--- title: "1 Consumer Stock to Stash and 2 to Sell Retailers are adapting their business models as technology changes how people shop. Still, demand can be volatile as the industry is exposed to the ups and downs of consumer spending. This has stirred some uncertainty lately as retail stocks have lagged the market over the past six months, posting a return of 11.1% compared to 16.8% for the S&P 500." type: "News" locale: "en" url: "https://longbridge.com/en/news/227282967.md" description: "Retailers are adjusting to technological changes in shopping, but demand remains volatile, leading to uncertainty in the sector. Over the past six months, retail stocks returned 11.1%, lagging behind the S&P 500's 16.8%. Bath & Body Works (BBWI) shows weak growth and sales trends, while GameStop (GME) struggles with sales and profitability. In contrast, Warby Parker (WRBY) is expanding aggressively and boasts strong margins, making it a standout in the consumer sector." datetime: "2025-02-05T23:56:23.000Z" locales: - [zh-CN](https://longbridge.com/zh-CN/news/227282967.md) - [en](https://longbridge.com/en/news/227282967.md) - [zh-HK](https://longbridge.com/zh-HK/news/227282967.md) generator: "portal-rs" --- # 1 Consumer Stock to Stash and 2 to Sell Retailers are adapting their business models as technology changes how people shop. Still, demand can be volatile as the industry is exposed to the ups and downs of consumer spending. This has stirred some uncertainty lately as retail stocks have lagged the market over the past six months, posting a return of 11.1% compared to 16.8% for the S&P 500. 1 Consumer Stock to Stash and 2 to Sell Retailers are adapting their business models as technology changes how people shop. Still, demand can be volatile as the industry is exposed to the ups and downs of consumer spending. This has stirred some uncertainty lately as retail stocks have lagged the market over the past six months, posting a return of 11.1% compared to 16.8% for the S&P 500. The elite companies can churn out earnings growth under any circumstance, however, and our mission at StockStory is to help you find them. On that note, here is one consumer stock boasting a durable advantage and two best left ignored. Market Cap: $8.39 billion Spun off from L Brands in 2020, Bath & Body Works (NYSE:BBWI) is a personal care and home fragrance retailer where consumers can find specialty shower gels, scented candles for the home, and lotions. **Why Are We Wary of BBWI?** 1. Muted 7.5% annual revenue growth over the last five years shows its demand lagged behind its consumer retail peers 2. Weak same-store sales trends suggest there may be few opportunities in its core markets to open new locations 3. Demand will likely fall over the next 12 months as Wall Street expects flat revenue At $38.75 per share, Bath and Body Works trades at 11.5x forward price-to-earnings. Read our free research report to see why you should think twice about including BBWI in your portfolio, it’s free. Market Cap: $11.14 billion Drawing gaming fans with demo units set up with the latest releases, GameStop (NYSE:GME) sells new and used video games, consoles, and accessories, as well as pop culture merchandise. **Why Should You Sell GME?** 1. Lagging same-store sales suggest it might have to change its pricing and marketing strategy to stimulate demand 2. Subpar operating margin of -0.5% constrains its ability to invest in process improvements or effectively respond to new competitive threats 3. Negative returns on capital show management lost money while trying to expand the business GameStop is trading at $24.80 per share, or 2.1x forward price-to-sales. To fully understand why you should be careful with GME, check out our full research report (it’s free). Market Cap: $3.24 billion Founded in 2010, Warby Parker (NYSE:WRBY) designs, manufactures, and sells eyewear, including prescription glasses, sunglasses, and contact lenses, through its e-commerce platform and physical retail locations. **Why Does WRBY Stand Out?** 1. Aggressive expansion of new stores reflects an offensive push to quickly grow and sell in markets where it has few or no locations 2. Differentiated product catalog results in a best-in-class gross margin of 55.1% 3. Free cash flow margin jumped by 1.8 percentage points over the last year, giving the company more resources to pursue growth initiatives, repurchase shares, or pay dividends ### Related Stocks - [GME.US](https://longbridge.com/en/quote/GME.US.md) - [WRBY.US](https://longbridge.com/en/quote/WRBY.US.md) - [001279.CN](https://longbridge.com/en/quote/001279.CN.md) - [BBBY.US](https://longbridge.com/en/quote/BBBY.US.md) - [BBWI.US](https://longbridge.com/en/quote/BBWI.US.md) - [ING.US](https://longbridge.com/en/quote/ING.US.md) ## Related News & Research - [Kayne Anderson Energy Infrastructure Fund Completes $15 Million Preferred Share Private Placement](https://longbridge.com/en/news/303799292.md) - [GE Aerospace (NYSE:GE) Shares Down 3.7% - What's Next?](https://longbridge.com/en/news/303806967.md) - [Intel Plunges 30% in Worst Single-Day Performance Since 1974, and Historical Data Shows Just a 47.8% Win Rate for Buying Now](https://longbridge.com/en/news/303787663.md) - [Micron Technology, Inc. $MU Stock: Founders Financial Securities LLC Increases Stake](https://longbridge.com/en/news/303825403.md) - [Bloom Energy Corporation $BE Stock: Bokf Na Grows Holdings](https://longbridge.com/en/news/303824133.md) --- > **Disclaimer: This article is for reference only and does not constitute any investment advice.**