UBS Monthly Retail Sales Wrap-Up: July/August a Better Barometer for 2H

UBS Monthly Retail Sales Wrap-Up: July/August a Better Barometer for 2H

UBS splits the results into Haves, including Limited Brands (NYSE: LTD), Abercrombie & Fitch (NYSE: ANF) & Aeropostale (NYSE: ARO) and Have-Nots, which were The Gap (NYSE: GPS) and American Eagle Outfitters (NYSE: AEO).

UBS analyst said, "While it’s only a clearance month (June), it at least told us that consumers are still willing to spend when the product is right/value proposition is there. We expect July will be a better barometer for 2H as full-price fall product is set, and could still weigh on 2Q EPS."

Reiterates 'Buy' ratings on Limited Brands, AnnTaylor (NYSE: ANN), Talbots, Inc. (NYSE: TLB), and Urban Outfitters (Nasdaq: URBN). Raising estimates: ANF, LTD; Lowering estimates: AEO, GPS; Lowering PT: GPS

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