Impacted by sales shortfalls, several department stores reported second-quarter results that missed plan.
Macy’s earnings slid 25.7 percent to $217 million, or 64 cents per share, missing Wall Street’s consensus estimate of 76 cents a share. Revenue fell 2.6 percent to $6.1 billion, hurt by weak tourist spending and West Coast port delays hurt operations.
“We are disappointed in our second-quarter results, which were impacted by a variety of factors,” said Macy's CEO Terry Lundgren. “We expect an improvement in trend beginning in the second half of 2015 based on a range of promising new strategic initiatives.”
Macy's reaffirmed its profit outlook for the year, thanks to its windfall from a Brooklyn real estate deal, but lowered its sales guidance. The retailer predicted total annual sales are expected to dip 1 percent instead of climb 1 percent.
Kohl's Corp reported lower-than-expected quarterly same-store sales as consumers delayed back-to-school shopping due to a shift in tax holidays to August. Same-store sales rose only 0.1 percent.
Kohl's net income fell 44 percent to $130 million, or 66 cents per share. Excluding items due to debt refinancing, it earned $1.07 per share, missing analysts' average estimate of $1.16 per share. Net sales rose 0.6 percent to $4.27 billion, but was below the average analyst estimate of $4.31 billion.
“Our sales results were below our plan as the shift of sales in tax-free states from July into August was larger than anticipated,” Kohl's CEO Kevin Mansell said.
Excluding the impact of debt extinguishment, Kohl's now expects 2015 earnings to be at the low end of its forecast range of $4.40-$4.60 per share.
J.C. Penney Co. narrowed its quarterly loss to $138 million from $172 million. Sales grew 2.9 percent to $2.88 billion. Same-store sales increased 4.1 percent, helped by double-digit sales gains at Sephora shops in Penney stores, as well as strong performance in the men’s, home and fine jewelry categories.
“When we execute well, we can deliver profitable sales and take market share,” newly installed CEO Marvin Ellison said on a conference call.
For the year, Penney now forecasts earnings before interest, taxes, depreciation and amortization of $620 million, compared with its previous expectation of $600 million.
Nordstrom reported second-quarter earnings rose 15.3 percent to $211 million, or $1.09 a share, exceeding Wall Street’s consensus estimate of 90 cents. Sales increased 9.2 percent, marking the fourth consecutive quarter of high-single-digit growth.
Nordstrom comparable sales, which consist of the full-line and Nordstrom.com businesses, increased 4.8 percent. Top-performing merchandise categories included cosmetics and women's apparel.
Nordstrom is seeing improved sales of younger women’s apparel after the retailer brought in brands like Topshop and J.Crew’s Madewell. To target more price-conscious shoppers, Nordstrom is expanding its chain of outlets and experimenting with online platforms like flash-sale site HauteLook and a clothing service called Trunk Club.
Earnings will be $3.85 to $3.95 a share this fiscal year, Nordstrom said. That’s up from the retailer’s previous estimate of as much as $3.80 a share, and tops analysts’ $3.75 average estimate.
Dillard’s reported earnings slid 13.3 percent in the second quarter to $29.9 million, or 75 cents a share, but still came ahead of Wall Street’s consensus estimate of 72 cents a share. Sales rose to $1.51 billion, from $1.47 billion, a year earlier. Comps were up 1.0 percent. Sales were notably strong in shoes followed by juniors’ and children’s apparel, but were weak in home and furnishing.
“While we achieved positive comparable sales, we were disappointed with our overall performance compared with the prior year,” said Dillard’s CEO William T. Dillard II.
Stage Stores Inc. reported net income in the second quarter tumbled to $1.6 million, or 5 cents a share, from $11.2 million, or 35 cents, a year ago. Sales increased 0.9 percent to $380.9 million and comparable sales gained 0.8 percent. It also launched a multi-year plan to close approximately 90 underperforming stores, representing 4 percent of total sales.
Said Michael Glazer, President and CEO, “We were challenged by the impact of a weaker peso and economic softness in parts of Texas, Louisiana, Oklahoma, and New Mexico. Our earnings decline over the prior year was driven by a decrease in merchandise margin as we accelerated markdowns on seasonal categories. On a comparable store basis, our quarter ending inventory, excluding cosmetics, was down by 2 percent.”
