Macy's (M) Disappoints With Holiday Numbers, So Do JCP & KSS
Zacks Investment Research | Jan 10, 2019 08:51PM ET
Shares of Macy’s, Inc. (NYSE:M) nosedived 17.7% on Jan 10 as the retailer disappointed investors with its holiday sales numbers that compelled management to trim full-year sales and earnings projection. Well this Cincinnati-based department store operator was not the only one that witnessed a lackluster performance, Kohl's Corporation (NYSE:KSS) and J. C. Penney (NYSE:JCP) also met with similar fate.
Industry experts pointed out that even a robust consumer environment on account of strong job picture, higher disposable income and improved consumer confidence, did not work in favor of these retailers. We noticed that shares of Kohl's and J. C. Penney were down 4.8% and 4.5%, respectively, yesterday. Analysts stated that stiff competition from e-commerce players such as Amazon (NASDAQ:AMZN) and a constant struggle to cope up with rapidly changing consumer trends might have taken a toll on the performance.
Macy’s Numbers Dampened Investors’ Fervor
Despite taking a slew of measures such as Backstage, Vendor Direct, Store Pickup, Loyalty Program and Growth50 stores, Macy’s posted weaker-than-expected sales figures for the festive season. Comparable sales on an owned plus licensed basis increased 1.1% during November and December period combined, while on an owned basis, comparable sales inched up 0.7%. However, digital business of this Zacks Rank #2 (Buy) company remained robust and recorded double-digit growth. You can see Original post
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