These Factors Could Affect Kohl’s Earnings
Kohl’s (KSS) exceeded analysts’ earnings expectations in the first two quarters of fiscal 2017.
With continued pressure on sales, several department stores like Kohl’s (KSS) are trying to mitigate the impact of weak top-line figures through increased productivity.
As of December 12, Kohl’s (KSS) was trading at a 12-month forward PE (price-to-earnings) ratio of 13.5x.
Kohl’s (KSS) sales rose 0.1% to $4.3 billion in fiscal 3Q17, which ends on October 28, 2017.
As of December 12, Kohl’s (KSS) stock was rated as a “hold” by 11 out of 22 analysts covering the stock.
Kohl’s (KSS) stock price has risen 1.8% on a YTD (year-to-date) basis as of December 12.
Target (TGT) stock has fallen 13% on a YTD (year-to-date) basis as of December 4, 2017. However, in the past week, it made a strong recovery, rising 12%.
Retail stocks closed higher on Monday, December 4, 2017, probably in reaction to the Senate’s passing its tax reform bill early Saturday morning.
Core sales—excluding energy (XLE), building materials, and auto sales—also rose 0.4% in October, which is a positive sign for the economy.
As of November 15, 2017, Nordstrom stock was rated a “hold” by 17 of 26 analysts (or 65%). The stock was rated a “buy” by four analysts and a “sell” by five analysts.
Nordstrom’s (JWN) retail gross margin fell 12 basis points on a year-over-year basis to 34.7% in fiscal 3Q17, which ended on October 28, 2017.
Nordstrom’s same-store sales fell 0.9% in fiscal 3Q17. The hurricanes during the quarter affected its sales by $20 million.
In fiscal 3Q17, Nordstrom’s (JWN) adjusted EPS (earnings per share) of $0.71 exceeded analysts’ expectation of $0.63 but declined on a year-over-year basis.
Nordstrom’s (JWN) valuation multiple rose 2.4% on November 10, 2017, in reaction to its fiscal 3Q17 results that were announced after the close of the financial markets on November 9, 2017.
As of November 13, Macy’s (M) was trading at a 12-month forward PE (price-to-earnings) ratio of 7.0x.
Macy’s (M) gross margin improved by ten basis points to 39.9% in fiscal 3Q17.
Macy’s (M) delivered sales of $5.28 billion in fiscal 3Q17. The company’s third-quarter sales lagged the consensus analyst estimate of $5.31 billion.
Macy’s (M) delivered adjusted EPS (earnings per share) of $0.23 in fiscal 3Q17, which ended on October 28, 2017.
Macy’s (M) stock surged about 11% on November 9 in reaction to its fiscal 3Q17 results. However, the company’s stock continues to be in the red on a YTD (year-to-date) basis.
JCPenney and other department stores are finding it difficult to improve their sales amid growing competition from online retailers like Amazon (AMZN).