Goldman: 4 Retail Stocks Being Unfairly Punished For Macy's Earnings

Macy’s, Inc. (NYSE: M) shares fell by more than 15 percent on Wednesday when the market didn’t like what it saw from the retailer’s Q1 numbers and forward guidance. A number of other retail stocks plummeted as well on fears of a softening sales environment.

While a bit of a selloff may have been warranted, Goldman Sachs believes that a handful of stocks were overly punished for Macy’s shortcomings. Analyst Lindsay Mann believes investors should be taking advantage of the Macy’s overreaction and scooping up shares of several top retailers while they are on sale.

According to Mann, Macy’s earnings indicate “significant declines in transactions, which appear largely driven by mall traffic,” and Goldman remains “concerned about ongoing structural pressures to specialty apparel stocks.”

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Specifically, the firm is bearish on Sell-rated American Eagle Outfitters (NYSE: AEO), Abercrombie & Fitch Co. (NYSE: ANF) and Express, Inc. (NYSE: EXPR).

However, Mann sees the post-Macy’s selloffs in Signet Jewelers Ltd. (NYSE: SIG), PVH Corp (NYSE: PVH), Columbia Sportswear Company (NASDAQ: COLM) and VF Corp (NYSE: VFC) as an overreaction.

Despite the general retail weakness, Goldman sees upside to names with different channel and category exposure.

Goldman maintains Buy ratings on Signet, PVH and VF Corp.

Disclosure: The author holds no position in the stocks mentioned.