Analyst Sees Continued Growth for Healthy Retailers in 2020, but Tariffs 'Big Uncertainty'
Tariffs remain a “big uncertainty” for the retail channel heading into 2020 “with Lists 4A and 4B possibly being pulled back/delayed,” wrote Goldman Sachs' Kate McShane to investors Monday. She flagged the impact tariffs have already had on retailers’ comparative…
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sales and gross margins “and what companies need to lap in 2020.” On the retail hard-lines outlook for next year, McShane expects healthier retailers to continue to benefit from an ongoing wave of spending, with growth continuing from low unemployment and higher wages; store closures should free up dollars to flow to healthier retailers, she said. “The macro environment seems supportive of discretionary stocks with the read on disposable personal income continuing to be constructive in 2020, albeit slowing to 4.1% from 4.7% in 2019,” said the analyst.