Lululemon Drops, Adobe Falls, Equifax Lower After Pulte Criticism

0:00Some people treat Chachy PT like some kind of smart search engine, and some use it to get work done. Chachy PT work is a new way of working in Chachy PT that can take action across your apps and files, stay with a project for hours if needed, and turn a goal into finished work. It's designed to help you move from a chaotic starting point to a reviewable first version. So all the source materials, briefs, and scattered information that you have to grind through to turn into something useful can just become something useful. Put Chachy PT to work on your most ambitious ideas and projects. Get started at chachypt.com by selecting Work Mode, available on plus and pro plans. Bloomberg Audio Studios, podcasts, radio, news. The Stock Movers Report, your round up of companies making moves in the stock market, harnessing the power of Bloomberg data. Let's take a look now at some stocks on the move today.

1:01I'm Nathan Hanger with Scarlett Food. Joining us now is Bloomberg's Tatiana Dariay. Gotta talk about Lulu Lemon. Tatiana Lemon is the emphasis this morning. Yes, those shares are down about 18% right now, two in eight year low after earnings. The company cut its full year outlook for a second quarter and reported its first quarterly decline in comparable sales since the pandemic. Jeffress Analyst called this a triple whammy, right? The US revenue down, women's business down, and China also lower. Analysts are now fearing that this cut might not be enough for a proper reset. They fear that more reductions are coming down the line. This is certainly a lot here to digest for the incoming new CEO as a reminder of former Nike executive, Heidi O'Neill, a schedule to take the reins next week, more than four months after being announced to the role. Boy, he has a lot of work ahead. Certainly does, all right? I mean, that is just, it's an ugly, ugly print for Lulu Lemon.

2:04Next on your list? Adobe here also somewhat related to incoming leadership transitions. Down about 6% now, the most since July 30 after revealing its new leadership transition plans. A Neal Chakravardi, I hope I'm pronouncing this correctly. He's the leader of its marketing and analytics business division. We'll take the post from December 1st. Join Adobe in January 2020. So someone of a veteran by now said to replace the currency, he has been lending the company since 2007. But here's the twist, David Wadwani, who run its creative business unit, said he will leave the company for a new opportunity. Obviously, he was the other contender for this position. Analysts scratching their heads here a little bit. Jeffers analyst issued a note titled, a new Adobe CEO who not as many expected, right? So it wasn't quite there expected. They expected that Wadwani, who is the head of a much larger creative unit division,

3:04would be better placed to lead the company. The stock here has been under pressure from AI disruption research, also big shoes to feel for the new incoming CEO at Adobe as well. Yeah, absolutely. I know it's a down day overall, but you're really here with the downers as far as the stocks go this morning. Tatiana, I got to take a look at Equifax as well, but this is important because the credit reporting agencies are certainly getting a lot of attention today. Yes, Equifax down 8% TransUnion, also under pressure that's after US federal housing finance agency director Bill Palti issued renewed criticism of the credit bureaus for overcharging Americans. He specifically called out the big three in a post on next, noting that the government is seriously considering by merge or stronger solutions. Also noted that he will instruct Fannie and Freddie to approve all lenders to use vantage score. I mean, here's the thing about all of this. Mr. Palti is trying to introduce a little bit of competition in the scoring business,

4:08which is really dominated by Fico. Right? So he's talking about this alternative vantage score, which is a cheaper, but here's the thing. Vantage is actually owned by the credit bureaus, right? So it's a good thing that we would all be moving towards them, but at the same time, they license the business from Fico. Right? So if that were to shrink, that would be a hit to their revenue, even though vantage score is a much higher margin business that has yet to take off. Nonetheless, it underscores the headline here. The headline risk here for these companies.

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