Domino's Pizza (ASX:DMP) is a preferred consumer company for Jefferies due to high short interest and potential upside from cost reduction initiatives, while Flight Centre (ASX:FLT) is also preferred due to opportunities to gain market share in corporate travel, according to a Feb. 6 note by the investment firm.

Jefferies said there is downside risk for JB Hi-Fi (ASX:JBH), especially its subsidiary The Good Guys, due to aggressive discounting, demanding comparable sales bases, and market share gains by Harvey Norman (ASX:HVN).

Woolworths Group (ASX:WOW) has likely regained some sales momentum, but this appears to have required significant investment, the note added.

According to Jefferies, most consumer-facing companies are facing challenging conditions with intensified competition in the supermarket sector, while discount retail conditions weakened in December, likely compounded by the interest rate increase in February.

DMP shares were up 2%, and FLT was up 6% in recent Monday trade, while JBH fell almost 1%, and WOW gained nearly 1%.