The sluggishness in retail sales signals it’s time to assess retail stocks to sell. U.S.
retail figures came in flat last month compared to March, significantly behind analyst estimates. Moreover, retail sales, excluding automobiles and fuel, dipped 0.1%, while a notable 1.
2% decline in online sales pointed to a pullback in consumer activity. This worrying trend points to deeper economic headwinds, impacting household budgets by eating into disposable income. Hence, these worrying indicators and ongoing financial uncertainties paint a cautionary picture for retail stocks.
With that in mind, here are three retail stocks to sell, offering little to no upside potential. American Eagle Outfitters (AEO) American Eagle Outfitters (NYSE: AEO ) is one of the top apparel brands, evolving into a trend-focused retailer. Its stellar operating performances, where it beat top-line estimates in seven out of the past eight quarters confirm this.
In its most recent quarter, it posted a healthy 5.6% increase in sales while posting a staggering 75% jump in adjusted operating income. These results reflect the company’s refined business strategy, employing a more streamlined merchandise strategy and a focus on women’s athleisure.
On the back of its strong results, we’ve seen a healthy run-up in AEO stock, with it gaining more than 100% in the past year alone. That’s quite a run, and given the current retail scenario it its tough to see it replicate last year’s price action. Moreover, .