Apr. 28, 2014, 11:14 AM
- A number of beat-up department store stocks are showing surprising strength to start off the week.
- J.C. Penney (JCP +7.6%), Sears Holdings (SHLD +3.3%), Kohl's (KSS +1.9%), and Bon-ton Stores (BONT +2.2%) are making the strongest moves.
- Retail analysts attribute the rally to some positive channel checks in the sector, while recent positive comments from execs at V.F. Corp and Phillips-Van Heusen haven't hurt sentiment. (VFC cc transcript, PVH cc trancsript)
Mar. 25, 2014, 9:59 AM
Mar. 13, 2014, 9:15 AM
- Department store sales outpaced overall retail sales in February with a 0.7% M/M gain.
- A pickup in traffic during the last half of the month helped sales, but the category showed a 4.8% Y/Y drop in an indication of just how far mall traffic has dropped off.
- Related stocks: DDS, M, SSI, BONT, SHLD, JCP, KSS, JWN.
Mar. 5, 2014, 9:06 AM
- A recent poll by the Wall Street Journal and NBC indicates 63% of American support raising the minimum wage.
- Though the Republicans are expected to challenge anything brought to the floor of the House, there's a growing consensus in DC that some minimum wage legislation will eventually pass.
- Democrats argue that the current minimum wage level of $7.25 per hour is low by historical standards when adjusted for inflation.
- Related stocks: CAKE, CBRL, CMG, DNKN, DPZ, DRI, EAT, JACK, MCD, PNRA, RRGB, RT, SBUX, SONC, WEN, BWLD, THI, BDL, NATH, CEC, LUB, BKW, CHUY, BLMN, PZZA, TXRH, DENN, KKD, BBRG, DFRG, BOBE, RUTH, IRG, DIN, AEO, ANF, ARO, BBBY, BJ, CHS, COST, DG, DLTR, GPS, HD, JCP, JWN, KR, KSS, LOW, LB, NDN, ODP, PIR, PLCE, RSH, SPLS, SWY, TGT, TJX, URBN, WMT
Feb. 27, 2014, 7:38 AM
- Total FQ4 sales of $6.099B fell 3.8% from a year ago, with comparable store sales off 2%. EPS of $1.56 compares to $1.66 a year ago. Last year's FQ4 included an extra week in which sales were $169M.
- Gross margin of 34% is up 70 basis points from last year.
- Fiscal 2014 EPS guidance of $4.05-$4.45 on total sales expected to increase 0.5-2.5%. Comparable store sales to increase 0-2%.
- KSS no trades premarket
- Press release, FQ4 results
- CC at 8:30 ET
Feb. 27, 2014, 7:13 AM
Feb. 27, 2014, 12:05 AM| Feb. 27, 2014, 12:05 AM | Comment!
Feb. 26, 2014, 5:30 PM| Feb. 26, 2014, 5:30 PM | 1 Comment
Feb. 26, 2014, 2:44 PM
- Three Senate Democrats have broken away from Majority Leader Harry Reid's $10.10/hour line in the sand on minimum wage legislation.
- Mary Landrieu of Louisiana, Mark Pryor of Arkansas, and Mark Warner of Virginia have all tipped off that they think there could be some room to negotiate over the amount of an increase over the current federal minimum wage of $7.25/hour. The GOP likes the status quo, but is viewed as likely to give some ground in an election year.
- Federal minimum wage legislation could create higher costs in the retail and restaurants sectors as companies adjust to the new higher floor.
- Last week, Gap made a preemptive move to raise its own hourly wage in a development that stirred the pot a little bit.
- Related stocks: CAKE, CBRL, CMG, DNKN, DPZ, DRI, EAT, JACK, MCD, PNRA, RRGB, RT, SBUX, SONC, WEN, BWLD, THI, BDL, NATH, CEC, LUB, BKW, CHUY, BLMN, PZZA, TXRH, DENN, KKD, BBRG, DFRG, BOBE, RUTH, IRG, DIN, AEO, ANF, ARO, BBBY, BJ, CHS, COST, DG, DLTR, GPS, HD, JCP, JWN, KR, KSS, LOW, LB, NDN, ODP, PIR, PLCE, RSH, SPLS, SWY, TGT, TJX, URBN, WMT.
Feb. 25, 2014, 10:25 AM
- Investors are giving Macy's (M +3.9%) a pass after January sales came in soft and the company warned on a sluggish early start to the current quarter.
- The enthusiasm on the retailer appears to stem from its ability to hold up margins through its omnichannel approach to selling.
- Macy's also reiterated its guidance for the fiscal year despite the slow start.
- The department store sector is mounting a little comeback today after it was awash in red yesterday.
- Gainers: Kohl's (KSS) +1.8%, Nordstrom +0.8%, Dillard's (DDS) +4.6%, Sears Holdings (SHLD) +3.3%, Bon-Ton Stores (BONT) +2.6%.
Feb. 19, 2014, 8:18 AM| Feb. 19, 2014, 8:18 AM | Comment!
Feb. 6, 2014, 2:07 PM
- Kohl's (KSS +3.9%) is higher on the day despite reporting sluggish sales and cutting guidance.
- The department store operator continues to get stung by problems with its e-commerce business which has added costs.
- Today's rally is a little bit about expectations being even worse for the period, say analysts.
Jan. 22, 2014, 1:38 PM
- Overall retail space could be reduced by between one-third to one-half over the next ten years, forecasts industry watcher Michael Burden.
- The harsh assessment could indicate the round of store closings from Sears Holdings (SHLD), J.C. Penney (JCP), and Macy's (M) is only the tip of the iceberg. Watch for American Eagle Outfitters (AEO), Aeropostale (ARO), Dillard's (DDS), Nordstrom (JWN), and Kohl's (KSS) to enact some logical downsizing, while even Wal-Mart (WMT) and Best Buy (BBY) could surprise with some paring.
- Analysts think stores at malls will be shuttered faster than open air outlets.
- What to watch: Vibrant brands such as Michael Kors (KORS), Lululemon (LULU), and Vince (VNCE) could shift into a standalone mode as consumer demand stays strong for their on-trend products, but mall metrics trend weaker.
Jan. 9, 2014, 7:32 AM
- Retail warnings are starting to pour in as more companies report on comparable-store sales.
- Cato and Buckle both saw their December comps fall, due in part to tough weather, while L Brands had to push hard on promotional levers to stay in positive territory.
- The common theme from the holiday season has been that mall-based retailers used promotions and e-commerce channels to try to make up for very slow store traffic. While Macy's is ahead of the game with a vibrant online fulfillment system and cost-cutting plan in place, other department store operators (KSS, SHLD, JCP, DDS, JWN) could be at risk.
Jan. 6, 2014, 8:58 AM
- Winter storms which dumped over ten inches of snow in a large number of U.S. cities (Boston, Chicago, Detroit, St. Louis, NYC region) has wreaked havoc on mall traffic, according to retail watchers.
- In some major cities, malls were completely closed down due to the extreme snow.
- The extended bout of wintry weather hit right as the sector was looking for a bounce from post-holiday deal shoppers and gift card conversions.
- Analysts think most of the anticipated sales will be recouped, although a lag factor could in play. Apparel sellers could be the hardest hit as inventory starts to look stale.
- On watch: AEO, ANF, ARO, JCP, JWN, KSS, URBN, APP, TLYS, GES, BKE, CHS, ASNA, CWTR, ANN, CBK, NWY, CACH, BODY, WTSL, CATO, BEBE, DDS, LB, PSUN, EXPR, DDS, M, GPS, SHLD.
- Related ETFs: XLY, VCR, FXD, FDIS, RCD, PEZ, PSCD
Jan. 2, 2014, 12:29 PM
- Fresh data from IBM Digital Analytics Benchmark could give some hope that the holiday season wasn't quite as bad for department stores as reads on store traffic would suggest.
- Online sales for the group rose 62.8% Y/Y in Q4 and mobile sales gained 38%, according to the research firm.
- The contribution of online/mobile to total sales varies widely in the group.
- Department store chains: Macy's (M), Nordstrom (JWN), Kohl's (KSS), Dillard's (DDS), J.C. Penney (JCP), Sears Holdings (SHLD), The Bon-Ton Stores (BONT), Stage Stores (SSI), Ross Stores (ROST).
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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