Shares of Alibaba Group Holding Ltd. BABA, -1.07% and JD.com Inc. JD, -2.13% are up 1% and 3.5%, respectively, after Stifel analyst Scott Devitt commented on China’s latest retail-sales numbers for May. Total retail sales rose 8.5%, down from 9.4% in April and below analyst forecasts. A slowdown in car sales was partly to blame for the lower-than-expected figures. Online retail sales accelerated relative to the April period, growing 25.8%. Food and clothing were two key categories. “The NBS [National Bureau of Statistics] noted that sales of communication equipment and household appliances increased 12.2% y/y and 7.6% y/y, respectively, driven by steady income growth in the region,” Devitt wrote. “We believe Alibaba and JD.com will continue to benefit from increasing online / mobile shopping penetration, offline / online retail integration, and China’s emerging middle class.” Alibaba’s stock is up 53% over the past 12 months, while JD.’s stock has gained 10%. The S&P 500 SPX, +0.25% has risen 14% over the past year.
