Brennan expects to hear that Q3 was tough in part because of warmer weather but she also thinks traffic is picking up because the cold weather hit the Northeast.
She adds JC Penney (JCP) already said to expect the tough consumer environment to continue and Wal-Mart lowered its same-store sales outlook.
In addition, Brennan says one interesting name to watch is TJ Maxx (TJX) because there’s speculation that lower priced retailers could benefit from this environment.
“We’re still sticking with Wal-Mart” adds Karen Finerman. “But it has been trying time for retail.. and I really do hope for more cold weather.”
Although Jeff Macke wasn’t on the show Friday our producers contacted him privately and he recommended the following trades.
The Gap (GPS)
Home Depot (HD)