Lululemon warns cautious consumers
Lululemon $LULU (-1,25%) experienced a painful 15% drop in its shares this afternoon. The reason? CEO Calvin McDonald announced at an investor conference that consumers in the US are increasingly hesitant when it comes to spending. This development is not surprising, as the current economic climate is causing uncertainty. The University of Michigan's consumer index has reached its lowest level since November 2022, clearly showing that people are rethinking their spending. Retailers are also reporting a reluctance to spend, which is directly attributable to concerns about economic changes and rising tariffs. Despite these challenges, Lululemon is optimistic about the future: net sales of between EUR 11.1 and 11.3 billion and adjusted earnings per share of EUR 14.95 to 15.15 are targeted for the 2025 financial year. The diversification of products and low dependence on China could benefit the company in these turbulent times.
Boeing plans to sell Jeppesen navigation unit for over 8 billion dollars
In the USA, Boeing is planning $BA (-0,81%) is planning a significant sale of its Jeppesen navigation unit, and interest is high. Several private equity firms and an aerospace supplier have already signaled their offers. The estimated price for this valuable unit is over 8 billion euros and Boeing will be reviewing the bids received in the coming weeks. Potential buyers include prominent names such as Vista Equity, Warburg Pincus and TransDigm. This sale is part of CEO Kelly Ortberg's strategy to streamline Boeing and reduce debt. If the sale is successful, it could go down in history as one of the largest carve-out transactions in recent years. Jeppesen, known for its navigation products and software, is seen as a valuable asset that could potentially generate stable cash flows for the buyers.
Sources:
https://finance.yahoo.com/news/exclusive-buyout-aerospace-firms-close-174043591.html