Shares of Stitch Fix and PVH fell in afternoon trading after the Federal Reserve held rates at 3.5% to 3.75% but revised its dot plot to suggest the next move could be a hike rather than a cut. Stitch Fix dropped 7.7% and PVH declined 4.5% as the shift undercut the consumer spending recovery that consumer discretionary brands had been pricing in. Clothing is a deferrable purchase, and consumers facing credit card or buy-now-pay-later obligations now confront the prospect of higher borrowing costs, while inflation at 4.2% already erodes purchasing power. Investors had been warming to the consumer recovery story, but the FOMC outcome puts that thesis back under review.
PVH CorpFed dot plot signals possible rate hike, undercutting consumer spending recovery that PVH depends on.
Stitch FixFed dot plot signals possible rate hike, undercutting consumer spending recovery that Stitch Fix depends on.