Good Evening. U.S. stocks completed a three-week long sell-off on Friday by extending a widespread recovery.
Building on two straight sessions of gains, the S&P 500 increased by 1.53%, while the Dow Jones increased by 1.19%. The Nasdaq Composite rose 2.11%, with technology stocks leading the way higher.
ANOTHER RETAILER SHOWS A SLOWDOWN
Shares of Zumiez (ZUMZ) reversed losses, rising 3.8% even after the company retailer posted disappointing Q2 results. Its net sales for the quarter were down 18% year over year.
Currently, Zumiez is in the same situation as many other retailers. Its sales have been impacted by a change in consumer spending habits in 2022 and difficult growth comparisons to 2021 when consumers were still receiving economic stimulus checks. The stock has fallen 46% year to date as a result of these challenges.
What is hurting the firm? Zumiez is under increasing pressure due to problems with the supply chain, rising transportation costs, and a competitive labor market. The company’s results demonstrate how bad things are for consumers, and management noted that sales pressure is also present for the company’s premium (higher-priced) skateboarding products.
However, Zumiez has navigated recessionary environments successfully in the past, and management is confident it will do so this time as well. To boost profitability, management is actively adjusting operating costs and inventory levels.