Margaret, is the consumer coming back to life?
The rumors of the death of the consumer have been exaggerated somewhat, says Brennan. This data suggests a solid start to the Back-To-School season, however we have to wait for September numbers to know for sure.
Brennan adds that from CEO’s she’s been talking with, all the noise that’s been crunching the stock market hasn’t really affected consumers. In fact, Coach (COH) tells Brennan that high end is doing so well, they’re adding more high end items.
Are retail CEO’s more bullish about their outlook than The Street?
Breenan says retail CEO’s are trying to moderate expectations. They’re cautious but not freaking out. Consumers seem to be going shopping less often but spending more when they buy.
Are traders more comfortable owning economically sensitive names when they see strength in retail?
Guy Adami says the short answer is “Yes.” However, he says the real story is about the wealth creation trade. On the high end things are great, adds Adami. He likes Tiffany (TIF), Saks (SKS) and Sotheby’s (BID).
Karen Finerman can’t understand why Guy is bullish on Sotheby’s in this market.