Tue, Nov. 29, 9:20 AM
- The latest read from Redbook on retail store sales indicates that sales are up 1.2% Y/Y through the first 26 days of the month. Redbook expects a 1.4% gain for the month.
- Department stores reported strength in gift merchandise, including small appliances, accessories and cold weather apparel. The level of discounting in the sector will have a large impact on how Q4 earnings play out.
- Related stocks: DDS, M, SSI, BONT, SHLD, JCP, KSS, JWN.
- Previously: Redbook Chain Store Sales: +2.2% (Nov. 29)
Wed, Nov. 16, 4:44 PM
Mon, Nov. 14, 10:33 AM
- Department store stocks are rallying right along with other mall names on a boost in confidence from investors and analysts that consumer spending will perk up and GOP tax policy will help lift profits across the sector.
- Sears Holdings (SHLD +4.3%), J.C. Penney (JCP +3.8%), Kohl's (KSS +5.1%), Bon-Ton Stores (BONT +6.7%), Nordstrom (JWN +5.7%) and Dillard's (DDS +4.8%) are all solidly higher.
- An interesting case is Macy's (M +5.2%) which drew the ire and Twitter hostility from Donald Trump during the primaries. Shares of Macy's are up 18% since the election as investors assume that the Trump-Macy's feud is a non-factor.
- Previously: Vibrant rally for clothing and footwear stocks (Nov. 14)
- Previously: Investors see upside with apparel store stocks (Nov. 14)
Thu, Nov. 10, 4:07 PM
Wed, Nov. 9, 5:35 PM
Mon, Oct. 31, 8:09 AM
- Deutsche Bank moves to the sidelines on Nordstrom (NYSE:JWN) after shares ran up sizable gains from their June lows.
- Though the investment firm is cautious on the department store stock's high-teens multiple at the moment, there's still plenty to like for the long-term.
- DB on Nordstrom: "We continue to believe that JWN's business model is unique to dept. stores via its: 1) variable cost structure; 2) limited promotional reliance; 3) more upscale targeted demographic; 4) greater product differentiation; and 5) multi-channel approach (full-line stores, the Rack, and e-commerce."
- Shares are rated at Neutral and assigned a price target of $56.
Tue, Oct. 25, 9:44 AM| Tue, Oct. 25, 9:44 AM
Mon, Oct. 24, 3:57 PM
- Nordstrom (NYSE:JWN) announces it will hire approximately 11,400 seasonal employees to help with the holiday rush at stores and serve in its fulfillment and distribution centers.
- Last year, the department store chain brought in 11,800 seasonal workers.
- Nordstrom currently operates 346 stores in 40 U.S. states and Canada. The company also owns Trunk Club, an online personalized clothing service.
- Source: Press Release
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.