Dive Brief:
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Discount department store Kohl’s Wednesday reported Q3 net sales and profit that beat expectations and helped assuage general fears about the retail holiday season.
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Analysts had become alarmed at Macy’s Q3 report the same day, in which Q3 same-store sales missed estimates and sparked fears about retail inventories as holiday sales loom.
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Kohl’s Q3 same-store sales rose 1% despite weak September sales, buoyed in large part by a good back-to-school season.
Dive Insight:
Wall Street rewarded Kohl’s Wednesday after beating up Macy’s over its disappointing report. The mixed Q3 results show how vulnerable retail sales are to setbacks like the disruptions at West Coast ports, which led to work slowdowns and inventory buildups that are just now getting worked through some 10 months after a labor agreement was reached.
Kohl’s in particular has been working hard at a turnover that has stubbornly failed to materialize, despite its efforts to boost omnichannel initiatives like in-store pick-up and same-day delivery.
CEO Kevin Mansell said last month that the efforts are long term — and barely started — and that there are plenty of areas in the U.S. underserved by the company.
Kohl’s is opening 10 to 15 new Fila apparel and footwear stores in outlet malls, and boosting its apparel for women in an effort to become a destination for them to shop for themselves and not just for their children or their home.
The retailer is also planning to expand its use of data analytics to guide its merchandising and marketing efforts.