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Department store and big-box retail stocks slide

  • Department store stocks are lower after Macy's misses estimates with its Q2 report and warns on consumer spending.
  • Decliners: Nordstrom (NYSE:JWN) -2.2%, Sears Holdings (NASDAQ:SHLD) -1.8%, Kohl's (NYSE:KSS) -2.7%, J.C. Penney (NYSE:JCP) -2.1%, Bon-Ton Stores (NASDAQ:BONT) -3.5%, Dillard's (NYSE:DDS) -2.2%.
  • The downward comp sales revision from Macy's and the flat reading on U.S. retail sales growth appears to be impacting big-box retailers Target (TGT -1%) and Wal-Mart (WMT -0.9%) as well.
Comments (2)
  • tampabay
    , contributor
    Comments (321) | Send Message
     
    Not the same "CLASS" of stores...comparing Walmart to those "Department stores" but I guess the figures are correct this minute
    13 Aug 2014, 11:15 AM Reply Like
  • BillBrown
    , contributor
    Comments (283) | Send Message
     
    I've "heard" that Macys is underperforming, significantly, in paid search/SEM.

     

    This is important, obviously, for the online channel, but also less obviously (for some of us, not everyone reading this though) for the brick and mortar store channel.

     

    This "rumor" is validated by many recent job postings seeking senior level external talent to generate online demand. Usually, people aren't walking away from roles with top-tier companies in any vertical, so the occurrence of senior level searches suggests weakness and a need for an infusion of external talent. This has been occurring for months, so today's report shouldn't therefore be a surprise, and because these things "don't turn around" on a dime -- and even the "best of the best" can't swim against the tide, meaning that while improvement in SEM and other demand generating activities may occur, it just might not be that noticeable given other factors that are outside the control of those resources -- I'd be strongly concerned about $M Q3 and Q4 numbers.
    13 Aug 2014, 12:32 PM Reply Like
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