U.S. Movers: Dutch Bros, FedEx, Lululemon, Nike

Scott Peters
22 Mar, 2024
New York City

Lululemon Athletica dropped 14% to $413.0 after the athleisure retailer reported strong holiday quarter sales, but its outlook for the current quarter fell short of analysts' expectations. 

Net revenue in the fiscal fourth quarter ending in January increased 16% to $3.2 billion from $2.8 billion. 

Net revenues in the Americas increased at a slower pace of 9%, driven by a 7% increase in comparable sales. 

International revenue soared 54%, and comparable sales soared 43%, driven by a rebound in activities after China ended its COVID-19 restrictions. 

Net income jumped to $669.4 million from $119.8 million, and diluted earnings per share advanced to $5.30 from 94 cents a year ago. 

Inventories at the end of 2023 decreased by 9% to $1.3 billion, compared to $1.4 billion at the end of 2022. 

For the first quarter of 2024, the company expects net revenue to be in the range of $2.175 billion to $2.200 billion, representing growth of 9% to 10%. 

In rhe quarter, diluted earnings per share are expected to be in the range of $2.35 to $2.40.

For the full-year 2024, the retailer expects net revenue to be in the range of $10.7 billion to $10.8 billion, representing growth of 11% to 12%, or 10% to 11% excluding the 53rd week of 2024. 

For the full-year 2024, diluted earnings per share are expected to be in the range of $14.00 to $14.20. 

FedEx jumped 11.6% to $295.58 after the parcel delivery company reported better-than-expected quarterly results. 

Net revenue in the fiscal third quarter ending in January declined to $21.7 billion from $22.2 billion, net income rose to $879 million from $771 million, and diluted earnings per share rose to $3.51 from $3.05 a year ago. 

The logistics company guided fiscal 2024 revenue to decline in a low-single-digit percentage and earnings per diluted share between $15.65 and $16.65 before the mark-to-market retirement plan monthly adjustments. 

The company also completed the purchase of 4.1 million shares for $1.0 billion in the quarter, and the board of directors approved another $5 billion stock buyback plan, in addition to the remaining $0.6 billion available in the previously authorized plan in 2021. 

FedEx expects to repurchase an additional $500 million of common stock during the fiscal fourth quarter, which will bring the fiscal 2024 buyback total to $2.5 billion.

Dutch Bros. plunged 6% to $33.49 after the drive-through coffee chain announced the launch of a secondary offering of its shares. 

TSG Consumer Partners, LP, plans to sell 8 million shares and plans to grant a 30-day option to sell an additional 1.2 million shares to its sole underwriter, Morgan Stanley. 

Nike decreased 6.2% to $94.60 after the company reported mixed quarterly sales in the fiscal third quarter. 

Revenue in the quarter edged slightly higher to $12.43 billion from $12.39 billion, and sales in North America rose 3% to $5.07 billion, while China sales growth slowed to 5% at $2.08 billion. 

Net income in the quarter ending on February 29 was $1.17 billion, up from $1.27 billion, and diluted earnings per share decreased to 77 cents from 79 cents a year ago.