Barclays on U.S. Dept Stores: Review of August Sales (JWN, M, KORS, TGT, SSI, KSS)
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Rating Summary:
12 Buy, 9 Hold, 1 Sell
Rating Trend:
Down
Today's Overall Ratings:
Up: 13 | Down: 25 | New: 24
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Barclays on U.S. Dept Stores: Review of August Sales
Analyst, Robert S. Drbul, said, "The Barclays Broadlines/Dept. Store Same Store Sales index increased 5.7% in August, well above our expectation of 3.7% and compared to a 6.5% increase last year. On a two-year basis, the index accelerated sequentially to 12.2%, compared to a 9.9% two-year increase in July."
Noting that all of the companies (covered) reported figures that exceeded expectations, the back-to-school season is off to a strong start. Drbul expects a 3.6% increase in September, implying Aug-Sept combined figure of 4.5%, ahead of orinigal expectations.
Highlighted by Nordstrom (NYSE: JWN), which blew estimates away at +21% vs. Barclays view of +9-11%.
Macy's (NYSE: M)(OW-rated) topped out at 5.1%, above Barclays +3-5%. Drbul raises Macy's price target from $42 to $45. Barclays believes Macy's can continue down a strong path, considering market share gains from JC Penney (NYSE: JCP), which 60% of stores overlap in malls.
For Michael Kors (Nasdaq: KORS)(OW-rated), PT raised from $55 to $62 and FY12 EPS up from $1.34 to $1.35.
Target (NYSE: TGT)(OW-rated) and Stage Stores (NYSE: SSI) results also reflected strong back-to-school starts. Barclays raises its price target on Target from $65 to $70.
Finally, Kohl's (NYSE: KSS) increased 3.4% in the month, above the 0-2%. Inventory units were up, which indicated good positioning for b-t-s. However, tough comparisons are seen for Sept
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Analyst, Robert S. Drbul, said, "The Barclays Broadlines/Dept. Store Same Store Sales index increased 5.7% in August, well above our expectation of 3.7% and compared to a 6.5% increase last year. On a two-year basis, the index accelerated sequentially to 12.2%, compared to a 9.9% two-year increase in July."
Noting that all of the companies (covered) reported figures that exceeded expectations, the back-to-school season is off to a strong start. Drbul expects a 3.6% increase in September, implying Aug-Sept combined figure of 4.5%, ahead of orinigal expectations.
Highlighted by Nordstrom (NYSE: JWN), which blew estimates away at +21% vs. Barclays view of +9-11%.
Macy's (NYSE: M)(OW-rated) topped out at 5.1%, above Barclays +3-5%. Drbul raises Macy's price target from $42 to $45. Barclays believes Macy's can continue down a strong path, considering market share gains from JC Penney (NYSE: JCP), which 60% of stores overlap in malls.
For Michael Kors (Nasdaq: KORS)(OW-rated), PT raised from $55 to $62 and FY12 EPS up from $1.34 to $1.35.
Target (NYSE: TGT)(OW-rated) and Stage Stores (NYSE: SSI) results also reflected strong back-to-school starts. Barclays raises its price target on Target from $65 to $70.
Finally, Kohl's (NYSE: KSS) increased 3.4% in the month, above the 0-2%. Inventory units were up, which indicated good positioning for b-t-s. However, tough comparisons are seen for Sept
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