|Bid||37.07 x 2200|
|Ask||37.09 x 1000|
|Day's Range||36.88 - 37.75|
|52 Week Range||25.01 - 48.87|
|Beta (5Y Monthly)||0.68|
|PE Ratio (TTM)||10.65|
|Earnings Date||Mar 02, 2020|
|Forward Dividend & Yield||1.48 (4.02%)|
|Ex-Dividend Date||Nov 26, 2019|
|1y Target Est||37.89|
Nordstrom's (JWN) fourth-quarter fiscal 2019 results are likely to reflect gains from its efforts to enhance store base and e-commerce platform. However, higher costs remain deterrents.
Despite the recent woes of retailers in downtown Seattle, physical stores aren’t going away anytime soon. Online sellers such as Amazon and Blue Nile are moving in.
Macy's earnings beat views, weeks after the struggling department store chain announced more store closures. Macy's guided low on EPS. Shares fell.
Nordstrom (JWN) doesn't possess the right combination of the two key ingredients for a likely earnings beat in its upcoming report. Get prepared with the key expectations.
A flurry of traditionally brick-and-mortar retailers are scheduled to release their financial results this week and next, as the fourth-quarter earnings season comes to a close.While Macy's Inc. and J.C. Penney Company Inc. are expected to post their quarterly reports on Tuesday and Thursday, respectively, investors will also keep a close eye on Kohl's Corp., whose results are due out next Tuesday, as well as Nordstrom Inc.'s numbers, to be delivered next Wednesday.Shifting consumer demands and increasing competition from e-commerce giants continue to put pressure on major chains — many of which have faced slower foot traffic and resorted to widespread store closures. Further, the deadly coronavirus outbreak has brought about uncertainty in retail's foreseeable future, while a number of big-name players continue to feel the effects of a mixed or disappointing holiday shopping season as they lose out to off-price and discount merchants."Larger picture, the narrative remains consistent," JPMorgan analyst Matthew Boss explained in a distribution note on Monday. "The consumer [is] on solid footing, [and there is] a clear bifurcation between winners and losers across the retail sector — off-price, discount [and] athletic [are] greater than department stores [and] mall-based specialty."Other analysts, including Morgan Stanley's Kimberly Greenberger, were more positive on the kickoff to the fiscal year. "Our store checks also suggest leaner inventory coming out of 2019 — a signal that department stores have worked through a portion of overhang and a positive for first-half 2020 merchandise margin," she said in a note released Thursday. "While we don't see potential for a complete turnaround, weather and traffic tailwinds could help offset ongoing sales deterioration for a few months."Here, what to expect from the retailers logging earnings results this week. Macy'sAs it embarks on its ambitious turnaround plan, Macy's has faced analysts' skepticism. This month, both S&P Global Ratings and Fitch Ratings lowered the retailer's long- and short-term issuer credit ratings. "While we believe management’s strategic plan is a necessary step toward rightsizing the enterprise, it demonstrates to us that the company's competitive advantage has diminished more than we expected, and to a point that we no longer believe is consistent with an investment-grade rating," S&P wrote in its research note.S&P's downgrade came two weeks after Macy's outlined on its investor day a three-year turnaround plan that included trimming 125 stores from its total footprint, cutting 2,000 jobs — or about 9% of its corporate workforce — and ramping up investments in both higher-margin private labels and off-price through Macy's Backstage. The retailer will also shutter its Cincinnati headquarters and San Francisco tech office, relocating some of these jobs to its new home base of New York City. Macy's said it expects these moves to save the company $1.5 billion annually by the end of fiscal 2022."Over the past three years, we have shown we can grow the top line; however, we have significant work to do to improve the bottom line," chairman and CEO Jeff Gennette said in a statement on Feb. 4. "We are confident the strategy we are announcing today will allow us to stabilize margin in 2020 and set the foundation for sustainable, profitable growth."Q3 performance: In its third-quarter earnings report ended Nov. 2, the company logged its first same-store sales decline in two years and slashed its guidance for the full year. Macy's execs blamed the disappointing results on the warmer fall season, coupled with slowing foot traffic, amid a broader shift from brick-and-mortar to online retail.Earnings and revenue estimates: Analysts are betting on earnings of $1.96 per share and $8.32 billion in revenues. NordstromJust last week, Nordstrom was ranked among the "most vulnerable" publicly traded retailers in America. The S&P Global Market Intelligence, which released on Wednesday its monthly retail outlook report, analyzed retailers' one-year and two-year probability of default on loans, or the likelihood that the companies will not be able to make its scheduled repayments on time.However, amid a rapidly changing retail landscape characterized by widespread store closures and the rise of e-commerce, Nordstrom has arguably managed to stay ahead of many of its competitors. The Seattle-based retailer has often been lauded for its innovative concepts and omnichannel savvy, including its pioneering of the "buy online, pick up in store" service, revamped loyalty program and experiential store offerings.What's more, in the past couple years, Nordstrom has invested more resources into BOPIS and curbside pickup, opened small-format stores. However, it has also expanded its brick-and-mortar footprint — a selling channel that, in the past few years, has been struggling to cope with the shift to e-commerce — with the October launch of its 320,000-square-foot women's flagship in New York City.Q3 performance: Nordstrom offered a glimmer of hope for a battered retail sector when it reported on Nov. 21 earnings that bested Wall Street's forecasts and revenues that met consensus bets. The retailer noted improvements in its loyalty program, digital marketing efforts and merchandise assortment as well as touted its anniversary shopping event and off-price business.Earnings and revenue estimates: Estimates put Nordstrom's earnings at $1.47 per share and revenues at $4.56 billion. Kohl'sAmid sluggish sales, Kohl's has made the decision two weeks ago to lay off 250 workers, including a number of regional store leaders and members of its merchant organization. The chain also announced changes to other positions in its corporate offices as part of its broader restructuring. (The firm said it would offer severance packages and outplacement services to the employees affected and will not be closing stores or offices.)Despite the launch of niche labels and a high-profile partnership with Amazon, Kohl's turnaround plan has yet to yield the anticipated results. Since she stepped into the top role in May 2018, CEO Michelle Gass has made it a top priority to win over millennial and Gen Z consumers. The chief has put an emphasis on growing the retailer's digital sales, which increased at a mid-teens rate in the third quarter. Mobile served as the primary source of gains, with a particularly solid performance from the Kohl's app. (The app nearly doubled in traffic growth and tripled in sales growth.)"I think it's absolutely critical for us to protect, preserve and grow the core customer base while we complement with this newer and arguably younger customer for the future," Gass said in Kohl's third-quarter conference call. "We have to do both."Q3 performance: For the period ended Nov. 2, Kohl's recorded a mixed quarter with profits that missed forecasts and revenues that topped expectations. The company cited the heightened promotional environment in Q3 coupled with a decline in its women's category as well as higher costs related to a significant number of brand launches, early holiday hiring and the Amazon Returns program.Earnings and revenue estimates: Analysts anticipate earnings per share of $1.88 and revenues of $6.52 billion. JCPenneyLike Nordstrom, JCPenney made the S&P Global Market Intelligence's "most vulnerable" publicly traded retailers list last week. It was also among the retailers to announce store closures amid turnaround efforts. The Plano, Texas-based firm, which is currently undergoing "a careful and ongoing review of our store portfolio," seeks to return to profitability following consecutive quarters of earnings losses. (JCPenney hasn't logged a sales gain since the 2017 holiday season.)Since taking the helm in October 2017, CEO Jill Soltau has shut down underperforming stores and hired new talent to revive the business. JCPenney also hired debt restructuring advisers in mid-July as part of its turnaround plan. It also announced a partnership with ThredUp in August, arranging for 30 of its stores to offer a selection of the online consignment firm's secondhand apparel and accessories."As I've said, we are not simply running a business, we are rebuilding a business, and it will take time," Soltau said during the company's Q3 earnings conference call.Q3 performance: A narrower-than-expected third-quarter loss and upgraded full-year outlook reported on Nov. 2 lifted JCPenney's stock into the green. It signaled hope for the chain, which had struggled for multiple quarters with declining sales, leadership changes and digital competition that spooked investors and pushed its stock below $1 — putting it at risk of delisting from the New York Stock Exchange.Earnings and revenue estimates: Wall Street is forecasting a loss of $0.06 with revenues of $3.44 billion.Want more?Consumers Are Spending More — Just Not at Clothing StoresIs All Hope Lost for Department Stores? Why Moody's Says the Prospects Are 'Bleak'If Holiday Sales Were Strong, Why Are So Many Retailers Reporting Sluggish Revenues?More from Footwear News * Why S&P Says Nordstrom and JCPenney Are 'Vulnerable Retailers' * Analysts Lost Faith in Macy's Before It Even Started Its Turnaround Plan * From Nordstrom to Gucci, Why So Many Brands Are Turning to Temporary Retail Right Now
Macy’s has struggled to compete vs. Amazon and off-price retailers. Do a strong economic backdrop and cheap valuation make Macy’s stock a buy?
• Low-cost, passively managed index funds with relatively low turnover (hence lower taxes) should be among an investor’s best friends. • Investors should aim for achieving the returns of the entire stock market. • A few low-cost mutual funds can give investors most if not all of what they need.
Nordstrom veteran Paige Thomas has been named president of off-price retailer Saks Off 5th, the discount arm of luxury department store Saks Fifth Avenue. Thomas was executive vice president and general merchandising manager for Nordstrom, Inc.’s (NYSE: JWN) off-price division for five years, driving the growth of Nordstrom Rack and launching its e-commerce site, including its integration with HauteLook, as well as overseeing the opening of more than 100 stores. Thomas will report to Helena Foulkes, CEO of Saks Off 5th’s parent company, Hudson Bay Company.
(Bloomberg Opinion) -- Nordstrom Inc.’s seven-story New York flagship at Broadway and 57th Street is home to a velvet-lined Nike boutique, a facial massage studio, a martini bar in the heart of the shoe floor and lots of expensive new merchandise. That’s how it’s always been at Nordstrom. But last month brought something new with the opening of See You Tomorrow, a luxury apparel resale boutique inside the flagship. Shoppers will find returned and damaged goods sourced from other Nordstrom stores and — because it’s a resale shop — they’re welcome to sell their own high-end apparel for store credit.Nordstrom isn’t the first department store to try resale. In 2019, Macy’s Inc. and J.C.Penney Co. Inc. preceded Nordstrom into the business, lured by younger shoppers concerned with the environmental footprint of their consumption. But long term, resale’s biggest impact on retailing won’t be the growing sections of department stores devoted to used clothes. The most profound shift will be if manufacturers are compelled to make better quality, more durable clothes that consumers perceive as having value in the secondhand economy.Consumers have complained about the declining quality and durability of clothing for decades. But the complaints became louder and more serious as (primarily) Asian manufacturers became adept at quickly meeting consumer demand for low-cost versions of the latest trends. To do so, the manufacturers skimp on quality. For example, they’ll reduce thread counts, making garments more flimsy and less likely to survive multiple wears and washes. Those low-quality garments have no market in resale shops or on resale apps. And the stuff that can’t be resold or recycled is growing faster than the stuff that can. Between 2003 and 2017, the amount of apparel sold globally nearly doubled, while the number of times a garment was worn dropped by more than a third. All that unworn and ultimately unwanted apparel piles up: In 2017, 14.3 million tons of textiles were landfilled or incinerated in the U.S. — a 623% increase over 1970.These facts are increasingly well-known to American consumers, many of whom say they want to buy purpose-driven, sustainable brands. According to ThredUp Inc., a major online fashion resale platform and the primary source for the resale industry’s data, 59% of consumers expect retailers to create clothes ethically and sustainably. It’s impossible to objectively judge how many retailers meet that expectation. More likely than not, it’s a small number and they charge premium prices. So, in the absence of certainty and a willingness to spend, increasing numbers of consumers are opting for a secondhand retail experience. According to ThredUp’s data, the secondhand apparel market — everything from thrift stores to Nordstrom to ThredUp itself — more than doubled between 2012 and 2018, to $24 billion, and should exceed the fast fashion market by 2028. That expansion is being driven across demographics, but especially among those 18-24, 37% of whom said they would buy secondhand in 2019.However, all of this growth is theoretically constrained by two supply bottlenecks. First, consumers need incentives to sell stuff from their own closets. Second, there needs to be enough decent apparel worth selling to keep the market going. The first problem has largely been solved by online platforms like ThredUp and PoshMark Inc., which enable selling (and buying) through intuitive apps.Historically, the second question has been solved by the market. For example, the resale value of a new car is such a crucial consideration for buyers that automakers advertise how well their models retain it — and manufacture accordingly. Today, 40% of consumers say, according to the ThredUp report, that they incorporate resale value into their purchasing decisions beyond just cars, to include items like furniture to apparel. That’s a major shift in consumer behavior.Last year, Ikea announced a rental program that — among other benefits — is giving the cheap flat-pack furniture maker insights into wear and tear. It’s incorporating that information back into its designs, so items can be sold or rented, over and over again. Similarly, clothing rental juggernaut Rent the Runway Inc. shares its data with designers so that they can learn from it. One fashion label executive summarized the findings as: “How many times do our dresses get dry-cleaned and still come back as new?” The answer won’t only affect Rent the Runway. Last month, Nordstrom announced that it would begin selling garments pulled from Rent the Runway circulation at its discount Nordstrom Rack stores. Presumably, they’ll be able to last a few more dry cleans.Of course, shoppers at Nordstrom’s New York flagship can take resale value for granted. But the mere fact that Nordstrom is offering the option to sell back apparel in the same store from which it was purchased marks a profound shift in how consumers, retailers and manufacturers will perceive shopping and ownership. In coming years, that shift should result in better quality stuff for everyone.To contact the author of this story: Adam Minter at firstname.lastname@example.orgTo contact the editor responsible for this story: Stacey Shick at email@example.comThis column does not necessarily reflect the opinion of Bloomberg LP and its owners.Adam Minter is a Bloomberg Opinion columnist. He is the author of “Junkyard Planet: Travels in the Billion-Dollar Trash Trade” and the forthcoming "Secondhand: Travels in the New Global Garage Sale."For more articles like this, please visit us at bloomberg.com/opinionSubscribe now to stay ahead with the most trusted business news source.©2020 Bloomberg L.P.
Saks Fifth Avenue owner Hudson's Bay Co on Monday named a president to lead its off-price business, known as Saks Off 5th, the latest example of a department store chain trying to bolster its outlet stores. Until now, the discount apparel unit Off 5th was run by the president of the main Saks Fifth Avenue chain. "We've had mostly department store people running the business," Hudson's Bay Co (HBC) Chief Executive Officer Helena Foulkes told Reuters.
The next couple weeks could help tell the tale as major big box stores prepare to report earnings. Despite that, the National Retail Federation said holiday sales outpaced its own forecast, rising 4.1% from the same period a year earlier to $730.2 billion. “These numbers validate continued optimism for increased investment and opportunity in the retail industry,” NRF Chief Executive Matthew Shay said.
Macy’s announced it would close 125 stores over the next three years, a good start to a turnaround but experts say there’s much more to do.
(Bloomberg Opinion) -- With the traditional department store in its death throes, Macy’s Inc. is doing its best to keep the concept alive.The struggling retailer late Tuesday unveiled a strategic blueprint to defend its business against the twin threats of online and discount competitors. The centerpiece is closing 125 of its department stores — almost a quarter of the total — over the next three years, including some 30 locations it previously targeted for shuttering last month. These are the so-called “neighborhood stores,” leftovers that Macy’s was reluctant to close sooner. It should have, but at least it’s getting to grips with it now.Alongside the closures, Macy’s is also cutting about 2,000 corporate jobs, and shutting offices in San Francisco and Cincinnati, in an effort to save $1.5 billion a year by the end of 2022.But no one ever cut their way to growth.While taking an ax to the store estate was badly needed — and with department stores under so much pressure, costs probably needed to be reined in, too — Macy’s must ensure that what is left of its estate is compelling. Having the right products, at prices that customers are prepared to pay, and in settings that appeal, is crucial.In that regard, the decision to accelerate store renovations is encouraging. Since 2018, about 150 locations have been given a face-lift. A further 100 will be rejuvenated this year, with around 400 stores refurbished by the end of 2022.Plans to invest in building four $1 billion “power” private-label brands are also welcome. These not only offer merchandise that can’t be found elsewhere, giving customers a reason to visit stores, but exclusive items are more difficult to compare with products available in other stores or online, such as at Amazon.com Inc. That should help Macy’s wean itself off of its discounting, something that is also badly needed if the strategy is to work.New store concept Market by Macy’s also has potential. This paves the way for smaller units, in local shopping centers. At the same time, the group will also keep expanding its off-price locations.To really make a difference, these initiatives must be put into practice effectively. Transforming private-label offerings into brands with a personality and value in their own right is notoriously difficult. And the Market stores can’t just be mini-Macy’s. They must have the sorts of products that will appeal to customers, particularly younger ones, as well as plenty of experiences to brighten the shopping trip. The stores also must serve as hubs for collecting and returning online orders. At least Macy’s will have the cost savings — and proceeds from monetizing its real estate, for example, developing above stores or on car parks — to invest in these concepts.Some of the group’s efforts are already paying off. The 150 store refurbishments, for example, helped the Macy’s deliver better-than-expected holidays sales.But it’s not clear that even this latest overhaul — which also includes enhancing Macy’s loyalty program and staying focused on digital — will be enough to contend with Amazon, which goes from strength to strength. Target Corp., meanwhile, is already a private label powerhouse, and Nordstrom Inc. is further down the line with small-format stores.Indeed, it looks like Macy’s is trying to emulate elements of both Target’s and Nordstrom’s strategies when coming up with its own. It deserves credit for tackling the plethora of challenges it faces, and not just allowing itself to become retail apocalypse roadkill. But to really ensure it has a future, it needs to lead, not just follow. To contact the author of this story: Andrea Felsted at firstname.lastname@example.orgTo contact the editor responsible for this story: Beth Williams at email@example.comThis column does not necessarily reflect the opinion of Bloomberg LP and its owners.Andrea Felsted is a Bloomberg Opinion columnist covering the consumer and retail industries. She previously worked at the Financial Times.For more articles like this, please visit us at bloomberg.com/opinionSubscribe now to stay ahead with the most trusted business news source.©2020 Bloomberg L.P.
Skechers' (SKX) focus on new lines of products, cost-containment efforts, inventory management and global distribution platform is likely to show on fourth-quarter performance.
Unfavorable currency movements, soft margins and weakness in Kate Spade brand are likely to have impacted Tapestry's (TPR) Q2 results. Management expects high-single-digit decline in Kate Spade comps.
Experts say there should be a discussion about metrics besides same-store sales now that so much shopping is done online.
Nordstrom (JWN) has an impressive earnings surprise history and currently possesses the right combination of the two key ingredients for a likely beat in its next quarterly report.
Capri Holdings (CPRI) expects low single digit increase in comparable store sales but lower operating margin at Michael Kors in the third quarter.
The Seattle-based apparel company replaces former chief accounting officer Kelley Hall, who resigned last year to join REI.