Why Analysts Are Chasing Nordstrom, Macy’s, Kohl’s and Dillard’s Higher After Earnings

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This past week was absolutely huge for the retail sector, with practically all the major retailers that reported notching up a win for the summer quarter. Among the headliners were Nordstrom Inc. (NYSE: JWN), Kohl’s Corp. (NYSE: KSS), Macy’s Inc. (NYSE: M) and Dillard’s Inc. (NYSE: DDS). 24/7 Wall St. has included some of the main highlights from each of the earnings reports as well as what analysts are saying about them after the fact.

Nordstrom posted $0.67 in earnings per share (EPS) on $3.65 billion in revenue. The consensus estimates from Thomson Reuters had called for $0.56 in EPS on revenue of $3.68 billion. In the same period of last year, it reported EPS of $0.93 and $3.7 billion in revenue.

In terms of the outlook for the 2016 full year, the company maintained its expectations more or less in line. Nordstrom expects to have net sales increase by 2.5% to 4.5%, comparable sales to either decrease by 1% or increase by 1%. The only update to guidance was the EPS estimate, which the company moved up to the range of $2.60 to $2.75 from the previous $2.50 to $2.70. Consensus estimates are for $2.57 in EPS on $14.77 billion in revenue for the full year.

After earnings were reported a few analysts weighed:

  • Goldman Sachs has a Neutral rating with a $44 price target.
  • Deutsche Bank has a Buy rating with a $57 price target.
  • Citigroup has a Neutral rating with a $50 price target.
  • Credit Suisse reiterated a Hold rating with a $40 price target.
  • Stifel has a Buy rating with a $58 price target.
  • Telsey Advisory has a Market Perform rating with a $53 price target.

Shares of Nordstrom closed at $51.38, with a consensus analyst price target of $41.67 and a 52-week trading range of $35.01 to $79.98. Over the course of the week, the stock was up roughly 18%.

Kohl’s said that it had $1.22 in EPS on $4.18 billion in revenue. The consensus estimates had called for $1.03 in EPS on revenue of $4.16 billion. Kohl’s posted EPS of $1.07 and $4.27 billion in revenue in the same period of last year.

Comparable store sales for the most recent quarter were down 1.8% year over year.

In terms of guidance, the company now expects EPS for the fiscal full year to be in the range of $3.80 to $4.00, down from the previous range of $4.05 to $4.25. The consensus estimates for the full year are $3.83 in EPS on $18.89 billion in revenue.

Analysts had this to say about Kohl’s after earnings:

  • Deutsche Bank has a Hold rating with a $45 price target.
  • Citigroup has a Neutral rating with a $45 price target.
  • Royal Bank of Canada has an Underperform rating with a $44 price target.
  • Telsey Advisory Group has an Outperform rating with a $51 price target.

Shares of Kohl’s were last trading at $44.94. The consensus price target is $43.63, and the 52-week range is$33.87 to $55.95. Last week the stock rose roughly 15%.

Macy’s reported $0.54 in EPS on $5.87 billion in revenue, which compared to consensus estimates of $0.45 per share and $5.74 billion. The retailer posted EPS of $0.64 on $6.1 billion in revenue in the same period of last year.

The company expects full-year 2016 comparable sales to decrease in the range of 3% to 4%. The company also expects EPS to be in the range of $3.15 to $3.40. The consensus estimates are $3.26 in EPS on $25.81 billion in revenue for the 2016 full year.

After earnings were reported, analysts had this to say:

  • Goldman Sachs has a Neutral rating with a $39 price target.
  • Deutsche Bank has a Hold rating with a $40 price target.
  • Citigroup has a Neutral rating with a $44 price target.
  • Macquarie has a Neutral rating.
  • Royal Bank of Canada has a Sector Perform rating with a $40 price target.
  • Telsey Advisory group has a Market Perform rating with a $42 price target.

Shares of Macy’s ended the week at $39.82, within a 52-week range of $29.94 to $63.49. The consensus price target is $39.56, and the stock was up roughly 16% last week.

Dillard’s reported that it had $0.35 in EPS on $1.49 billion in revenue, versus the consensus estimates of $0.34 per share and $1.45 billion, respectively. In the same period of last year, it posted EPS of $0.75 and revenue of $1.55 billion.

Following the earnings report, analysts weighed in on Dillard’s:

  • Merrill Lynch has an Underperform rating with a $55 price objective.
  • Deutsche Bank raised its price target to $56.
  • JPMorgan has an Underweight rating with a $61 price target.

Dillard’s shares closed most recently at $68.67, with a consensus price target of $57.67 and a 52-week range of $54.37 to $98.51. The stock increased roughly 7.5% last week.