NEW YORK (TheStreet) -- For retailers and consumers, the U.K.'s vote to leave the European Union last week is just "an enormous source of uncertainty," Len Schlesinger, Harvard professor and former COO of L Brands (LB) - Get Report , said on CNBC's "Power Lunch" Tuesday.

In the wake of Brexit, which pummeled stock markets across the globe last week, consumers are either shutting down and making no actions or they are doing the complete opposite by making a lot of actions in anticipation that this is "dooms day" for the world economy. Both moves are overreactions at this point, Schlesinger warned.

"What we do know is:" First, most of the benefits and issues American consumers face will be in outgrowth of currency fluctuations, giving way to more discounters in the U.S., Schlesinger stated.

Second, the American consumer who opts to travel to Europe will "be treated with a whole portfolio of bargains." Third, the summer prime rate will most likely not rise and consumer credit will be stable, he continued.

"Beyond that, I think everything is really a guess and we need some time for it to unfold," Schlesinger noted.

Kimco Realty CEO Conor Flynn agreed with Schlesinger that retail discounters will continue to do well, saying they are his "sweet spot."

"The U.S. consumer is resilient. We see the confidence rebounding and we think that that's going to continue," Flynn predicted.

American retailers with stores in Europe, such as off-price giant TJX Companies (TJX), will not be largely affected by Brexit. However, companies operating out of Europe, such as H&M, could have some risk attached to them, according to Schlesinger.

Shares of L Brands closed higher by 0.35% to $65.49 on Tuesday.

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