A tough stretch for lululemon

0:00Welcome to Seeking Alphas Wall Street Breakfast, where we cover the top news for investors every morning. Good morning, and thanks for being here on this Friday, the 4th of September, I'm Julie Morgan. Lulu Lemon is a trending topic on Seeking Alphas. Lulu shares her underwater after the company cut its full-year sales guidance again and realized a much larger than expected decline in sales as China continues to disappoint and rivals gain ground in the US. Interim Co-CEO Megan Frank said while we continue to navigate some challenging dynamics, we are taking a prudent approach with our revised full-year outlook. Although a new CEO is set to take over next week, Lulu Lemon is expected to limp through the remainder of the year with another cut to sales guidance, now expected to contract by 5-7% to a range of $10.35-10.5 billion.

1:00More over the company now expects to earn a profit of $9.48-$9.73 per share, down from $10.95-$11.15 per share, and below the $10.93 per share estimate. For the quarter-net sales are expected to decline by 10-11%. The downbeat outlook reflects second quarter results in which revenue decreased 4% and comparable sales were down 9% both of which were worse than expected. In the second quarter, Lulu Lemon earned a profit of $2.92 per share, which includes 86 cents per share benefit from Terra-free funds, which is down 6% year over year but better than expectations. Lulu is down 18% in pre-market action. Tesla will begin offering CyberCab rides in limited areas of Austin, Texas today, while it's highly anticipated launch event ended on a fairly muted note. There are 45 CyberCab registered in Texas.

2:03The company did not include details on fares when they announced the launch on Thursday. As for the event, there were no journalists and no public livestream. The Verge reported that it had a very short invite list comprised largely of Pro Tesla content creators. Attendees told Reuters that Elon Musk skipped the event. Executives discussed the CyberCab's manufacturing process and technology for about 15 minutes. The Golden 2-seater vehicle is fully autonomous with no steering wheel or pedals, using camera vision and sensors for navigation. Tesla previously said the cost would be less than $30,000. Even under the age of 13 are not permitted to ride in a CyberCab. Miners age 13-17 can travel in a CyberCab if accompanied by an adult. Shares of Tesla ended 5.5% higher on Thursday ahead of the CyberCab event, but are down 1.6% pre-market.

3:04Volkswagen is getting rid of more people. The company said on Thursday that its supervisory board has approved a wide-ranging restructuring program that includes a further reduction of 50,000 jobs. The board voted unanimously on Thursday to endorse the company's future plan for transforming the Volkswagen Group and its brands. The program is intended to make the business more efficient and competitive and to better prepare it for the future. The additional job cuts would take Volkswagen's expected workforce reduction to 100,000. Volkswagen said it would provide further details of the plan in the near future. Now for a look at a few other articles that are trending, what's shaping the geography of USAIData centers? Elon Musk's SuperPAC spends $800,000 on key Republican midterm races. And oil trends toward its biggest weekly gain since July, ING raises its price forecast.

4:07On Wall Street, stock index features are largely flacked as investors focus on the upcoming jobs report. Crude oil is down 0.5% at $90.00. Brent Crude is down 0.4% at $95. The FTSE 100 is little changed and the DAX is also little changed. On today's economic calendar, at 8.30am, the employment situation, the August jobs report is expected to show non-farm payroll additions of $55,000 for the month, a 4.1% unemployment rate, and 3% year-over-year wage growth. And it's officially 60 days before the US midterm elections, which some analysts indicate is the beginning of the window when investment managers start making election-related portfolio changes. And today is Friday, so you gotta check out our investment news quiz. Let's all give you one of the questions. This is a good one.

5:08Price Waterhouse Cooper predicted that global data centers spending will likely reach how much through 2050. There are four options for you. About $2 trillion, about $12 trillion, about $32 trillion, or about $120 trillion. Did you see this article? What's your answer? I'll leave a link to the news quiz in the show notes section. And of course on Monday, no Wall Street Breakfast Podcast, the market is closed for Labor Day. We'll see you back here on Tuesday. That's it for today's Wall Street Breakfast. Thanks for listening! To take full advantage of seeking Alpha with coverage on significant stocks and ETFs, become a premium subscriber. Check out seekingalpha.com slash subscriptions. I'm your host Julie Morgan. Go out and make it a great day!