The S&P 500 consumer discretionary index gained 0.9% in September, trailing a 1.9% increase in the overall S&P 500 index during the month, according to data compiled by S&P Global Market Intelligence.
Even though the sector lagged behind in September, some stocks of consumer discretionary companies were the best performers in the S&P 500 index for the second consecutive month. Out of the top 10 companies with the highest returns in September, five were from the consumer discretionary sector. Some rebounded after being among the worst performers in August.
The tariff exemption lists released by China on Sept. 11 contributed to the rise of U.S. stocks during the month. President Donald Trump also agreed to delay the government's tariff hike on Chinese imports to Oct. 15 from Oct. 1.

Tapestry Inc., owner of the Coach and Kate Spade luxury brands, led the best-performing consumer discretionary companies. Its stock jumped 28% in September. Tapestry's shares gained momentum after the company named Chairman Jide Zeitlin as its new CEO on Sept. 4. It also received a boost following the tariff exemption announcement.
Tapestry's leading performance was followed by Capri Holdings Ltd., formerly known as Michael Kors Holdings, which registered a 25.7% gain. Its stock reached a 52-week low early in September but recovered by the end of the month. Capri, whose portfolio includes labels such as Versace and Jimmy Choo, and rival Tapestry had been among the worst performers in August.
Automotive retailer Advance Auto Parts Inc. posted a 19.9% gain in September and was the fifth-best performer in the S&P 500 index. Citi on Sept. 13 upgraded the company to "buy" from "neutral," adding that Advance Auto Parts' same-store sales momentum, assortment optimization and omnichannel initiatives could drive sales growth.
Chicago-based auto parts distributor LKQ Corp.'s shares climbed 19.7% during the month. San Francisco-based activist investor ValueAct Capital Management LP disclosed on Sept. 11 that it has taken a 5.2% stake in LKQ, according to a Schedule 13D filing with the SEC. The auto parts company welcomed the fund manager's investment, adding that it appreciates "constructive input" as it continues to execute various initiatives.
L Brands Inc., owner of Victoria's Secret, posted an 18.7% gain. L Brands gave a similar performance to Tapestry and Capri, as one of the best-performing stocks in September after being among the worst performers in August. During its investor day on Sept. 10, Victoria's Secret Lingerie CEO John Mehas said consumers would start to see an "evolution" in the unit, adding that customers have been "very vocal" about what they would like to see from the brand.
Rural lifestyle retail company Tractor Supply Co. recorded the worst performance among consumer discretionary stocks in September with an 11.2% decline. Shares of the retailer have steadily fallen since they peaked at $106.39 on Sept. 10.
Starbucks Corp., whose shares dropped 8.4%, began the month with a warning that its EPS for fiscal 2020 would be below its ongoing growth model of at least 10%. On Sept. 10, The Wall Street Journal reported that the coffee giant also agreed to disclose how it recognizes revenue after the U.S. Securities and Exchange Commission questioned its accounting practices for its second-quarter earnings.
EBay Inc. posted a drop of 3.3%. The e-commerce company on Sept. 25 announced that Devin Wenig would step down as its CEO, president and director, effective immediately.
Shares of restaurant operator Yum! Brands Inc. dropped 2.9% despite Moody's upgrading the fast-food company's corporate family rating to Ba2 from Ba3 for its scale, "clearly articulated" financial policy and franchise-based business model.
Darden Restaurants Inc., the parent of Olive Garden, delivered a 2.3% loss. Its shares reached a 52-week high on Sept. 13 but dropped after the company reported fiscal first-quarter earnings that beat analysts' expectations and reaffirmed its 2020 outlook.
