Fri, Oct. 14, 9:05 AM
- Retail sales increased 2.7% Y/Y and 0.6% M/M in September on broad gains across categories. The sales totals for August were also nudged slightly higher.
- Sales from nonstore retailers like Amazon (NASDAQ:AMZN) were up 10.6% Y/Y to once again account for a higher percentage of overall sales.
- The building material & garden equipment category showed a 1.4% M/M and 5.6% Y/Y gain which bodes well for Home Depot (NYSE:HD) and Lowe's (NYSE:LOW).
- Department stores (DDS, SHLD, JCP, M, JWN) lagged again as sales fell 0.7% M/M and 6.4% Y/Y, while furniture and home furnishing stores (HVT, WSM, KIRK, RH, BBBY) outpaced the broad averages in the sector.
- Restaurant sales (NASDAQ:BITE) showed a nice jump from August, although the breakdown between large publicly-traded chains and independent restaurants isn't broken down.
- The early take from retail analysts is that the overall tone from the report is ever-so-slightly positive for Wal-Mart (NYSE:WMT) and Target (NYSE:TGT).
- Previously: Retail sales track higher as expected (Oct. 14)
Wed, Aug. 24, 2:09 PM
Wed, Aug. 17, 4:45 PM
Wed, Aug. 17, 11:16 AM
- Soft earnings reports from Target, Lowe's, and Staples are tainting the retail sector today.
- A loose theme among the trio is that they are feeling the impact of general store traffic pressure on one front and under-performing Amazon on the e-commerce side (or Home Depot in the case of Lowe's).
- Notable movers include Office Depot (ODP -7%), Pier 1 Imports (PIR -2.7%), Haverty Furniture (HVT -1.1%), Sears Holdings (SHLD -6.5%), Stage Stores (SSI -3%), Nordstrom (JWN -2.4%), Tilly's (TLYS -0.8%), Zagg (ZAGG -2.7%), Party City (PRTY -1.3%), J.C. Penney (JCP -4.4%), Restoration Hardware (RH -4.1%) Bed Bath & Beyond (BBBY -1.9%), Williams-Sonoma (WSM -2.8%), and Kohl's (KSS -2.3%),
- Looking ahead, Wal-Mart (WMT -0.3%) reports earnings tomorrow before the bell. The same-store sales bar is relatively low after the company guided for a 1% gain for U.S. SSS and with the consensus estimate of analysts even lower at +0.9%. Perhaps more important than Q2 numbers will be the comments from Wal-Mart management on the Jet.com integration and the impact of higher base wages.
Mon, Aug. 15, 11:38 AM
- UBS lifts its price target on Buy-rated Nordstrom (JWN +2.6%) to $58 from $44 due to a number of factors lining up in the company's favor (peer store closings, easier SSS compares).
- Analyst Michal Binetti also lays out an "upside scenario" where Nordstrom runs to $71 within a year. He assigns a P/E of 18.7X off of FY17 EPS of $3.81 to derive the lofty PT.
- A key point from Binetti's note is that he sees room for Nordstrom Rack to improve merchandise margins. The higher mix of Rack sales at the company has increased the focus on the chain's impact on the bottom line.
- Binetti ranks #466 out of the 4,120 analysts listed on TipRanks.com.
Fri, Aug. 12, 9:22 AM
Thu, Aug. 11, 5:36 PM
Thu, Aug. 11, 4:34 PM
- Nordstrom (NYSE:JWN) rallies after topping estimates with its Q2 report.
- Total sales were down 0.2% during the quarter, while comparable store sales fell 1.2%,
- A high level of markdowns to clear inventory dragged gross profit rate down 101 bps to 34.3%. SG&A expenses were higher as a percentage of sales due to sales deleverage. Still, new cost controls limited the damage compared to expectations.
- Nordstrom ended the quarter with 28.826M square feet of space, up 4.6% Y/Y. The company's retail footprint could be a topic of discussion on the Nordstrom earnings call after Macy's announced earlier in the day a 15% cut in full-line stores.
- Previously: Nordstrom beats by $0.11, misses on revenue (Aug. 11)
- JWN +11.19% AH to $52.88 to follow on a 7.5% gain during the regular session.
Thu, Aug. 11, 4:06 PM
Thu, Aug. 11, 11:21 AM
- Macy's (M +15.5%) CEO Terry Lundgren delivered some very direct analysis on the overcapacity of physical department stores in the U.S. during his round of media appearances today following the company's store-closing announcement.
- "In the U.S. there's 7.3 square feet per human being of retail space. That's just ridiculous when you consider in U.K. it's 1.3 in France it's 1.7 in Japan its 1.7." noted Lundgren.
- "We have 5.5 times the number of retail physical locations in America per capita than any country in the world and so there has to be a rationalization," he added.
- Another obvious point from the exec was the bottom line benefit of removing the most unprofitable stores from the base.
- Earlier today, Bloomberg Gadlfy posted a very revealing bar graph showing how many stores would need to be closed for certain retailers to achieve their sales per square foot level of 2006 (h/t Shelly Banjo). Shareholders of Bon-Ton Stores (BONT +1.7%), Dillard's (DDS +6.1%), Nordstrom (JWN +6.6%), J.C. Penney (JCP +6.8%), and Sears Holdings (SHLD +2.9%) may want to sneak a peek.
Thu, Aug. 11, 9:15 AM
Thu, Aug. 11, 8:44 AM
- The department store sector is on watch for volatility after stronger-than-expected results are posted at both Kohl's and Macy's.
- Beyond the earnings numbers, the headline story may be the plan by Macy's to close 15% of its full-line stores.
- J.C. Penney (NYSE:JCP) is up 5.14% premarket, while Nordstrom (NYSE:JWN) is 5.13% higher. Dillard's (NYSE:DDS), Sears Holdings (NASDAQ:SHLD), Stage Stores (NYSE:SSI), Bon-Ton Stores (NASDAQ:BONT) are inactive in the premarket session.
- Previously: Kohl's rallies after earnings and guidance impress (Aug. 11)
- Previously: Macy's soars after earnings beat and store trimming plan fires up investors (Aug. 11)
Wed, Aug. 10, 5:35 PM
Wed, Aug. 3, 1:47 PM
- Nordstrom (JWN +2.3%) says it will open new Rack stores in Calgary and Vaughan, Ontario by the spring of 2018. Another previously-announced opening will take place in Toronto.
- The company has a limited presence in Canada, with just three full-line stores up and running.
- Shares of Nordstrom have been on a gentle up trend since bottoming out in June. Sentiment will be tested when JWN spills Q2 numbers on August 11.
Wed, Jul. 27, 1:13 PM
- Nordstrom (NYSE:JWN) announces plans to expand its partnership with Madewell by adding the apparel brand to an additional 20 stores this fall.
- The company says the move is the third distribution expansion since the initial launch of the partnership in March of 2015.
- Madewell will be in a total of 76 Nordstromg locations after the roll-out.
- Source: Press Release
Mon, Jul. 25, 11:09 AM
- Apparel store stocks are off and running today on some broad strength.
- The sector has seen more buying action of late after hitting a prolonged rough patch. A couple of solid reports on June sales from key retailers and some calming down of the recent civil unrest has contributed to improved outlook.
- Notable gainers include Gap (GPS +3.5%), Nordstrom (JWN +3.3%), L Brands (LB +2.9%), Urban Outfitters (URBN +2.8%), Macy's (M +2.3%), Kohl's(KSS +1.7%), Francesca's Holdings (FRAN +1.5%), Chico's FAS (CHS +2.1%), Tailored Brands (TLRD +1.5%), and DSW (DSW +1.8%).