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.