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.”

https://investors.broadcom.com/news-releases/news-release-details/broadcom-inc-announces-third-quarter-fiscal-year-2025-financial