|Bid||0.00 x 0|
|Ask||0.00 x 0|
|Day's Range||3.87 - 4.02|
|52 Week Range||2.35 - 7.42|
|PE Ratio (TTM)||N/A|
|Earnings Date||Mar 2, 2018|
|Forward Dividend & Yield||0.00 (0.00%)|
|1y Target Est||3.89|
A slew of department stores and big-box retailers have reported better-than-expected holiday season results. Will that translate to stronger profitability?
Retail trends improved dramatically during the holiday months compared to the rest of 2017, lifting many department stores out of their recent sales funk.
Promising holiday sales numbers have not only helped the industry rally 13.5% in a month but also outperformed the S&P 500's growth of 3.5%.
While it was a successful holiday season for the retail sector, the bullish rally could be short lived.
JCPenney (JCP) stock is rated as a “hold” by most of the analysts covering the mid-tier department store. On January 4, Jefferies raised its target price for JCPenney stock to $4.00 from $3.00. On January 5, BMO Capital raised its target price to $3.75 from $3.25.
The retailer just reported another dreadful sales decline for the November-December period -- and hardly any of its cost reductions are falling through to the bottom line.
Target’s (TGT) sales for the key holiday season exceeded expectations. It reported a 3.4% rise in comparable-store sales (or comps) for the combined November-December 2017 period compared to its earlier estimate of 0%–2% growth. Target’s sales remained positive across all its core product categories, including Apparel, Home, Food & Beverage, Essentials, and Hardlines.
After its strong performance in the 2017 holiday season, Kohl’s (KSS) upgraded its fiscal 2017 earnings guidance on January 8. Analysts now expect Kohl’s adjusted EPS (earnings per share) to rise 7.6% to $1.55 in fiscal 4Q17. Previously, analysts had expected Kohl’s adjusted EPS to come in at $1.48 in fiscal 4Q17.
Kohl’s (KSS) impressive same-store sales growth of 6.9% during the 2017 holiday season was better than the growth rates of Macy’s (M) and JCPenney (JCP). On January 4, Macy’s and JCPenney reported same-store sales growth of 1.0% and 3.4%, respectively, for the 2017 holiday season.
Target (TGT) became the latest to join the bandwagon of retailers who witnessed strong holiday season sales. The solid holiday numbers allowed management to lift the view.
JCPenney (JCP) reported strong same-store sales growth of 3.4% in the 2017 holiday season—the nine-week period ending December 30, 2017. JCPenney attributed its sales growth during the holiday season to the performance of its home, beauty, and fine jewelry categories. The company’s online sales grew by double-digits during the 2017 holiday season.
Last week, retail stocks benefited after Citigroup and Nomura expressed an optimistic view regarding the companies. A Reuters report last week stated that Citigroup analyst Paul Lejuez mentioned that retail stocks will likely benefit from the tax reform with a boost in free cash flow. On January 2, Citigroup raised the target price for Ross Stores (ROST) to $85 from $72.
J. C. Penney (JCP) could be an interesting play for investors as it is seeing solid activity on the earnings estimate revision in addition to having decent short-term momentum.
On January 8, Kohl’s (KSS) stock rose 4.7% to $56.90 in reaction to the news of impressive holiday sales. Kohl’s same-store sales rose 6.9% in the 2017 holiday season, which consists of November and December. Kohl’s also raised its earnings guidance for fiscal 2017 after these strong holiday numbers.
Nordstrom said its net sales climbed 2.5 percent, while same-store sales rose 1.2 percent during November and December.