TGT - Household products stocks are getting pummeled because consumers may be pulling back
There is some panic selling in the retail sector as Target's (TGT -27.6%) earnings report and commentary has raised concerns that discretionary spending is slowing down. Wells Fargo analyst Edward Kelly said consumers are clearly being forced to make tougher decisions with inflationary pressures all around and seem to be pulling back in some discretion categories just as stimulus rolls off. On the expense side, freight and transportation costs were already at elevated levels, but are now seeing even more pressure with rising fuel costs that may not be passed on fully to consumers. Household products fell following the Target report and guidance slash, led by drops with Revlon (NYSE:REV -15.1%), Newell Brands (NWL -10.3%), e.l.f. Beauty (ELF -8.7%), Spectrum Brands (SPB -6.2%), Clorox (CLX -6.3%), Procter & Gamble (PG -5.8%), Church & Dwight (CHD -5.8%) and Kimberly-Clark (KMB -3.8%). The food sector is also underperforming with J.M. Smucker (SJM
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Household products stocks are getting pummeled because consumers may be pulling back