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As earnings season continues rolling for retailers, several major brands have expressed caution in their forecasts, with companies like TJX (TJX), Walmart (WMT), and Home Depot (HD) offering weaker-than-expected projections.
Abercrombie & Fitch (ANF) and Foot Locker (FL) are also set to report quarterly results next Wednesday, March 5. SW Retail Advisors president Stacey Widlitz joins Wealth host Brad Smith to discuss key retail brands and their market performance.
She evaluates Abercrombie & Fitch, highlighting concerns about their promotions affecting stock value: "They've shown a couple promotions on the Abercrombie brand in the last couple of months. So that's a big question mark here, and the stock has traded off significantly because we've seen some of those promotions hit the market that would suggest maybe their full price selling is not as intact as other brands."
On Hoka's parent company, Deckers (DECK), she remains optimistic on the footwear giant's figures. "Yes, their numbers did decelerate a bit this quarter and their guide was somewhat conservative, but they have new launches in the market that are being received incredibly well," Widlitz says, noting the brand has "staying power" to continue to grow.
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Additionally, she was cautious about Foot Locker, asserting that her firm is "avoiding Foot Locker," due to their heavy reliance on Nike (NKE).
Watch the video above to hear Widlitz discuss her coverage on retail stocks in depth along with Walmart’s outlook.
To watch more expert insights and analysis on the latest market action, check out more Wealth here.
This post was written by Josh Lynch