Markets

Consumer Sector Update for 07/29/2020: SHOP,SHOP.TO,LB,STRA,LAUR

Consumer stocks have turned broadly higher, with the SPDR Consumer Staples Select Sector ETF firming 0.1% while the SPDR Consumer Discretionary Select Sector ETF added 0.8%.

Among stocks moving on news this afternoon was Shopify (SHOP), rising 8.6%, after the Canadian e-commerce company reported big increases in its Q2 net income and revenue compared with year-ago levels and crushing Wall Street estimates for the three months ended June 30. Excluding one-time items, it earned $1.05 per share, up from $0.10 during the same period last year and beating the Capital IQ consensus for $0.02. Revenue grew 97.3% year-over-year to $714.3 million and exceeded the $511.6 million analyst mean.

L Brands (LB) climbed as much as 39% on Wednesday, touching a new 52-week high of $26.66 a share, after the retailer announced a company-wide restructuring effort expected to cut costs by around $400 million per year and position its Bath & Body Works and Victoria's Secret as separate, stand-alone companies. The company also said it expects to take a $75 million charge against its Q2 earnings after disclosing plans to cut around 850 home office jobs.

Strategic Education (STRA) slumped more than 17% after the for-profit educator announced plans to acquire Laureate Education's (LAUR) academic operation in Australia and New Zealand for $642.7 million in cash, subject to potential adjustments. The proposed deal includes Torrens University Australia, that country's lone investor-funded university. Laureate shares were 14% higher in afternoon trade.

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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