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Consumer Sector Update for 06/02/2020: BBW, RH, BZUN, XLP, XLY

Consumer firms were gaining in Tuesday’s premarket trading as shares of staples companies in the S&P 500 (XLP) climb 0.34% and consumer discretionary firms (XLY) rally by 0.49%.

Build-A-Bear Workshop (BBW) was down more than 8% after it booked fiscal Q1 adjusted net loss of $0.83 per share, reversing $0.06 in adjusted EPS a year ago, as revenue plunged to $46.6 million from $84.4 million in Q1 of fiscal 2019.

RH (RH) was climbing past 9% after CEO Gary Friedman, in the annual letter to shareholders, said the company continues to expect its operating margins “to expand in 2020 despite the current setbacks” related to the COVID-19 pandemic. The CEO also said RH can now “see a clear path” to a 20% operating margin over the next few years.

Baozun (BZUN) was more than 5% higher as it reported Q1 non-GAAP earnings of RMB0.44 ($0.06) per ADS, down from RMB0.89 a year earlier but beating the Capital IQ analyst consensus of RMB0.21.

The views and opinions expressed herein are the views and opinions of the author and do not necessarily reflect those of Nasdaq, Inc.

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