AKA - Retail stocks catch a bid after report on Memorial Day weekend store traffic impresses

2023-06-06 11:26:42 ET

The retail sector outperformed on Tuesday morning after the latest batch of earnings report came in better-than-feared and the weekly sales report from Johnson Redbook was stronger than anticipated.

Johnson Redbook reported sales at stores open at least a year rose 0.6% in the June 3 week compared to a year earlier. The research firm forecasts June sales to be up 0.8% over the same month from a year ago. Notably, some improvement was observed for both traffic and sales for the period that included the long Memorial Day long weekend. The positive read came amid rising concerns on the back half of the year, including the key back-to-school and holiday seasons. The newest fears in the retail sector beyond the recession cloud has been over the impact of student loan repayments being reinstituted.

Big gainers in late morning trading included G-III Apparel ( GIII ) +23.6% , THOR Industries ( THO ) +14.2% , a.k.a Brands ( AKA ) +13.2% , Children's Place ( PLCE ) +12.8% , Rent the Runway ( RENT ) +12.4% , Overstock.com ( OSTK ) +11.3% , Genesco ( GCO ) +10.0% , Stitch Fix ( SFIX ) +7.8% , Chico's FAS ( CHS ) +7.4% , Caleres ( CAL ) +6.9% , RealReal ( REAL ) +6.8% , and Nordstrom ( JWN ) +6.0% .

Beat-up stocks like Five Dollar ( FIVE ) +2.5% , Target ( TGT ) +1.4% and Dollar Tree ( DLTR ) +0.8% saw more modest bumps, while Walmart ( WMT ) dipped slightly after a long stretch of relative outperformance.

More on retail stocks:

• Barclays picks recession scenario winners and losers from the retail sector
• XRT: Student Loan Repayments Set To Add To Consumer Burdens
• Seeking Alpha Quant Ratings across all consumer discretionary stocks

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