Nordstrom

Some merchants adjusted quickly to the "new normal" of penny-pinching shoppers, but others are still struggling with shrinking consumer budgets or headwinds they were fighting before the bottom fell out. Here's a look at the two groups that are going in two different directions.

Abercrombie & Fitch's idealized (and expensive) version of perpetual youth has worn thin among cash-strapped consumers, threatening the company's sales, stock price, and prospects.

The earnings spotlight falls on retailers this week, and expectations are high for many of them, including Abercrombie & Fitch and Dollar Tree, which has benefited from the recession and slow recovery.

Department stores may be back from the dead, but with tight-fisted shoppers and rising product costs, retailers are set for brutal combat this fall to take sales from each other. The good news for shoppers: lots of big promotions in store.

June sales overall were just slightly below estimates. But while variations among retailers were fairly broad, few are offering better guidance for the second quarter. That leaves investors with little to get excited about.

The East Coast heat wave is warming up more than sidewalks: It's also helping retailers shake up sales. Merchants are expected to report healthy numbers when they post their June sales figures Thursday, and several could update their second-quarter guidance as a result.

The tug-of-war between careful consumers and anxious merchants continues. Retailers reported a tepid 2.5% rise in May sales. The lackluster numbers show that shoppers still aren't in a free-spending mood.