APRIL RETAIL SALES REBOUND. WILL RETAILER STOCKS RECOVER?

Wall Street analysts are calling last week “Retail Wreck” due to numerous retailers’ news of poor sales, profits and future outlook on consumer spending. April retail sales came in higher than expected with a positive 1.3% gain, the highest gain in a year. Will strong sales in the first month of the second quarter help with a stock rebound for retailers?

Last week’s poor results were reported by many retailers, including Macy’s, Kohl’s and Nordstrom’s. Department stores are also responding to the strong online sales versus in-store that was reported, with online sales soaring 10.2% over last year. They are struggling with putting inventory in the right place to meet their increasingly complicated inventory and distribution demands.

Investors are waiting for home-improvement results this week from Home Depot, Lowe’s, Target and Wal-Mart to try to determine if the profit misses in the retail space is a problem just for department stores and apparel makers, or if it is a broader problem ahead for the consumer-driven US economy.

See the Accelerated Analytics’ blog from last week, reporting on the stock decreases across several retailers and apparel manufacturers: http://www.acceleratedanalytics.com/blog/2016/5/12/retail-stock-market-was-a-bear-yesterday-dropping-to-worst-l.html and continue to monitor our blog http://www.acceleratedanalytics.com/blog/ page this week as additional retailers report on Q1 results.

Sources: The Wall Street Journal, USA Today

Analysts Project Retailer Earnings Trends Before Announcemnets This Week

Dropping tourism numbers and consumers saving rather than spending money saved from lower gas prices will affect retailer earnings announcements, say industry analysts.

Several retailers will be making earnings announcements this week: Macy’s on Wednesday, Dillard’s, Kohl’s and Nordstrom on Thursday, and JC Penney on Friday. Analysts report that value retailers with loyalty programs like Kohl’s should report better results than others.

Although retailers saw a weak first two quarters of 2015, analysts are optimistic about the second half of the year looking better. In the apparel and general merchandise category, jewelry is doing well and cosmetics are doing extremely well.

Source: CNBC

KOHL’S, DILLARD’S AND NORDSTROM’S REPORT ON Q1 RESULTS – NORDSTROM REPORTS HIGH LOYALTY PROGRAM SUCCESS

Kohl’s, Dillard’s and Nordstrom’s released Q1 sales results yesterday, on the heels of announcements of Q1 losses from JC Penney and Macy’s.

Despite launching a loyalty program and expanding advertising, Kohl’s reported weak consumer spending, but did report a gain. Kohl’s reported a profit of $127 million, up slightly from $125 million a year earlier. Sales grew 1.3% to $4.2 billion. Kohl’s operated 1,164 stores this year versus 1,160 last year. Kevin Mansell, Kohl's chairman, chief executive officer and president, said: "Sales were modestly below our original expectations for the quarter, but accelerated in the March/April combined period after a weak February. We are very pleased with our earnings results, with a more balanced promotional calendar driving merchandise margin combined with strong expense control."

Dillard’s reported Q1 sales at $109.6 million compared to $111.7 million prior year. Same store sales decreased 1%. Net sales were $1.574 billion, up 1.5% from last year. Sales were strongest in junior’s and children’s apparel, followed by shoes and ladies’ apparel. Sales were weak in the home and furniture category. The company noted that sales in Texas were below company average for Q1. "We are disappointed with our first quarter performance. Our 1% sales decline hampered our ability to leverage operating expenses and to drive net income growth," said Chief Executive William Dillard. "Although inventory is higher than we would like, we believe the levels are manageable."

Nordstrom’s also reported a drop in earnings for Q1. It reported a profit of $128 million, down from $140 million a year ago. However, Nordstrom.com and NordstromRack.com had a combined 70% increase in sales. Net sales increased 9.8% and same store sale increased 4%. Nordstrom’s loyalty program contributed greatly to its results. Members shopped 3 times more frequently and spend 4 times more on average than non-members. With 4.4 million members, sales from members increased 11% in the first quarter and represented 38% of sales.

Source: Retailing Today

Kohl's Expands "Shop Online, Pick Up in Store" Concept to all of it's Stores

Based on overwhelmingly positive shopper response to its store pickup for online orders service, Kohl’s is rolling out the service to all of its 1,164 stores in the US. The service allows shoppers to pick up in store within hours of placing an order online.

Kohl’s piloted the service at more than 100 stores in 2014. While the service is currently available for consumers shopping from their desktops and laptops via Kohls.com, it will be rolled out to tablets and mobile phones later this year.

When customers shop online, they have the option to see if the specific item is available at their local store. Two email messages, one to confirm the purchase and the second to indicate the item is available for pick up, are sent. Customers can park in a designated spot and find their items waiting at the customer service desk or fine jewelry counter.

“At Kohl’s, we are committed to putting our customers first, and we know our customers and their families expect an easy shopping experience, regardless of how they choose to shop,” said Krista Berry, Kohl’s executive VP, chief digital officer. “With the rollout of Buy Online, Pick Up In Store to all Kohl’s stores, not only are we are providing our customers greater access to the amazing products they know and love from Kohl’s, shoppers are able to get their items even faster than ever before in the way that’s most convenient for them.”

Source: Retailing Today

Retailers Home Depot, Sears, Kohl's and JCPenney Among Winners of EPA Star Partner Awards

The US Environmental Protection Agency and Department of Energy will be hosting its annual Energy Star Partner of the Year awards in Washington, DC, on April 20. Of the approximately 16,000 companies who partner with the EPA on their broad-based energy efficiency program, 128 companies are being recognized as Energy Star Partners of the Year.

Retailers among the 128 winners include Home Depot, Sears, Best Buy, Kroger, Kohl’s, Food Lion, Staples and JC Penney. “Energy Star Partner of the Year Award winners are delivering advanced energy efficiency solutions that help American families and businesses save money by saving energy. Their efforts play an important role in protecting the environment by reducing greenhouse gas emissions, while also moving our nation closer to a clean energy future.” said Department of Energy Secretary Ernest Moniz. Adds EPA Administrator and event key note speaker Gina McCarthy, “Our Energy Star Partner of the Year award winners demonstrate that energy efficiency is a smart business decision that supports their bottom line, and helps their customers save money and energy.”

Source: Retailing Today

CONSUMER SATISFACTION WITH RETAIL IS ON A DECLINE

The American Consumer Satisfaction Index (ACSI) reports that consumer satisfaction with retail is on the decline for the first time in four years.

The ACSI report states brick-and-mortar customer satisfaction fell flat or weakened, while Internet retail is up from last year. By category, overall satisfaction with department and discount stores stayed flat at 77, while the gap between best- and worst-ranked companies grew. Nordstrom was the top rated, gaining 4% to 86. They are followed by Dillard’s (81), Kohl’s (-1% to 80) and Macy’s (79). Walmart dropped 4% to 68 and is at the bottom of the category behind Target (+4% to 80), Meijer (78) and Sears (-5% to 73).

Among home improvement chains, Lowe’s rated best at 81, while Home Depot falls to the category’s bottom dropping 4% to 76.

Amazon remains at the top of the Internet sector, at 86. Netflix improved for the third straight year gaining 3% to 81. Overstock and eBay both dropped to 77 and 79, respectively.

The ACSI is a national economic indicator of customer evaluations of the quality of products and services available to household consumers in the US. The ACSI uses data from 70,000 customers annually for measuring satisfaction with more than 230 companies in 47 industries.

Resource: Retailing Today

US Consumer Survey Unveils 2014 Favorite Retailers

PwC’s annual global consumer survey of about 1,000 US respondents list Amazon as most favorite retailer with 52% of the vote. Amazon was followed by Walmart with 41% and Target 29%.

These retailers were followed by several department stores. Kohl’s was rated the highest of the department stores with 14% of the vote. Other department stores in the top 10 included Macy’s and J.C. Penny.

Home Depot came in 10^th and was the only DIY retailer to make the list.

The top reason cited by consumers were “Their prices are good”, followed by retailers having the items shoppers want in stock.

The US pattern mirrors the global pattern in another PwC survey.

The survey also captured whether consumers are “showrooming”, or browsing at physical stores but then shopping online. 68% of respondents said they have done so. However, 73% of consumers do the opposite, or “webrooming”, browsing online and buying in stores. Their reasons included delivery fees, being able to touch the merchandise, and getting the merchandise immediately.

PwC: Price Waterhouse Coopers

Resource: MarketWatch

Impact of Strong U.S. Dollar for Domestic Retailers

A strengthening U.S. dollar works well for retailers who are almost exclusively selling in the U.S. and buying their product abroad. Jan Kniffen, CEO of J.Rogers Kniffen Worldwide Enterprises, spoke on CNBC this week about the effect a stronger U.S. dollar will be for retailers. “Retailers who only sell here but buy in other countries will benefit the most. Who are we talking about? Dollar Stores, Macy’s, Target, Kohl’s, J.C. Penneys.”

The main benefit for these retailers is that they purchase product from other countries and re-price product each time they place an order, so orders are less expensive each time the U.S. dollar grows stronger.

The same retailers who benefit from falling U.S. energy costs will benefit from the strong U.S. dollar. “The domestic retailers who are not high end and more middle market will benefit from falling gas prices as their customers have more money to spend.”

Source: CNBC

Kohl's Misses Earnings Estimates

November 13, 2014

Kohl's is heading into the holidays with a loss of momentum after third quarter same store sales declined 1.8% and the company missed analysts' earnings estimate by four cents.

The third quarter comp decrease of 1.8% was on top of a prior year decline of 1.6%.  Total sales at the operator of 1,163 stores declined slightly to $4.37 billion from $4.44 billion.  Net income declined to $142 million, or 70 cents a share, from $177 million, or 81 cents a share.

The 1,163 stores Kohl's operated at the end of the quarter was five more units than the company had in operation at the end of the third quarter the prior year.

Source: Retailing Today

Kohl's Optimistic On BTS After Weak 2Q

August 14, 2014

Kohl's exceeded analysts' profit expectations in the second quarter, but it wasn't due to top line strength and now the company has a lot riding on the back-to-school season.

The company's sales for the second quarter ended August 2 declined to $4.242 billion from $4.289 billion and same-store sales fell 1.3% after a slight prior year comp increase of 0.9%.  Meanwhile, net income increased slightly to $232 million from $231 million, while earnings per share advanced 8.6% to $1.13 from $1.04, five cents better than analysts' forecasts.  The earnings beat was driven by expense control and increased share repurchase activity, which reduced the number of outstanding shares.

Undeterred by the sales decline and weak underlying profit performance, Kohl's chairman, president and CEO Kevin Mansell focused on improvements late in the quarter and the company's positioning for back-to-school.

"We are pleased with the improvement we saw in sales as the quarter progressed," Mansell said.  "The improvement was the most dramatic in the month of July where we achieved a positive comp.  As they consistently do, our teams did a great job of managing expenses throughout the quarter.  We enter the back-to-school season with fresh, new inventory and encouraging momentum."

Kohl's increased its store count by five units during the quarter to end the period with 1,160 stores in 49 states.  Four new Kohl's stores are expected to open this fall.

Source: Retailing Today

Kohl's Stays Firm On Outlook Despite Weak First Quarter Sales

May 15, 2014

Kohl's joins a growing list of retailers whose first quarter results took a hit from a severe and extended winter.  Despite missing estimates, the company is staying firm on its guidance for the full fiscal year.

The company reported net sales for the quarter of $4.07 billion, a 3.1% decrease from $4.2 billion for the prior-year quarter.  Comparable store sales decreased 3.4% in the quarter compared to a 1.9% decrease in the prior-year quarter.  Net income was $125 million for the quarter, a drop of 15% from $147 million in the prior-year quarter.  Diluted earnings per share fell 9% to $0.60 from $0.66 in the prior-year quarter.

"We did not achieve our first quarter sales goals, but we were encouraged by the improvement in sales as the quarter progressed," said chairman, president and CEO Kevin Mansell.  "Our teams managed our inventory levels appropriately and expenses were controlled throughout the organization during the quarter."

The company still anticipates diluted earnings per share of $4.05 to $4.45 for fiscal 2014, which is consistent with its previous guidance.

Kohl's ended the quarter with 1,160 stores in 49 states, compared with 1,155 stores at the same time last year.  The company opened four new store locations, relocated one existing store and permanently closed two stores during the quarter.

Source: Retailing Today

Kohl's Lowers Fourth-Quarter Guidance Following Weak January Sales

February 6, 2014

Kohl's January sales were significantly lower than planned as a result of lower traffic and low levels of clearance merchandise.  Comparable-store sales decreased 2%.  Combined November and December same-store sales increased 0.8%.

Unanticipated expenses in servicing its e-commerce business led to higher-than-expected costs for the quarter.  As a result of these expenses, the company is lowering its fourth quarter diluted earnings per share estimates from $1.59 to $1.74 to approximately $1.53.  Fiscal 2013 diluted earnings per share are now expected to be approximately $4.03, compared to previous guidance of $4.08 to $4.23.

The company will release its detailed report on the fourth quarter February 27.  Kohl's operates 1,158 stores in 49 states.

Source: Retailing Today

Department Store Players Largely Strong In July

Helped by hot weather and clearance sales, many retailers reported solid results in July, a month that can be slow leading up to the back to school shopping season.  Some of the strongest showings in the month were in the department store category, as all those reporting showed July gains.  

Macy's led the pack with a 4.1% same-store rise in sales.  Total sales increased 5.1% to $1.7 billion over the four-week period.  "Despite some challenges from a sluggish macroeconomic environment and a temporary disruption of sales from the remodeling project at our Herald Square flagship store in New York City, the spring season met our expectations," said Macy's president and CEO Terry Lundgren.

Kohl's reported a lesser 1.7% gain in same-store sales, with total sales up 3.4%.  "We are pleased with the improvement in July's comparable store sales," said Kevin Mansell, president and CEO.

Other department store July results include: Nordstrom same-store sales edged up 0.9%; Saks increased 3.5%; Bon-Ton Stores rose a slight 0.1%; and Stage Stores gained 5.3%, beating the 2.2% rise expected by Wall Street.

Source: retailingtoday.com

Macy’s and Kohl’s post disappointing results in June

Analysts expected 18 top retail chains to report modest gains in June, as high unemployment and falling consumer confidence have taken a toll on spending.

Among the department store retailers reporting June same-store results so far, the results were largely mixed. Macy’s was among the retailers reporting sales that fell short of estimates. Same-store sales rose 1.2% in June, missing Wall Street’s projected 1.9% gain.

“June sales were below expectations,” said Terry Lundgren, chairman, president and CEO. “In part, this was a function of a macroeconomic environment that is stagnant at best, and lower spending by tourists in cities such as New York. Additionally, the unprecedented renovation at Macy’s Herald Square in New York City, the world’s largest store, is well under way but created more short-term business disruption than anticipated in the June sales period.”

Macy's and Bloomingdale's generated total revenue in June of $2.41 billion, representing a slight 0.8% gain.

Kohl’s Corp. was also challenged in June, reporting a same-store sales decline of 4.2%, after Wall Street had forecasted just a 3.2% drop. Total sales for the month decreased 2.6%.

“Though June sales were again lower than expectations, we are encouraged by improved sales in the latter weeks of the month as we continued to build inventory levels,” said Kevin Mansell, president and CEO.

Among other department store retailers reporting so far, Nordstrom same-store sales rose 8.1% in June, solidly beating Wall Street’s expected 4.7% gain, Saks rose 6%, surpassing the forecasted 4.7% rise and Bon-Ton Stores same-store sales dipped .8% in June.

Source: retailingtoday.com

Kohl's earnings slip, comps up in Q1

Despite dropping from the previous year, Kohl's said its net income for the first quarter ended April 28 was in line with its expectations. The company reported net income of $154 million (63 cents per diluted share) compared with $201 million ($0.69 per diluted share) a year ago. Net sales were $4.2 billion, an increase of 1.9% for the quarter. Comparable-store sales for the quarter increased 0.2 percent.

Kevin Mansell, Kohl’s chairman, president and CEO, said, “Our first quarter results reflect the implementation of our strategy to initiate lower pricing in order to provide greater value to our customers. This planned action led to significantly lower gross margins for the quarter. Strong management of expenses allowed us to achieve our earnings goal for the quarter. We have accelerated new receipts into second quarter to ensure we are well-positioned from an inventory perspective for the back-to-school season. The combination of these two actions should allow us to greatly improve our sales for the fall season.”

Kohl's ended the quarter with 1,134 stores in 49 states, compared with 1,097 stores at the same time last year. The company opened nine new stores, including one relocated store, and closed one store during the quarter.  Plans are to open approximately 10 more stores in the fall season and to remodel approximately 50 stores in 2012.

For the second quarter, Kohl's expects earnings to range from 96 cents to $1.02 per diluted share. The guidance is based on total sales growth of 2% to 3% and comparable-store sales growth of flat to 1% and includes expected second quarter share repurchases of $250 million. The company maintains its previously announced fiscal 2012 guidance of $4.75 per diluted share.

Source: retailingtoday.com

Warm weather gives apparel retailers and department stores a boost in March

The warmest March in North America in more than 50 years resulted in many apparel retailers and department stores registering solid gains in March, as an early spring brought out shoppers looking for seasonal merchandise earlier than they typically would. 

Macy’s, Kohl’s Corp., Limited Brands and Gap Inc. were among the retailers who topped analyst estimates.

Macy's said that its same-store sales climbed 7.3%, outpacing the 4.8% increase predicted by the Street. The company also raised its forecast for the key revenue metric for the combined March and April period, citing its strong March results.

Macy's, which includes online sales in its calculation of the key monthly revenue figure, said that it benefited from an earlier Easter and moving a cosmetics event to March from April last year. Total revenue for the five weeks ended March 31 increased 6.9% to $2.36 billion.

Limited, parent of Victoria's Secret and Bath and Body Works, said its same-store sales in March rose 8%, topping Wall Street expectations.

Gap Inc. reported a 10% increase in same-store sales in March, benefitting from customer response to its new merchandise. By brand, Gap North America’s sales rose 9%,  Banana Republic North America’s sales were up 5% and Old Navy North America saw its sales climb 11%. International sales were up 2%.

“We delivered solid sales performance in March and are pleased with customer response to product across all brands,” said Glenn Murphy, chairman and CEO of Gap.

Kohl’s credited warmer weather and an earlier Easter with helping to boost its same-store sales in March by 3.6%. Analysts had expected an increase of 2.1%.

Saks Inc. said its same-store sales rose 6.3% in March on strong demand for contemporary apparel, accessories and other items. The results matched average Wall Street predictions.

At The Buckle, same-store sales in March rose 6.4%, less than Wall Street had expected.

In other apparel same-store sales results for March,  Zumiez same-store sales rose 14.1%; The Wet Seal reported a 7.8% decline; and Cato Corp.’s sales increased 7%.

Source: retailingtoday.com

Kohl's EDI 852 Reporting

If you are a vendor supplying to Kohl's, you are eligible to receive product sales activity and inventory data via EDI 852. Preparing to setup and receive the EDI 852 files can be confusing, and creating usable reports for your team can be very time consuming. Fortunately, Accelerated Analytics® provides a simple, outsourced service for all your Kohl's EDI 852 reporting needs.

Using Accelerated Analytics® makes all your reporting headaches go away. With Accelerated Analytics®, we handle all the data conversion, database hosting and reporting. We even provide training and the end user reporting tools. 

Accelerated Analytics® benefits:

• Eliminate manual data entry and manipulation
• Consolidate all Kohl's store data on all your SKU's into one reporting database
• Pre-built exception reports with color coded dashboards
• No software or hardware to purchase
• Sophisticated charts and graphs

Available reports:

• This weeks sales and inventory by store and SKU
• Last weeks sales and inventory by store and SKU
• This months sales and inventory by store and SKU
• 6 week rolling sales and inventory by store and SKU
• Sell-thru
• Inventory turns
• Days supply on hand 

Accelerated Analytics® will give you the ability to anticipate changes in sales and inventory, so you can make adjustments before a costly mistake occurs. Our EDI 852 reporting is the best on the market.