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


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Top Consumer Stocks

WMT -0.88%

MCD -1.72%

DIS +1.01%

CVS -0.36%

KO -0.11%

Consumer stocks were trading on in a tight range on either side of their respective Thursday starting marks, with shares of consumer staples companies in the S&P 500 sinking almost 0.3% this afternoon while shares of consumer discretionary firms in the S&P 500 were climbing less than 0.1%.

Among consumer stocks moving on news:

(-) Walmart ( WMT ) still was almost 1% lower in late Thursday trading after the retail giant said it has acquired Cornershop, paying $225 million for the online marketplace for on-demand delivery from supermarkets, pharmacies and specialty food retailers in Mexico and Chile. The company said the deal, expected to close before the end of the year, marks an "important step forward" in growing its omnichannel capabilities and growth in Latin America. Walmart recently made similar investments in Dada-JD Daojia in China as well as forming a strategic alliance with Rakuten in Japan.

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.

(+) International Flavors & Fragrances ( IFF ) climbed almost 5% at one point during Thursday trading after pricing concurrent public offering 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.

(-) 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 by $0.03 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: WMT , VIPS , IFF , KR



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