Michael Kors Owner Capri Holdings Plunges 45% in Premarket Trade

Good morning. It's October 25th, and in today’s edition, we’ll look at solid earnings performances from Colgate-Palmolive and footwear firm Deckers, plus why Capri Holdings’ stock is plunging to nearly half its value.

Previous Close 📈

The S&P 500 snapped a three-day losing streak on Thursday, boosted by a rally in Tesla following its strong earnings report and by a dip in Treasury yields, which helped lift both the S&P 500 and Nasdaq Composite. However, the Dow lagged, dropping 140 points due to declines in IBM and Boeing.

Futures

U.S. stock futures are relatively flat today. S&P 500 and Nasdaq 100 futures rose less than 0.1%, while Dow futures added just 4 points.

AI

The $100 Trillion AI Opportunity You Can’t Afford to Miss

AI isn’t just a tech trend—it’s transforming industries at an unprecedented scale, and the window to invest early is closing.

Renowned investor and entrepreneur James Altucher believes AI will become the first $100 trillion industry, and he’s predicting it will create incredible wealth for those who act fast.

The potential here is massive. Altucher has a history of bold predictions, and now he’s saying that a carefully timed $10,000 investment in the right AI stocks could grow to $1 million within the next few years.

But with the “wealth window” potentially shutting as soon as this month, it’s a race against time.

This could be a chance to catch the next wave of AI growth before it dominates the market. Altucher is revealing his top AI stock pick for free in his latest report, helping you jump in with expert-backed insight.

Don’t miss this chance to get ahead—click here to access the free AI report and see why early investors are calling this the opportunity of a lifetime.

*This is a paid advertisement for Altucher’s Investment Network. All investing involves risk, including the loss of principal. Past performance is not indicative of future results, and projections of growth are not guaranteed. The $1 million target is based on specific market conditions and expert assumptions which may not come to pass. Always perform your own due diligence and consult a financial advisor before making investment decisions.

What to Watch

Colgate-Palmolive Company (NYSE: CL), Aon Plc (NYSE: AON), and Booz Allen Hamilton Holding (NYSE: BAH) will share their quarterly numbers in the premarket session today.

The Durable Goods Orders report for September will be released at 8:30 a.m. ET, and the final Consumer Sentiment Index for October will be published at 10:00 a.m. ET, offering insights into consumer confidence.

Consumer Goods

Colgate-Palmolive Exceeds Q3 Expectations With Growth Across Divisions

Colgate-Palmolive reported stronger-than-expected third-quarter results, posting adjusted earnings per share of $0.91, surpassing analysts’ expectations of $0.88.

The consumer products giant is also raising its full-year 2024 guidance, projecting organic sales growth between 7% and 8%, up from the previous forecast of 6-8%.

Adjusted earnings per share growth guidance is increased to 10-11%, compared to the earlier range of 8-11%.

Revenue for the quarter rose to $5.03 billion, slightly above the anticipated $5.01 billion, marking a 2.4% increase year-over-year. Organic sales climbed by 6.8%, reflecting robust demand across Colgate-Palmolive’s product lines.

The company saw volume growth across all operating divisions, with gross profit margin expanding 270 basis points to 61.3%.

Colgate-Palmolive maintains a commanding position in the global toothpaste market with a 41.6% share and a 32.3% share in manual toothbrushes year-to-date.

Despite these solid results, Colgate-Palmolive’s stock is slipping by 1% as investors weigh the impact of the raised guidance against current market conditions.

Fashion

US Court Halts Tapestry-Capri Merger, Capri Stock Falls 46%

Shares of Capri Holdings, the owner of Michael Kors, are plunging nearly 46% in premarket trading today following a U.S. court ruling blocking its planned $8.5 billion merger with luxury retailer Tapestry, the parent company of Coach and Kate Spade.

The merger, announced last year, aimed to create a powerful U.S. luxury conglomerate to compete with European giants by bringing high-profile brands such as Versace, Jimmy Choo, and Michael Kors under one umbrella.

The Federal Trade Commission (FTC) had sued in April to prevent the merger, arguing that it would significantly reduce competition in the U.S. handbag market, leaving consumers vulnerable to potential price increases.

After a trial in September, U.S. District Judge Jennifer Rochon upheld the FTC’s concerns, dismissing the companies' defense that handbags are non-essential, allowing consumers to influence prices through their purchasing choices.

Meanwhile, Tapestry's shares are surging nearly 17% as avoiding the merger could reduce financial risks for the company while allowing it to focus on organic growth.

However, Tapestry confirmed that it plans to appeal.

With the merger blocked, Capri may seek alternative buyers to address ongoing challenges with the Michael Kors brand.

Footwear

Deckers Boosts Annual Sales Outlook Amid Soaring Hoka and UGG Popularity, Shares Soar

Deckers Outdoor shares are soaring 15% higher in premarket trading this morning.

The company raised its annual sales forecast and reported strong second-quarter results, driven by high demand for its Hoka brand. The popular shoemaker now expects annual sales to increase by 12% to $4.8 billion, up from its previous forecast of a 10% rise.

Hoka, along with other trendy brands like UGG, New Balance, and On, has been capturing consumer interest, particularly in the running category, eroding market share from larger competitors like Nike. Deckers saw a nearly 35% increase in Hoka sales and a 13% rise in UGG brand sales for the quarter.

Hoka’s growing presence in major retailers like Dick’s Sporting Goods and Nordstrom has bolstered its visibility. Deckers’ strategy of increasing marketing investments to build brand awareness is likely to continue to drive growth.

The company’s quarterly net sales hit $1.31 billion, surpassing the $1.20 billion forecast, while adjusted earnings per share came in at $1.59, beating expectations of $1.23.

With a forward price-to-earnings ratio of 25.95, Deckers is closely competing with peers like Nike, whose ratio stands at 26.59, and On, valued higher at 43.62. Deckers is currently 35% up on a year-to-date basis.

Election Edge

The #1 Thing Every Investor Must Know Before Election Night

Election night, November 5th, will see millions watching to find out who will lead the country. But by that time, the biggest investing opportunity of the season may already be gone.

That's why on October 29th at 2 p.m. ET, renowned investor Alex Green is hosting a free online event to reveal a unique election strategy that could potentially unlock massive gains.

This is the same strategy that, looking back, could have delivered 752% during Obama’s first year, 3,413% under Trump, and 2,067% with Biden.

Alex believes 2025 could yield even more impressive results for those who take action early. By understanding how this strategy works, you could position yourself ahead of the crowd and make election night more than just a spectator event.

Click here to RSVP for this free event and discover how to leverage election-driven market moves for potentially life-changing returns.

Western Digital Corporation [WDC] - Last Close: $66.32

Western Digital is up 11% in premarket trading.

The company reported strong quarterly earnings, driven by a major boost in cloud revenue.

Cloud sales, which now make up 54% of total revenue, surged 153% from last year due to higher demand for hard disk drives (HDDs) and enterprise solid-state drives (SSDs) for data centers.

This strength in the cloud segment helped counterbalance weaker consumer demand for flash memory.

Booz Allen Hamilton Holding [BAH] - Last Close: $166.55

Booz Allen Hamilton's stock is rising 12% in premarket trading.

The firm reported strong Q2 fiscal 2025 results and raised its full-year guidance.

It posted adjusted earnings per share of $1.81, beating expectations of $1.49, and an 18% year-over-year revenue increase to $3.15 billion, driven by growth in federal defense and civil markets.

Additionally, the company raised its EPS guidance for fiscal 2025 to between $6.10 and $6.30, surpassing expectations.

Capital One Finl [COF] - Last Close: $153.26

Capital One shares are up 5% in premarket trading.

The firm reported strong third-quarter earnings. Revenue grew by 5% year-over-year to $10 billion, surpassing estimates, while adjusted earnings per share (EPS) hit $4.51, beating expectations of $3.77.

This boost was mainly driven by growth in its credit card segment, which saw a 9.4% revenue increase, along with a rise in card purchase volumes and loan balances.

Bigger than Bitcoin

Missed Out on Crypto? Here’s Your Next Big Opportunity

If you felt like you missed the boat on Bitcoin, there's another game-changing opportunity on the horizon.

James Altucher, the renowned investor who famously predicted Bitcoin’s rise back in 2011, believes that AI is set to be 10X bigger than crypto. According to Altucher, a unique “wealth window” is opening in AI, but he warns it won’t stay open for long.

Altucher is pinpointing the AI companies set to lead this transformation and believes that early investments could yield life-changing returns.

He’s calling this the opportunity of the decade—a chance to get in before AI becomes a $100 trillion industry.

This free report details the AI stocks poised to benefit from this boom, including one of Altucher’s top picks to help you start strong.

Get the report now and see how AI could become your next big win.

*This is a paid advertisement for Altucher’s Investment Network. All investing involves risk, including the loss of principal. Past performance is not indicative of future results, and projections of growth are not guaranteed. The $1 million target is based on specific market conditions and expert assumptions which may not come to pass. Always perform your own due diligence and consult a financial advisor before making investment decisions.

Everything Else

• WeRide's $440 million Nasdaq IPO will test U.S. investors’ appetites for Chinese tech.

• Mercedes-Benz Q3 profits dove as Chinese consumers shunned luxury cars.

• IndiGo swung to a quarterly loss amid higher fuel and rental costs.

• Japan's Nikkei fell as inflation cooled, while Hang Seng and CSI 300 rose.

• Mixed earnings across sectors impact the European stock market.

• Tesla shares surged 22% after Musk’s optimistic 2025 vehicle growth forecast.

• Centene Corporation beat its earnings forecast and its shares are surging.

That’s all for today. Thank you for reading. If you have any feedback, please reply to this email.

Best Regards,

— Adam Garcia
Elite Trade Club

Click here to get our daily newsletter straight to your cell for free.

P.S. Just like this newsletter, it's 100% free*, and you can stop at any time by replying STOP.