Boston Beer falls nearly 10% as weak hard seltzer demand forces it to pull earnings guidance

Ten-Year Note Auction Attracts Above Average Demand

The Treasury Department announced the results of this month’s auction of $38 billion worth of ten-year notes on Wednesday, revealing the sale attracted above average demand.

The ten-year note auction drew a high yield of 1.338 percent and a bid-to-cover ratio of 2.59.

Last month, the Treasury sold $41 billion worth of ten-year notes, drawing a high yield of 1.340 percent and a bid-to-cover ratio of 2.65.
The bid-to-cover ratio is a measure of demand that indicates the amount of bids for each dollar worth of securities being sold.

The ten previous ten-year note auctions had an average bid-to-cover ratio of 2.43.

Looking ahead, the Treasury is due to announce the results of this month’s auction of $24 billion worth of thirty-year bonds on Thursday.

European Economics Preview: Spain Unemployment Data Due

Unemployment from Spain and quarterly national accounts from Switzerland are due on Thursday, headlining a light day for the European economic news.

At 2.30 am ET, the Federal Statistical Office releases Switzerland’s GDP, consumer prices and retail sales. The economy is forecast to grow 2 percent sequentially in the second quarter, following a 0.5 percent drop in the first quarter.

Swiss consumer prices are expected to increase 0.8 percent on year in August, following a 0.7 percent rise in July.

At 3.00 am ET, Spain’s monthly unemployment data is due. In the meantime, Austria’s GDP data is due.

At 5.00 am ET, Eurostat releases euro area producer price data for July. Economists expect the PPI to rise 11 percent annually after climbing 10.2 percent in June.

Lululemon Athletica Inc. Q2 adjusted earnings Beat Estimates

Lululemon Athletica Inc. (LULU) reported a profit for its second quarter that climbed from last year.

The company’s earnings came in at $208.07 million, or $1.59 per share. This compares with $86.80 million, or $0.66 per share, in last year’s second quarter.

Excluding items, Lululemon Athletica Inc. reported adjusted earnings of $215.78 million or $1.65 per share for the period.

Analysts had expected the company to earn $1.19 per share, according to figures compiled by Thomson Reuters. Analysts’ estimates typically exclude special items.

The company’s revenue for the quarter rose 61.1% to $1.45 billion from $0.90 billion last year.

Lululemon Athletica Inc. earnings at a glance:

-Earnings (Q2): $215.78 Mln. vs. $96.30 Mln. last year.
-EPS (Q2): $1.65 vs. $0.74 last year.
-Analysts Estimate: $1.19
-Revenue (Q2): $1.45 Bln vs. $0.90 Bln last year.

Next quarter EPS guidance: $1.33 to $1.38.
Next quarter revenue guidance: $1.400 to $1.430 Bln
Full year EPS guidance: $7.38 to $7.48
Full year revenue guidance: $6.190 to $6.260 Bln

Shelley H. Surpin Dies: Longtime L.A. Entertainment Lawyer Was 72

Shelley H. Surpin, a longtime entertainment lawyer and partner at Surpin, Mayersohn & Coghill in Los Angeles, has died. She was 72. Her firm said Surpin died September 3 of complications following a stroke.

A champion for independent film, helped with the careers of such filmmakers as Greg Araki, Nicole Holofcener, Paul Mazur, Allison Anders, Zal Batmanglij, Brit Marling, Mike Cahill and Tom Flynn, among many others.

Surpin began practicing entertainment law at Pollock, Rigrod and Bloom (later Bloom Hergott), eventually becoming partners with Andy Rigrod and founding Rigrod and Surpin.

She produced writer-director Batmanglij’s dramatic feature Sound of My Voice, a 2012 Fox Searchlight release that earned Indie Spirit Award noms for supporting actress Marling — who also co-wrote the pic — and Best First Feature. Surpin also executive produced the feature Jake Squared, which premiered at the 2013 Raindance Festival in London.

Surpin received her law degree from Boalt Hall School of Law at UC Berkeley, after graduating from Stanford University. A former Chair of SubScreen, the L.A. County Bar Subcommittee for Film & TV Screen Entertainment, she later served on the executive board of Stanford in Entertainment.

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She is survived by her husband of almost 40 years, Steve Charnow; daughter Martine Charnow, a film editor; son-in-law Toby Miller; and a newborn grandson, Ember.

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Two-vehicle crash in Denver kills one person and injures three others.

A two-vehicle crash in Denver on Wednesday killed one person and seriously injured three others, police said.

“The at-fault driver is being held for investigation of vehicular homicide,” Denver police posted on Twitter.

The crash happened at East 46th Avenue and Brighton Boulevard, police said. The fatal victim died at the scene and three others were taken to the hospital with serious injuries.

An investigation is ongoing.

Boston Beer falls nearly 10% as weak hard seltzer demand forces it to pull earnings guidance

Boston Beer, the parent of alcoholic beverage brands like Samuel Adams and Angry Orchard, pulled its earnings guidance Wednesday amid a big slowdown in sales of Truly, its hard seltzer brand.

At the end of July the company pointed to "decelerating growth trends" in hard seltzer sales to justify its weaker-than-expected quarterly earnings and revenue for the second quarter, which sent its stock tumbling 26% at the time. Those results also led the company to cut its full-year forecast, lowering its expected adjusted earnings to between $18 and $22 per share for 2021, versus its prior outlook of $22 to $26 per share.

Shares of the alcoholic beverage company fell 9.5% in after-hours trading.

"The Company now expects to incur hard seltzer-related inventory write-offs, shortfall fees payable to third-party brewers and other costs that will be expensed during the remainder of fiscal 2021," the company said in a press release Wednesday.

The market for hard seltzer products has been among the most sought after by legacy beverage brands during the pandemic. In August Constellation Brands and Anheuser-Busch InBev launched hard seltzer products under the Bud Light and Corona brands.

In a related move in the same month, Boston Beer partnered with Pepsi to create a hard Mountain Dew product.

CNBC's Amelia Lucas contributed to this report.