47.00 0.00 (0.00%)
After hours: 5:46PM EST
|Bid||47.00 x 800|
|Ask||47.05 x 1300|
|Day's range||46.66 - 47.81|
|52-week range||43.33 - 75.91|
|Beta (3Y monthly)||1.08|
|PE ratio (TTM)||10.82|
|Earnings date||19 Nov 2019|
|Forward dividend & yield||2.68 (5.69%)|
|1y target est||56.29|
Shares of Kohl's plunged and Home Depot fell after both retailers cut their profit outlooks Tuesday. TacticalIncome.com's Jeff Tomasulo tells Reuters' Fred Katayama why investors should pick up Home Depot but avoid Kohl's.
A tale of two retailers: Kohl's cut its outlook Tuesday just as TJX hiked its forecast. Kohl's shares dropped more than 18% Tuesday morning after reporting falling comparable store sales and profit that widely missed Wall Street's forecasts. Kohl's CEO Michelle Gass contends THE COMPANY is entering the holiday period with "momentum." But the company slashed its profit forecast for the full year, saying the need to spend on promotions would cut into earnings. TJX's results couldn't be more different . Citing strong customer traffic, the operator of discount store brands like T.J. Maxx and Marshalls reported rising quarterly same-store sales and profit that beat expectations. And it raised its full-year profit forecast. TJX has been opening new stores and remodeling existing ones, pulling in bargain hunters who seek luxury brands at steep discounts. Its latest results also pulled in more investors, driving its shares up more than 3% in early trading.
(Bloomberg Opinion) -- It is hard to think of a retailer that is doing so much to save itself, and has so little to show for it, as Macy’s Inc.The department store giant reported Thursday that comparable sales sank 3.9% from a year earlier in the quarter, or 3.5% including licensed departments, a sharp retreat from meager gains it had recorded on this measure in the first half of the year. It was such a weak showing that the company cut its profit forecast and now expects declining comparable sales for the full year.Of course, department stores have been challenged for years because they rely on an older customer and are often tethered to the types of malls that are withering in the e-commerce era. These latest results from Macy’s, though, coupled with a disappointing earnings report from Kohl’s Corp. earlier this week, increase skepticism that the giants of the category can find a formula for success before it’s too late.Macy’s has tried plenty of tactics to boost sales. It has an off-price segment. It is renovating its top-performing stores. It has dramatically expanded its selection online. But the steep decline in sales is a signal that it has not been enough.The company’s press release points to several reasons for the dismal results, including the weather (a go-to excuse for apparel retailers when things go off track) and soft international tourism (which affects sales at its big-city flagships). It also called out “weaker than anticipated performance in lower tier malls.”That third factor is noteworthy because it highlights the trouble with a major component of Macy’s turnaround strategy: The company is currently working to revamp about 150 stores while transforming its weaker locations into so-called “neighborhood stores” that are smaller in size and have fewer employees.The results raise the question of why Macy’s is clinging to these stores in dumpy malls. Macy’s needs to give more serious consideration to closing some of these locations.In other words: Macy’s may be doing a lot of things to salvage its business, but that doesn’t mean they’re the right things.The company said Thursday it will hold an investor day in February to discuss its three-year growth strategy. Any presentation that does not include a roadmap for additional store closures — and a clear plan for improving its actual merchandise — should be dismissed as unlikely to restore Macy’s to health.Kohl’s, a rival, is in a slightly better position than Macy’s, since its stores are typically not located in malls. But its third-quarter results also raised fresh doubts that it has carved a path to long-term relevance.Its new partnership with Amazon appears to be going largely as planned, with executives saying on an analyst conference call that it was “meeting expectations” and that conversion rates were on par with what it saw in pilot markets.But the Amazon arrangement is a creative move that should be providing new, young customers to Kohl’s. If all the retailer can deliver under those circumstances is a 0.4% increase in comparable sales, should that really excite investors about the program’s potential?It’s also discouraging that Kohl’s women’s business is adrift, recording declining sales in the quarter that offset more upbeat sales in departments such as men’s and footwear.Macy’s and Kohl’s shouldn’t delude themselves into thinking their would-be customers are simply sitting on the sidelines. TJX Cos., the corporate parent of Marshalls and TJ Maxx, recorded healthy comparable sales in the quarter. Target Corp. reported Wednesday that its apparel and accessories department saw a “double-digit” increase in sales in the period. It’s clear those better-run retailers are benefiting from Macy’s and Kohl’s stumbles.Building a vibrant 21st-century department store was always going to be a tall order. But Macy’s and Kohl’s latest reports raise the question of whether, for them, that goal is now out of reach.To contact the author of this story: Sarah Halzack at firstname.lastname@example.orgTo contact the editor responsible for this story: Michael Newman at email@example.comThis column does not necessarily reflect the opinion of the editorial board or Bloomberg LP and its owners.Sarah Halzack is a Bloomberg Opinion columnist covering the consumer and retail industries. She was previously a national retail reporter for the Washington Post.For more articles like this, please visit us at bloomberg.com/opinion©2019 Bloomberg L.P.
A sell-off in stocks accelerated Wednesday afternoon after Reuters reported an initial U.S.-China trade deal might not be completed by the end of 2019.
(Bloomberg Opinion) -- Target Corp. looks increasingly immune to the malaise and aimlessness that has afflicted many of its peers.The big-box retailer reported Wednesday that comparable sales increased a robust 4.5% from a year earlier in the latest quarter, blowing past analysts’ expectations. The growth reflected a 3.1% increase in traffic from the same period last year, showing that expensive investments in store renovations are luring more shoppers.Target raised its full-year earnings guidance, a sign it expects the momentum to continue into the holiday season. Shares were poised to open at a record high.The strong growth is, indeed, an important indicator of Target’s health. At the same time, Target has been delivering upbeat results on this measure for quite a while now; last year was its best annual comparable sales growth in over a decade. So the most eye-catching number in this report is gross margin, which rose to 29.8%, up from 28.7% in the third quarter last year.In recent years, doubts about the durability of Target’s turnaround often centered on profitability — whether the retailer could stop the erosion of its margins as it generated more sales from e-commerce and moved to have more competitive prices on household essentials. Now there have been two consecutive quarters of year-over-year improvement in gross margins.All of this suggests that Target’s various strategies are beginning to pay off. The retailer has rolled out many new private brands in its apparel and home goods departments, offerings that typically come with better profit margins. It has focused on figuring out how to use its stores to fulfill online orders, including through options such as in-store or curbside pickup. In those models, customers effectively provide their own last-mile delivery, sparing Target that expense.Those efforts, along with a revamped promotion strategy, now appear to be offsetting factors that weigh on profitability, including free shipping of online orders. Target also invested recently in its toy and baby categories to capture the business that was up for grabs when Toys R Us and Babies R Us liquidated — a smart move that nevertheless dragged on profitability because toys and baby goods tend to be relatively low-margin items. Target appears to have worked through that shift in its mix of items sold.Only two years ago, a Target turnaround looked anything but assured. The retailer had made some early improvements under CEO Brian Cornell, who arrived in 2014, but stumbled as it lost step with the competition on prices. Investors were not initially overjoyed about a $7 billion investment plan that included the addition of more small-format stores, more digital capabilities and more private-label brands. Wednesday’s results add to evidence that the changes are getting results. One example: Target said apparel and accessories sales were up “double digits” in the quarter, likely a sign that it took market share from Kohl’s Corp., which saw its shares tank Tuesday on lackluster earnings results that included declining sales in its women’s business.Wednesday’s results show Target to be well-positioned to ring up strong sales growth this holiday season and beyond. Having found ways to differentiate itself from rivals Walmart Inc. and Amazon.com Inc., Target stands on about as sure a footing as can be found in a fast-changing retail landscape.To contact the author of this story: Sarah Halzack at firstname.lastname@example.orgTo contact the editor responsible for this story: Michael Newman at email@example.comThis column does not necessarily reflect the opinion of the editorial board or Bloomberg LP and its owners.Sarah Halzack is a Bloomberg Opinion columnist covering the consumer and retail industries. She was previously a national retail reporter for the Washington Post.For more articles like this, please visit us at bloomberg.com/opinion©2019 Bloomberg L.P.
The latest retail earnings results from the likes of Home Depot. A look at what investors should expect from high-flying Target. And why Tempur Sealy (TPX) is a Zacks Rank 1 (Strong Buy) stock right now...
(Bloomberg) -- Home Depot Inc. and Kohl’s Corp. both posted disappointing results on Tuesday, raising fresh doubts about whether American consumers can keep up robust spending as the crucial holiday season approaches.The two retailers cut their annual forecasts for the second time this year. While the companies blamed shortfalls on specific issues -- including lumber prices at Home Depot and lower demand for women’s apparel at Kohl’s -- the weak results sent jitters across an industry that has been scrutinized for any sign of weakness amid a record streak of economic growth.The concerns were reflected in a broad decline in consumer stocks, with the S&P 500 Retailing Index down as much 1.5%. Home Depot’s stock dropped as much as 5.6%, the biggest decline since February 2018. Rival Lowe’s Cos., which reports earnings Wednesday morning, fell 0.8%. And an S&P 500 department stores index plunged by the most intraday since the start of 2017 following Kohl’s results.Kohl’s, whose stock plunged as much as 19%, is particularly worrisome ahead of the gift-giving season. The company has made investments that it said would draw in more customers -- specifically millennials.“Top-line sales weakness raises concern for the retailers to deliver in the all-important holiday quarter,” Bloomberg Intelligence’s Poonam Goyal said in an email. A deep cut to Kohl’s profit forecast calls into question “the effectiveness of management’s initiatives and suggests more may still be needed.”TJX Cos. Chief Executive Officer Ernie Herrman added to concerns, pointing to the uncertainty about tariffs talks between the U.S. and China. The comments followed an otherwise strong quarter for the operator of the TJ Maxx and Marshalls chains.“We don’t have as much visibility moving forward to whether or not we can keep mitigating as we have,” Herrman said on a conference call with analysts. “For next year, it’s a bit of a wait-and-see when we get closer to that time period.”The outlook for retailers will come into sharper focus as more companies report quarterly earnings this week, with results from Target Corp., Macy’s Inc., Gap Inc., Ross Stores Inc., Nordstrom Inc. and L Brands Inc. -- the owner of Victoria’s Secret.‘Cold Wind’Neil Saunders, an analyst at GlobalData Retail, said Kohl’s results weren’t all negative, since the company managed positive comparable sales. But apparel weakness and aggressive discounting across the industry illustrate “a challenging backdrop.”“Kohl’s felt the cold wind of this and struggled to generate growth,” Saunders said in an email.Walmart Inc.’s report last week pointed to investors’ nervousness. Although Walmart posted quarterly sales matched estimates and raised its outlook, the shares fell on concerns about persistent weakness at Sam’s Club and the high cost of new initiatives and slow progress in diversifying sales beyond groceries.Consumer spending has been fueling U.S. economic growth at a time when the global economy weakened, prompting concerns over when the record expansion will inevitably come to an end. Evidence that American households are starting to feel stretched is showing up in debt data, as serious delinquencies on credit cards and auto debt have crept up.Over at Home Depot, some online investments didn’t pan out as early as expected, and the benefits will take longer to materialize. The weak performance was all the more surprising since the Atlanta-based company had told investors that the second half of the year would be better. Same-store sales have now trailed projections for three straight quarters, a concerning trend for a retailer that’s been a consistent top performer this decade, according to Brian Yarbrough, an analyst for Edward Jones.“Housing is good, but not great like it was,” said Yarbrough, who downgraded Home Depot’s stock to hold last week. “It’s going to be harder for Home Depot to show those outsized gains.”The company now sees same-store sales growth of 3.5% for the full year, down from 4% previously.(Adds TJX CEO’s comments in sixth pargaraph.)\--With assistance from Matthew Boyle.To contact the reporters on this story: Janet Freund in New York at firstname.lastname@example.org;Matt Townsend in New York at email@example.com;Jordyn Holman in New York at firstname.lastname@example.orgTo contact the editors responsible for this story: Catherine Larkin at email@example.com, ;Crayton Harrison at firstname.lastname@example.org, Jonathan Roeder, Cécile DauratFor more articles like this, please visit us at bloomberg.com©2019 Bloomberg L.P.
(Bloomberg) -- Kohl’s Corp. fell the most in almost three years after posting quarterly sales that trailed analysts’ projections. The retailer also cut its full-year profit forecast for a second time this year, exacerbating concerns about department stores.Same-store sales, a key metric for retailers, increased 0.4% in the third quarter, compared with the 0.8% growth seen by analysts, according to Consensus Metrix. Kohl’s now says profit excluding some items will be $4.75 to $4.95 -- with the new high point of the range 50 cents below the previous outlook. See more results here.Key InsightsWhile Chief Executive Officer Michelle Gass said the retailer was entering the crucial holiday period with “momentum” and is “strategically increasing” investment to boost growth and traffic, the results fueled investor concern. She said on a call after the earnings release that Kohl’s is increasing its focus to attract millennial shoppers. Kohl’s has been trying to set itself apart from the department-store segment, which has struggled to adapt to broad changes in consumer habits, by using partnerships and smaller-store formats. The results suggest the company needs to do more, however.The chain is banking on its alliance with Amazon.com Inc., which lets customers return Amazon purchases at the more than 1,000 Kohl’s locations. Gass said on the call that executives are confident the partnership “will have a positive contribution to operating income in 2019.” Kohl’s goal: To get customers making returns to browse aisles and buy something.Market ReactionKohl’s shares fell as much as 18% in New York, the biggest intraday tumble since January 2017. The shares had already dropped 12% this year through Monday’s close, compared with the 25% gain in the S&P 500 Index. Other department-store chains, including Macy’s Inc. and Nordstrom Inc., also declined.For the company statement, click here.(Adds CEO’s comments from earnings call throughout.)To contact the reporter on this story: Jordyn Holman in New York at email@example.comTo contact the editors responsible for this story: Anne Riley Moffat at firstname.lastname@example.org, Jonathan Roeder, Lisa WolfsonFor more articles like this, please visit us at bloomberg.com©2019 Bloomberg L.P.
Kohl's (KSS) delivered earnings and revenue surprises of -12.94% and -0.92%, respectively, for the quarter ended October 2019. Do the numbers hold clues to what lies ahead for the stock?
US retail stocks came under selling pressure after disappointing results from three of the sector’s best known names, Kohl’s, Home Depot and Urban Outfitters, raised concerns about how stores are faring as they head into the holiday shopping season. Both the department store chain Kohl’s and Home Depot, the nation’s largest DIY retailer, reduced financial forecasts for a second time this year. Urban Outfitters sent another negative signal about the sector after the market closed as the fashion clothing company missed quarterly sales forecasts.
This quarter, they have an unconventional, new scapegoat: business investment. DIY retailer Home Depot cut full-year sales guidance for a second time this year on Tuesday. Department store operator Kohl’s issued a profits warning after reporting a 24 per cent slide in third-quarter earnings.