Market Update
Stock Movers: The Children’s Place, Broadcom, Lululemon Athletica
Scott Peters
05 Sep, 2025
New York City
The Children’s Place, Inc. jumped 6.6% to $5.80 despite the children’s apparel and accessories retailer’s net income swinging to a loss in the latest quarter ending on August 2.
Consolidated revenue decreased 6.8% to $298 million from $319 million, adjusted net income swung to a loss of $3.4 million from a profit of $3.9 million, and adjusted diluted earnings per share swung to a loss of 15 cents from a profit of 30 cents a year ago.
Comparable retail sales fell 4.7% in the quarter, with the company attributing the decline to a challenging macroeconomic environment and tariff-related uncertainty, which dampened consumer sentiment and impacted both physical and online sales.
During the second quarter, the company opened one store and closed two, ending the period with 494 locations, down from 515 stores at the end of the same quarter last year.
“The tariff environment remains unpredictable. Based on the current environment, we are projecting approximately $20 million to $25 million in additional tariff and duty expenses for fiscal year 2025.
However, we believe we are well-positioned to manage these impacts, having plans to mitigate approximately 80% of the effects of these tariffs through a range of strategic initiatives," Muhammad Umair, President and Interim Chief Executive Officer.
Lululemon Athletica Inc. plunged 19% to $167.77 after the athleisure retailer reported a slight increase in revenue and a marginal decline in net income in the second quarter ending on August 3.
Consolidated revenue edged higher to $2.5 billion from $2.4 billion, net income declined to $370.9 million from $392.9 million, and diluted earnings per share fell to $3.10 from $3.15 a year ago.
During the second quarter, Lululemon returned a total of $278.5 million to shareholders through repurchases of 1.1 million shares.
The company added 14 net new company-operated stores during the second quarter, ending with 784 stores.
Overall comparable sales increased 1%, in the Americas, comparable sales declined 4%, or 3% on a constant dollar basis offset by international comparable sales increase of 15%, or 13% on a constant dollar basis.
Lululemon guided third-quarter revenue to be between $2.47 billion and $2.50 billion, and diluted earnings per share between $2.18 and $2.23.
The company estimated diluted earnings per share between $12.77 and $12.97, Lululemon on full-year revenue between $10.85 billion and $11.0 billion.
"While we continued to see positive momentum overall in our international regions in the second quarter, we are disappointed with our U.S. business results and aspects of our product execution," said Calvin McDonald, Chief Executive Officer.
"In the second quarter, we exceeded expectations on EPS, but revenue fell short of our guidance, driven predominantly by our U.S. business.
We are also navigating industry-wide challenges, including higher tariff rates. In light of these dynamics, we are revising our full-year outlook," said Meghan Frank, Chief Financial Officer.
https://corporate.lululemon.com/media/press-releases/2025/09-04-2025-210520895
Broadcom Inc. fell 0.7% to $332.41 despite the provider of semiconductor and infrastructure software solutions’ net income swinging to a profit from a year ago in the third quarter.
Consolidated revenue inched higher to $15.95 billion from $13.07 billion, net income swung to a profit of $4.14 billion from a loss of $1.88 billion, and diluted earnings per share rose to an income of 85 cents from a loss of 40 cents a year ago.
The company board declared a cash dividend of $0.59 per share, payable on September 30, 2025, on record on September 22.
During the third quarter, Broadcom returned $2.8 billion to shareholders through cash dividends.
The company expects fourth-quarter revenue of approximately $17.4 billion and adjusted EBITDA to be approximately 67% of projected revenue.
Hock Tan, President and CEO of Broadcom Inc., said, “Broadcom achieved record third-quarter revenue, driven by continued strength in custom AI accelerators, networking, and VMware. AI revenue in Q3 grew 63% year-over-year to $5.2 billion. We expect this growth to accelerate further in the fourth quarter, with AI semiconductor revenue projected to reach $6.2 billion—marking eleven consecutive quarters of growth, as our customers continue to invest aggressively.”
Japan's Prime Minister Ishiba Announced Resignation Amid LDP Discontent
Akira Ito
08 Sep, 2025
Tokyo
Japan's stock market indexes advanced on Monday and inched closer to record highs after Prime Minister Shigeru Ishiba announced his resignation over the weekend.
The Nikkei 225 Stock Average increased 1.4%, and the broader Topix advanced 0.9%.
Japan's prime minister, Ishiba, resigned over the weekend amid rising discontent over his leadership following the LDP's losses in the Upper House election.
Japan's second quarter GDP growth was revised higher to a monthly increase of 0.5% from the preliminary estimate of 0.3% growth, according to the latest update from the Cabinet Office.
Japan's economy expanded for the fifth quarter in a row, driven by stronger private consumption and a slight improvement in net international trade.
Japan Indexes and Stocks
The Nikkei 225 Stock Average increased 1.4% to 43,580.09, and the broader Topix advanced 0.9% to 3,133.92.
Tokyo Electron increased 1.9% to ¥20,630.0, Advantest Corp. gained 4.3% to ¥11,935.0, and Disco Corp. inched down 1.1% to ¥37,800.0.
Sanrio Co. Ltd. decreased 0.4% to ¥7,631.0, SoftBank Group advanced 2.7% to ¥15,955.0, and Mitsubishi Heavy Industries gained 3.2% to ¥3,721.0.
Japan's Prime Minister Ishiba Announced His Resignation Amid Growing Rift
Akira Ito
08 Sep, 2025
Tokyo
Japan's stock market indexes advanced on Monday and inched closer to record highs after Prime Minister Shigeru Ishiba announced his resignation over the weekend.
The Nikkei 225 Stock Average increased 1.4%, and the broader Topix advanced 0.9%.
Japan's prime minister, Ishiba, resigned over the weekend amid rising discontent over his leadership following the LDP's losses in the Upper House election.
Japan's second quarter GDP growth was revised higher to a monthly increase of 0.5% from the preliminary estimate of 0.3% growth, according to the latest update from the Cabinet Office.
Japan's economy expanded for the fifth quarter in a row, driven by stronger private consumption and a slight improvement in net international trade.
Japan Indexes and Stocks
The Nikkei 225 Stock Average increased 1.4% to 43,580.09, and the broader Topix advanced 0.9% to 3,133.92.
Tokyo Electron increased 1.9% to ¥20,630.0, Advantest Corp. gained 4.3% to ¥11,935.0, and Disco Corp. inched down 1.1% to ¥37,800.0.
Sanrio Co. Ltd. decreased 0.4% to ¥7,631.0, SoftBank Group advanced 2.7% to ¥15,955.0, and Mitsubishi Heavy Industries gained 3.2% to ¥3,721.0.
China's Exports Growth to ASEAN and EU Offset Shipment Weakness to U.S.
Li Chen
08 Sep, 2025
Hong Kong
Stocks in China and Hong Kong lacked direction after a week of sharp sell-offs, and investors reviewed the latest updates on international trade.
The Hang Seng index increased 0.4%, and the CSI 300 index edged up a fraction amid growing caution about future market gains.
In a busy week of economic data releases, investors are looking forward to the release of inflation data on Wednesday, which is likely to confirm the ongoing deflationary trend.
China's Goods Exports Growth Slowed In August
China's international trade continued to expand at a slower pace in August, and the trade surplus rose despite the U.S. tariff headwinds.
Exports increased 4.4% from a year ago to $321.8 billion, imports edged up 1.3% to $219.5 billion, and the trade surplus expanded to $102.3 billion, according to the customs data released on Monday.
Direct exports to the U.S. continue to decline at an accelerated pace following the sharp escalation in U.S. import duties, offset by the rising shipments to the ASEAN region, Latin America, and the European Union.
Goods shipments to the U.S. in August plunged 33.1% compared to 21.7% in July from a year ago, respectively.
However, shipments to Vietnam soared 31%, and shipments to ASEAN member nations jumped 22.5%, largely driven by the demand surge from the U.S. because of the new tariff regime.
Goods shipments to the European Union advanced 10.4% from a year ago in August after rising 9.4% in the previous month.
For the first eight months of 2025, China's goods exports increased 5.9% to $2.45 trillion, driven by the shipments to ASEAN countries increasing by 14.6%, to India by 12.8%, and to the European Union by 7.5%.
During the period, goods shipment to the U.S. fell 15.5% from a year ago.
The front-loading of exports to the U.S. and China's push to develop markets in other regions of the world amid a slowing domestic economy have been behind the resilience of overall goods exports in 2025.
China Indexes and Stocks
The Hang Seng index increased 0.4% to 25,523.20, and the mainland-focused CSI 300 index added 0.1% to 4,462.79.
JD Logistics Ltd. advanced 2.4% to HK$13.41, JD.com increased 0.5% to HK$122.70, and Alibaba Group advanced 3.7% to HK$136.70.
China's Exports Growth
Li Chen
08 Sep, 2025
Hong Kong
Stocks in China and Hong Kong lacked direction after a week of sharp sell-offs, and investors reviewed the latest updates on international trade.
The Hang Seng index increased 0.4%, and the CSI 300 index edged up a fraction amid growing caution about future market gains.
In a busy week of economic data releases, investors are looking forward to the release of inflation data on Wednesday, which is likely to confirm the ongoing deflationary trend.
China's Goods Exports Growth Slowed In August
China's international trade continued to expand at a slower pace in August, and the trade surplus rose despite the U.S. tariff headwinds.
Exports increased 4.4% from a year ago to $321.8 billion, imports edged up 1.3% to $219.5 billion, and the trade surplus expanded to $102.3 billion, according to the customs data released on Monday.
Direct exports to the U.S. continue to decline at an accelerated pace following the sharp escalation in U.S. import duties, offset by the rising shipments to the ASEAN region, Latin America, and the European Union.
Goods shipments to the U.S. in August plunged 33.1% compared to 21.7% in July from a year ago, respectively.
However, shipments to Vietnam soared 31%, and shipments to ASEAN member nations jumped 22.5%, largely driven by the demand surge from the U.S. because of the new tariff regime.
Goods shipments to the European Union advanced 10.4% from a year ago in August after rising 9.4% in the previous month.
For the first eight months of 2025, China's goods exports increased 5.9% to $2.45 trillion, driven by the shipments to ASEAN countries increasing by 14.6%, to India by 12.8%, and to the European Union by 7.5%.
During the period, goods shipment to the U.S. fell 15.5% from a year ago.
The front-loading of exports to the U.S. and China's push to develop markets in other regions of the world amid a slowing domestic economy have been behind the resilience of overall goods exports in 2025.
China Indexes and Stocks
The Hang Seng index increased 0.4% to 25,523.20, and the mainland-focused CSI 300 index added 0.1% to 4,462.79.
JD Logistics Ltd. advanced 2.4% to HK$13.41, JD.com increased 0.5% to HK$122.70, and Alibaba Group advanced 3.7% to HK$136.70.
Stock Movers: GitLab, Dollar Tree, Salesforce
Scott Peters
05 Sep, 2025
New York City
Salesforce Inc. declined 5.6% to $242.15 despite the customer management software developer reporting a 36% increase in net income in the second quarter ending on July 31.
Consolidated revenue increased to $10.2 billion from $9.3 billion, net income jumped to $1.9 billion from $1.4 billion, and diluted earnings per share rose to $1.96 from $1.47 a year ago.
During the second quarter, Salesforce returned a total of $2.6 billion to shareholders through share repurchases and dividends, including $2.2 billion in share repurchases and $399 million in dividends.
Salesforce announced an additional $20 billion in share repurchase authorization, increasing the total program size to $50 billion.
The company guided third-quarter revenue to be between $10.24 billion and $10.29 billion, and diluted earnings per share between $1.60 and $1.62.
However, the company's revenue outlook for the current quarter and full year fell short of market expectations.
Salesforce guided full-year revenue to be between $41.1 billion and $41.3 billion, and diluted earnings per share between $6.99 and $7.03.
“We remain on track for fiscal 2026 to be a record year with nearly $15 billion in operating cash flow,” said Marc Benioff, Chair and CEO, Salesforce.
Annual Recurring Revenue from Data Cloud and AI units increased 120% from a year ago, reaching $1.2 billion. Since the launch of Agentforce, Salesforce has closed over 12,500 deals, including more than 6,000 paid deals.
In the second quarter, the company secured 60+ deals valued at over $1 million that included both Data Cloud and AI.
Dollar Tree Inc. dropped 9% to $100.23 after the discount retailer reported a 42% rise in net income in the latest quarter, but the company's outlook disappointed and fell short of expectations.
Same-store sales increased 6.5% in the quarter, driven by a 3% increase in traffic and a 3.4% rise in ticket size.
Consolidated revenue jumped 12.3% to $4.6 billion from $4.1 billion, net income climbed to $188.4 million from $132.4 million, and diluted earnings per share soared to 75 cents from 66 cents a year ago.
During the fiscal second quarter, Dollar Tree returned a total of $572.4 million to shareholders through share repurchases, including the repurchase of 5.6 million shares of common stock.
The retailer estimated fiscal third quarter adjusted diluted earnings per share will be similar to a quarter a year ago.
Dollar Tree raised its full-year revenue estimate to a new range between $19.3 billion and $19.5 billion and adjusted diluted earnings per share from continuing operations to between $5.32 and $5.72.
The retailer cautioned that its guidance is based on stable tariffs for the balance of the fiscal year, and the company will be able to mitigate "most of the incremental margin pressure from higher tariffs and other input costs."
In the second quarter, the company opened 106 new stores.
GitLab Inc. dropped 9% to $43.70, and the software developer’s net income swung to a loss in the latest quarter ending on July 31.
Consolidated revenue edged higher to $212.7 million from $163.2 million, net income swung to a loss of $10 million from a profit of $12.2 million, and diluted earnings per share swung to a loss of 6 cents from a profit of 8 cents a year ago.
The company guided third-quarter revenue to be between $238 million and $239 million, non-GAAP operating income between $31 million and $32 million, and non-GAAP diluted earnings per share between 19 cents and 20 cents.
The company said customers with annual recurring revenue (ARR) over $5,000 grew 11% from a year ago to 10,338, while customers with ARR over $100,000 rose 25% to 1,344.
The dollar-based net retention rate remained healthy at 121%, reflecting strong expansion within the existing customer base.
Total remaining performance obligations (RPO) increased 32% year-over-year to $988.2 million, and current RPO grew 31% to $621.6 million, highlighting strong future revenue visibility.
Stock Movers: GitLab, Dollar Tree, Salesforce
Scott Peters
05 Sep, 2025
New York City
Salesforce Inc. declined 5.6% to $242.15 despite the customer management software developer reporting a 36% increase in net income in the second quarter ending on July 31.
Consolidated revenue increased to $10.2 billion from $9.3 billion, net income jumped to $1.9 billion from $1.4 billion, and diluted earnings per share rose to $1.96 from $1.47 a year ago.
During the second quarter, Salesforce returned a total of $2.6 billion to shareholders through share repurchases and dividends, including $2.2 billion in share repurchases and $399 million in dividends.
Salesforce announced an additional $20 billion in share repurchase authorization, increasing the total program size to $50 billion.
The company guided third-quarter revenue to be between $10.24 billion and $10.29 billion, and diluted earnings per share between $1.60 and $1.62.
However, the company's revenue outlook for the current quarter and full year fell short of market expectations.
Salesforce guided full-year revenue to be between $41.1 billion and $41.3 billion, and diluted earnings per share between $6.99 and $7.03.
“We remain on track for fiscal 2026 to be a record year with nearly $15 billion in operating cash flow,” said Marc Benioff, Chair and CEO, Salesforce.
Annual Recurring Revenue from Data Cloud and AI units increased 120% from a year ago, reaching $1.2 billion. Since the launch of Agentforce, Salesforce has closed over 12,500 deals, including more than 6,000 paid deals.
In the second quarter, the company secured 60+ deals valued at over $1 million that included both Data Cloud and AI.
Dollar Tree Inc. dropped 9% to $100.23 after the discount retailer reported a 42% rise in net income in the latest quarter, but the company's outlook disappointed and fell short of expectations.
Same-store sales increased 6.5% in the quarter, driven by a 3% increase in traffic and a 3.4% rise in ticket size.
Consolidated revenue jumped 12.3% to $4.6 billion from $4.1 billion, net income climbed to $188.4 million from $132.4 million, and diluted earnings per share soared to 75 cents from 66 cents a year ago.
During the fiscal second quarter, Dollar Tree returned a total of $572.4 million to shareholders through share repurchases, including the repurchase of 5.6 million shares of common stock.
The retailer estimated fiscal third quarter adjusted diluted earnings per share will be similar to a quarter a year ago.
Dollar Tree raised its full-year revenue estimate to a new range between $19.3 billion and $19.5 billion and adjusted diluted earnings per share from continuing operations to between $5.32 and $5.72.
The retailer cautioned that its guidance is based on stable tariffs for the balance of the fiscal year, and the company will be able to mitigate "most of the incremental margin pressure from higher tariffs and other input costs."
In the second quarter, the company opened 106 new stores.
GitLab Inc. dropped 9% to $43.70, and the software developer’s net income swung to a loss in the latest quarter ending on July 31.
Consolidated revenue edged higher to $212.7 million from $163.2 million, net income swung to a loss of $10 million from a profit of $12.2 million, and diluted earnings per share swung to a loss of 6 cents from a profit of 8 cents a year ago.
The company guided third-quarter revenue to be between $238 million and $239 million, non-GAAP operating income between $31 million and $32 million, and non-GAAP diluted earnings per share between 19 cents and 20 cents.
The company said customers with annual recurring revenue (ARR) over $5,000 grew 11% from a year ago to 10,338, while customers with ARR over $100,000 rose 25% to 1,344.
The dollar-based net retention rate remained healthy at 121%, reflecting strong expansion within the existing customer base.
Total remaining performance obligations (RPO) increased 32% year-over-year to $988.2 million, and current RPO grew 31% to $621.6 million, highlighting strong future revenue visibility.
U.S. Job Growth Falters In August as Businesses Slow Hiring Amid Tariff Uncertainties
Barry Adams
05 Sep, 2025
New York City
Stock market indexes advanced in cautious trading on Friday, as investors awaited the nonfarm payroll report.
The S&P 500 index inched up 0.1%, and the tech-heavy Nasdaq Composite advanced 0.3%, and economists are bracing for sharp revisions to summer's payroll data.
The U.S. economy added 22,000 net new jobs in August, according to the latest monthly report released by the U.S. Bureau of Labor Statistics.
The jobless rate held steady, and the hourly wage advanced 3.7% from a year ago $36.53.
The change in total nonfarm payroll employment for June was revised down by 27,000, from an increase of 14,000 to a decrease of 13,000, and the change for July was revised up by 6,000, from 73,000 to 79,000.
With these revisions, employment in June and July combined is 21,000 lower than previously reported.
The U.S. labor market is rapidly cooling as businesses of all sizes tackle heightened levels of uncertainty caused by the Trump administration's erratic implementation of import taxes.
The Trump administration's sharp escalation of import taxes has severely disrupted the business outlook for apparel and specialty retailers, logistics services providers, residential housing developers, and farmers.
U.S. Stock Movers
Lululemon Athletica Inc. plunged 19.3% to $166.34, and the athleisure company reported a slowdown in its U.S. business. Moreover, the retailer trimmed its annual sales outlook and added that the sharp increase in U.S. import taxes will hurt its business.
DocuSign Inc. gained 7% to $81.90, and the software company reported better-than-expected second-quarter results.
The electronic signature software company's second-quarter adjusted earnings per share of 92 cents on $801 million surpassed market expectations.
Broadcom Inc. advanced 4% to $340.0, and the advanced semiconductor chip maker's fiscal third-quarter earnings surpassed market expectations.
The chipmaker reported third-quarter adjusted earnings per share of $1.69 on revenue of $15.59 billion.
U.S. Job Growth Falters In August as Businesses Hiring Amid Tariff Uncertainties
Barry Adams
05 Sep, 2025
New York City
Stock market indexes advanced in cautious trading on Friday, as investors awaited the nonfarm payroll report.
The S&P 500 index inched up 0.1%, and the tech-heavy Nasdaq Composite advanced 0.3%, and economists are bracing for sharp revisions to summer's payroll data.
The U.S. economy added 22,000 net new jobs in August, according to the latest monthly report released by the U.S. Bureau of Labor Statistics.
The jobless rate held steady, and the hourly wage advanced 3.7% from a year ago $36.53.
The change in total nonfarm payroll employment for June was revised down by 27,000, from an increase of 14,000 to a decrease of 13,000, and the change for July was revised up by 6,000, from 73,000 to 79,000.
With these revisions, employment in June and July combined is 21,000 lower than previously reported.
The U.S. labor market is rapidly cooling as businesses of all sizes tackle heightened levels of uncertainty caused by the Trump administration's erratic implementation of import taxes.
The Trump administration's sharp escalation of import taxes has severely disrupted the business outlook for apparel and specialty retailers, logistics services providers, residential housing developers, and farmers.
U.S. Stock Movers
Lululemon Athletica Inc. plunged 19.3% to $166.34, and the athleisure company reported a slowdown in its U.S. business. Moreover, the retailer trimmed its annual sales outlook and added that the sharp increase in U.S. import taxes will hurt its business.
DocuSign Inc. gained 7% to $81.90, and the software company reported better-than-expected second-quarter results.
The electronic signature software company's second-quarter adjusted earnings per share of 92 cents on $801 million surpassed market expectations.
Broadcom Inc. advanced 4% to $340.0, and the advanced semiconductor chip maker's fiscal third-quarter earnings surpassed market expectations.
The chipmaker reported third-quarter adjusted earnings per share of $1.69 on revenue of $15.59 billion.
Japan's Real Wages Turned Positive After Seven Months In July, Nikkei 225 Extended Weekly Gains
Akira Ito
05 Sep, 2025
Tokyo
Japan's market indexes advanced on Friday and extended weekly gains after real wages rose for the first time this year.
The Nikkei 225 Stock Average increased 0.6%, and the broader Topix advanced 0.4% as investors welcomed the lower U.S. tariffs on automobiles.
Japan's nominal wages in July rose 4.1% from a year ago, to 419,661 yen, or $2,800, the Ministry of Health, Labor and Welfare said.
Nominal wages, or the average total cash earnings including base and overtime pay, rose for the 43rd month in a row.
The increase in nominal wages was driven by a 7.9% jump in special earnings, which largely reflects bonuses, to 128,618 yen.
Japan's Real Wages Turn Positive After Seven Months in July
Real wages, after adjusting for inflation, inched higher 0.5% and turned positive for the first time in seven months, according to the data released by the ministry on Friday.
Consumer price inflation, used for the calculation of wages, increased to 3.6%, limiting the purchasing power of the consumer, a key metric for the economic expansion.
A separate report from the ministry showed household spending in July increased a real 1.4% from a year ago, said the Ministry of Internal Affairs and Communications.
Average spending by households of two or more people in July was 305,694 yen.
Household spending, which accounts for more than half of Japan's gross domestic product, is closely watched by economists.
Japan Indexes and Markets
The Nikkei 225 Stock Average rose 0.6% to 42,848.91, and the broader Topix added 0.4% to 3,093.14.
Automobile stocks advanced after the U.S. president signed an executive order lowering tariffs to 15% from 27.5% and acknowledged $550 billion in Japanese investments in U.S. projects.
However, two separate courts have ruled that Donald Trump overstepped his executive authority in imposing sweeping tariffs, requiring the U.S. Supreme Court to weigh in.
Toyota Motor Corp. increased 1.5% to ¥2,949.50, Honda Motor Co. Ltd. gained 0.9% to ¥1,689.0, and Nissan Motor Co. Ltd. advanced 2% to ¥344.30.