Outlook for apparel retailers does not look good this year, analyst says

Consumer confidence has hit its lowest level since July 2022, as inflation remains high and spending slows down. Morningstar Equity Analyst David Swartz and Jefferies Senior Vice President of Equity Research Corey Tarlowe join Market Domination to break down what this news means for retailers.
Tarlowe explains that consumers are willing to spend, but are increasingly cutting down in certain areas. This bodes well for value-conscious brands like Walmart (WMT) and Target (TGT), as consumers will likely choose generic grocery products over more expensive private-label brands.
Swartz tells Yahoo Finance's Akiko Fujita and Josh Lipton that when it comes to apparel, the issues are often company-specific, rather than reflective of the economy. He points to Ralph Lauren (RL) as an example of a specialized brand that understands its consumers, which is ultimately reflected in its high stock price. On the other hand, department store Nordstrom (JWN) has been struggling since the pandemic and its inability to recover may lead to the company potentially being taken private.

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