Retailers reported disappointing sales in July, a sign that consumers are continuing to watch their spending carefully and hunting for the best bargains. Kimberly Greenberger, retail analyst at Citi, shares her analysis of July same store sales data.
Sales data "were at the low-end of our range of expectations, so they were slightly disappointing,” Greenberger told CNBC.
“The items that are most discretionary are the ones that are under pressure. Consumers are still spending for the needs, but not spending for the wants yet.”
However, Greenberger said the retail industry is beginning to see some inflection in a few of the retailers that are not at the value end of the spectrum.
“Over the last 6 to 12 months, the retailers at the value end of the spectrum are the ones have been beating and doing very well,” she said.
Greenberger recommended the following stocks:
Urban Outfitters
American Eagle Outfitters
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Disclosure:
Citigroup Global Markets or an affiliate received compensation for products and services other than investment banking from Urban Outfitters in the past 12 months. Greenberger has an investment banking client who owns shares of American Eagle.
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CNBC Slideshows:
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More Apparel Companies:
Abercrombie & Fitch
Bebe Stores
Gap
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