DBI - Why Many Premium Consumer Brands Stocks Rose Today
Shares of many consumer brand-manager companies soared on Monday as President Biden's $1.9 trillion stimulus bill was approved in the Senate, moving closer to final signing as soon as Tuesday. For example, footwear specialist Designer Brands (NYSE: DBI) closed the day 10.2% higher, Jimmy Choo and Michael Kors venture Capri Holdings (NYSE: CPRI) rose 9.8%, and cosmetics retailer Sally Beauty Holdings (NYSE: SBH) posted an 11.4% gain. All three stocks notched fresh 52-week highs on Monday.
None of these companies had significant news of their own today. Their moves were based on the idea that the proposed COVID-19 bill now seems unstoppable, as the House already passed an earlier version by an overwhelming majority. The Senate-approved edition includes $1,400 checks to millions of Americans, boosted unemployment benefits, a new child tax benefit, and investments in many projects with direct benefits to working-class professions such as teachers and healthcare workers.
The high-end brands found at stores like Sally Beauty, Michael Kors, and Designer Shoe Warehouse should benefit from these capital injections into America's most cash-strapped demographic groups.
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Why Many Premium Consumer Brands Stocks Rose Today