Looking back on department store stocks’ Q3 earnings, we examine this quarter’s best and worst performers, including Kohl's (NYSE:KSS) and its peers.
Department stores emerged in the 19th century to provide customers with a wide variety of merchandise under one roof, offering a convenient and luxurious shopping experience. They played an important role in the history of American retail and urbanization, and prior to department stores, retailers tended to sell narrow specialty and niche items. But what was once new is now old, and department stores are somewhat considered a relic of the past. They are being attacked from multiple angles–stagnant foot traffic at malls where they’ve served as anchors; more nimble off-price and fast-fashion retailers; and e-commerce-first competitors not burdened by large physical footprints.
The 4 department store stocks we track reported a mixed Q3. As a group, revenues were in line with analysts’ consensus estimates.
Amidst this news, share prices of the companies have had a rough stretch. On average, they are down 6.6% since the latest earnings results.
Weakest Q3: Kohl's (NYSE:KSS)
Founded as a corner grocery store in Milwaukee, Wisconsin, Kohl’s (NYSE:KSS) is a department store chain that sells clothing, cosmetics, electronics, and home goods.
Kohl's reported revenues of $3.71 billion, down 8.5% year on year. This print fell short of analysts’ expectations by 3.7%. Overall, it was a disappointing quarter for the company with full-year EPS guidance missing analysts’ expectations.
Tom Kingsbury, Kohl’s chief executive officer, said “Our third quarter results did not meet our expectations as sales remained soft in our apparel and footwear businesses. Although we had a strong collective performance across our key growth areas, including Sephora, home decor, gifting, and impulse, and also benefited from the opening of Babies “R” Us shops in 200 of our stores, these were unable to offset the declines in our core business.
Kohl's delivered the weakest performance against analyst estimates and slowest revenue growth of the whole group. The stock is down 33.9% since reporting and currently trades at $12.13.
Read our full report on Kohl's here, it’s free.
Best Q3: Dillard's (NYSE:DDS)
With stores located largely in the Southern and Western US, Dillard’s (NYSE:DDS) is a department store chain that sells clothing, cosmetics, accessories, and home goods.
Dillard's reported revenues of $1.45 billion, down 3.5% year on year, in line with analysts’ expectations. The business had a very strong quarter with a solid beat of analysts’ EBITDA estimates and an impressive beat of analysts’ EPS estimates.
The market seems happy with the results as the stock is up 21% since reporting. It currently trades at $470.22.
Is now the time to buy Dillard's? Access our full analysis of the earnings results here, it’s free.
Macy's (NYSE:M)
With a storied history that began with its 1858 founding, Macy’s (NYSE:M) is a department store chain that sells clothing, cosmetics, accessories, and home goods.
Macy's reported revenues of $4.90 billion, down 2.7% year on year, in line with analysts’ expectations. It was a mixed quarter as it posted an impressive beat of analysts’ EPS estimates but full-year EPS guidance missing analysts’ expectations.
The stock is down 12.1% since the results and currently trades at $14.73.
Read our full analysis of Macy’s results here.
Nordstrom (NYSE:JWN)
Known for its exceptional customer service that features a ‘no questions asked’ return policy, Nordstrom (NYSE:JWN) is a high-end department store chain.
Nordstrom reported revenues of $3.46 billion, up 4.3% year on year. This result beat analysts’ expectations by 3.3%. Overall, it was a very strong quarter as it also recorded a solid beat of analysts’ EPS estimates and an impressive beat of analysts’ gross margin estimates.
Nordstrom delivered the biggest analyst estimates beat and fastest revenue growth among its peers. The stock is down 1.6% since reporting and currently trades at $24.22.
Read our full, actionable report on Nordstrom here, it’s free.
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