Who needs physical stores when we have Amazon and voice automated Echo devices to assist us with our shopping needs? In the after hours, both $KSS and $M warned and lowered guidance — sending shares CRASHING lower — because no one visits shopping malls anymore.
Kohl’s lowers FY17 EPS guidance below consensus; co cites lower than expected gross margins due to the mix and timing of the sales and the competitive promotional environment; Nov-Dec comps -2.1%
Co issues lowered guidance for FY17 (Jan), sees EPS of $3.60-3.65 from $3.80-4.00 vs. $3.93 Capital IQ Consensus Estimate.
Co reported that its comparable sales decreased 2.1 percent in the fiscal months of November and December 2016 combined, compared with the prior year period. Total sales for the combined fiscal November and December period decreased 2.7 percent.“Sales were volatile throughout the holiday season. Strong sales on Black Friday and during the week before Christmas were offset by softness in early November and December.” From a line of business perspective, Men’s, Home and Footwear were the strongest categories while Accessories was the most challenging.
The change in guidance is primarily a result of lower than planned sales for the quarter. Gross margin is projected to be lower than plan due to the mix and timing of the sales and the competitive promotional environment. SG&A expenses are projected to be as planned. Inventories per store at the end of the fourth quarter are projected to decrease from prior year levels in the mid-to-high single digit range.
Comparable sales on an owned plus licensed basis declined by 2.1% in the months of November and December 2016 combined, compared to the same period last year. On an owned basis, comparable sales declined by 2.7 percent in the combined November/December period.
“While our sales trend is consistent with the lower end of our guidance, we had anticipated sales would be stronger. We believe that our performance during the holiday season reflects the broader challenges facing much of the retail industry. We are pleased with the performance of our digital business, with double-digit gains at both macys.com and bloomingdales.com; however, store sales continued to be impacted by changing customer behavior. Our apparel business, which includes women’s, men’s and children’s, performed well, with particular strength in active and cold-weather merchandise. Sales were also strong in fine jewelry, as well as furniture and bedding, reflecting the success of our initiatives in those categories. However, ongoing weakness in handbags and watches negatively impacted our results.”
Macy’s maintains its previously provided full-year sales guidance of a 2.5-3.0% decrease in comparable sales on an owned plus licensed basis, and expects to come in at the lower end of that guidance, with comparable sales on an owned basis to be ~50 basis points lower.
Lowers FY17 adj. EPS to $2.95 to $3.10 (compared with previous guidance of $3.15 to $3.40) vs. $3.28 consensus.
Look for the entire retail sector to get lit up tomorrow. But it won’t matter all that much for the overall health and integrity of markets. We have gains to achieve and milestones to reach.
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LULU.
DIE M
DIE XRT
DIE C R E
Once AMZN perfects the AI Girlfriend, I’m telling you.. jewelry sales are done for! No more flowers, no cuddle time, no watching Gilmore Girls… no “her friends” or “her mom”… it’s gonna be a totally new Echo experience.
LOL, don’t bet the farm on that happening. But AMZN does seem to sell a lot of everything else.
No more Gilmore gilrs — oh yeah that would work
As for the AI we already almost have it , a gatebox, what more could a man wish for
https://www.youtube.com/watch?v=kcCHYLIRayk
Fly, physical stores might work in the same way going to a real theater to experience a a film recently worked for you. An interesting, engaging and sometimes entertaining outing away from home, not available from the UPS or FedEx truck or via the Internet.
At this point I think the average mall is way too cheesy and predictable for those who are not bored or dim-witted.
Macy’s in 34th st. in NYC was packed when I was there at Christmas time. There was a line of kids a half mile long to see Santa at $28 a pop.
The old escalators were cool as was the wooden doors on the stalls in the men’s bathroom.
But did they buy anything? Wait, it costs $28 to see Santa? Sheesh.
Macy’s is cashing in on the Miracle on 34th St. movies.
They had these big letters all over the place “Believe”.
Went into a Macy’s late December and they were almost literally giving it away. Same overcoat they were selling for $500 a month ago, I picked up for $180. Stock is a buy because buying stocks is in.
Ye gods, that closeup scared the shit out of me.