Moody’s Upgrades U.S. Retail Outlook, For Now

Moody’s has upgraded their outlook on retail to positive for the next 12 to 18 months, due to continued optimism for the sector. They expect operating profits to increase 200% for department stores and 350% for the off-price segment. This comes after a better-than-expected 2021, where operating margins remained flat compared to Moody’s projected 15% decline. However, this rating outlook could be subject to change. According to Moody’s vice president Mickey Chadha, “As conditions continue to normalize, spending will shift to nonretail categories. Therefore, there remains a likelihood that our outlook could revert to stable as we head into 2022.”

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