Off-price Gains as Rivals Lag
The bottom of the fashion food chain has risen to the top — at least in all the ways that matter to investors. Off-pricer TJX Cos. Inc. logged strong third-quarter results on Tuesday, returning $778 million to shareholders in dividends and share buybacks, posting a 4 percent comparable sales increase and buying into a new growth vehicle by taking a minority stake in Russian retailer Familia. Meanwhile, Kohl’s Corp. cut its outlook for the year and struggled in women’s apparel as it retired Dana Buchman and brought in fresh names. And while Urban Outfitters Inc.’s comp retail sales inched up 3 percent, profits saw a significant decrease. This latest round of earnings did nothing to dislodge the narrative that the big value players are winning while the traditional retail set, even if they’re growing nicely online, still have to prove they can grow beyond their bounds and do so profitably. The assessment by investors was quick and brutal. Shares of Kohl’s dropped 19.5 percent to $47.02 and seemed to weigh on other multiline retailers. Macy’s Inc. fell 10.9 percent to $15.04, a decline that could have also been related to the company’s disclosure that “a highly sophisticated and targeted data security incident related to macys.com affectedFollow WWD on Twitter or become a fan on Facebook.
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