Department Stores Rise After Analyst Sees Improving Salesby
Department-store companies including Sears Holdings Corp., J.C. Penney Co. and Macy’s Inc. rose in New York trading after an analyst at Cleveland Research said he saw sales trends at Kohl’s Corp. improving.
Warmer weather helped same-store sales improve by a “decent amount” in late May and early June, analyst Matthew Delly said Wednesday in a note. While Cleveland Research is cautious on Kohl’s for the long term, the brightening trends could help Kohl’s meet analysts’ consensus projections for the current quarter.
Kohl’s, based in Menomonee Falls, Wisconsin, rose as much as 4.6 percent to $36.08 after the report. Sears advanced as much as 14 percent to $13.92, while J.C. Penney climbed 7.9 percent to $8.65, and Macy’s gained 4.9 percent to $32.83.
Any rebound in sales would be particularly welcome in a sector that’s been battered this year by shoppers’ shift away from spending on clothing and other department-store staples. Nordstrom Inc. cut its annual forecast last month, while Macy’s and Kohl’s also had results that trailed expectations.
PVH Chief Executive Officer Emanuel Chirico said Wednesday in a presentation to investors that business at department stores has gotten “slightly better.”