State of the consumer: Airbnb, Wayfair, and Stitch Fix leads gains in the retail sector

The retail sector outperformed the broad market on Tuesday after the August retail sales report largely surprised to the upside. Retail sales increased 0.1% in August after an upwardly revised 1.1% increase in July, according to the Commerce Department’s Census Bureau.

Dada Nexus (DADA) led the gains with a 20.0% pop after JD.com added to its stake in the company. Other notable movers included Newegg Commerce (NEGG) +11.5%, iPower (IPW) +10.5%, ThredUp (TDUP) +8.8%, Stitch Fix (SFIX) +8.8%, Torrid Holdings (CURV) +7.5%, RCI Hospitality (RCI) +4.8%, Portillo’s (PTLO) +4.5%, Wayfair (W) +4.4%, Kura Sushi (KRUS) +4.1%, and Revolve Group (RVLV) +3.8%. Restaurants stocks Papa John’s International (PZZA), Brinker International (EAT), and Dutch Bros (BROS) were all up around 3%.

In the S&P 500 Index, Airbnb (ABNB) +3.9% and Estee Lauder (EL) +2.9% were two of the biggest gainers. Ulta Beauty (ULTA), Bath & Body Works (BBWI), Booking Holdings (BKNG), and Dollar Tree (DLTR) also saw modest gains ahead of the broad market.

“For all the signs that low-income consumers are struggling, we think the risks of that weakness migrating up the income spectrum are low,” stated Oxford Economic Deputy Chief Economist Michael Pearce. “Middle- and higher-income households sit on considerable wealth gains since the pandemic, mainly reflecting the surge in housing equity,” he added.