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Today we are watching…
1. Shopifyย (#shopc)
Itโs the turn of Canadian e-commerce platform Shopify to make good on its promises, turn top-line into bottom-line, and deliver a convincing earnings beat this morning for investors. The company is aiming to eclipse analystsโ estimates of $0.23 in profit per share on $481 million in revenue, but shareholders will also be interested in hearing about Shopifyโs forays into Amazon-dominated fulfilment, the next natural step in helping its merchants compete. Itโs likely that managementโs sentiment on this topic will overrule the black and white nature of whether Shopify exceeds estimates.
2. Under Armour (#undrarm)
A CEO walkout, a failed restructuring program, a plunge in sales, a slash to guidance, and customers who arenโt willing to pay full price for performance apparel. Under Armour has committed copious cardinal retail sins since its sales growth slammed to a halt three years ago, and the penny dropped yesterday. A drab earnings call led investors to hit the sell button as they were told to โexpect the worstโ from 2020. Under Armour has fallen out of fashion, and the retailer is now reducing its brick-and-mortar store fleet across the States.ย If thereโs a plus side, expectations have never been lower!