Sneaker maker stays on course as sales soar

54 minutes ago

High-end sneaker maker On Holding (ONON) reported record sales on Tuesday due to strong demand in the Asia-Pacific region and its pricing power.

The Switzerland-based company reported second-quarter revenues rose 28.7% year-over-year on a constant currency basis to an all-time high of 567.7 million Swiss francs ($655.9 million), beating expectations. Earnings per share of 0.09 CHF (0.10 USD) fell short of forecasts.

Sales increased by 73.7% in the Asia-Pacific market, 24.8% in the Americas, and 21.8% in Europe, the Middle East and Africa. Direct-to-consumer sales increased by 28.1%.

The company said its “sustained high level of full-price sales as well as lower freight rates” helped increase gross profit margin to 59.9% from 59.5% a year earlier.

On shares rose 8% and traded near their highest level since late 2021.

–Bill McColl

Baxter shares fall after sale of kidney division

2 hrs 28 mins ago

Baxter International (BAX) shares fell on Tuesday after the company announced it would sell its kidney treatment business to the Carlyle Group (CG) for $3.8 billion in cash.

The deal is expected to generate after-tax proceeds of around $3 billion and is expected to close in early 2025. Baxter said the company plans to use the proceeds to reduce its debt.

Baxter shares recently lost more than 6 percent in early afternoon trading, making them among the stocks with the biggest losses in the S&P 500. Carlyle shares rose by about 2 percent.

–Andrew Kessel

What to expect from Google’s launch event

4 hrs 3 mins ago

On Tuesday, Alphabet’s Google (GOOGL) will hold its annual “Made By Google” launch event, where it will unveil the next generation of Pixel smartphones and announce news about how it is integrating artificial intelligence into its devices with Gemini.

Analysts at Mizuho said the event could be the “next catalyst” for Alphabet shares.

The company announced that it would usher in a “new era of phones” with the Pixel 9 Pro and the Pixel 9 Pro Fold. The new devices will be equipped with AI features from Google’s AI model Gemini.

The new devices could help Google better compete with Apple’s (AAPL) upcoming iPhone 16, which features Apple Intelligence.

Alphabet shares rose 0.8% to $163.51 in recent trading. The stock has gained 16% so far in 2024, but has fallen sharply from its July high of $191.75 amid a broader downturn in the technology sector.

Read the full preview here.

–Naomi Buchanan

Starbucks gets major breakthrough after appointing Chipotle boss as CEO

4 hrs 53 mins ago

Starbucks (SBUX) shares rose sharply in early trading Tuesday after the coffee giant announced the hiring of Chipotle Mexican Grill (CMG) boss Brian Niccol as its new CEO. Niccol will replace Laxman Narasimhan, who is stepping down from his position effective immediately.

Niccol will take over the job starting Sept. 9, while Starbucks CFO Rachel Ruggeri will take over as interim CEO for the next month. Chipotle, meanwhile, has tapped COO Scott Boatwright to serve as interim CEO once Niccol leaves his position at the end of the month.

Starbucks has been under pressure to make changes in recent weeks after reports emerged that two activist investors, Elliott Investment Management and Starboard Value, have acquired stakes in the coffeehouse chain.

The funds have not yet publicly disclosed their targets, but Starbucks has reportedly discussed ideas with Elliott to boost the company’s sales and stock price. Starbucks’ recent earnings reports were disappointing, with store sales declining as consumers spend less on unnecessary items.

Starbucks shares rose 20%, while Chipotle fell more than 12% about half an hour after trading began.

–Aaron McDade

Stock futures linked to major indices rise

6 hrs 35 mins ago

Futures linked to the Dow Jones Industrial Average rose slightly.

S&P 500 futures rose 0.2%.

Nasdaq-100 futures rose 0.4 percent.