Breaking News
Get Actionable Insights with InvestingPro+: Start 7 Day FREE Trial Register here
Investing Pro 0
Ad-Free Version. Upgrade your experience. Save up to 40% More details

Retail sell-off: discounters, auto stores lead losses

Stock Markets May 20, 2022 01:16PM ET
Saved. See Saved Items.
This article has already been saved in your Saved Items
© Reuters. A pedestrian walks past a closed Ross store, as the spread of the coronavirus disease (COVID-19) continues, in Washington, U.S., April 30, 2020. REUTERS/Leah Millis

By Sinéad Carew

(Reuters) - A rout in consumer stocks gained more steam on Friday, as shares of Ross Stores (NASDAQ:ROST) led a retreat of other discount stores to cap off a bleak week for retailers.

Ross shares were down 24.4% at $70.06 after falling as low as $69.75 after the discount apparel retailer cut its 2022 same-store-sales estimate to a decline of 2%-4% versus an earlier flat-to-up 3% target.

Dollar General (NYSE:DG), which is due to report earnings next week, lost 8.4% after falling 14% in the last three sessions. Dollar Tree (NASDAQ:DLTR) fell 7.7%. T.J. Maxx parent co TJX (NYSE:TJX) Co fell 8.2%.

Among auto retailers, Advance Auto Parts (NYSE:AAP) was down 9.7% and Autozone fell 9.1% with both expected to report quarterly results in the week ahead. Shares in rival O' Reilly Auto were down 5.8%.

While Walmart (NYSE:WMT) and Target (NYSE:TGT) earlier this week reported that store traffic was still strong, high inflation ate into their profits. With fuel and freight costs still rising and supply chains still disrupted Mona Mahajan, senior investment strategist at Edward Jones, sees sector-wide repercussions.

"It's hard to see how some of these smaller retailers can withstand the margin pressures if some giants like Walmart and Target haven't been able to," she said.

But generally healthy balance sheets and retail sales data released earlier this week suggest healthy U.S. spending.

"In a recessionary environment you'd see consumers going towards those bargain brands for sure. But we haven't yet seen that," Mahajan said.

The S&P 500 Consumer discretionary sector was down 3.7% after hitting its lowest point since July 2020, on track for a weekly decline of more than 9%, its seventh in a row and its biggest weekly loss since March 2020.

Target was down 1.1%, tracking a roughly 31% weekly loss. Walmart falling 1.0%, was eying a 20% weekly drop.

Macys was down 9.5% and Kohl's (NYSE:KSS), was down 13.4% and about 19% for the week after its results also disappointed.

Retail sell-off: discounters, auto stores lead losses

Related Articles

S&P 500 Jumps as Investors Mull Fed Minutes
S&P 500 Jumps as Investors Mull Fed Minutes By - Jul 06, 2022 9

By Yasin Ebrahim -- The S&P 500 jumped Wednesday, powered by tech as the Federal Reserve's June meeting minutes reaffirmed the central bank's commitment to stop...

Add a Comment

Comment Guidelines

We encourage you to use comments to engage with other users, share your perspective and ask questions of authors and each other. However, in order to maintain the high level of discourse we’ve all come to value and expect, please keep the following criteria in mind:  

  •            Enrich the conversation, don’t trash it.

  •           Stay focused and on track. Only post material that’s relevant to the topic being discussed. 

  •           Be respectful. Even negative opinions can be framed positively and diplomatically. Avoid profanity, slander or personal attacks directed at an author or another user. Racism, sexism and other forms of discrimination will not be tolerated.

  • Use standard writing style. Include punctuation and upper and lower cases. Comments that are written in all caps and contain excessive use of symbols will be removed.
  • NOTE: Spam and/or promotional messages and comments containing links will be removed. Phone numbers, email addresses, links to personal or business websites, Skype/Telegram/WhatsApp etc. addresses (including links to groups) will also be removed; self-promotional material or business-related solicitations or PR (ie, contact me for signals/advice etc.), and/or any other comment that contains personal contact specifcs or advertising will be removed as well. In addition, any of the above-mentioned violations may result in suspension of your account.
  • Doxxing. We do not allow any sharing of private or personal contact or other information about any individual or organization. This will result in immediate suspension of the commentor and his or her account.
  • Don’t monopolize the conversation. We appreciate passion and conviction, but we also strongly believe in giving everyone a chance to air their point of view. Therefore, in addition to civil interaction, we expect commenters to offer their opinions succinctly and thoughtfully, but not so repeatedly that others are annoyed or offended. If we receive complaints about individuals who take over a thread or forum, we reserve the right to ban them from the site, without recourse.
  • Only English comments will be allowed.

Perpetrators of spam or abuse will be deleted from the site and prohibited from future registration at’s discretion.

Write your thoughts here
Are you sure you want to delete this chart?
Post also to:
Replace the attached chart with a new chart ?
Your ability to comment is currently suspended due to negative user reports. Your status will be reviewed by our moderators.
Please wait a minute before you try to comment again.
Thanks for your comment. Please note that all comments are pending until approved by our moderators. It may therefore take some time before it appears on our website.
Are you sure you want to delete this chart?
Replace the attached chart with a new chart ?
Your ability to comment is currently suspended due to negative user reports. Your status will be reviewed by our moderators.
Please wait a minute before you try to comment again.
Add Chart to Comment
Confirm Block

Are you sure you want to block %USER_NAME%?

By doing so, you and %USER_NAME% will not be able to see any of each other's's posts.

%USER_NAME% was successfully added to your Block List

Since you’ve just unblocked this person, you must wait 48 hours before renewing the block.

Report this comment

I feel that this comment is:

Comment flagged

Thank You!

Your report has been sent to our moderators for review
Continue with Google
Sign up with Email