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Adidas shares drop despite third-quarter guidance boost
Adidas shares shed 4% by 8:18 a.m. London time, even after Europe's largest sportswear manufacturer on Tuesday raised its full-year profit and sales guidance on the back of better-than-expected third-quarter earnings.
Adidas now expects currency-neutral revenues will jump by 10% this year, compared with a high single-digit rate forecast previously. It also now anticipates its operating profit will reach around 1.2 billion euros ($1.31 billion) this year, versus 1 billion euros prior.
The company reported 10% year-on-year growth in third-quarter revenues in currency-neutral terms, flagging a 2-percentage-point hike in its gross margin to 51.3% over the period.
The brand has been on the rebound since the collapse of its partnership with American rapper Ye, ending their popular Yeezy collaboration line. The company on Tuesday said it assumes it will be able to sell its remaining Yeezy inventory "on average at cost," boosting sales by 50 million euros.
— Ruxandra Iordache
LVMH shares slide 6.3% at the open after third-quarter earnings disappoint
Bernard Arnault, Chairman and CEO of LVMH Moet Hennessy Louis Vuitton, speaks during a press conference to present the 2023 annual results of LVMH in Paris, France, January 25, 2024.
Gonzalo Fuentes | Reuters
Shares of LVMH dropped 6.3% at the open Wednesday after the luxury group reported a 3% drop in third-quarter sales.
LVMH on Tuesday announced that it had generated 19.08 billion euros ($20.8 billion) in revenue for the three months ending in September, a 3% fall in terms of organic growth from the same quarter last year.
In an earnings statement, it said "in the third quarter, the slight decline in revenue mainly arose from lower growth seen in Japan, essentially due to the stronger yen."
It added that "in an uncertain economic and geopolitical environment, the Group remains confident and will maintain a strategy focused on continuously enhancing the desirability of its brands."
In addition to Louis Vuitton and Moët Hennessy, LVMH owns brands including Christian Dior, Bulgari, Givenchy and Fendi.
— Holly Ellyatt with Reuters
ASML stock watched after disappointing sales forecasts
The ASML logo is seen at its headquarters in Veldhoven, Netherlands, on June 16, 2023.
Piroschka Van De Wouw | Reuters
Shares of ASML will be watched closely Wednesday after the Dutch chip firm published financial results a day early, issuing disappointing sales forecasts.
ASML, which is based in Veldhoven, Netherlands, said it expects net sales for 2025 to come in between 30 billion euros and 35 billion euros ($32.7 billion and $38.1 billion), at the lower half of the range it had previously provided.
Net bookings for the September quarter were 2.6 billion euros ($2.83 billion), the company said — well below the 5.6 billion euro LSEG consensus estimate. Net sales, however, beat expectations coming in at 7.5 billion euros.
Read more: Chip company ASML shares plunge 16% after warning of weaker China sales in early release
— Ryan Browne
U.K. inflation falls sharply to 1.7% in September
Shoppers walk along the high street in Rochester, UK, on Tuesday, July 16, 2024.
Chris Ratcliffe | Bloomberg | Getty Images
Inflation in the U.K. dropped sharply to 1.7% in September, the Office for National Statistics said Wednesday.
Economists polled by Reuters had expected the headline rate to come in at a higher 1.9% for the month, in the first dip of the print below the Bank of England's 2% target since April 2021.
Inflation has been hovering around that level for the last four months, and came in at 2.2% in August.
— Jenni Reid
CNBC Pro: Citi names 'underappreciated' AI stock as 'top pick' – giving it a 25% upside
Citi has named a little-known company as one of its its new "Top Pick," citing an "underappreciated" artificial intelligence story and attractive valuation.
The tech firm's stock price has surged by over 50% year-to-date, outperforming the broader iShares Expanded Tech-Software Sector ETF, which is up nearly 14% this year.
The Wall Street bank also said that the firm reported a "strong" set of financial results for the second quarter.
CNBC Pro subscribers can read more here.
— Ganesh Rao
Chip stocks were the biggest culprits in the Nasdaq 100’s decline Tuesday
The Nasdaq 100 tumbled 1.37% on Tuesday, and semiconductors were some of the biggest contributors to the index's slide.
Nasdaq 100 over the past five trading days
CNBC Pro: Rates won't be cut at an aggressive pace — here's how to position, according to strategists
U.S. interest rate cuts are unlikely to move at an aggressive pace, say market watchers.
The Fed kicked off its easing cycle with a jumbo 50 basis-point rate cut in September — but subsequent ones will be milder, they said.
They explain why, and say how investors should position.
CNBC Pro subscribers can read more here.
— Weizhen Tan
European markets: Here are the opening calls
European markets are expected to open lower Wednesday.
The U.K.'s FTSE 100 index is expected to open 6 points lower at 8,249, Germany's DAX down 35 points at 19,482, France's CAC down 59 points at 7,469 and Italy's FTSE MIB down 137 points at 34,246, according to data from IG.
U.K. and Italian inflation data is released today.
Correction: This post has been updated to reflect the timing of ASML's earnings release.
— Holly Ellyatt