1201 ET - Consumer spending has remained strong, particularly in apparel and footwear, meaning retailers can't use the macroeconomic environment as an excuse, say JPMorgan analysts, who downgrade Abercrombie & Fitch and Bath & Body Works to neutral. "We see the current macro landscape conducive to execution of fundamentals with selective consumer behavior based on product improvement and value perception separating winners versus losers across retail," the analysts say. Abercrombie & Fitch saw a deterioration in demand in September, with promotional activity earlier in the year leading to a hangover effect that constrained conversion rates and pricing, while Bath & Body Works is seeing softer-than-expected sales across recent product launches, the analysts say. (nicholas.miller@wsj.com)

(END) Dow Jones Newswires

October 06, 2025 12:01 ET (16:01 GMT)

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