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Lazard Capital Senior Retail Analyst Jennifer Davis on the stocks to watch in the retail sector.
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Retail sales did slip for the month of zero point 2% in April the second straight month.
Clients by the -- a second straight month -- the -- as -- first time we've seen that in nearly two years sales fell in consecutive months so.
It's it is unusual it's not a positive trend here but one analyst says there are plenty of bright spots now is the perfect time to go shopping for retail stocks.
Jennifer Davis is the senior retail analyst at Lazard capital and you -- what should.
Pick apart this number first before we get to your actual picks because some this have to do with the fact that gasoline prices fell so people were spending less on gasoline.
Exactly excluding gasoline retail sales month over month were actually up point 1% so a little better than.
The negative point 2% I'd I'd like to just point that out to give people a sense of perspective here on -- but.
People digging into their wallets and using that money that they -- on gasoline and it's to big purchases.
This well I think another phenomenon that we saw in May was that.
March and April sales were very strong people went out and spent.
On apparel.
You know I cover clothing and apparel accessories stocks primarily.
They spent in March and April mainly due to pent up demand strong fashion cycles.
And warmer weather so I think we did see some of a pull forward into march and April out of may step.
Would you with a brief these names that we looked happier because you're gonna make some pix of let's start with your first one and this is fear of Bradley because heard of this.
It what sort of the American appeared to have with the fabric that and that the -- is made out of fabric but you feel that this is an opportunity here why do its trading around eleven times are growing square footage at twenty times there.
Expanding from a wholesaler to -- retailer that's a higher margin business so.
You know I think and I actually appoint -- in TJ Max and I saw some other stuff.
Yes they have counted yeah and get away from not.
They have some product they'll probably always used TJ Maxx and that's the beauty TJ Maxx which is another one of my top -- but.
And they'll probably always use it -- it did mostly discontinued product in there and older retired patterns.
-- it's a Smart way for retailers to sell it's -- Smart way to clear through merchandise quickly.
My ten year old daughter tells me colored Denham is very hot and the exciting and -- a -- in the early ninety's but its back.
And you say there's one name is capitalizing on that.
Well actually there's two kinds of gap and American Eagle I think are both very strong -- players done on destinations and they both have.
Great assortment and I think that they're benefiting from that trend right now they're cholera should be buying make me cool my favorite is live that came unpopular Tim hot hey -- gotta get the -- -- other neon -- okay neon yellow which have a -- a lot of them.
So I'm still not cool gap of course has really surprised me yes I've covered this company.
For a decade and for about -- at those years.
We just were horrible and now they've really managed of great stock performance of 38% year to date up about 46% over the past year yet because they fixed their designed to meet them what.
Less generic.
Yeah well you know most recently they've you know they've had issues throughout the years that you -- most recently.
The designer is Patrick Robinson and his -- he tried to be too unique a little too different.
Hit that tops were able to box DO little to neutral.
Hand have a little too many frills and buses on this what area.
So now they have a global design team headquartered here in New York.
And where they've taken the best and then the brightest of all their people from around the -- and 600 M in new York and they're all working together and creating the designs here okay everybody you heard it here first Jennifer says acid yellow and -- hot pink down.
Will rush out and then of course -- change thank you so much think yes Jennifer Davis is senior retail level.
