Macy’s, Gap and L Brands have all been downgraded by Credit Suisse which warned of a “tougher” road ahead for the U.S. retail sector.
The trio, known as softlines retailers because they sell ‘soft goods’ such as clothing, shoes and home furnishings, were all downgraded to underperform from neutral as the Swiss bank’s analysts said the sector would face mounting pressures into the holiday season.
The back story. Department store and retail stocks have struggled so far in 2019, as the growth of e-commerce companies, such as Amazon, and global trade tensions have hit sales.
Macy’s stock has fallen 49% year-to-date, Gap has tumbled 36% and L Brands has slid 35%.
Reposted from @11AaE1Q1-1qvj for being on-point