Consumer Sector Update for 04/02/2020: LK,SHOP,SHOP.TO,CRTO,WBA

Top Consumer Stocks

WMT +2.61%

MCD +0.39%

DIS +0.65%

CVS -6.36%

KO +3.85%

Consumer stocks turned broadly mixed in late trade, with the SPDR Consumer Staples Select Sector ETF still climbing 1.8% this afternoon while the SPDR Consumer Discretionary Select Sector ETF was falling 0.7%, reversing an earlier gain.

Among consumer stocks moving on news:

(-) Luckin Coffee (LK) plunged over 81% to a post-IPO low of $4.90 a share after the Chinese coffee chain said investors could no longer rely on its prior financial statements following an internal probe that showed chief operating officer Jian Liu and several other employees allegedly fabricated about RMB2.2 billion in sales at the company since the April quarter in 2019. Liu and the other accused employees have been suspended pending possible legal action, it said.

In other sector news:

(+) Criteo (CRTO) jumped more than 13% higher after the online advertising company trimmed its Q1 revenue forecast to a new range of $204 million to $206 million, down from $209 million to $212 million previously but still topping the Capital IQ consensus looking for $201.29 million in revenue at the company during the three months ended March 31.

(-) Walgreens Boots Alliance (WBA) fell 7% after the drug-store retailer Thursday withdrew its FY20 forecast, explaining it could not accurately predict the impact of the COVID-19 pandemic on sales and per-share earnings.

(-) Shopify (SHOP) dropped over 10% despite the Canadian e-commerce company late Wednesday saying it expects to meet or exceed its Q1 forecast expecting between $440 million to $446 million for the three months ended March 31. The Street had been looking for $444.8 million in Q1 revenue at the company, which also pulled its FY20 outlook because of the uncertainty over the duration and magnitude of the COVID-19 pandemic.

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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