Decreased consumer spending and slower online sales are hurting clothing retailers, including Macy’s, Gap and Fossil. But our portfolio pick, Express (EXPR), does not share all the problems of its peers.  

Yesterday, Macy’s reported a 6.7% decline in Q1 2016 earnings compared to the same quarter last year. Between Gap’s downgrade by Fitch to double-b-plus and Fossil’s 29% share price drop yesterday, investors now feeling bearish on the = retailers.

But while Macy’s and Gap are scrambling to downsize the number of stores and the number of its clothing lines, Express started this last fall.

Express is down about 6% since we recommended it early last month, affected by industry problems, but its business is performing well on its own merits.

Integrated Device Technology

Since it reported strong earnings last week (beating analyst estimates)  Integrated (IDTI) received an upgrade from Bank of America’s Merrill Lynch to Buy with a price target of $26. It currently trades $21 per share, and our target price is $45.  As we’ve said, automotive chips from the ZMDI acquisition should add new revenue that could push 2016 earnings beyond analyst expectations.

Lattice Semiconductor

On Tuesday Lattice (LSCC) reported first-quarter 2016 revenue of $96.5 million was up 9% over first-quarter 2015 revenue of $88.6 million. The company’s Q1 earnings per share were down one cent to 17 cents compared to a year prior, in line with estimates.

But CEO Darin Billerbeck said that Q1 2016 will be the low point in revenue for the year, and a more confident tone from management and the stable quarterly report pushed Lattice Semiconductor up 9% Tuesday..