Check out the companies making headlines before the bell:
Lululemon (LULU) — Lululemon slipped 7.1% premarket after the sportswear maker issued a weaker-than-expected outlook. Lululemon reported better-than-expected earnings and sales for the most recent quarter, but reported a lower-than-expected increase in comparable store sales.
Costco (COST) — Costco missed estimates for both sales and earnings for the most recent quarter as inflation-hit consumers cut spending. The warehouse retailer also experienced increased operating costs.
Broadcom (AVGO) – Broadcom shares are up 3.6% premarket after the chipmaker reported better-than-expected quarterly results and a positive outlook. The company also increased its dividend and said it would resume share buybacks.
Netflix (NFLX) – Netflix is up 3% premarket after two upbeat analyst reports. Wells Fargo upgraded the streaming service’s stock to overweight from equal weight, saying that content growth would reduce customer churn. Cowen called the stock a “best idea” for 2023 and pointed to additional monetization avenues, including the new ad-supported tier.
DocuSign (DOCU) — DocuSign posted an 11.3% premarket jump after positive quarterly results for the e-signature technology company. DocuSign also reported better-than-expected billings — a metric that tracks sales to new customers — as well as subscription renewals and incremental sales to existing customers.
AmericasourceBergen (ABC) – Walgreens (WBA) has reduced its stake in the drug distributor and sold $1 billion worth of AmerisourceBergen stock. The move reduces Walgreens’ stake from 20% to about 17% and gives Walgreens funds to pay down debt and fund strategic priorities. Walgreens remains the largest shareholder in AmerisourceBergen. AmerisourceBergen is down 2.6% premarket.
Bath and body works (BBWI) – Shares of Bath & Body Works rose 4.9% premarket after it was announced that Daniel Loebs Third Point owns more than 6% of the personal care retailer. An SEC filing also revealed that Third Point is pushing the company to appoint new board members.
Republic of Croatia (RH) – The company, formerly known as Restoration Hardware, beat sales and earnings estimates in its latest earnings report. But the luxury lifestyle retailer also said its business would continue to deteriorate due to accelerating weakness in the housing market. RH is up 1% premarket.