Why Chewy, Ollie's Bargain Outlet, and Petco All Slumped This Week
A broad swath of consumer-facing stocks traded lower this week, after a host of indicators suggested that the state of the economy had declined and things would get worse before they get better.
As a result, shares of online pet supplies retailer Chewy (NYSE: CHWY) tumbled as much as 11.7%, discount retailer Ollie's Bargain Outlet (NASDAQ: OLLI) fell as much as 10.8%, and pet care specialist Petco Health & Wellness (NASDAQ: WOOF) was off as much as 7.7%. As the week closed, the trio were still trading lower, down 8.7%, 10.1%, and 5.5%, respectively, according to data provided by S&P Global Market Intelligence. The declines came even as the broader market rallied, with the S&P 500 gaining 4.3%, while the Nasdaq Composite climbed 4.7%.
There was very little company-specific news behind the sell-off, but several indicators of the health of the economy combined to drive these stocks lower.
Source Fool.com
