NEW YORK (TheStreet) --With Black Friday underway, Oppenheimer managing director Anna Andreeva and FBR Capital retail analyst Susan Anderson discussed the retail sector during CNBC's "Squawk on the Street" today.
"We are optimistic," Andreeva said. "The good news is that inventories across the sector, whether in specialty or department stores, look very tightly managed."
Furthermore, she believes that retailers will have the opportunity to recapture margins this quarter, after past fourth quarter struggles.
"I am not quite as optimistic," Anderson said. "Even though inventory is lean, retailers are feeling the need to promote earlier in order to grab that share, which I think could eat away at the margins people are expecting."
However, one possible aid to the retailers is the length of this year's holiday season.
"It is longer than last year and one of the longest stretches that we have seen in quite some time. That should help for sales overall," Anderson noted.
That said, she remains concerned that the "level and depth" of promotions this year could eat away at margins.
Regarding Anderson's top stock pick in the space right now, she is sticking with the children's retailers.
"Carter's (CRI) and Children's Place (PLCE); their space has rationalized much better than other spaces. We are seeing flat promotions, and they are not as susceptible to fast fashion," she explained.