Raw Data Report: April Department Stores

Each day, Wall Street is flooded with stock research offering a multitude of conflicting investment opinions. As such, TickerMine is not in the business of providing more opinions. We believe that accurate raw data points can be used to gain insight in to the stock selection and valuation process.

Target Stores (TGT) Sales are Up, Survey Says, and Mossimo Women's Clothing Sells Best

Target Corporation is seeing good and steady sales overall as a softer economy directs clothes shoppers towards cheaper retailers. Its first quarter earnings will not be released until May 20th but in the meantime, Tickermine surveyed 35 stores nationwide about its business overall, whether any excess inventory existed, will the weak economy and housing market impact sales at their store and which was the top selling women's clothing line? An overwhelming majority of 20 respondents or 57% felt that business was up from a year ago. Eight or 23% felt that business was average, 6 or 17% felt it was very strong and only 1 or 3% felt it was lagging from this time last year. Fifteen respondents or 43% stated having no excess inventory but 25 or 57% said they had some (specifically winter clothing and Liz Lange maternity clothing.) Mossimo, the trendy youth line, was the most popular women's clothing line (the choice for 11 respondents or 31%), followed by Isaac Mizrahi (7 or 20%), Merona (5 or 14%), Cherokee and Xhilaration (3 or 9%). Levi's was cited twice or by 6% of those polled and both Converse and Go International were each mentioned once or by 3%. Most of our respondents (27 or 77%) were not fazed by the weak economy or housing market and saw these factors as having no future impact on store sales. Eight or 23% of those interviewed felt that these factors could influence business.

Business Strong Compared to Last Year, Say 51% of Kohl's Department Stores (KSS)

Business at Kohl's department stores is stronger than this time last year, according to 51% of the stores polled in TickerMine's latest survey. Eleven percent said business is very strong, while 31% of stores said business is "average". Just over half (54%) of stores surveyed said they do not expect to put excess inventory on sale soon. Asked if the weak housing market is affecting sales, 49% replied that it was, while 51% thought it wasn't. Vera Wang is the top selling brand of women's clothing for 29% of Kohl's stores surveyed. APT 9 and ELLE are also strong sellers, and are each the top brand for eleven percent of stores.

Office Depot (ODP) Reports Steady Sales

78% of Office Depot locations characterized business as the same this year as last year, while 15% said business is up. All respondents, however, have excess inventory of some items, with the top items being printers (21% of mentions), office furniture (18%), computers (12%), copiers (12%) and GPS systems (9%). 52% of the locations surveyed stated their top-selling item is computer accessories, followed by office furniture (12%), printers (12%) and cell phones (9%).

Women's & Children's Apparel Still Top Sellers at JCPenney (JCP)

Tickermine's most recent survey of JCPenney stores across the country shows that women's apparel remains the top seller at 71% of the 35 stores consulted. Twelve percent (4 respondents) said that children's apparel was their top seller. Another 9% of respondents said that household items were the most popular items (6% cited household furnishings and 3% cited bedding and linens). Overall, business seems to be strong with 49% of stores (or 17 stores) reporting that the stores was as busy as this time last year and 14% (or 5 stores) saying that they are busier than last year. Only 3% of stores said that traffic in the stores was down while 20% said that weather was not affecting sales. All of the 35 stores consulted reported that they currently had excess inventory. Respondents saw excess in women's apparel at 26% (or 9) of the stores, while children's apparel was cited by 17% (or 6) of stores, and teen apparel was cited by 12% (4) of the stores. Thirty-one percent of the stores named household items overall as the most overstocked, with 9% naming cookware, 9% naming small appliances, 9% naming bedding/linens, and 6% naming household furnishings.

Comments

[AmesTiedeman]

TGT will do better than most. Retail is dead in many areas.

[Swingline]

ODP reported a -9% N. American comp four days after this post. 93% of your guys reported flat or increased comp sales. Yikes.

[Swingline]

TGT posted below-consensus April sales. Shares are off 3.5% early. KSS looks like a nice call but shares are also off. Puzzling.