Movers: Allbirds, Nielsen, Norwegian Cruise, Ralph Lauren, Signet Jewelers

Barry Adams
09 Aug, 2022
New York City

Stocks traded lower on Wall Street and bond yields traded higher ahead of the inflation report Wednesday. 

Investors are increasingly factoring a larger rate hike of at least 75 basis points at the Fed Reserve's next policy meeting in September. 

The Consumer Price Index data for July are scheduled to be released on August 10. 

The inflation index increased 9.1% in June on an annual basis and 1.3% from the previous month on the sustained increase in food and energy prices. 

However, investors are hoping for the inflation to cool down following the 28% decline in crude prices from the peak in March. 

The S&P 500 index declined 0.6% to 4,115.72 and the Nasdaq Composite index dropped 1.6% to 12,444.97. 

Allbirds Inc declined 19.2% to $4.54 after the shoemaker said second quarter total revenues increased 15% to $78.2 million and net revenues in the U.S. rose 21% to $59.3 million. 

Net loss in the quarter surged to $29.3 million from $7.6 million a year ago. 

The retailer lowered its full-year adjusted net revenues outlook to fall between $305 million and $315 million from the previous range between $335 million and $345 million issued at the time of the first quarter results. 

Chip sector stocks are leading the decliners after Nvidia missed its revenue outlook yesterday and Sony also guided weakening sale of its game console. 

Marvell Technology fell 8.5%, Lam Research dropped 10%, Intel Corporation decreased 2.5%, and AMD fell 5.5%. 

Micron Tech said it plans to invest $40 billion in memory chi production facilities in several phases through the end of the decade. 

The announcement, made ahead of Micron executives joining President Joe Biden at the White House for the signing of the CHIPS and Science Act.  

Micron Tech declined 5.5% to $58.23 after Raymond James lowered its price target to $65 from $72. 

Nielsen Holdings surged 21.2% to $27.54 after the company postponed its meeting with a hedge fund WindAcre, the largest shareholder in the company with a 27% stake. 

Nielsen  today postponed the court meeting and the special meeting of its shareholders to finalize a preliminary agreement with WindAcre to join a consortium of private equity and receive $28 a share a share, the same price to be paid to all other shareholders for its remaining shares. 

Norwegian Cruise Line Holdings fell 11.4% to $11.99 after the company reported second quarter revenues soared to $1.2 billion from $4.4 million a year ago when the Covid-19 restrictions were still in place. 

The company reported a net loss of $509.3 million or $1.22 a diluted share compared to a loss of $717.8 million or $1.94 a diluted share in the prior year.

Net fuel price per metric ton increased to $836 from $673 in 2021 and the company reported fuel expense of $181.2 million in the quarter. 

Norwegian said second quarter occupancy was about 65% and the occupancy "remains below the comparable 2019 period but at higher prices" in the second-half.

Bookings are not expected to recover to the 2019 level at least till the next year, indicating losses to continue. 

NCL expects total revenue per Passenger Cruise Day to increase in "high-single digits" compared to 2019 levels. 

Ralph Lauren Corp fell 4.9% to $96.37 after the fashion retailer said revenues in the fiscal first quarter ending on July 2 rose 8% to $1.49 billion. 

Net income declined to $123.4 million or 75 cents a diluted share from $164.7 million or 89 cents a diluted share a year ago.  

Signet Jewelers Ltd dropped 13.5% to $58.50 after the jewelry chain lowered its full-year revenues outlook to between $6.7 billion and $7.6 billion and $7.7 billion from the previous range between $8.03 billion and $8.25 billion. 

The company cited "heightened pressure on consumers' discretionary spending and increased macroeconomic headwinds."

Signet also announced the acquisition of Blue Nile for $360 million in cash. 

The online retailer of engagement rings and fine jewelry delivered revenues of more than $500 million 2021.