Consumer Stocks Extend Gains During Afternoon

Consumer stocks were broadly higher, with shares of consumer staples companies in the S&P 500 rising nearly 1.1% this afternoon while shares of consumer discretionary firms in the S&P 500 were up almost 0.1%, posting their smallest gain this week.

Among consumer stocks moving on news:

+ Navistar (NAV) rose Friday amid new market speculation Volkswagen will seek a buyout of the remaining 83.15% share of the light-truck manufacturer its doesn’t already own after the German automaker’s truck and bus unit earlier Friday named an merger-and-acquisitions expert as its new chief financial officer. In addition to promoting Christian Schulz to CFO of Volswagen Truck & Bus, the VW subsidiary this week also changed its corporate designation from a GmbH limited liability company to an AG, or stock corporation – a move some industry analysts said could make it easier for the unit to issue stock as a stand-alone company and build up a war chest to buy out Navistar. Volkswagen previously has said it is considering a spin-out of the trucks division although it was unlikely during 2018, according to reports.

In other sector news:

+ Canada Goose (GOOS, GOOS.TO) soared to a new, all-time high on Friday, rising nearly 30% to a best-ever $59.40 a share, after reporting a surprise fiscal Q4 profit and sales more than doubling year-ago levels. Excluding one-time items, the Toronto-based outdoor apparel company earned C$0.09 per share during the three months ended March 31, reversing a C$0.15 per share adjusted net loss during the first three months of 2017 and topping the Capital IQ consensus expecting a C$0.08 per share adjusted net loss. Net sales grew 144% year over year to C$124.8 million from C$51.1 million last year, crushing the C$50.3 million analyst mean. For FY19, Canada Goose is projecting a 25% jump in adjusted net income over prior-year levels and an increase of at least 20% over its C$591.2 million in FY18 sales. That works out to at least C$709.4 million in FY19 sales. Wall Street and Bay Street analysts, on average, are expecting C$537.9 million in sales this year.

– Ford Motor Company (F) was little changed Friday afternoon, recovering from a nearly 1% decline earlier in the session that followed the automaker saying it sold 69,503 vehicles in China during April, dropping 26% compared with its year-ago Chinese sales. Sales for Changan Ford Automobile slumped 35% year-over-year, while Jiangling Motor Corp sales were down 6% and Lincoln sales fell 14%. Through the first four month of 2018, Ford has sold a total of 277,000 units, representing a 21% year-over-year decline.

– BorgWarner (BWA) slid as much as 2% on Friday after the auto-parts manufacturer said it needs to restate its FY13, FY14, FY15 and FY16 financial statements to better account for its asbestos-related liabilities. For several years, the company produced brake pads and disc-type clutches containing asbestos and has been the target of lawsuits by people exposed to the suspected carcinogen. Following consultations with its outside auditor and security regulators, BorgWarner said its board audit committee determined it needs to re-calculate the estimated value of incurred but not-reported asbestos-related claims since Dec. 31, 2012, as well as the actual amounts spent by the company on those claims and the associated legal defense. The company also said it will reverse a charge against its Q4 financial results in 2016, which will increase its reported FY16 earnings. There will be no change to its FY17 financial results.