Q4 Earnings Roundup: Macy's (NYSE:M) And The Rest Of The Department Store Segment

The end of an earnings season can be a great time to discover new stocks and assess how companies are handling the current business environment. Let’s take a look at how Macy's (NYSE:M) and the rest of the department store stocks fared in Q4.

Department stores emerged in the 19th century to provide customers with a wide variety of merchandise under one roof, offering a convenient and luxurious shopping experience. They played an important role in the history of American retail and urbanization, and prior to department stores, retailers tended to sell narrow specialty and niche items. But what was once new is now old, and department stores are somewhat considered a relic of the past. They are being attacked from multiple angles–stagnant foot traffic at malls where they’ve served as anchors; more nimble off-price and fast-fashion retailers; and e-commerce-first competitors not burdened by large physical footprints.

The 4 department store stocks we track reported a solid Q4; on average, revenues beat analyst consensus estimates by 1.7%. Stocks have faced challenges as investors prioritize near-term cash flows, but department store stocks held their ground better than others, with the share prices up 5.2% on average since the previous earnings results.

Macy's (NYSE:M)

With a storied history that began with its 1858 founding, Macy’s (NYSE:M) is a department store chain that sells clothing, cosmetics, accessories, and home goods.

Macy's reported revenues of $8.38 billion, down 2.4% year on year, topping analyst expectations by 3.5%. It was a mixed quarter for the company, with an impressive beat of analysts' revenue estimates. On the other hand, its full-year earnings forecast missed analysts' expectations.

“I am grateful to all our teams for their continued commitment to our customers during the holiday season. Throughout the fourth quarter, we delivered an improved omnichannel experience, with effective merchandising and a clear demonstration of value that resulted in a strong close to the year,” said Tony Spring, chief executive officer of Macy’s,

Macy's achieved the biggest analyst estimates beat of the whole group. The stock is up 2% since the results and currently trades at $19.69.

Is now the time to buy Macy's? Access our full analysis of the earnings results here, it's free.

Best Q4: Dillard's (NYSE:DDS)

With stores located largely in the Southern and Western US, Dillard’s (NYSE:DDS) is a department store chain that sells clothing, cosmetics, accessories, and home goods.

Dillard's reported revenues of $1.50 billion, down 4.4% year on year, falling short of analyst expectations by 1%. It was a mixed quarter for the company: Same store sales missed fairly meaningfully, leading to a revenue miss. Gross margin was better than expectations and operating expenses were lower than expected though, allowing for operating profit and EPS to beat.

Dillard's had the weakest performance against analyst estimates and slowest revenue growth among its peers. The stock is up 37.2% since the results and currently trades at $423.39.

Is now the time to buy Dillard's? Access our full analysis of the earnings results here, it's free.

Weakest Q4: Nordstrom (NYSE:JWN)

Known for its exceptional customer service that features a ‘no questions asked’ return policy, Nordstrom (NYSE:JWN) is a high-end department store chain.

Nordstrom reported revenues of $4.42 billion, up 2.3% year on year, in line with analyst expectations. It was a slower quarter for the company, with underwhelming earnings guidance for the full year.

Nordstrom scored the fastest revenue growth in the group. The stock is down 9.3% since the results and currently trades at $18.95.

Read our full analysis of Nordstrom's results here.

Kohl's (NYSE:KSS)

Founded as a corner grocery store in Milwaukee, Wisconsin, Kohl’s (NYSE:KSS) is a department store chain that sells clothing, cosmetics, electronics, and home goods.

Kohl's reported revenues of $5.96 billion, down 1% year on year, surpassing analyst expectations by 3.2%. It was a very strong quarter for the company, with an impressive beat of analysts' earnings estimates.

The stock is down 9.1% since the results and currently trades at $24.72.

Read our full, actionable report on Kohl's here, it's free.

Join Paid Stock Investor Research

Help us make StockStory more helpful to investors like yourself. Join our paid user research session and receive a $50 Amazon gift card for your opinions. Sign up here.