu lul Lemon updated guidance engineering indicating that net revenue and diluted earnings per share for the fourth quarter will be towards the higher ends, so definitely some optimism there. They expect between three point five billion and a little bit
higher than this. Tariff risks, which what everyone has been looking at, unless you're saying that tariff risks have been reduced, so that could support the company.
But we have that CEO Search.
We have all those candles this year, so it's a high bar for investors to be impressed.
Yeah, you know for all these companies, DENIZI you might think that there's a risk around tariffs as well as you know, some of the geopolitical risk that we're seeing on the war in the Middle East as well. I mean, how all that play out into some of these earnings that we're expecting this way.
For sure, that's adding a lot of tension.
I feel don't how tariffs has taken a step back, and everyone's worried about others thing. The consumers are not doing so well. For example, Macy's in their last reports it was all about the consumer. They said that those low income consumers are stepping back, but still they're seeing a lot of support from their mido income to high income consumer. And I'm sure a lot of those brands and companies we talked about are dealing with the same thing.
Are our low income customers coming.
Back, our middle income and high income customers spending enough to.
Compensate for that laws of low income spending?
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