Weakness In Retail Could Provide Buying Opportunity In Specialty

FBR Capital's Susan Anderson issued a first-quarter earnings preview for the Specialty Retail & Apparel group Monday morning. The analyst highlighted lower expectations, but pointed to opportunity in a handful of companies.

"Our specialty retail coverage is off –13% over the past month (spec retail ex-athletic/footwear is –14%), compared to the S&P 500 at –2%, which we believe presents a buying opportunity for players with company-driven catalysts where results are less reliant on the top line," Anderson wrote.

The FBR analyst was more favorable on Children's Place Inc PLCE, Chico's FAS, Inc. CHS and Ascena Retail Group Inc ASNA and suggested Lululemon Athletica inc. LULU might have the best opportunity for downside.

Heads up for the above earnings reports:

• Children's Place on May 17
• Chico's on May 26
• Ascena on May 31
• Lululemon on June 7