Discretionary
They are coming thick and fast now, the consumer discretionary downgrades. The below is for ADH (Adairs, the homewares retailer) citing rates and inflation.
That is set to continue, in our view. The monthly print for inflation yesterday was a YoY measure of 6.8%, 6.5% if you excluded some tax related measures in transport (thus high) and the rates dynamic looks like the below, which is lagged, and will keep moving upwards.
The BUB (Bubs, the baby products retailer) just sounded bad. It is amazing how convoluted they make their updates. Fewer words better chosen would be well regarded.
The bit I could understand was a slowdown in China and a big chunk of unmoveable inventory. Nothing good in the update.
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