The most recent University of Michigan Consumer Sentiment Index reading showed a climb in consumer sentiment despite dealing with sticky inflation (prices have not adjusted as quickly to supply and demand changes), not reaching the Federal Reserve's target goal of 2% just yet. Lilly Pulitzer CEO Michelle Kelly — the high-end women's apparel brand owned by Oxford Industries (OXM) — joins Yahoo Finance to discuss the state of consumer sentiment and how the retail sector is navigating economic headwinds. Kelly gives insight into how the company approaches a changing consumer and attempts to retain those consumers: "We are really focused on innovation, and keeping things fresh. I think for the past almost four years now, it's been really hard to anticipate which product categories were going to serve the customer's needs best in her life because her lifestyle has been changing so much, and ups and downs..." She continues on to affirm that innovation is the way to best adapt to a consumer as their needs change. For more expert insight and the latest market action, click here to watch this full episode of Yahoo Finance Live. Editor's note: This article was written by Nicholas Jacobino

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