Department Stores Performed the Worst in November’s Retail Report

Performance analysis

The retail (XRT) subsectors within the S&P 500 had mixed performances in November, as they were impacted by the earnings releases during the month. The month of November started with the earnings releases of two major US department stores: Macy’s (M) and Nordstrom (JWN), which reported lower-than-expected results, thus creating pessimism in the market regarding the subsector. Even some good results from companies like JCPenney (JCP) and Kohl’s (KSS) couldn’t pick up the subsector. The department store index performed the worst all retail subsector indexes in November, falling by 12.3%, as can be seen in the chart below.

Department Stores Performed the Worst in November’s Retail Report

As can be seen from the above chart, the S&P 500 food retail index beat the other retail subsectors, rising by 0.01% over the month, as compared to the S&P 500 apparel retail index and the S&P 500 drug retail index, which fell by 0.62% and 2.8%, respectively.

The apparel retail subsector had the second highest performance in the sector due to some mixed earnings reports released over the month. Companies like L Brands (LB) and TJX Companies (TJX) reported significant increases in their top line, while stocks of companies like Gap (GPS) and Urban Outfitters (URBN) weren’t able to impress investors with their results.