Shifting consumer habits are reshaping the retail landscape, as spending patterns reveal unexpected winners and laggards in the marketplace. JPMorgan analyst Matthew R. Boss downgraded Abercrombie & Fitch Company (NYSE:ANF) and Bath & Body Works, Inc. (NYSE:BBWI) following its recent fieldwork and intra-quarter management access.

Consumer Spending Still Moderate: The analyst stated that, based on Chase Credit Card data, U.S. consumer spending rose 3.6% year over year in September, slowing from 4.7% in August and 4.4% in July, but still above the 3.4% six-month average from January through June 2025.

On a two-year stacked basis, spending grew 6.9% in September, compared with 7.4% in August and 6.3% in July.

Boss further adds that Apparel and footwear spending increased 4.6% year over year in September, down from 6.7% in August, yet slightly above the 4.3% first-half average.

On a two-year basis, growth held at 8%, about 240 basis points above the January–June trend.

Overall, consumer spending remains resilient, with July and August benefiting from easier year-over-year comparisons and back-to-school ...