The CE 100 Index was up nearly 2%, capping a week that saw most pillars gain ground.
DraftKings surged 13%, leading the “Have Fun” segment 2% higher for the week.
As reported here, online betting firm Rush Street Interactive is considering a sale, and DraftKings is among the potential buyers that have been approached.
Rush Street Interactive, whose brands include BetRivers and RushBet, offers online betting in 15 U.S. states and three other countries and logged sales of $691 million in 2023 — up 17% year over year.
However, those gains were blunted a bit as Nike saw its stock lose 5.8%. In our coverage of the latest quarterly earnings report, CEO John Donahoe said that Nike is in the midst of a “difficult time,” and the company may further distance itself from its direct-to-consumer initiatives.
“We need to sharpen our focus on sport, we must drive a continuous flow of new product innovation,” Donahoe said. “Our brand marketing must become bolder and more distinctive. And while Nike Direct will continue to play a critical role, we must lean in with our wholesale partners to elevate our brand and grow the total marketplace. And this is exactly what we’re doing.”
Nike’s total revenue increased slightly for the quarter ending Feb. 29 to $12.4 billion, paced by a marginal increase in Nike Direct revenues to $5.4 billion. However, the digital front-end results were 3% lower.
CFO Matthew Friend alluded to a closer relationship with retailing partners as a hedge against projected cutbacks in consumer spending in the sporting goods and apparel category.
Also, in the “fun” segment, Roblox’s stock was off 5%.
The company said last week that it was launching Avatar Auto Setup and Texture Generator — two new technologies that would “streamline and accelerate” 3D content creation, built on Roblox artificial intelligence. The new technologies, Roblox said, foster those improvements by “eliminating time-consuming avatar setup and texturing steps.”
FedEx shares gathered 12.3%, helping boost the Move segment to higher ground. PYMNTS reported last week, in detailing the company’s most recent earnings, that it will launch its “fdx” platform this fall, the latest progression of its merchant logistics play following the company’s 2020 acquisition of eCommerce platform ShopRunner.
“The fdx platform will enable us to enhance our longstanding relationships with merchants of all sizes. We’ve opened a private preview, and based on their feedback we are incredibly excited for the full launch this fall,” executives told investors on Thursday’s call, highlighting their strategy of “democratizing” eCommerce.
FedEx noted in its financial materials that the most recent quarter’s results were negatively affected by continued demand weakness and cost inflation, partially offset by cost-reduction actions and U.S. domestic package yield improvement. Operating income was up 16% on an adjusted basis.
The company boosted its guidance and now sees a low single-digit percentage point decline in revenues for the current fiscal year.
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