Macy's Posts a Solid Profit Despite Weak Sales; Kohl's Does the Reverse
Few investors have high hopes for department stores right now. Companies across the sector have been losing business to off-price retailers as well as Amazon.com. As a result, department store stocks have plunged in the past couple of years.
With this backdrop, Macy's (NYSE: M) and Kohl's (NYSE: KSS) released their third-quarter earnings reports on Thursday morning. Both companies posted mixed results. Macy's reported another disappointing sales performance, but it still managed to deliver a modest earnings beat. Meanwhile, Kohl's posted surprisingly strong sales but missed earnings estimates.
At the company's investor day back in June, Macy's management indicated that sales would probably be stronger during the second half of fiscal 2017 than in the first half of the year. That did not play out in the third quarter, though. Total sales declined 6.1% year over year, while comp sales fell by 3.6%. This was exactly in line with Macy's first-half performance.
Source: Fool.com
Kohl's Corp. Stock
Our community is currently high on Kohl's Corp. with 6 Buy predictions and 3 Sell predictions.
With a target price of 21 € there is a slightly positive potential of 1.45% for Kohl's Corp. compared to the current price of 20.7 €.
