Fri, Aug. 28, 11:52 AM
- Department store chains increased their market share of beauty sales by a full percentage point to 12.7% over the last five years in a positive sign for the sector.
- The group made its gains in the high-end and niche parts of the beauty market, while conceding some parts of the mass market segment to Sally Beauty Holdings (NYSE:SBH), Ulta Salon (NASDAQ:ULTA), and Walgreens Boots Alliance (NASDAQ:WBA) on pricing.
- J.C. Penney (NYSE:JCP) has been a leader with its striking partnership with Sephora (OTCPK:LVMUY, OTCPK:LVMHF), while Macy's (NYSE:M) +$200M acquisition of Bluemercury sets it up to hit luxury shoppers as well. Kohl's (NYSE:KSS) and Dillard's (NYSE:DDS) also are rolling out new beauty and fragrance lines. Beauty is seen as one of the few categories the chains can drive traffic in effectively with marketing.
- Department stores commanded beauty market share of close to 14% before online sales and discounters started kicking into a higher gear.
Thu, Aug. 13, 9:19 AM
Thu, Aug. 13, 8:50 AM
- The furniture and home furnishing stores category RH, PIR, HVT, BBBY, ETH, HOFT, OTCPK:BEST, W, LZB, OTCPK:LEFUF, BSET, WSM, RH, KIRK outperformed in today's report on retail sales.
- Sales were up 0.8 Y/Y and 6.1% Y/Y in July for the housing-related category.
- Department stores (KSS, JCP, SHLD, JWN, M) showed sluggish traffic trends again, sales were down 0.8% M/M and slumped 2.7% Y/Y.
- Sales in the food services category were up a solid 9.0% Y/Y.
- U.S. Census Bureau Retail Sales report (.pdf)
- Previously: July U.S. Retail Sales: +0.6% (Aug. 13 2015)
Thu, Aug. 13, 7:41 AM
- Kohl's (NYSE:KSS) reports comparable-store sales increased 0.1% in Q2.
- The company's gross margin rate fell 10 bps to 38.9%.
- Net income as a percentage of sales fell 250 bps to 3.0% on higher SG&A expenses.
- Store count +4 Y/Y t o 1,164.
- Previously: Kohl's misses by $0.09, misses on revenue
- KSS -7.3% premarket to $57.00.
Thu, Aug. 13, 7:12 AM
Thu, Aug. 13, 7:02 AM
Wed, Aug. 12, 5:30 PM
Mon, Jul. 20, 1:38 PM
- A bold forecast from Cowen Research on Amazon has some deep implications for the broad retail sector if it proves accurate.
- Cowen sees Amazon nabbing 14% of the U.S. apparel and accessories market by 2020, up from ~5% this year.
- The Amazon Effect impacts retail companies differently depending on if they sell their brands on the Amazon website and at what prices. Chains that could see an impact from a higher level of apparel buying through Amazon include Macy's (NYSE:M), Dillard's (NYSE:DDS), J.C. Penney (NYSE:JCP), Aeropostale (NYSE:ARO), Abercrombie & Fitch (NYSE:ANF), L Brands (NYSE:LB), Kohl's (NYSE:KSS), Pacific Sunwear (NASDAQ:PSUN), and Zumiez (NASDAQ:ZUMZ). The trend also puts high-end sellers such as Kate Spade (NYSE:KATE) and Michael Kors (NYSE:KORS) in a tighter box on how to sell through Amazon.
- A disturbing trend for Wal-Mart (NYSE:WMT) and Target (NYSE:TGT) is that a higher percentage of their customers also bought apparel through Amazon in the first half of 2015.
Wed, Jul. 15, 8:56 AM
- Today's promotional battle between Wal-Mart (NYSE:WMT) and Amazon (NASDAQ:AMZN) could have two winners (besides consumers) and many losers, according to retail analysts.
- The retail machines could pull forward some back-to-school sales away from rivals and smaller chains without the online reach.
- Shopatron's John Pincott notes it's nearly impossible for consumers to miss the Amazon and Wal-Mart deals due to the broad marketing efforts and allure of a Black Friday-type event.
- Amazon initiated the promotional battle with a one-day sale celebrating the company's 20th anniversary, while Wal-Mart continues to counterpunch against the moves coming out of Seattle.
- Margin worries will continue to be in the background while the heavyweights slug it out for top-line growth.
- What to watch: Companies in the line of fire of the promotional salvos include Staples (NASDAQ:SPLS), Best Buy (NYSE:BBY), Target (NYSE:TGT), Costco (NASDAQ:COST), and Office Depot (NASDAQ:ODP). There's also an alarming trend in play for department stores (JCP, DDS, KSS, M, TJX) with more BTS family shopping for clothing turning online.
Tue, Jul. 14, 8:48 AM
- U.S. retail sales were held back in June due in part to weak clothes buying trends.
- Clothing/clothing accessories stores dropped 1.5% M/M, while department store showed a 0.6% decline.
- On a year-over-year scan, department stores sales were off 1.7%.
- The numbers would probably look even weaker if sportswear and shoes were backed out of the broad categories.
- Previously: June Retail Sales miss expectations (Jul. 14 2015)
- Related stocks: M, KSS, JWN, DDS, JCP, LB, TLYS, SHLD, TJX, BONT, SSI, OTCPK:BLKIA.
Thu, Jun. 11, 9:22 AM
Thu, Jun. 4, 7:06 AM
- Credit Suisse downgrades department store stocks in a broad swipe at the sector.
- Nordstrom (NYSE:JWN) is moved by CS to a Neutral rating from Outperform.
- Dillard's (NYSE:DDS) is taken to Underperform from Neutral.
- The investment firm also warns that upside on current valuation is limited for Bon-Ton Stores (NASDAQ:BONT), J.C. Penney (NYSE:JCP), Kohl's (NYSE:KSS), Macy's (NYSE:M), and Stage Stores (NYSE:SSI).
- The sector picked up some steam earlier this week off REIT enthusiasm.
- Previously: REIT is the word in retail (Jun. 02 2015)
Tue, Jun. 2, 1:17 PM
- Retail chain stocks are putting in some strong gains despite a soft read earlier in the day from Redbook on sales.
- PVH issued a strong report last night which helped push the sector in the right direction, but there also appears to be some speculative buying on some names in the sector after Macy's was reported to be under pressure to explore REIT options.
- Previously: Macy's hearing from hedge funds on real estate assets
- Gainers: Guess (NYSE:GES) +5.1%, Tilly's (NYSE:TLYS) +4.4%, Abercrombie & Fitch (NYSE:ANF) +5.7%, Kohl's (NYSE:KSS) +1.6%, J.C. Penney (NYSE:JCP) +2.9%, Bon-Ton Stores (NASDAQ:BONT) +4.6%, Stein Mart (NASDAQ:SMRT) +2.7%, Sears Hometown and Outlet Stores (NASDAQ:SHOS) +2.4%, Conn's (NASDAQ:CONN) +5.8%, Best Buy (NYSE:BBY) +1.7%, hhgregg (NYSE:HGG) +2.8%.
Thu, May 21, 9:18 AM
- Kohl's (NYSE:KSS) is testing an off-price concept, notes Retail Dive.
- The company will use a pilot store in New Jersey to gauge response to selling deeply discounted returned items.
- Earlier this month, Macy's unveiled its own off-price strategy.
- Previously: Macy's to test off-price concept (May. 05 2015)
Mon, May 18, 2:55 PM
- Department store chains Kohl's (KSS -0.3%), Macy's (M +2.3%), and J.C. Penney (JCP -0.6%) are moving to a higher mix of local and digital advertising as they leverage data they have mined from loyalty programs and spending histories, according to AdAge.
- Implementing "personal touches" into marketing messages is seen as a way to increase brand awareness and conversions.
- Total advertising spending for some companies in the sector has been on the decline.
Thu, May 14, 9:16 AM
KSS vs. ETF Alternatives
Kohl's Corp operates department stores that sell moderately priced exclusive and national brand apparel, footwear, accessories, beauty and home products. Itswebsite includes merchandise available in stores, and merchandise available only on-line.
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