Which Stores Are Winning the Holidays?

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Dec. 20 (Bloomberg) -- Cross Ledge Investments President Lori Wachs discusses holiday retail sales on Bloomberg Television's "Market Makers." (Source: Bloomberg)

Like many of us, the easiest way to beat the rush would be to buy a few shares of retail stock.

The question is, which firms are a head?

Lori is the president of cross legend investment.

Here we are on the holiday season.

Who is the big winner?

If you look at this season, it has been very promotional.

Lack friday, -- black friday was pushed up.

Those companies that do not have to promote the store across the board or did not have to promote much.

There are very few, but there were a few brands who pull that off.

Companies like anthropologie, a division of urban outfitters.

They have been running inan un-promotional season.

Lululemon, their same store sales look flat but they do not include e commerce.

Their u.s. same store sales are very strong.

Michael kors continues to be on fire.

It seems like i am getting hooked up as a consumer.

Are the retailers killing themselves over promoting?

If you patriot till -- if you pay retail, you feel like a chump because of all the deals.

I kind of had to look at who are the few that did not have to promote.

Most of the others, it is a sea of 50% off.

That is a tough environment.

It is one thing when they can be scientific and say sweaters are not moving, we will take 40% off of that and keep other categories and tags.

They have not been able to do that.

Lori, which retailers did presume this conventional -- did pursue this conventional wisdom that you have to discount and open early.

And are not reaping special benefits.

The teen retailers have had a rough go this year.

If you look at some of the big guys, abercrombie & fitch and aeropostale, same-store sales were down.

They had too much inventory.

They tried to price things up.

Taking 30% off.

When they are starting the season at 50% off, you can be sure it is eating their profitability.

They already had to warn and take estimates down.

Not an easy season.

Where are teens spending money?

Technology, or are there so many discounts?

Technology is a piece of it.

Also, there has been a big shift over the past few years.

It has happened over time to the fast fashion retailer.

Forever 21. you walk in and for $20 you are getting something that is trendy, not the highest quality but it looks good.

There has been a big picture shift away from the classic, preppy americana that other teen retailers build business on.

Is the holiday shopping season a last cause for abercrombie and aeropostale?

Can something magical happened over the next four days?

Well, broadly speaking, this week and next week are the two biggest volume weeks of the season.

There is a lot of business to be done.

The names you just mentioned -- they really have to pull a rabbit out of a hat.

They are looking towards let me mark this down so i can start the new year with a fresh level of inventory.

Not a lot of hope they pull it off the season.

Lori, about forever 21 and stores like it, h&m, how competitive can abercrombie and aeropostale be against that?

If what you described is a trend, it sounds like they're going to have to be much more to supplant -- much more disciplined with inventory next year.

They have no idea how much people want to buy.

This trend has been going on for sometime.

Last year, we were in a really big colored-denim cycle, teen retailers participated.

They thought they were back on track, but that trend fell off quickly.

Aeropostale has done a shift away from lo-vo driven.

They are trying to get fashion show them.

-- fashion driven.

Abercrombie has always been vertically driven, they are going to try to drive more of the fast fashion.

My sense is they think it is here to stay.

What does it look like for luxury retailers.

The 1% does not even care that price.

They do not seem to be subje ct.

We have seen a bifurcated consumer for some time.

Top 1% has not been affected by the 2% increase in the payroll tax hike.

Spending continues strong.

This text has been automatically generated. It may not be 100% accurate.


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