Department Store Stocks Q2 In Review: Macy's (NYSE:M) Vs Peers

Wrapping up Q2 earnings, we look at the numbers and key takeaways for the department store stocks, including Macy's (NYSE:M) and its peers.

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 strong Q2. As a group, revenues beat analysts’ consensus estimates by 0.5%.

In light of this news, share prices of the companies have held steady. On average, they are relatively unchanged since the latest 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 $5.10 billion, down 3.5% year on year. This print exceeded analysts’ expectations by 1%. Overall, it was a very strong quarter for the company with an impressive beat of analysts’ earnings and gross margin estimates.

“During the second quarter, we delivered strong earnings performance in a challenging consumer environment,” said Tony Spring, chairman and chief executive officer of Macy’s,

Unsurprisingly, the stock is down 7% since reporting and currently trades at $16.50.

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

Best Q2: 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 $3.73 billion, down 4.2% year on year, outperforming analysts’ expectations by 2.1%. The business had a stunning quarter with an impressive beat of analysts’ earnings estimates.

Kohl's scored the biggest analyst estimates beat among its peers. Although it had a fine quarter compared its peers, the market seems unhappy with the results as the stock is down 5.8% since reporting. It currently trades at $18.47.

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

Weakest Q2: 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 $1.51 billion, down 5.2% year on year, falling short of analysts’ expectations by 1.1%. It was a softer quarter as it posted a miss of analysts’ EBITDA and earnings estimates.

Dillard's delivered the weakest performance against analyst estimates and slowest revenue growth in the group. Interestingly, the stock is up 2.5% since the results and currently trades at $399.96.

Read our full analysis of Dillard’s results here.

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 $3.89 billion, up 3.2% year on year. This result met analysts’ expectations. Overall, it was a stunning quarter as it also recorded an impressive beat of analysts’ earnings estimates.

Nordstrom achieved the fastest revenue growth among its peers. The stock is up 8.3% since reporting and currently trades at $22.91.

Read our full, actionable report on Nordstrom 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.