Cowen Group's Retail Analyst Opines On Kohl's And L Brands

Most of the retailers came out with better than expected numbers this result season and one important factor that fuelled that, according to Cowen Group retail analyst, Oliver Chen, was lower fuel prices. Cowen was on CNBC Thursday to discuss the outlook for the retail sector overall and share his views on Kohl's Corporation

and L Brands Inc

"What we are seeing is traffic is back in the stores, gas prices have positively impacted consumers' pocket and that's coming back," Chen said. "So, Wal-Mart, Target they have had the best traffic in two years and that's a really great thing as the consumer kind of retraces and comes back to the stores." Kohl's "They had a great call this morning," Chen said. "We were just on the phone with Kohl's. Their loyalty program, Beauty as well as just their focus on national brands and athleticism it's really working for that company, we do have a Market Perform in the stock, we think the value is fair at this level. "However, we really acknowledge a lot of their strategy and what they are trying to do with the business in terms of what they call the ‘Greatness Agenda' are taking hold." L Brands "Its been an exciting story because intimate apparel is a great category to be in, they also have Bath & Body Works. So, the market share they have, the global story. Also a big theme for us is giving money back to shareholders – special dividends, free cash flow, repurchases. It's just a legendary team executing with very clean inventories."