Tuesday’s article previewing June retail sales, along with some hypotheses for why the month appears to be a deceleration from May’s pace, solicited some questions about the athleisure category. For athleisure, there was also a slowdown starting June 12th, similar to what we shared yesterday. Vuori’s deceleration is most abrupt. Lululemon and Alo Yoga have drifted back to their March pace; perhaps the bump they experienced in April and May was pull-forward with consumers securing coveted items before tariffed goods hit the shelves.

We forecasted in our review of May retail sales that June’s pace would likely be stronger than May’s; well being a forecaster, we know that we are going to be wrong some times and based on Advan’s foot traffic and transaction data, June looks to be softer AND NOT stronger. (Recall, the retail calendar puts July 5th as the end of the month vs. July 6th last year.) The first half of the period was stronger than the second half; the second half aligned with the extreme temperatures in the Great Lakes Region and the Northeast.

In light of our travels around California during the 4th of July week, the current events in California, and our recent insights on convenience stores and weight loss drugs hurting visits to limited-service restaurants (LSR), we turned the “Advan spotlight” on burger-QSR in California. As shown in the following chart, the category’s trend remains soft for June and Q2. The downshift for Burger King and McDonald’s in the 2H of June largely reflects difficult comparisons to last summer when they re-launched the $5 Value Meal.

With the battle for Seven-&-i and its US business ongoing and our recent story about weight loss drug usage hitting fast food, we took a look at recent trends for Convenience and Gas (C&G) retail. As a reminder, the industry has been facing a cyclical economic challenge as fewer motorists are enter the stores to purchase a snack, a six-pack, etc. For the industry, those inside the store visits are where the money is; for example, **Casey’s General Stores **makes $0.

General Mills’ very soft quarterly results, once again, reinforced our viewpoint that category growth for the year, as was the case last year, will be driven by private label and the retailers that excel at it. And so, in addition to scanner data, we recommend watching the foot traffic at Trader Joe’s and Aldi. As the chart shows, traffic for the conventional grocery industry (NAICS-4415) remains in the dumps. By contrast, traffic for TJ’s and Aldi remains robust and very stable.

As we previewed in our story about Costco, May retail sales (as measured by the Census Bureau-adjusted) slowed from April’s pace as the tariff pull-forward lapsed and leisure activity quickened (again taking share from spending on goods). Additionally, weather for most of the month and country was absolutely horrid for seasonal sales. Building materials & garden supplies fell -1.1% in May from April +2.1% increase. Advan’s measure for NAICs #44422, which is 11K nursery, garden centers, and farm supply stores around the country, declined a similar amount.

Last week, one of our Advan Buysider names, Chewy , reported fiscal Q1 results, which once again demonstrated improving business momentum and unit economics. As a reminder, Chewy’s market share growth is accelerating due to the accruing benefit of more and more Autoship customers. (That share gain, plus Amazon’s, is further depressing foot traffic to pet specialty retailers.) Chewy’s higher volume in turn is allowing it to improve its fulfillment center (FC) utilization; this is key to improving its unit economics as they stood up too much capacity during the 2020 / ’21 pet boom, which became a drag on profits when the boom, busted.

Despite tremendous noise on trade and the economy, and our ongoing frozen housing market, Restoration Hardware’s fiscal Q1 results and outlook affirmed what Advan’s traffic and transaction data suggest, that is – demand remains undiminished for the high-end brand, as well as peer Arhaus. Written orders, which measures current demand, is no longer disclosed by Restoration Hardware (RH), and so the next quarter’s guidance is a proxy; guidance for fiscal Q2 revenue growth was +15% (on an adjusted-basis) which is above for the April-end period of +12%, or reflective of stronger demand.

Despite dismal sentiment about the low-end consumer and consumer confidence, Dollar Tree, Dollar General, and Five Below blew past Wall Street expectations on comp-store sales, with both comp-ticket and comp-transactions driving a material improvement in the 2- and 3-year comp-store sales trend as shown in the table below. With Dollar General’s results, we wrote about the upside stemming from trade-in, share-of-stomach gains from the fast food channel, and better retail execution / fundamentals.

As was anticipated by Advan’s data, Costco reported another strong comp-store sales increase for May (+5.5%), but at a touch lower rate than the March / April trend of +7.2% / +8.6% (adjusted) which benefited from pull-forward on large ticket items which consumer purchased to get in front of prices increases resulting from tariffs. General merchandise comp sales, which is where the pull-forward happened, went from +10% in March / April to around +5%.