NEW YORK (TheStreet) -- Nordstrom (JWN) and Five Below (FIVE) are two retailers that are doing well and will continue to do so, said Dan Hess, chief analyst at Merchant Forecast. Hess is bearish, however, on Abercrombie & Fitch (ANF) Finish Line (FINL).

Nordstrom has not only done a good job on its apparel offerings this year, but the retailer has also added sales events to its calendar without hurting its margins, Hess said.

"For the first time ever, instead of three sales a year, Nordstrom's will have nine sales a year, and those sales are going to drive incremental traffic," said Hess, who's firm provides research on retailers to the mutual fund and hedge fund industries. "We see it as a top line story without hurting margins."

Shares of the upscale department store have dropped more than 7% in 2015. Earlier this week, Nordstrom sold its U.S. $2.2 billion consumer credit card portfolio to Toronto-Dominion Bank (TD). Under the deal, Nordstrom will receive a large chunk of net revenue generated by the credit card accounts.

At the other end of the retail spectrum, Hess is bullish on discount retailer Five Below, viewing it as an expansion opportunity. As of March 17, Five Below operated 370 stores in 22 states. Hess sees the company's store count increasing to 2,000 with outlets eventually stretching from coast to coast.

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