Client firms fell amid considerations about vogue traits and rates of interest.
Lululemon shares fell after analysts at brokerage Jefferies warned that the new model may face a cooldown similar to that suffered by out-of-favor Beneath Armour. Rival yoga stylish manufacturers like Alo Yoga and Vuori are gaining floor on Lululemon's core enterprise, whereas a vogue shift towards dishevelled pants is slowing demand for its signature leggings. Lululemon's common whole gross sales progress, which was greater than 30% over the previous 12 quarters, is now round 10%, Jefferies analysts estimated.
Shares of denims maker Levi Strauss rose after it mentioned fiscal first-quarter income had been boosted by sturdy progress in dishevelled denims, one other indication that vogue tides are turning in opposition to Lululemon. The Nationwide Retail Federation is asking for modest progress in financial exercise and shopper spending this yr, an outlook that one brokerage mentioned was cheap.
“Inflation is cooling, supported by average wage progress, increased rates of interest and enhancements within the provide chain and housing prices,” mentioned strategists at brokerage Telsey Advisors Group. “Visibility on the timing of price cuts is most vital. Customers stay involved about inflation, significantly in meals and eating places, however total confidence improved in the latest month.”
Conagra Manufacturers rose after the processor of meals similar to Slim Jim meat snacks reported better-than-expected fiscal third-quarter earnings and income. The defensive bias out there additionally favored considerations over shopper staples.
Write to Rob Curran at rob.curran@dowjones.com
(END) Dow Jones Information
April four, 2024 6:21 pm ET (10:21 pm)
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