Daily Brief Consumer: JS Global Lifestyle, NIO Inc, Carlsberg A/S, Accor SA, Ralph Lauren, Dollar Tree Inc, Best Buy Co Inc, Kimberly Clark, Malibu Boats Inc A, Autozone Inc and more

• Back on the 23 February, household appliance maker JS Global Lifestyle (1691 HK) proposed spinning off SharkNinja’s ex-Asia Pac ops in the U.S.  
• This spin-off would be undertaken as a distribution in-specie, creating a parallel listing structure for SharkNinja and the remaining operations.
• Shareholders of JSG will vote on the separate listing at the EGM on the 26 June, with the last day cum-entitlement on the 27 June.

• Electric-vehicle maker Nio Inc. ended its holdout in China’s car price war and slashed base prices on all of its vehicles by 30,000 yuan ($4,200) in hopes of bolstering sales amid escalating competition in China, the world’s largest auto market.
• Nio also pulled the plug on its free battery-exchange service for car buyers and introduced a pay-as-you-go system and a 30,000 yuan lifetime swap service.
• The vehicle price cuts announced Monday will reduce the starting price of Nio’s new electric SUV ES6 to 338,000 yuan. The price of the mid-size electric sedan model ET5 will be lowered to 298,000 yuan. The changes take effect immediately, Nio said.

• Since mid-May, spreads have generally tightened across our liquid universe (13 have tightened, 6 widened).
• Recommended trades long ordinary / short preferred shares: Henkel, SSAB Svenska Stal.
• Recommended trades long preferred / short ordinary shares: Carlsberg, Media-for-Europe, Sixt, VW, Grifols, Atlas Copco.

The Europe HY Trade Book for June 2023 includes high-conviction trade ideas drawn from our European HY coverage universe, along with relative-value scatter plots and tables by industry.

• Ralph Lauren delivered an all-around beat in the previous quarter.
• In the fourth quarter, the company’s total revenues climbed 9% in constant currency, driven mostly by double-digit growth in Asia.
• Mid-single-digit revenue declines in constant currency were seen in their digital environment.

• Dollar Tree delivered a mixed set of results in its most recent result, with revenues above Wall Street expectations but below-par earnings.
• Both the Dollar Tree and Family Dollar sectors had good top-line growth.
• At Family Dollar and Dollar Tree, in-stock positions improved by 200 basis points and 400 basis points, respectively.

• Best Buy delivered a mixed set of results for the previous quarter, with revenues well below analyst expectations but managed an earnings beat.
• Despite cautious consumer behavior due to inflation and low confidence, Best Buy maintained consistent purchasing patterns and demographics.
• Customer satisfaction scores improved for in-home services, delivery, and remote support, highlighting the company’s focus on customer support.

• Kimberly-Clark’s disappointing performance in recent years is hardly a surprise and does not make the company a bargain.
• The short-term perspective on margins remains mixed, in spite of the management’s optimism.
• KMB could no longer support these activities, according to the company’s management.

• The acquisition of tooling facilities and the introduction of new engines for its Cobalt line are considered possible benefactors.
• Slower wage demand, softer material costs, and a pending interest rate pivot are all positive signs.
• However, Malibu Boats stock is theoretically undervalued and likely to experience further gains in the quarters head.

• AutoZone delivered a mixed set of results in its most recent result, with revenues falling short of Wall Street expectations but above-par earnings.
• The company produced a 17.5% increase in EPS, a 9.3% increase in EBIT, and 1.9% domestic comp growth.
• Domestic DIFM sales accounted for 31% of total domestic car part sales.