Retail sector swings lower on concerns consumers are tightening

The unexpected 0.6% drop in retail sales during November from the month prior sent a large number of stocks in the retail sector lower on Thursday. The soft month during the holiday season has increased worries with investors that 2023 will bring in a recession and downturn in consumer spending.

"With weak global growth and the strong dollar compounding the domestic drag from higher interest rates, we suspect this weakness is a sign of things to come," noted Capital Economics' Andrew Hunter on the retail sales print.

Some of the notable decliners on Thursday included Wayfair (W) -8.60%, ThredUp (TDUP) -6.75%, Farfetch (FTCH) -6.22%, Fossil Group (FOSL) -5.49%, Stitch Fix (SFIX) -5.30%, Revolve Group (RVLV) -5.23%, Abercrombie & Fitch (ANF) -5.11%, Gap (GPS) -4.82%, Torrid Holdings (CURV) -4.55%, Under Armour (UAA) -4.50%, Canada Goose (GOOS) -4.30%, Dick's Sporting Goods (DKS) -4.25%, Boot Barn (BOOT) -3.95%, and Nordstrom (JWN) -3.27%.

Retail giants Costco (COST) -3.08%, Target (TGT) -3.85%, and Walmart (WMT) -1.38% all fell as well.

The SPDR S&P Retail ETF (NYSEARCA:XRT) slid 2.20% in the morning session on Thursday.

Read more the winners and losers from November retail sales report.