Gapping down
In reaction to earnings/guidance:
- JWN -12.6%, WOOF -7.6%, EAT -6.9%, AAP -6.4%, SCSC -6.3%, CAL -2.7%, TOL -2.5%, URBN -2.2%, RY -0.7%
Other news:
- AVNW -2.7% (CRNT shareholders vote to reject AVNW in its attempt to take control; also reports earnings)
- CRNT -1.3% (CRNT shareholders vote to reject AVNW in its attempt to take control)
- PANL -1.2% (purchases vessel for $17.1 mln)
- ESPR -1% (Point72 Asset Mgmt discloses 5.2% stake)
- WEN -0.8% (100+ people have reportedly become ill, according to the NY Post)
Analyst comments:
- MDT -0.9% (downgraded to Mkt Perform from Outperform at Raymond James)
Gapping up
In reaction to earnings/guidance:
- LZB +6.7%, INTU +5.8%, PYCR +3.3%, IIVI +3.3%, DY +2.2%
Other news:
- FTCH +18.2% (Farfetch, Richemont and Alabbar to partner in YOOX NET-A-PORTER)
- TTCF +15% (expands distribution agreement with WMT, will increase availability of its products at Walmart stores across US)
- GETY +9.1% (boosts debt repayment)
- AKTS +6.5% (receives development order for two new diplexers from Fortune 100 internet company)
- SCOR +4.6% (names new COO)
- ASTL +1.9% (reaches labor deal with union)
- FAF +1.6% (raises quarterly dividend)
- MATX +0.9% (adds 3 mln shares, or 8% of shares outstanding, to existing share repurchase program)
Analyst comments:
- PLD +0.8% (upgraded to Outperform from Peer Perform at Wolfe Research)sca
Early premarket gappers
- Gapping up:
- GETY +16.2%, FTCH +13.6%, TTCF +11%, LZB +7.1%, INTU +5.7%, SCOR +4.6%, DY +4.2%, PYCR +3.3%, ASTL +1.9%, IIVI +1.7%, CRNT +1.7%, FAF +1.6%, MATX +0.5%
- Gapping down:
- JWN -13.8%, SCSC -6.3%, AAP -4.5%, AVNW -2.7%, CAL -2.7%, WEN -2.4%, URBN -2%, FLR -1.7%, TOL -1.5%, PANL -1.2%, MRNA -0.5%
Richemont cedes control of ecommerce unit to Farfetch and Mideast investor
Activists saw business as an unprofitable distraction for the Swiss luxury group that owns Cartier
Swiss luxury group Richemont has delivered a long-promised deal to sell a majority stake in its unprofitable ecommerce operation Yoox Net-a-Porter to online rival Farfetch and an Emirati investor.
The divestment will require Richemont to take a €2.7bn non-cash writedown on the value of Yoox Net-a-Porter, which it had built largely through acquisitions since 2010.
The business had become an expensive headache for the group that owns Cartier in recent years as nimbler rivals including Farfetch attracted fickle fashion customers with savvy marketing and new services while Richemont stumbled over technology upgrades.
Some investors had been pushing Richemont to offload YNAP, including activists who began to target the company last year, arguing that it should focus on its biggest brands Cartier and Van Cleef & Arpels that generate all of the group’s profit.
Richemont had said it was in “advanced talks” to cede control of YNAP to Farfetch last year, but a crash in the latter’s share price appeared to have complicated reaching final terms. New York-listed Farfetch’s shares are down 80 per cent over the past year. Richemont’s shares rose 1.6 per cent in early trading on Wednesday.
One of the activists at Richemont, Bluebell Capital, is campaigning for changes to the board of directors and has submitted three resolutions for a vote at an upcoming shareholder meeting on September 7.
Under the terms of the deal, YNAP will not have a controlling shareholder, and Richemont will deconsolidate the business from its books although it will retain a 49.3 per cent stake.
Farfetch has agreed to acquire 47.5 per cent of YNAP and pay Richemont with between 53mn and 58.5mn Farfetch shares, as well as an additional $250mn worth of shares five years after the deal is completed. Richemont will end up with a 12 to 13 per cent stake in Farfetch.
Alabbar, a group backed by Emirati businessman Mohamed Alaabar that has long been a partner of Richemont’s in the Middle East, will also acquire 3.2 per cent of YNAP.
Richemont and Farfetch have put and call options that would allow Farfetch to acquire the remainder of YNAP in the next five years or for Richemont to sell to another investor or list the shares.
“This represents a significant step in achieving Richemont’s vision of making YNAP a neutral industry-wide platform,” the group said in a statement. It sets out a path towards “Farfetch potentially acquiring the remaining shares”.
Some of Richemont’s brands are expected to migrate their ecommerce operations to Farfetch’s tech platform.
Jean-Philippe Bertschy, analyst at Vontobel, welcomed what he called “a long wait for a painful exit from online” for Richemont.
“Excellent news for Richemont, at last,” he wrote in a note “The deal closes years of underperformance and heavy investment in YNAP.”
>>> Up
* Bakkafrost Raised to Buy at Arctic Securities; PT 670 kroner
* Bonava Raised to Buy at Handelsbanken
* Elkem Raised to Overweight at Morgan Stanley; PT 50 kroner
* Metro Bank Raised to Buy at Investec; PT 95 pence (+)
* Novem Group Raised to Overweight at JPMorgan; PT 13 euros
* Tenaris Raised to Buy at Banca Akros (ESN); PT 18.50 euros (+)
* Vallourec Raised to Overweight at Barclays; PT 17 euros
>>> Down
* Isofol Medical Cut to Hold at Pareto Securities; PT 1.10 kronor (+)
* Michelin PT Cut to 23.50 euros from 27.50 euros at JPMorgan (+)
>>> Initiation
>>> Call
* ASR Nederland Delivers ‘Strong Set’ of 1H Results, Citi Says (+)
* Elkem Raised at Morgan Stanley on Underappreciated Profitability
* HelloFresh’s Outlook Downgrade Leads to PT Cut at Deutsche Bank (+)
- Uniper (UN01 TH) +1%
- Uniper, Ex-Gazprom Unit Seek 92% of German Gas Levy Relief
- CTS Eventim (EVD TH) +0.9%
- CTS Eventim 1H Normalized Ebitda Beats Estimates
- Iberdrola (IBE1 TH) +0.8%
- Spanish Dams at 27-Year Low as European Energy Crisis Widens
- Rio Tinto (RIO1 TH) +0.5%
- Equinor (DNQ TH) +0.4%
- AB InBev (1NBA TH) +0.4%
- Daimler Truck (DTG TH) -0.7%
- Lufthansa (LHA TH) -0.7%
- Porsche SE (PAH3 TH) -0.7%
- Sartorius (SRT3 TH) -0.7%
- Commerzbank (CBK TH) -0.7%
- Mercedes (MBG TH) -0.7%
- Freenet (FNTN TH) -0.8%
- ASML (ASME TH) -0.8%
- Hugo Boss (BOSS TH) -2%
- Watch European Retailers on Nordstrom, Urban Outfitters Results
DAX:
- No major movers
MDAX:
- Uniper (UN01 TH) +2.5%
- Uniper, Ex-Gazprom Unit Seek 92% of German Gas Levy Relief
- CTS Eventim (EVD TH) +1.3%
- CTS Eventim 1H Normalized Ebitda Beats Estimates
- Hugo Boss (BOSS TH) -1.3%
- Watch European Retailers on Nordstrom, Urban Outfitters Results
SDAX:
- MorphoSys (MOR TH) +1.2%
- Ceconomy (CEC TH) -1.1%
An Asian stock index and US equity futures declined Wednesday as investors assessed the likely pace of further Federal Reserve monetary tightening and mounting signs of an economic slowdown. The region-wide equity bourse shed about 0.5%, paced by slides in China and Hong Kong, where developer Logan Group Co. plunged -- a careening stock price that again highlights the property crisis dragging on China’s economy. The slump fed into wider risk aversion that saw S&P 500, Nasdaq 100 and European futures drop. Risk-sensitive currencies such as those in Australia and New Zealand slid. The 10-year Treasury yield held above 3%. Bitcoin wavered. The latest data showed economic activity weakening from the US to Europe and Asia, underlining the delicate task the Fed faces in hiking interest rates to bring down high inflation without sparking a recession. Investors will pour over Fed Chair Jerome Powell’s speech at the Jackson Hole symposium on Friday for a sense of how hawkish the US central bank will be in the face of mounting economic challenges. A global rebound in equities from a June low has stalled ahead of the much-anticipated event. crude oil held gains above $93 a barrel, bolstered by shrinking US crude stockpiles and possible OPEC+ output cuts. US After Hours LZB +7.6%, INTU +5.5% higher on earnings; JWN -13.8%, AAP -6.4%, CAL -3.2% fall on earnings; TTCF +15% gets boost on WMT deal
Nikkei -0.46% Hang Seng -1.23% CSI -1.15% Shanghai -1.26% Shenzen -2.25%
Eur$ 0.9951 CNH 6.8752 CNY 6.8619 JPY 136.59 GBP 1.1816 CHF 0.9652 RUB 59.8077 TRY 18.1276 WIT$ 93.60 -0.14% Gold 1,747 -0.07% BTC 21,485 +0.04% ETH 1,643 -0.24%
S&P -0.11% Nasdaq -0.09% EuroStoxx -0.19% FTSE +0.03% Dax -0.36% SMI
Macro :
- ConvaTec, F&C Indicated to Join FTSE 100; Abrdn, Hikma to Leave
- Julian Robertson, Hedge-Fund Guru to ‘Tiger Cubs,’ Dies at 90
- Goldman Says Hedge Funds Back Betting Big on Megacap Tech Stocks
Keep an eye on :
- AGFB BB : Agfa-Gevaert 2Q Revenue Beats Estimates
- ALLN SW : Allreal 1H Net Income CHF81.8M Vs. CHF79.1M Y/y
- ASRNL NA : ASR Nederland 1H Operating Profit Beats Estimates
- AZN LN : AstraZeneca CEO Warns US Pricing Rules Will Delay New Drugs
- AUSS NO : Austevoll Seafood 2Q Revenue Beats Estimates
- BAVA DC : Bavarian Nordic 2Q Revenue Misses Estimates
- BCART BB : Biocartis Gets ISO 27001 Certification for Idylla Platform
- ACA FP : ECB Confirms EU4.765 Million Sanctions on Crédit Agricole
- EVD GY : CTS Eventim 1H Normalized Ebitda Beats Estimates
- DAE SW : Daetwyler Sees FY Ebit Margin 13% to 16%
- LSG NO : Leroy 2Q Revenue Beats Estimates
- LLBN SW : Liechtensteinische LB 1H Net Income CHF75.9M Vs. CHF71.1M Y/y
- MEKO SS : MEKO AB 2Q Ebit SEK185M Vs. SEK280M Y/y
- MOWI NO : Mowi Sees 3Q Harvest 131,000 Metric Tons
- NHY NO : *GERMAN ALUMINUM SMELTER CONSIDERS HALVING OUTPUT ON ENERGY COST
- ORRON SS : Orron’s Offer for Slitevind Has 91% Initial Acceptance Level
- QRF BB : Qrf Renegotiates Lease With Inno Hasselt as of Aug. 2023
- RLF SW : Relief Seeks Secondary Listing on Nasdaq
- REP SM : Peru Court Accepts $4.5b Lawsuit Against Repsol for Oil Spill
- CFR SW : Richemont to Take Non-Cash Charge of About 2.7B Euros on YNAP
- RPS LN : RPS Shares Rise Above WSP Offer After Betaville ‘Uncooked Alert’
- SENS SW : Sensirion Sees FY Revenue CHF310M to CHF340M, Est. CHF338.4M
- UN01 GY : Uniper, Ex-Gazprom Unit Seek 92% of German Gas Levy Relief
- VIMIAN SS : Vimian 2Q Revenue EU67M
- VIV FP : Vivendi Wants to Stay in Italy as Long-Term Investor, CEO Says
>>> Up
* Bakkafrost Raised to Buy at Arctic Securities; PT 670 kroner
* Bonava Raised to Buy at Handelsbanken
* Elkem Raised to Overweight at Morgan Stanley; PT 50 kroner
* Novem Group Raised to Overweight at JPMorgan; PT 13 euros
* Vallourec Raised to Overweight at Barclays; PT 17 euros
>>> Down
>>> Initiation
>>> Call
* Elkem Raised at Morgan Stanley on Underappreciated Profitability