Star investors bought the dip in retail stocks, defying concerns about a consumer slowdown

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The buying came at a time when concerns about the American consumer and the outlook for the economy darkened.

Recent stock purchases of U.S. retailers — from Warren Buffett's Berkshire Hathaway to Bill Ackman's Pershing Square Holdings — mark a contrarian bet on the consumer amid concerns of a wider spending slowdown. Berkshire, the Omaha-based conglomerate, unveiled a $266 million investment in Ulta Beauty in a regulatory filing last week, while billionaire investor Bill Ackman's hedge fund disclosed a stake worth roughly $229 million in Nike.

mountain Ulta, Nike The real test of the consumer could come this week when some of the largest retailers in the nation report quarterly earnings, including Lowe's , Target , Macy's and TJX . Last week, Walmart reported strong earnings and sales for the previous quarter and raised its outlook, though it sounded some cautionary notes about the second half of 2024.

 

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