We use cookies to understand how you use our site and to improve your experience. This includes personalizing content and advertising. To learn more, click here. By continuing to use our site, you accept our use of cookies, revised Privacy Policy and Terms of Service.
You are being directed to ZacksTrade, a division of LBMZ Securities and licensed broker-dealer. ZacksTrade and Zacks.com are separate companies. The web link between the two companies is not a solicitation or offer to invest in a particular security or type of security. ZacksTrade does not endorse or adopt any particular investment strategy, any analyst opinion/rating/report or any approach to evaluating individual securities.
If you wish to go to ZacksTrade, click OK. If you do not, click Cancel.
Kohl's, Macy's Plummet on Dismal Holiday Season Sales
Read MoreHide Full Article
On Thursday, department store stalwarts Kohl’s Corp. (KSS - Free Report) and Macy’s (M - Free Report) are plummeting after both companies announced disappointing holiday season sales. As of 11:27 AM EST, KSS stock is down 19.36% while M stock is down 14.54%.
Kohl’s reported a 2.1% drop in comparable sales in the fiscal months of November and December combined, which included e-commerce and stores open for at least one year, a huge disappointment for a company who implemented several new turnaround initiatives. These consisted of launching a mobile app, selling the Apple Watch, a bigger push in athleisure, and using its stores to fill online shopping orders.
The company had already seen its comps fall 2.8% in the first three quarters of the year, and as a result, Kohl’s has slashed its full year fiscal 2016 earnings guidance from $3.12 to $3.32 per share to $2.92 to $2.97 per share.
Like Kohl’s, Macy’s also reported a 2.1% drop in comparable sales for November and December, prompting the retailer to slash its full year profit forecast as well. The department store now expects its profit for the fiscal year ending at the end of this month to be $2.95 to $3.10 per share, well below its previous forecast of $3.15 to $3.40 per share.
But Macy’s has gone one step further: it is closing 63 stores this spring, eliminating 10,000 jobs in the process. Of the total jobs being cut, 3,900 jobs will be at stores being shut down as part of a plan announced last August top close 100 of its 730 namesake stores. An additional 6,200 jobs will be eliminated due to streamlining and cutting costs, as Macy’s turns its focus towards its online business; digital sales increased by a double-digit percentage over the holiday season.
Other retailers and department stores are feeling the somber holiday pressure today. In midday trading, JCPenney Inc. is down 6.73%, Nordstrom Inc. (JWN - Free Report) is down 8.87%, Dillard’s Inc. (DDS - Free Report) is down 11.11%, and even Target Corp. (TGT - Free Report) is feeling the effect, down 2.43%.
Long-Term Buys You Won't See in the News
The stocks you see in today's headlines may not be in the news tomorrow, or even next week. If you're looking for profitable long-term investments, you may be interested to see what Zack Research is recommending to our private members. These moves have double and triple-digit profit potential. Starting now, you can look inside our stocks under $10, home run and value stock portfolios, plus more. Want a peek at this exclusive information? Click here>>
See More Zacks Research for These Tickers
Normally $25 each - click below to receive one report FREE:
Image: Bigstock
Kohl's, Macy's Plummet on Dismal Holiday Season Sales
On Thursday, department store stalwarts Kohl’s Corp. (KSS - Free Report) and Macy’s (M - Free Report) are plummeting after both companies announced disappointing holiday season sales. As of 11:27 AM EST, KSS stock is down 19.36% while M stock is down 14.54%.
Kohl’s reported a 2.1% drop in comparable sales in the fiscal months of November and December combined, which included e-commerce and stores open for at least one year, a huge disappointment for a company who implemented several new turnaround initiatives. These consisted of launching a mobile app, selling the Apple Watch, a bigger push in athleisure, and using its stores to fill online shopping orders.
The company had already seen its comps fall 2.8% in the first three quarters of the year, and as a result, Kohl’s has slashed its full year fiscal 2016 earnings guidance from $3.12 to $3.32 per share to $2.92 to $2.97 per share.
Like Kohl’s, Macy’s also reported a 2.1% drop in comparable sales for November and December, prompting the retailer to slash its full year profit forecast as well. The department store now expects its profit for the fiscal year ending at the end of this month to be $2.95 to $3.10 per share, well below its previous forecast of $3.15 to $3.40 per share.
But Macy’s has gone one step further: it is closing 63 stores this spring, eliminating 10,000 jobs in the process. Of the total jobs being cut, 3,900 jobs will be at stores being shut down as part of a plan announced last August top close 100 of its 730 namesake stores. An additional 6,200 jobs will be eliminated due to streamlining and cutting costs, as Macy’s turns its focus towards its online business; digital sales increased by a double-digit percentage over the holiday season.
Other retailers and department stores are feeling the somber holiday pressure today. In midday trading, JCPenney Inc. is down 6.73%, Nordstrom Inc. (JWN - Free Report) is down 8.87%, Dillard’s Inc. (DDS - Free Report) is down 11.11%, and even Target Corp. (TGT - Free Report) is feeling the effect, down 2.43%.
Long-Term Buys You Won't See in the News
The stocks you see in today's headlines may not be in the news tomorrow, or even next week. If you're looking for profitable long-term investments, you may be interested to see what Zack Research is recommending to our private members. These moves have double and triple-digit profit potential. Starting now, you can look inside our stocks under $10, home run and value stock portfolios, plus more. Want a peek at this exclusive information? Click here>>