XRT Stock Recent News

"Shark Tank" investor Daymond John said Thursday that he believes Christmas and the holiday season will be OK for retailers, though businesses should start planning alternative sourcing strategies now.

Matt Shay, National Retail Federation CEO, joins 'Money Movers' to discuss the the impact of tariffs on the retail sector and what it will mean for sector outlook.

Lorraine Hutchinson, Bank of America, joins 'Fast Money' to talk the impact of the Vietnam tariff announcement on retailers.

Last week's economic data painted a picture of broad cooling across several sectors, with consumers pulling back significantly on spending. Retail sales saw their largest decline in over two years in May, as consumers scaled back purchases following earlier front-loading.

Retail sales dropped 0.9% in May, but select sectors like online, apparel, and furniture retail defied the downturn with gains. ETFs like ONLN, RTH, XRT and IEDI should benefit.

The Census Bureau's Advance Retail Sales Report for May showed consumer spending pulled back significantly last month, with headline sales sinking 0.9%. This marks the second straight monthly decline and the largest in over two years.

Despite the recent uncertainty relating to tariffs, most retailers have performed better than expected. The earnings season was marked by an initial surprise from Walmart when the retail giant noted that prices would increase as a result of tariffs. Other retailers, however, such as Home Depot offered a more positive outlook.

I reiterate my buy rating on XRT, supported by resilient consumer spending and a bullish seasonal period for retail stocks. XRT's valuation remains attractive at a 15.3x P/E, with improved momentum and strong June-July historical performance. The ETF offers diversified exposure to retail, with a focus on small and mid-cap Consumer Discretionary stocks and a higher-than-average dividend yield.

First-quarter earnings season has mostly wrapped up for retailers—but investors hoping for clarity about the impact of tariffs or the general health of the consumer were likely left holding the bag.

Stacey Widlitz, SW Retail Advisors president, says many consumers are still willing to pay higher prices, despite tariffs. She says many brands are getting away with raising prices if their products are in demand.