Department store shares are awash in red this afternoon, as even the best performing retailer in the sector could see some damp same-store sales results in June.
, which has been a steady winner during the recession due to its wallet-friendly prices, may post disappointing monthly sales as a result of the month's unusually soggy weather.
Daniel Binder analyst at Jefferies & Co. said in a note that Kohl's has managed to keep pace during the economic downturn by rolling out new brands, cutting costs, tightening inventory and creating effective promotions.
Last month, the company reported an 11% drop in first-quarter profit, but results still managed to exceed Wall Street's expectations.
, a very small decline in comparison to competitors like
, which saw comparable sales slip 9.1%.
But June's wet weather likely will dampen this month's performance, Binder wrote. Kohl's also feels it had a greater benefit from tax rebates in the year-ago period.
And if the golden child, Kohl's, is expected to report soft numbers, that can only mean gloom for the other department stores -- the sector hit hardest during the economic downturn.
In afternoon trading, shares of Kohl's fell 1% to $43.83, Macy's sliped 3% to $10.91,
dropped 3% to $26.24,
dropped 4% to $7.40, and
declined 1% to $62.20.
fell 3% to $3.85.
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