US markets
U.S. stocks were in the green on Friday following the worst day for the stock market since mid-March. At yesterday’s close, the Dow fell 7% and the S&P 500 and Nasdaq declined more than 5%. This morning, the Dow Jones Industrial Average gained 3.14% to 25,918, the S&P 500 index rose 2.76% to 3,084 and the Nasdaq Composite Index was up 2.81% to 9,759.
Gainers
• Carnival Corporation & Plc (CCL, Financial) + 12%
• Delta Air Lines, Inc. (DAL, Financial) +9.8%
• The Boeing Company (BA, Financial) +9%
• Alaska Air Group, Inc. (ALK, Financial) +8.3%
• Alliance Data Systems Corporation (ADS, Financial) +7.5%
Losers
• ONEOK, Inc. (OKE, Financial) -5.5%
• PVH Corp. (PVH, Financial) -5.2%
Global markets
The main European stock markets traded in the green. The UK's FTSE 100 rose 1.52%, France's CAC 40 advanced 1.94%, Germany's Dax was up 1.06% and Spain's Ibex 35 jumped 1.41%.
In Asia, Japan's Nikkei 225 fell 0.75%, India’s BSE Sensex gained 0.72%, Hong Kong's Hang Seng declined 0.73% and China's Shanghai Composite was down 0.04%.
Lululemon releases earnings report
Shares of Lululemon Athletica Inc. (LULU, Financial) fell more than 1% on pre-market trading Friday morning after the company announced its first-quarter results. The company posted earnings per share of 22 cents, falling short of analysts’ estimates by 4 cents. Revenue of $651.96 million declined 16.7% year-over-year and fell $44.02 million short of expectations.
Total net revenue was down 17% to $652 million. Company-operated store revenue reached $260.0 million (or 39.9% of total revenue) compared to $506.4 million (or 64.7% of total revenue) in the same quarter of 2019. E-commerce revenue totaled $352 million, or 54.0% of total revenue, compared to $209.8 million, or 26.8% of total revenue, in the comparable period of 2019. Other revenue totaled $40.0 million, or 6.1% of total net revenue, compared to $66.0 million, or 8.4% of total net revenue, in the first three months of 2019.
The gross margin declined 260 basis points, driven by a lower net revenue, an increase in costs related to the distribution centers and a negative impact from foreign exchange rates.
Looking at the financial position, the company had cash and cash equivalents of $820 million at the end of the first quarter of 2020.
Jim Simons' Renaissance Technologies added 1199% to its holding in the company for a total of 896,314 shares. Steven Cohen (Trades, Portfolio) added 187% to his holding, while Paul Tudor Jones (Trades, Portfolio) trimmed his investment by 54%. Philppe Laffont and Louis Moore Bacon (Trades, Portfolio) sold out the stock.
Disclosure: The author holds no positions in any stocks mentioned.
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