Stock on the move: Adidas down 8% as JDE Peet’s jump
Shoppers were spotted at the Adidas store in Miami, Florida, on April 4, 2025.
Many companies’ earnings are influencing market fluctuations today. The FTSE 100 saw a 0.3% drop by noon in London, while the CAC40 in France had a 0.43% rise. In Germany, the Dachshund index increased by 0.17%. Investors, meanwhile, are taking a close look at eurozone growth figures, which are mildly above expectations.
Adidas experienced a significant decrease of 7.7% after the company announced a double-digit euro impact from U.S. tariffs in Q2, coupled with sales that fell short of projections.
In contrast, the standout performer on the Stoxx 600 index was JDE Peet’s, a Dutch coffee and tea firm, which saw a 13% increase, according to their report. Despite a surge in coffee prices, sales grew by an impressive 22.5% in the last six months. They also have optimistic sales and profit outlooks for brands like Jacobs and L’Or.
On the other side, Amplifon, an Italian hearing aid retailer, plunged 24%. The company downgraded its outlook, citing a “clear weakening of consumer trust” affecting markets including Southern Europe, North America, and China.
Novo Nordisk’s shares continue to decline 2.5% after profit warning
Novo Nordisk’s stocks on the Copenhagen exchange dropped by 2.5% following the Danish pharmaceutical company’s significant reduction in its full-year earnings guidance announced earlier this week.
On Tuesday, shares plummeted by 23%.
Santander Bank on retail strength when markets wade tariff uncertainty
Banco Santander, the Spanish banking giant, indicated that 70% of its operations focus on retail and commercial sectors, which seem less impacted by macroeconomic conditions. CFO Jose Garcia Cantera shared this during an interview on CNBC’s “Squawk Box Europe.” He noted that some companies are delaying investment due to current economic uncertainties.
However, the recent EU trade deal with the U.S. could provide a positive boost to the local market by reducing uncertainty, according to Cantera. He expressed hope for further interest rate cuts from both the European Central Bank and the U.S. Federal Reserve in the coming months.
Porsche CEO says the ongoing challenge is “not a storm that passes” as profits drop sharply
Porsche reported a steep decline in profits and sales due to ongoing macroeconomic and geopolitical challenges, emphasizing this isn’t a temporary setback. CEO Oliver Blume remarked on the drastic changes in the global landscape and how past strategic decisions are viewed differently now. Operating profit fell by 67% to 1 billion euros ($1.17 billion), with sales dipping 6.7% to 18.2 billion euros, although still meeting expectations slightly.
HSBC announced $3 billion in stock buyback after second quarter profits plummeted 29%, with no forecast
HSBC, Europe’s largest bank, reported significant underperformance in the second quarter, largely attributed to impairment costs and announced a $3 billion share buyback. Pre-tax profits for the quarter ending in June fell by 29% year-over-year to reach $6.3 billion, against a backdrop of rising operating expenses linked to restructuring and technology upgrades.
Luxury Giant Hermes saw a 9% increase in second quarter sales
In Vienna, Hermes reported that second quarter sales were up 9% year-on-year, reaching 3.91 billion euros ($4.51 billion), aligning with analyst predictions, and reflecting growth across all regions.
Executive Chairman Axel Dumas noted this performance underscores “the strength of the Hermes model,” which stands out amidst wider challenges facing the luxury sector as it recovers from the impact of the pandemic.
Kering’s Post is down 15% worse than 15% in second quarter sales
Kering, the company behind Gucci, shared disappointing second-quarter results with a 15% decline in sales year-on-year, falling to 3.7 billion euros ($4.27 billion). Gucci’s own sales dipped by 25%, which usually contributes almost half of Kering’s total revenue. CEO François-Henri Pinault acknowledged the numbers don’t reflect the company’s true potential but emphasized the groundwork laid in recent years for future growth.
BASF says the “indirect impact” of tariffs is narrowing down demand and profits
BASF, a major chemical producer from Germany, cited the indirect effects of U.S. tariffs on imports as a factor in diminishing demand and profit margins. The company highlighted the uncertainty stemming from tariff announcements and government decisions, leading to competitive pressures and inflation influencing prices and demand. For Q2, BASF’s sales totaled 15.8 billion euros ($18.2 billion), marking a 2% decline compared to last year.
L’Oreal warns that the EU-US trade contract is expensive
L’Oreal reported slower-than-expected growth in Europe, missing its Q2 sales forecast despite a 2.4% increase. Some growth was noted in the U.S. and China, somewhat balancing declines in other areas. The company plans to advocate for U.S. tariff exemptions, acknowledging that the recent EU-U.S. trade contract may incur high costs.
Siemens Healthineers beat topline expectations
Siemens Healthineers exceeded third-quarter earnings expectations, recording a 7.6% increase to reach 5.7 billion euros ($6.6 billion) compared to the same period last year. Despite CEO Bernd Montag warning of ongoing geopolitical risks, the company has adjusted its growth outlook positively.
Santander revealed record net profit in the second quarter
Santander announced a record net profit of 3.4 billion euros ($3.9 billion) for the second quarter and also unveiled a 1.7 billion euro share buyback program following optimistic forecasts for the year.
European stocks set to open higher as investors consume revenue seasons
Good morning from London. With just over an hour until the stock markets open, the Stoxx Europe 600 index indicates a 0.2% pre-market gain. Both the UK FTSE 100 and Germany’s Dachshund are expected to rise by 0.2%, while France’s CAC40 anticipates a nearly flat performance, according to FactSet data. Companies including Santander, BASF, HSBC, and L’Oreal have reported their revenues.
