All articles tagged with #margin
Lululemon warns that the end of the de minimis exemption and higher tariffs will significantly impact its margins, leading to a $240 million hit this year and causing the company to cut its earnings and revenue outlook.
Nike's stock rose after J.P. Morgan upgraded it to Overweight, citing positive prospects for sales and margin improvements.
Tesla's stock has fallen over 9% after its Q2 earnings report showed a 12% revenue decline and margin pressures, raising questions about its future amid increasing competition and regulatory uncertainties.
PayPal's shares dropped 7% in after-hours trading as investors expressed disappointment over the company's quarterly operating margin, which fell short of expectations. While PayPal executives anticipate improvement in the margin towards the end of the year, analysts have been concerned about the company's underwhelming margins in recent quarters. The growth of PayPal's low-margin business products has outpaced its branded products, which have faced increased competition from rivals like Apple. On a positive note, PayPal expects e-commerce growth to rebound as inflation cools and discretionary spending increases. The company's total payment volume rose 11% in Q2, and it forecasts third-quarter revenue above analysts' estimates. PayPal's CEO also mentioned that the company is in the final stages of selecting his successor.
Ford's electric vehicle unit, Ford Model e, lost $2.1 billion in 2022 and could lose up to $3 billion in 2023, but the automaker expects the unit to be solidly profitable by the end of 2026. Ford CFO John Lawler outlined steps to achieve this, including scaling up production to 2 million EVs per year, obsessing over energy-efficient designs, bringing battery-cell manufacturing in-house, and selling software and services to EV owners. However, some analysts remain skeptical of Ford's ability to achieve an 8% EBIT margin on EVs by 2026.