Seeking Alpha

A tale of two holidays in retail

|About: Kohl's Corporation (KSS)|By: , SA News Editor

The apparel sector is reeling after a string of disappointing holiday sales reports from mall chains, including duds from Kohl's (KSS -9.3%) and J.C. Penney (JCP -11.7%).

Notable decliners include Oxford Industries (OXM -3.5%), Under Armour (UAA -3.5%), Canada Goose (GOOS -3.2%), PVH (PVH -3.1%), Hanesbrands (HBI -3.1%), Macy's (M -3.7%), Dillard's (DDS -3.2%), Levi Strauss (LEVI -2.6%) and Capri Holdings (CPRI -3.2%), RTW Retailwinds (RTW -6.5%), Abercrombie & Fitch (ANF -5.3%), Fossil (FOSL -5.5%), Express (EXPR -5.5%), Urban Outfitters (URBN -3.8%), Gap (GPS -4.5%), Duluth Holdings (DLTH -4%) and Designer Brands (DBI -2.3%).

L Brands (LB +0.7%) is showing a gain on the day, but that's mainly because expectations were for a sharper than 3% drop in holiday sales.

Also, the selling pressure isn't extending to retail heavyweights Target (TGT -0.2%) and Walmart (WMT +0.5%), which some analysts say are increasing market share at the expense of malls. It's also hard to make the case that the U.S. consumer is pulling back if Costco's (COST +1.3%) sizzling sales report for December is any indicator.

Try Seeking Alpha PREMIUM for unlimited analysis on KSS