Again, we're back to this discussion where talking about labor market weakness and sort of consumer confidence weakness and a market where desks are talking about blowoff tops going into That's right. I mean, I think as market participants, we're counting on the fact that the Fed is going to deliver enough accommodation and quickly enough in order to cushion this process of adjustment that's taking place right now. You know, if they do not only stick with 25 basis points, but do another couple, that's 75 ba ...

Again, we're back to this discussion where talking about labor market weakness and sort of consumer confidence weakness and a market where desks are talking about blowoff tops going into >> That's right. I mean, I think as market participants, we're counting on the fact that the Fed is going to deliver enough accommodation and quickly enough in order to cushion this process of adjustment that's taking place right now. You know, if they do not only stick with 25 basis points, but do another couple, that's 75 ...

This story was originally published on Retail Dive. To receive daily news and insights, subscribe to our free daily Retail Dive newsletter. Through most of 2025, retailers and brands have told investors they will bump up prices where they can in order to mitigate the fallout from tariffs. As consumers contend with fresh economic challenges — and as the holidays draw nearer — this already intricate balance of protecting margins and maintaining demand is getting more fraught. In May, Target CEO Brian Corne ...

By Lucy Craymer WELLINGTON (Reuters) - New Zealand's economy shrank more than expected in the second quarter as construction remained in decline and global uncertainty weighed, increasing expectations of a steeper rate cut in October. Official data out on Thursday showed gross domestic product (GDP) fell 0.9% in the second quarter from the prior quarter, worse than analysts' and the Reserve Bank of New Zealand’s forecasts of a 0.3% fall. New Zealand's economy has contracted in three of the last five qua ...

Core Insights - Solventum Corporation (SOLV) reported a strong second-quarter performance with earnings per share (EPS) of $1.69, exceeding consensus estimates by 16.6% and revenues of $2.16 billion, reflecting a 2.8% organic sales increase year over year [1][8] - The company raised its full-year organic sales growth guidance to 2-3%, demonstrating confidence in its growth strategy despite macroeconomic challenges [2][8] - SOLV's growth is driven by improved commercial focus and product innovation across its MedSurg, Dental, and Health Information Systems (HIS) segments [8] Short-Term Growth Drivers - The strong second quarter was attributed to enhanced execution in commercial operations, particularly in MedSurg, Dental, and HIS [3] - The MedSurg segment achieved 4.8% organic growth, driven by demand for infection prevention solutions [4] - HIS experienced a 3.9% revenue increase, supported by the adoption of AI-powered autonomous coding tools [5] Long-Term Growth Catalysts - Solventum's growth trajectory will rely on the execution of its three-phase transformation plan, focusing on mission sharpening, scaling growth areas, and post-divestiture M&A activity [10] - The company is investing several hundred million dollars to expand IV site management capacity in South Dakota, indicating a commitment to scalability [11] - A significant catalyst will be the planned divestiture of the Purification & Filtration segment by the end of 2025, which is expected to enhance margins and long-term growth [12] Challenges and Competitive Context - Solventum faces projected tariff impacts of $60-$80 million in 2025, which could affect EPS by 25-35 cents [15] - The company is navigating the execution phase of its post-spin separation, with over 35% of Transition Service Agreements completed [16] - In a competitive environment, large-cap medtech players like Becton Dickinson and STERIS are expanding their portfolios, reflecting the dynamic nature of the industry [17] Investment Outlook - Solventum's robust performance supports its strategic plan, with a focus on sustainable, profitable growth despite near-term tariff challenges [18] - The company is positioned for long-term value creation as it continues its transformation and prepares for M&A opportunities post-divestiture [18][19]

Group 1 - The Consumer Price Index (CPI) showed a month-over-month increase, marking the largest rise since January, while jobless claims were significantly higher than expected [1][2] - Companies are beginning to pass on tariff-related price increases to consumers, indicating that inflationary pressures are already manifesting in the market [6][7] - The inflation rate reported at 2.9% does not provide reassurance that it is moving towards the target of 2%, suggesting ongoing challenges for the Federal Reserve in managing inflation [7][8] Group 2 - There is a concern about stagflation, where rising inflation coincides with a weakening employment situation and slowing growth, complicating the Federal Reserve's dual mandate [8][10] - The potential impact of political dynamics, such as President Trump's attempts to influence Federal Reserve personnel, could affect market perceptions and inflation expectations [9][10] - The market may respond negatively to perceived threats to the Federal Reserve's independence, which could lead to higher interest rates in the long term, particularly at the 10 and 30-year levels [10][11]

Roger, we saw CPI. It came in in line, though it was the biggest month-over-month increase since January. But then we also got jobless claims, much higher than expected.Did that pretty much cement that Fed rate cut next week, or do you still think there are any questions at all. No, I think the rate cut next week is pretty much cemented. I think the question is how's the Fed going to communicate that it's staring at the most complex situation known as stagflation risk to both sides of the so-called dual man ...

Core Insights - Consumer spending showed positive growth in August, driven by back-to-school shopping and potential tariff effects [1][4] - Total retail sales increased by 0.5% month-over-month and 6.8% year-over-year, indicating strong annual performance despite a slight decline from the previous month [2][3] - Core retail sales, excluding restaurants, rose by 0.3%, slightly lower than overall retail sales growth [2] Retail Performance - The retail monitor indicates considerable volatility in consumer spending, with fluctuations influenced by tariffs and inflation [3][6] - Eight out of twelve retail sectors experienced growth, particularly digital products which increased by 1.6% [4][5] - Discretionary spending showed mixed results, with food and beverage up by 1% and general merchandise up by 0.4%, while sporting goods and garden supplies saw declines of 0.8% and 2.1% respectively [5] Inflation and Tariff Impact - Some gains in retail sales may reflect inflation in imported goods, with consumers potentially buying ahead of tariff increases [4][6] - Adjusted for inflation, consumer spending has been weak over the past three months, suggesting a possible tariff impact [6] Digital Sales Trends - Online sales, particularly in software and digital products, have been consistently strong, contributing positively to overall retail performance [7][8] - The digital category has shown robust growth, with regular increases between 0.5% and 1.5% [8]

Core Insights - Culp, Inc. reported consolidated net sales of $50.7 million for the first fiscal quarter ended August 3, 2025, indicating a decline due to market softness and tariff impacts on residential upholstery shipments from China [1] Financial Performance - The financial results reflect continued market softness affecting the company's performance [1] - The tariff-driven pause in shipments from China has significantly impacted the residential upholstery segment [1]

Financial Data and Key Metrics Changes - In-market consumption during Q4 declined by 1%, while organic net sales decreased by 3%, primarily due to favorable shipment timing in Q3 reversing in Q4 [7][26] - Reported net sales increased by 1%, adjusted EBIT and adjusted EPS both decreased by 2% compared to the prior year [8][26] - For the full year, net sales grew by 6%, driven mainly by the Sovos Brands acquisition, while adjusted EBIT increased by 2% [8][29] Business Line Data and Key Metrics Changes - Meals and Beverages organic net sales decreased by 3% in Q4, with volume and mix down by 4% [13][31] - Snacks reported a 2% increase in net sales, but organic net sales decreased by 2%, driven by lower volume and mix [32][33] - The consumption of Meals and Beverages leadership brands increased by 1% in Q4, while Snacks leadership brand consumption declined by 2% [12][13] Market Data and Key Metrics Changes - The overall consumer environment remained cautious, with at-home cooking trends benefiting the Meals and Beverages segment [5][12] - The broth category saw a 7% consumption growth, while the soup portfolio's dollar share declined by 0.8 points due to the discontinuation of the Well Yes brand [15][17] - The Italian sauce category grew by 2% year-over-year, with Campbell's Italian sauce portfolio outpacing this at 4% growth [16] Company Strategy and Development Direction - The company plans to increase marketing investments and focus on innovation to support its brand portfolio [6][24] - A new growth office has been established to align innovation with consumer needs, emphasizing health and elevated taste experiences [10][24] - The company is committed to mitigating tariff impacts through various strategies, including cost savings initiatives and pricing actions [35][39] Management Comments on Operating Environment and Future Outlook - Management noted that consumers are increasingly seeking value, flavor-forward offerings, and health benefits, which are driving innovation [5][10] - The company expects a more significant impact from tariffs in fiscal 2026, projecting gross tariffs at approximately 4% of cost of products sold [34][38] - Despite challenges, management is optimistic about sustainable growth in fiscal 2026, focusing on productivity and cost savings [39][40] Other Important Information - The company plans to remove FD&C colors from its food and beverage products by the second half of fiscal 2026 [11] - The Sovos Brands acquisition performed well, contributing positively to net sales growth and integration synergies [29] Q&A Session Summary Question: Insights on fiscal 2026 outlook and factors affecting guidance - Management discussed the importance of brand support and innovation in navigating the dynamic operating environment, with a focus on productivity and cost savings [44][46] Question: Stabilization in the snacks category - Management highlighted that snacking occasions are stable, with a focus on premiumization and flavor exploration to connect with consumers [56][58] Question: Impact of tariffs on pricing strategy - Management indicated a surgical approach to pricing, balancing the need to offset tariffs while maintaining product quality [64][66] Question: Sustainability of tariff mitigation strategies - Management explained that inventory management and supplier collaboration are key levers, with alternative sourcing being explored where feasible [70][72]