Stock Movers: Lowes, Moderna, VF Corp (Podcast)

Lowe's (LOW) shares declined despite comparable sales exceeding expectations, attributed to adverse weather and decreased discretionary spending, though online and Pro sales partially offset the dip; the company still projects flat to 1% growth for the year. Moderna (MRNA) experienced a slump after withdrawing its application for regulatory approval of its combination Covid and flu shot, a setback to its vaccine strategy, with plans to resubmit after further data collection. VF Corp (VFC) shares dropped following a forecast of a larger-than-expected loss, driven by accelerated shipments to the U.S. to avoid tariffs, potentially increasing costs for VF and its retail partners.

Analysis

Market movements on May 21, 2025, highlighted distinct challenges for several corporations, reflecting negative investor sentiment. Lowe's (LOW) shares declined despite comparable sales for the quarter ended May 2, which fell 1.7%, surpassing analyst expectations. This decrease was attributed to adverse weather in February and sustained pressure on higher-cost discretionary items and its do-it-yourself segment, although growth in online sales and its Pro business provided a partial offset. Lowe's maintained its full-year guidance for comparable sales to be flat to up 1%. Moderna (MRNA) experienced a significant share price slump after voluntarily withdrawing its regulatory application for a combination Covid and flu vaccine targeted at individuals aged 50 and over. This decision, made after consultation with the Food and Drug Administration, marks a setback for its strategy to enhance vaccine uptake, with the company planning to resubmit later in the year upon obtaining more data from its standalone flu vaccine's late-stage trial. VF Corp. (VFC) shares also fell sharply following its forecast of a larger-than-expected operating loss, potentially up to $125 million for the current quarter, compared to average analyst expectations of a $73.1 million loss. This guidance was impacted by the company accelerating product shipments to the U.S. to preempt the expiration of tariff pauses in July, a strategy likely to increase costs for both VF Corp. and its retail partners.

Key Decisions for Investors

• For Lowe's (LOW), investors should closely monitor the evolving balance between its resilient Pro and online sales channels against persistent weakness in discretionary and DIY segments, particularly in relation to achieving its flat to +1% comparable sales guidance for the year.
• Regarding Moderna (MRNA), the withdrawal of its combination vaccine application introduces near-term uncertainty; investors should carefully track the progress and data from its standalone flu vaccine trial and the subsequent regulatory resubmission timeline, as this is critical for its strategy to bolster vaccine demand.
• Investors in VF Corp. (VFC) should exercise significant caution due to the substantially wider loss forecast and the anticipated increase in operational costs stemming from accelerated shipments to mitigate tariff impacts, necessitating a thorough assessment of potential margin erosion and inventory management effectiveness in upcoming quarters.