Retail Industry Overview - U.S. retail sales declined for the second consecutive month in May, falling 0.9% month over month to $715.4 billion, marking the steepest decline since January [1][8] - The decline in retail activity was primarily driven by a 3.5% drop in motor vehicle purchases, alongside notable decreases in building materials (down 2.7%) and gasoline (down 2%) [2][8] - More than half of the 13 major retail categories tracked reported lower sales in May, indicating broader weakness in consumer spending [2] Consumer Sentiment and Economic Factors - Tariff threats and geopolitical tensions are negatively impacting consumer sentiment, suggesting that the earlier spike in sales was a reaction to anticipated economic challenges rather than a sustained spending trend [3] - The current economic uncertainties are prompting a cautious approach among consumers, reflected in the recent retail sales data [3] Investment Opportunities in Retail Stocks - Companies such as Sprouts Farmers Market, Urban Outfitters, BJ's Wholesale Club, and Costco are identified as better positioned to navigate shifts in consumer behavior due to their strategic initiatives [3][8] Company-Specific Insights Sprouts Farmers Market (SFM) - SFM is focusing on product innovation, competitive pricing, and targeted marketing to expand its customer base and meet evolving consumer preferences [7] - The Zacks Consensus Estimate for SFM indicates a projected growth of 13.7% in sales and 35.5% in earnings per share (EPS) for the current financial year [8] Urban Outfitters (URBN) - URBN is leveraging its multi-brand strength and digital reach, with major brands showing momentum across both digital and physical channels [10] - The Zacks Consensus Estimate for URBN suggests growth of 8.5% in sales and 22.2% in EPS for the current financial year [11] BJ's Wholesale Club (BJ) - BJ's Wholesale is focusing on membership growth and digital innovations, enhancing its omnichannel capabilities and customer value [11] - The Zacks Consensus Estimate for BJ indicates growth of 5.5% in sales and 6.2% in EPS for the current financial year [12] Costco (COST) - Costco is effectively navigating market fluctuations through strategic investments and a strong emphasis on its membership model [13] - The Zacks Consensus Estimate for Costco forecasts growth of 8% in sales and 12% in EPS for the current financial year [14]

Core Points - Epic Games is intensifying its legal efforts against Apple to allow Fortnite back into the App Store, requesting a court order for Apple to accept any compliant version of the game [1] - A recent ruling by Judge Yvonne Gonzalez Rogers found Apple in "willful violation" of an injunction regarding anti-competitive pricing, potentially allowing Fortnite's return and enabling developers to offer alternative payment options [2] - Apple plans to appeal the ruling, and Epic Games has stated that Fortnite will remain offline globally until Apple unblocks it, although Apple disputes this claim and suggests that Epic should resubmit the app update without the U.S. storefront [3] Company Actions - Epic Games has filed a new court request to compel Apple to accept Fortnite into the App Store [1] - The company argues that Apple is punishing it by blocking access to the market it has fought to open, which sends a negative message to other developers [3] Legal Context - The ongoing legal battle centers around Apple's App Store policies, particularly the commissions on in-app purchases [1] - The recent court ruling could have broader implications for developers seeking to implement alternative payment systems [2]

In Brief Epic Games notched a win in an ongoing legal dispute with Apple. The result could be Fortnite returning to the U.S. iOS app store as early as next week.Judge Yvonne Gonzalez Rogers said in a ruling Wednesday that Apple was in “willful violation” of a 2021 injunction that prohibited the company from anticompetitive pricing. Apple won many of the arguments in the Epic Games trial. One notable exception was a ruling that prohibited Apple from collecting fees on purchases made outside of the apps them ...