The Consumer Discretionary sector can be divided into ‘Automobiles & Components’, ‘Consumer Durables & Apparel’, ‘Consumer Services’ and ‘Retailing’. Like its cousin Consumer Staples, this sector is primarily B2C companies. These products are generally economically elastic, which is to say that the sector is fairly sensitive to the economic cycle.
Marketing and brand recognition are important hallmarks of these companies, though relationships (suppliers and customers) are also keys for success. Automobiles & Components might be asset-intensive, however the other groups in this sector are generally asset-light. Some companies in this group can require substantial working capital investments where products and materials are purchased in advance and sold at a later stage.
AN Valuations is a strong, experienced and trusted advisor in the Consumer Discretionary sector and offers services across the spectrum.