Retailers reported slower sales in May, but don’t feel too bad for the sector. Sales at various chain stores were still up slightly from a year ago and analysts are predicting good things for the consumer discretionary sector this year.

One analyst at Goldman Sachs recommends a “full speed ahead” on consumer discretionary, reports Brendan Conway for The Wall Street Journal.

The analyst feels especially bullish on Macy’s (NYSE: M) and other domestic department stores, citing a broad sell-off as a result of the European debt crisis. All in all, retail may have been unfairly singled out as investors unloaded, the analyst says. [Retail ETFs Helped by Improving Figures.]

Surprise, surprise: One sector that is expected to outperform in the long run this year is the luxury retail class. An analyst claims that the sector would outperform the MSCI World index this year thanks to strong demand from Chinese buyers, recovery in the United States and the weaker euro, reports Astrid Wendlandt for Reuters.

Watches and spirits sales will also get a boost, analysts say. And after a lagging 2009, one of the worst years on record, it could be a welcome turn of events. [ETF strategies for the retail rebound.]

For more stories about consumer discretionary, visit our consumer discretionary category.

  • Vanguard Consumer Discretionary ETF (NYSEArca: VCR)

  • Claymore/Robb Report Global Luxury (NYSEArca: ROB)

Tisha Guerrero contributed to this article.

The opinions and forecasts expressed herein are solely those of Tom Lydon, and may not actually come to pass. Mr. Lydon serves as an independent trustee of certain mutual funds and ETFs that are managed by Guggenheim Investments; however, any opinions or forecasts expressed herein are solely those of Mr. Lydon and not those of Guggenheim Funds, Guggenheim Investments, Guggenheim Specialized Products, LLC or any of their affiliates. Information on this site should not be used or construed as an offer to sell, a solicitation of an offer to buy, or a recommendation for any product.