Retail-focused ETFS are increasing today on reports that shops are enjoying a nice splurge post-Thanksgiving from buyers. SPDR s & P Retail ETF (XRT) was most recently moving from 3.1% on Monday as the most prestigious names moved forward: Kohl's (KSS) was 1.7%; Aeropostale (ARO) was advancing from 1.2%; and Macy's (M) has increased by 5.5%.
After preliminary results from Black Friday, analysts at Citigroup are estimated today that its benchmark stocks related to Mall should finish top of about 1.3 November%. That comes after a much rougher time earlier in the month. As noted before, retail stocks have been mediocre performers as stock markets Rally started at the beginning of October. At the time, some analysts were predicting an upturn for the industry heading for the holiday shopping season.
But the latest results showed while traffic was generally up, the Grinch tended to take a bite of profits of some large retailers, Citigroup's research note stressed. The Bank's analysts wrote:
"Black Friday, drew out the crowd still 10 out of 16 retailers that we were more mall promotional than last year. That is against the higher costs of entry and an uptick in payroll to open first, so we think that the profits are probably lower for many ".
Citi found that Abercrombie & Fitch (ANF) Hollister unit was "a clear winner" in teens, although strong traffic at American Eagle Outfitters (AEO) "suggests the trademark taken out well, too."
Meanwhile, limited brands (LTD) has done well on Black Friday, "but shops were less frenetic" than others, the report noted. It stores its Victoria's secret and Bath & Body Works were particularly aggressive in promotions, noted analysts.
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