Over the next two weeks, retailers will post their second-quarter earnings; better inventory management and cost cuts should help keep net results mostly in line with estimates.
S&P sees some easing in the second half, with only moderate sales pickup. Competitive pricing and more attractive fashion in back-to-school items could help youth sales to turn around, while speciality stores like Ann Taylor could benefit from a return to classic clothing.
S&P has a 5 STARS (buy) rating on Children's Place (PLCE
S&P also has 4 STARS (accumulate) ratings on Abercrombie & Fitch (ANF
), American Eagle (AEOS
), Ann Taylor (ANN
), BJ's Wholesale Club (BJ
), Family Dollar (FDO
), Target (TGT
) and Wal-Mart (WMT
). Karen Sack is a retail analyst for Standard & Poor's