Consumer Cos Down as CarMax Slides -- Consumer Roundup

Retailers and other consumer companies tumbled as rising inflation and slowing demand weighed on corporate earnings.

In one sign of the effects of rising prices on consumer behavior, used-car retailer CarMax posted a steep drop in profit for the recently ended quarter, as higher prices and economic fears weighed on used-car demand. Shares of CarMax lost roughly one quarter of their value, the biggest drop since 2000.

Shares of Bed Bath & Beyond tumbled after the home-ware chain said quarterly sales fell precipitously, scuppering hopes of a turnaround that had drawn "meme" traders to the stock in recent months. Similarly, MillerKnoll tumbled after the furniture maker said it's seeking improvements to near-term profit, citing the macroeconomic environment.

A silver lining in Thursday's global market rout for consumer-oriented stocks was the drop in crude-oil prices, said JJ Kinahan, chief executive of IG North America, the parent company of options firm tastytrade.

 Write to Rob Curran at [e-mail] 

(END) Dow Jones Newswires

09-29-22 1731ET