Consumer Sector Update for 09/13/2018: IFF,VIPS,KR

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Top Consumer Stocks

WMT -0.88%

MCD -1.46%

DIS +0.91%

CVS +0.17%

KO -0.97%

Consumer stocks were trading on either side of their respective Thursday starting marks, with shares of consumer staples companies in the S&P 500 sinking almost 0.4% in afternoon trading while shares of consumer discretionary firms in the S&P 500 were climbing nearly 0.2%.

Among consumer stocks moving on news:

(+) International Flavors & Fragrances ( IFF ) climbed almost 5% at one point during Thursday trading after pricing concurrent public offerings generating a combined $2.25 billion in gross proceeds. In one deal, the perfume and cosmetics company priced a nearly $1.5 billion offering of 11.5 million shares of its common stock at $130.25 each, equal to an 0.8% discount to Wednesday's closing price for the stock. It also issued 15 million of its 6% tangible equity units at $50.00 apiece, generating an additional $750 million in gross proceeds. The company expects to use $1.5 billion of the net proceeds to fund its acquisition of Frutarom Industries; if the deal does not close, it will use all of the proceeds for general corporate purposes.

In other sector news:

(+) Vipshop Holdings Ltd ( VIPS ) surged Thursday, climbing as much as 10%, despite analysts at Citigroup slashing their stock rating for the Chinese online discount retailer to Sell from Buy previously and also lowering their price target for the company's stock by $9 to $8 a share, citing declining margins and slowing growth.

(-) The Kroger Co ( KR ) tumbled Thursday, at one point sinking almost 11%, after the grocery chain reported a 1% year-over-year increase in Q2 sales to $27.9 million, narrowly lagging the $28 billion analyst mean. The revenue miss upstaged better-than-expected adjusted Q2 earnings, posting a $0.41 per share non-GAAP profit, improving on adjusted net income of $0.39 per share during the same quarter last year and topping the Capital IQ consensus of $0.38 per share.

The views and opinions expressed herein are the views and opinions of the author and do not necessarily reflect those of Nasdaq, Inc.

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This article appears in: Business , Commodities
Referenced Symbols: IFF , VIPS , KR

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