As U.S. retailers head into the crucial back-to-school season , one analyst shared some of her top picks and argued that retailers’ past momentum could augur future strength.
“But I think for back to school, domestic retailers and the names that have done well, like the off pricers, like Target, like Nordstrom, should continue to do well in the back-to-school season,” said Adrianne Shapira, a senior retail analyst at Goldman Sachs.
While July typically accounts for only about 30 percent of the quarter’s sales, Shapira thinks it is an encouraging sign that most retailers ended the second quarter with clean inventories heading into the back-to-school season.
Beating analysts’ estimates, same-store sales rose 4.6 percent after discounts, and increased back-to-school promotions drew U.S. shoppers to dig into their wallets despite economic concerns.
Some of July’s sales winners included Gap; Costco, which topped Wall Street’s estimates for the first time since February; American Eagle Outfittersand Victoria’s Secret parent, Limited Brands.
Aeropostaleand Abercrombie & Fitch, which typically do not issue monthly sales results, both posted disappointing results. Their shares plummeted in trading following the report.Page 1 of 3 | Next Page