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H&M stock plummets after poor sales and CEO’s sudden departure
People walk past high street clothing brand H&M’s large sign outside its flagship store on the corner of Oxford Street and Regent Street. It will be held in London, United Kingdom on March 30, 2023.
Mike Kemp | In Photo | Getty Images
Shares in Swedish retailer H&M fell 7.5% as of 9:20 a.m. in London after the company announced weak sales and the sudden resignation of its chief executive.
H&M’s sales in 2023 were down 1% in local currency terms, and in the fourth quarter they were down 4% year-on-year.
In an unexpected management shake-up, Daniel Herbert will replace Helena Helmerson, who has served as CEO for four years.
Helmerson said in a statement that it was with “mixed feelings” that he was stepping down and was proud of how the company navigated the pandemic and geopolitical challenges.
“But it’s been very tough on me personally at times,” she said.
read more here.
— Jenny Reid
Novartis sales and profits increase but fall short of expectations
Swiss drugmaker Novartis on Wednesday reported a 10% increase in net sales and an 18% increase in core operating profit.
However, core net income was below analysts’ consensus expectations.
Swiss-listed shares were down 4% as of 8:23 a.m. in London.
The company said it expects net sales to grow by mid-single digits this year and core operating income to grow by high-single digits.
“We have a lot of great products that are driving growth that are doing very well,” Novartis CEO Vasant Narasimhan told CNBC’s Sylvia Amaro. “We have about 10 products that received positive reviews in the market, which gives us great momentum.”
“The difference in 2024 is that some products face losing exclusivity. So we have three products… that are expected to lose exclusivity in the U.S. , so that’s a bit of a headwind for us. But overall, given the underlying growth of our growth drivers, they’ve been growing double digits and that should continue.”
Narasimhan said the US remains a key focus for the company, which aims to generate 50% of its sales there.
— Jenny Reid
Novo Nordisk beats expectations amid weight loss drug boom
Novo Nordisk stock price.
novo nordisk The company on Wednesday reported a strong increase in sales due to increased demand for its drugs Ozempic and Wigovy, which are used to treat diabetes and for weight loss, pushing growth from 18% to 25% in 2024. I predict that it will.
The Danish pharmaceutical company’s net sales in 2023 rose 31% year-on-year to DKK 232.26 billion ($33.7 billion). Operating income increased 37%, and fourth-quarter profits exceeded expectations.
Novo Nordisk’s value soared last year, at one point making it Europe’s most valuable company by market capitalization.
2023 results were driven by strong performance from the company’s diabetes and obesity care division, with obesity care in particular jumping 154% to $41.6 billion at CER.
read more here.
— Jenny Reid
CNBC Pro: Want to invest in China’s booming EV market? These ETFs are
As China’s electric vehicle market continues to grow stronger, investors around the world are increasingly interested in getting involved.
“We’re particularly bullish on the growing competitiveness of Chinese EV manufacturers,” Kingsley Jones of boutique advisory firm Jevons Global told CNBC’s ProTalk on Thursday. There are many.
However, major hurdles remain before individual investors can participate in China’s EV growth story. For example, many securities companies charge a premium for trading in Hong Kong-listed stocks, and Chinese regulations prevent overseas retail investors from directly purchasing mainland-listed “A shares.”
Rather, the veteran investor noted that concentrated ETFs remain a strong option for investors seeking exposure to China’s EV growth potential.
CNBC Pro subscribers can read more here.
— Ganesh Rao
Economist says the Fed’s move to lower interest rates is ‘like redirecting a battleship’
Luke Tilley, chief economist at Wilmington Trust, said Tuesday that no major change is expected in the Fed’s stance tomorrow, but that the Fed could continue to lay the groundwork for rate cuts later this year.
“When the Fed changes its communications, it’s really slow. It’s like turning a battleship. That’s more and more corroborating,” Tilley said.
The Wilmington Trust team expects the Fed’s first rate cut to occur on May 1st.
Tilley said the Fed could also point to international developments, such as the Middle East conflict, as potential reasons to be wary of inflation.
“I think they will always point to the inflation risk factor, the upside risk factor, especially as they try to temper market expectations for a big rate cut. I don’t think that would be a cause not to cut rates, but they will “Some of the risks could definitely be cited,” he said.
— Jesse Pound
CNBC Pro: Analysts are extremely bullish on this global semiconductor stock and continue to list it as a top stock.
European Market: Click here for opening call
European markets are set to open in mixed territory on Wednesday.
british FTSE100 The index is expected to open 5 points higher at 7,637. dachshund 9 points down to 16,963, France CAC According to IG data, it decreased by 5 points to 7,672.
Revenues come from Novo Nordisk, Novartis, H&M and Banco Santander. Data releases include January inflation statistics for France and Germany, and Germany’s unemployment rate for January.
— Holly Ellyatt
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