NEW YORK (TheStreet) -- Retailers should be seeing a pop from the election of Republican candidate Donald Trump to the U.S. presidency, as we head into a big earnings week for the sector, J. Rogers Kniffen WWE CEO Jan Kniffen said on CNBC's "Squawk Box" on Monday morning.
"The market is acting like the economy is going to be better under Donald Trump. That would be good for retailers. Do you buy that assumption?" CNBC's Michelle Caruso-Cabrera asked.
"I buy that assumption," he answered.
In the past, retailers were mainly worried about whether the Trans-Pacific Partnership (TPP) would pass or not, he noted. "But it wasn't going through anyway, and we'd all gotten used to that."
While some investors are worried about Trump creating a more protectionist environment with tariffs, those tariffs will probably not be seen in the retail sector, Kniffen claimed. "We may see that in other forms of manufacturing, but nobody thinks apparel manufacturing is coming back to the states."
Trump is also expected to lower tax rates, meaning high-end retail could do better as consumers feel more comfortable spending money, he pointed out. "I think most retailers right now, despite the fact that a lot of retailers I know didn't vote for Donald Trump, they should have because their business is going to be better. And I think they all see that."
In addition to the political benefits, retailers are not over-inventoried this year, they have more jobs and a little higher wages, plus they should benefit from weather that "can't be worse than last year," Kniffen said. "All of that has been happening over time and so that's going to culminate in the fourth quarter and we're going to see a pretty decent fourth quarter into 2017."