All articles tagged with #profit warning
Novo Nordisk's shares plummeted over 22% after the company issued a profit warning due to intense US market competition and slower-than-expected sales growth for its weight-loss drugs Ozempic and Wegovy, leading to a significant reduction in its full-year sales and profit forecasts, amid ongoing legal actions against copycat drugs.
Stellantis NV is in a precarious position following the unexpected departure of CEO Carlos Tavares, who left after a profit warning in September. Despite initially retaining his position by replacing the finance chief and securing board support, Tavares did not complete his term, leaving the company, which produces brands like Jeep and Fiat, in survival mode.
Burberry is replacing CEO Jonathan Akeroyd with Joshua Schulman after a disappointing quarter where sales dropped over 20%. The company issued a profit warning, scrapped its dividend, and saw its stock fall 17%. Burberry plans to refocus on high-end spenders and launch a new website in August to improve its competitive position and long-term growth.
Burberry shares dropped 11% after the company issued a profit warning, replaced its CEO, and suspended its dividend following a disappointing first-quarter performance. The luxury retailer expects an operating loss for the first half of the year if the current trading slowdown continues. Joshua Schulman has been named the new CEO, replacing Jonathan Akeroyd. The company plans to focus on rebalancing its product offerings and delivering cost savings to improve performance in the second half of the year.
Kering, the owner of Gucci, saw its shares plummet 14% after issuing a rare profit warning, citing an expected 20% decline in Gucci sales in the first quarter of 2024, particularly in the Asia-Pacific region. This forecasted drop in revenue sets Kering apart from other luxury brands like LVMH and Hermes, which have shown resilience in the face of economic challenges. The slowdown is primarily attributed to Asia, especially China, and Kering is set to release its first-quarter revenue data on April 23. The company's struggles come after Gucci's strong performance in 2021, and Kering has been investing in its brands despite lower margins.
Kering, the owner of luxury fashion brand Gucci, has issued a rare profit warning for the luxury sector, citing concerns about the impact of the ongoing COVID-19 pandemic. The company's warning reflects broader challenges facing the fashion industry as consumer behavior continues to be affected by the global health crisis.
The Children’s Place Inc.'s stock plummeted 53% to a 21-year low after issuing a profit warning for the fourth quarter and revealing it's running out of cash, prompting the company to seek new financing. The company is considering strategic alternatives if it can't secure the necessary funds and expects a fourth-quarter adjusted operating loss due to lower merchandise margins and increased inventory valuation adjustments. Monness Crespi Hardt downgraded the stock, citing execution missteps and liquidity concerns, while the company's liquidity stood at about $45 million as of Feb. 3.
Aozora Bank cuts the value of its U.S. office loans by over 50% due to adverse conditions in the market, while New York Community Bancorp's stock plummets after a surprise loss and dividend cut. Deutsche Bank also increases provisions for commercial real estate, particularly in the U.S. office sector, as the bank warns of potential credit-loss provisions in 2024. BNP Paribas shares also slump as the French banking giant cuts its longer-term profit forecast.
Burberry issues a profit warning as it expects annual profits to be significantly lower than previously anticipated, citing a slowdown in luxury demand and consumers cutting back on expensive purchases like trenchcoats and scarves amid the cost of living crisis. The company's share price slumped 14% in early trading, and revenues fell 7% year on year. The luxury brand's premium priced products were deemed too expensive for household budgets, and the impact of the cost of living crisis on consumer spending is evident.
Dr Martens shares plummeted by over 27% after the British bootmaker issued its fourth profit warning in a year, citing weak demand from US wholesalers and a slower start to the autumn-winter season. The company's wholesale revenue dropped 17% in the first half of the year, primarily due to reduced orders from US customers. Dr Martens expects a decline in revenue for the year ending in March 2024 and anticipates full-year core profit to be below market expectations. However, the company has seen steady demand in the UK, Europe, and the Asia-Pacific region.
Shares of Deutsche Pfandbriefbank, a German lender, dropped by as much as 14% after issuing a profit warning due to the struggling commercial real estate market in the U.S. The bank cited persistent weakness in the market and increased risk provisions. It now expects pretax profits for the year to be significantly lower than previously forecasted. Other banks, such as ABN Amro, also experienced declines in their shares. European stock markets were relatively stable, with slight movements, while U.S. stock futures were mixed.
Contract drug manufacturer Catalent has delayed its Q3 earnings report and expects to "significantly reduce" guidance for the fiscal year, causing its stock to drop.
Contract drug manufacturer Catalent's CFO, Thomas Castellano, has left the company, and an executive-search firm is being hired to evaluate candidates for his successor. The company has warned that productivity issues and higher-than-expected costs at three of its facilities will heavily impact its profits.
De La Rue, the world's largest banknote maker, issued a profit warning due to a 20-year low in demand for banknotes. Central banks around the world are working through stockpiles acquired during the pandemic, resulting in a low order book for De La Rue going into FY24. The company now expects its full-year adjusted operating profit for the 2024 fiscal year to be around low-£20 million, half of its previous unadjusted estimates of £40.1 million. De La Rue is discussing with banks about amending lending terms that will take into account the company's revised outlook and higher interest rates.