Kohl's (KSS) was one of the biggest surprises of the month, reporting a 6.2% plunge in same-store sales compared with consensus estimates of a 2% increase.
This came despite compelling promotions, its midnight Black Friday opening and the highly successful launch of the new Jennifer Lopez and Marc Anthony lines.
"November sales were disappointing. We were encouraged by our improved performance in both stores and e-commerce over the Thanksgiving weekend," said CEO Kevin Mansell. "A majority of our planned incremental marketing investment is in December and we expect to be able to benefit as customers look for value as they complete their holiday shopping.""While unseasonably warm weather likely had a negative impact on sales, we believe that the moderate income consumers, Kohl's target, is feeling particularly constrained and management is challenged to motivate her to shop and spend," Jaffe wrote in a note. It also appears that sales are being funneled to rival Macy's (M), which reported a 4.8% jump in same-store sales, better than the 3.6% increase Wall Street expected. Macy's also opened at midnight, but saw more success. "A strong Black Friday punctuated our very positive sales performance throughout November at both Macy's and Bloomingdale's. This was the first year that Macy's stores opened at 12 midnight on Black Friday, which particularly attracted millennial customers who gravitate to the fashion, newness and value in our merchandise assortments," said CEO Terry J. Lundgren. Shares of Kohl's fell 3.6% to $50.20 in morning trading Thursday. -Reported by Jeanine Poggi in New York. Follow TheStreet.com on Twitter and become a fan on Facebook.
Select the service that is right for you!COMPARE ALL SERVICES
- $2.5+ million portfolio
- Large-cap and dividend focus
- Intraday trade alerts from Cramer
- Weekly roundups
Access the tool that DOMINATES the Russell 2000 and the S&P 500.
- Buy, hold, or sell recommendations for over 4,300 stocks
- Unlimited research reports on your favorite stocks
- A custom stock screener
- Upgrade/downgrade alerts
- Diversified model portfolio of dividend stocks
- Alerts when market news affect the portfolio
- Bi-weekly updates with exact steps to take - BUY, HOLD, SELL
- Real Money + Doug Kass + 15 more Wall Street Pros
- Intraday commentary & news
- Ultra-actionable trading ideas
- 100+ monthly options trading ideas
- Actionable options commentary & news
- Real-time trading community
- Options TV