Stocks to Watch: Nike, FedEx, Alliance Entertainment Holding, Arq

By Connor Hart

Nike Chief Executive John Donahoe will retire next month after nearly five months in the job. He will be succeeded by Elliott Hill, effective Oct. 14. Hill retired in 2020 as the company's president of consumer and marketplace. Donahoe's tenure has been marked by a series of missteps, such as cutting ties with retail partners in an effort to sell more merchandise directly to consumers, that caused the footwear and apparel company to lose ground to competitors. Shares rise 7.6%, to $87.12, in after-hours trading.

FedEx cut its outlook after posting lower profit and revenue for its fiscal first quarter after weaker-than-expected demand dragged down its results. The package-shipping company said operating results were hurt by a lower volume of U.S. domestic priority packages, higher labor costs and transportation rates, a decline in weight per shipment and reduced priority shipments. Recent pricing actions are expected to help offset weaker-than-expected demand trends in future quarters. Shares fall 11%, to $267 in postmarket trading.

Alliance Entertainment Holding swung to a profit in the fourth quarter despite a drop in revenue. The company, a global distributor and wholesaler of music, movies and video games, reported per-share earnings of 9 cents on revenue of $236.4 million, compared with a per-share loss of 74 cents on revenue of $247 million a year earlier. Shares surge 42%, to $2.90 in after-hours trading.

Arq commenced an underwritten public offering of its common stock. The carbon products maker said proceeds from the offering will be used for capital expenditures, including continued construction of granular activated carbon facilities at company sites, as well as for general corporate purposes. Shares fall 9.7%, to $5.57, in postmarket trading.

Write to Connor Hart at connor.hart@wsj.com

(END) Dow Jones Newswires

September 19, 2024 19:50 ET (23:50 GMT)

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