Stocks Plummet Amid Inflation Concerns: Urban Outfitters, Zumiez, Camping World, Monro, and OneWater Take a Hit

Several stocks, including Urban Outfitters, Zumiez, Camping World, Monro, and OneWater, plummeted after a hotter-than-expected wholesale inflation report raised concerns about slowing consumer spending. The Producer Price Index (PPI) jumped 0.9% in July, exceeding economists' expectations of a 0.2% rise. This fueled worries about higher prices for shoppers and potential impacts on consumer spending. The inflation report landed amid evidence of consumer caution, including shoppers cutting back on non-essential spending and trading down to cheaper brands.

A hotter-than-expected wholesale inflation report has sparked concerns about slowing consumer spending, leading to a plunge in several retail stocks. The Producer Price Index (PPI) jumped 0.9% in July, far exceeding economists' expectations of a 0.2% rise [1]. This increase in wholesale prices has fueled worries about higher prices for shoppers and potential impacts on consumer spending.

The PPI report, released by the Bureau of Labor Statistics (BLS), showed that the index for final demand goods and services rose significantly, with core PPI also increasing by 0.9% [2]. The annual rate of producer price growth accelerated to 3.3% in July, the largest 12-month increase since February [2].

Services inflation played a significant role in the upward trend, with services prices jumping 1.1% in July, the largest gain since March 2022 [2]. Trade services margins rose 2%, amid ongoing developments in President Donald Trump's tariff implementations [1]. Additionally, machinery and equipment wholesaling contributed 30% of the increase in services prices [2].

The report comes amid escalating questions over BLS data accuracy. President Trump recently fired the former BLS commissioner and intends to nominate Heritage Foundation economist E.J. Antoni as the next head of the bureau [1]. Antoni has been a critic of the BLS and has floated the idea of suspending the monthly nonfarm payrolls report until data accuracy can be better ensured [1].

The BLS has been impacted by budget cuts and layoffs, which have led to changes in data collection methods. July's PPI report was the first since the bureau eliminated some 350 categories from its exhaustive count of input costs [1].

The PPI report has had a significant impact on the stock market. Stocks of retailers such as Urban Outfitters, Zumiez, Camping World, Monro, and OneWater have plummeted following the report, reflecting investors' concerns about higher prices and potential impacts on consumer spending [2].

The report also comes amid evidence of consumer caution, with shoppers cutting back on non-essential spending and trading down to cheaper brands [2]. The inflation report has added to the uncertainty surrounding consumer behavior and the broader economic outlook.

References:
[1] https://www.cnbc.com/2025/08/14/ppi-inflation-report-july-2025-.html
[2] https://www.nasdaq.com/articles/us-producer-price-growth-far-exceeds-estimates-july