Consumer Discretionary

Report by The Retail Tracker

Each week, The Retail Tracker offers an insightful perspective on retail, fashion and consumer trends and what it means for the stocks. So far this year, Garage is a standout, nailing the “sexy x comfy” aesthetic for teens and taking share from Aerie and Pink. Gap and Old Navy are “crushing it” with consistently strong assortments, offsetting tariff challenges through fewer markdowns. Meanwhile, Urban Outfitters and Nuuly are gaining traction, with Nuuly emerging as a promising rental and tech-driven play. Aritzia is showing good momentum with its best assortment in some time. Department stores may be in free fall, but the best Macy’s stores have never looked better. In contrast, Lululemon is losing its way, expanding beyond its core and diluting its brand identity, while Bath & Body Works' range of new items is exhausting.

Consumer Discretionary

In their weekly report A Line uses a proprietary ranking system to build individual company performance history. Companies are graded A-C based on factors including product design, promotional activity and store feedback. Key takeaways last week:

ATZ - Grade A; scores 28/30, +2pts vs. previous week. Consistently positive feedback across the stores. The Super Puff is flying off the shelves (gone TikTok viral).
ROST - Grade B; 18/30, +2pts. Improved traffic trends driven by markdowns. Discounts are deep (e.g. women’s jeans at $7.99, $3 cheaper than last year). Sales boosted by cold weather.
Michael Kors - Grade B; 14/30, -3pts. Oct has slowed vs. Sept (lack of tourists and domestic customers who are not shopping as much in anticipation for the holidays). Increasingly aggressive promotions.