SPDR S&P Retail ETF Price & Performance (XRT)

The retail industry is grappling with significant challenges as weak consumer spending persists. February retail sales saw only a modest 0.2% increase, falling short of the anticipated 0.6% rebound. This follows a downward revision for January, which saw a 1.2% decline. ETFs like SPDR S&P Retail ETF (XRT) have dropped sharply, reflecting the sector's struggles.123

Kohl’s reported a 9.4% revenue drop and issued weak 2025 guidance, leading its stock to plummet by 24%. Meanwhile, Dick’s Sporting Goods showed strong Q4 results but also faced a selloff, with shares down 5.7%. Both companies highlight the retail sector's volatility amid cautious consumer spending and conservative forecasts.14

Retail-focused ETFs like XRT and RTH are showing uneven performance as consumer spending patterns shift. February retail sales grew just 0.2%, highlighting sluggish demand. However, e-commerce continues to thrive, with online sales up 2.4%. ETFs with strong e-commerce exposure may offer resilience despite broader sector challenges.23