SOURCE: Paragon Financial Limited

Paragon Financial Limited

May 17, 2012 08:20 ET

Retail Stocks Cool Down as Consumer Spending Softens in April

The Paragon Report Provides Stock Research on the Gap and American Eagle Outfitters

NEW YORK, NY--(Marketwire - May 17, 2012) - After an impressive first quarter retail stocks have cooled off recently as recent data shows consumer spending softened last month. SPDR S&P Retail ETF (XRT) -- which seeks to replicate an index that invests in industries such as apparel retail, automotive retail, food retail, department stores, Internet retail, general merchandise stores, drug retail, and hypermarkets and super centers -- has gained less than a quarter of a percent over the last month. The Paragon Report examines investing opportunities in the Retail Industry and provides equity research on The Gap Inc. (NYSE: GPS) and American Eagle Outfitters (NYSE: AEO).

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According to number released by the Commerce Department Tuesday retail sales for the month of April increased by just 0.1 percent, the smallest gain since December. "Though consumer spending softened in April, retailers overall have seen solid sales growth so far this spring, a positive indicator we're heading in the right direction," said NRF President and CEO Matthew Shay. "With 22 straight months of sustained retail sales growth, retailers are optimistic as they gear up for the all-important summer shopping season."

Paragon Report releases regular market updates on the Retail Industry so investors can stay ahead of the crowd and make the best investment decisions to maximize their returns. Take a few minutes to register with us free at and get exclusive access to our numerous stock reports and industry newsletters.

Gap Inc. is a leading global specialty retailer offering clothing, accessories, and personal care products for men, women, children, and babies under the Gap, Banana Republic, Old Navy, Piperlime, and Athleta brands. The company recently reported that net sales for the first quarter of fiscal 2012 increased 6 percent compared with last year, and April 2012 net sales were flat compared with last year.

American Eagle Outfitters operates more than 1,000 stores in North America, and ships to 77 countries worldwide through its websites. American Eagle Outfitters and Aerie merchandise also is available at approximately 25 international franchise stores in 10 countries. The company recently announced that based on stronger than expected sales and less promotional activity, the company is raising its first quarter earnings expectation to $0.18 to $0.20 per diluted share, compared to earnings of $0.14 per diluted share last year.

Paragon Report provides Market Research focused on equities that offer growth opportunities, value, and strong potential return. We strive to provide the most up-to-date market activities. We constantly create research reports and newsletters for our members. The Paragon Report has not been compensated by any of the above-mentioned companies. We act as independent research portal and are aware that all investment entails inherent risks. Please view the full disclaimer at: