Nike saw a 6.2% drop in premarket shares due to a slowdown in China’s Q3 2024 growth. Nonetheless, robust earnings and revenue, particularly from North American sales, and smart price adjustments have cushioned the blow. Effective branding and innovative products have kept demand consistently high.
Lululemon’s shares fell nearly 13%, an outcome likely driven by slower North American demand and uncertainty owing to China-US tensions. International sales saw an uptick but weren’t enough to balance North America’s soft growth. The company plans to restore stock prices through market expansion and digital engagement strategies.
Reddit suffered a 4% drop in shares following an initial 48% rise post-IPO.
Performance variations across global markets
Despite a strong launch, the trend for share prices has been downwards, raising brows among investors.
In contrast, Best Buy’s shares rose by 2% due to a beneficial upgrade to ‘overweight’ from ‘neutral’ by JPMorgan. This was further paired with an increased price target of $101, likely influenced by the current high demand in back-to-school computing trends.
FedEx delighted investors with a 12% boost in premarket trading shares. This followed their announcement of impressive quarterly earnings of $3.86 per share and $21.7 billion in revenue, surpassing LSEG projections.
Dutch Bros.’ share values took a hit, falling by 6% after selling shareholders offered $34 per share. This move, facilitated by Morgan Stanley, effectively deflated the market’s sentiment towards the coffee house chain.
Lastly, French luxury brand LVMH witnessed a 3.5% decline following the news of group managing director Antonio Belloni’s impending departure from his role. Commencing in April, Belloni will transition to the role of president of LVMH Italy, triggering notable structural changes within the company.
