Consumer companies fell after the latest indication of slowing retail demand.
U.S. retail sales fell 0.9% in May, a more severe decline than anticipated.
Canadian clothing line Groupe Dynamite said profit margins were squeezed by tariffs and reciprocal tariffs in its first quarter. Small retailers are likely to feel more of the pinch from tariffs than their larger competitors, said strategists at money manager Janus Henderson. "We believe scale matters more than ever in this environment because retailing is a low-margin business," said the Janus Henderson strategists.
"When supply chains face disruption, large companies like Home Depot, Walmart, and Amazon can leverage their size to negotiate better terms and find alternative suppliers ... Off-price retailers are particularly well positioned as they benefit from excess inventory and merchandise from companies unable to absorb the full cost impact."
Taco Bell, KFC and Pizza Hut owner Yum Brands named Chief Financial Officer Chris Turner as its next chief executive.
Write to Rob Curran at rob.curran@dowjones.com
(END) Dow Jones Newswires
06-17-25 1759ET
