Amid the U.S./China trade battle, Cowen analyst Oliver Chen says negative EPS impact could be (10%-(30%) or worse as retailers are unlikely to be able to pass on all of potential cost of goods sold increases. The analyst believes the best positioned Outperform rated stocks are Planet Fitness (PLNT), Walmart (WMT), Ulta Beauty (ULTA), LVMH (LVMUY), and Costco (COST) as these have lower China sourcing risk and greater scale. He sees the most potential vulnerability at apparel and department store retailers. Further, Chen believes that consumers could experience price increases by as much as 10%-15% across impacted categories, which would yield up to $100B or more of incremental cost to consumers, depending on the breadth and depth of goods impacted. These factors are likely to impact supply/demand planning for back to school and holiday, he contends.

JPMorgan keeps a Neutral rating on Affirm (AFRM) after CNBC reported that One, a Walmart-backed fintech, has begun offering buy now, pay later at certain U.S. Walmart (WMT) locations. The announcement does not come as a complete surprise, as One first announced it was exploring a BNPL service in December 2022, the analyst tells investors in a research note. The firm points out Affirm expanded its relationship with Walmart in December 2023 to offer BNPL at self-checkout kiosks. For the time being, Affirm will remain a funding option at Walmart but will presumably compete head-to-head with One at the point of sale, adds JPMorgan. It believes the news "highlights the importance, foresight and wisdom" of launching the Affirm Card, which makes Affirm a funding option most anywhere Visa is accepted, while reducing Affirm's reliance on merchant-driven promotion and exclusivity. The firm views the Affirm Card as the company's "ace in the hole."

Mizuho analyst Dan Dolev says Affirm (AFRM) shares are lower today following a report that One, backed by Walmart (WMT), has started offering buy now, pay later loans in-store. However, this is not new news, as this was first reported in December 2022, the analyst tells investors in a research note. The firm says history suggests headline risks for Affirm end up being great buying opportunities. It estimates Walmart accounts for 5% of the company's gross merchandise volume and that all the volume likely won't go away. Affirm's total addressable market is in the trillions, so Walmart supporting buy now, pay later expands the visibility of the category, contends Mizuho. The firm keeps a Buy rating on the stock with a $65 price target.

Walmart's (WMT) majority-owned fintech startup One has begun offering buy now, pay later, or BNPL loans for big-ticket items at some of the retailer's more than 4,600 U.S. stores, putting One in direct competition with Affirm (AFRM), the BNPL leader and exclusive provider of installment loans for Walmart customers since 2019, CNBC's Hugh Son and Melissa Repko reported. Reference Link

Shares of Walmart-backed (WMT) Ibotta soared in their market debut, rising more than 30% and giving the digital marketing company a valuation of about $3. 55B... To see the rest of the story go to thefly.com. See Story Here