Good Evening. The S&P 500 lost ground in four of the week’s five trading sessions, making for a difficult week for investors.
When Wall Street’s closing bell sounded, all three main indexes were lower: the S&P 500 was down 0.73%, the Dow Jones was down 0.90%, and the Nasdaq Composite was down 0.70%.
THE ROAD AHEAD
Lululemon (LULU) had its greatest Black Friday ever, but it did not meet Wall Street’s expectations for the next quarter during the company’s most recent financial report.
- Revenue: $1.86 Billion vs. $1.81 Billion expected
- Earnings Per Share: $2.00 vs. $1.97 expected
According to Lululemon CFO Meghan Frank, the company’s profitability decreased due to higher markdowns, inventory provision, and foreign currency. However, Frank justified the company’s 85% year-over-year inventory growth.
The road ahead… LULU plans on building additional shops, growing internationally, and offering more items to males, the firm hopes to double its revenues by the fiscal year ending in early 2027. In addition, it is experimenting with a new two-tiered membership scheme in an effort to retain clients.
MORE ADS!
The recently reinstated CEO Bob Iger will supervise the newest addition to Disney+: advertisements. Yesterday, Disney+ introduced a $7.99 ad-supported version that is less expensive. In addition, the price of its ad-free subscription increased by $3 to $10.99.
So what type of Ads? There will be no political or alcohol-related advertisements, marketers will not be permitted to target viewers under 18, and “kids mode” will be ad-free.
If you can’t beat them, Join them… Unless you are Amazon and AppleTV+ because they are the only major streaming services that have not included an ad option. Even Netflix, which has scoffed at advertisements for years, unveiled an ad-supported tier last month. Hulu, which is owned by Disney, was one of the first streaming services to provide an ad-supported tier, which accounts for the vast majority of its users.