NEW YORK (TheStreet) -- Shares of Kohl’s Corp. (KSS) are lower by -1.84% to $54.89 in mid-afternoon trading on Wednesday, as department store stocks react negatively to Macy’s (M) reported lower than expected 2014 second quarter earnings, and that it lowered its full year forecast.
Macy’s net income was $292 million, or 80 cents per share for the most recent quarter, which came in below the 86 cents analysts had forecast.
The company's revenue increased 3.3% to $6.27 billion for the 2014 second quarter, falling short of the $6.3 billion analysts expected.
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Other department store stocks declining as a result include Nordstrom Inc. (JWN), down -1.31% to $67.81, JC Penney Co. Inc. (JCP), lower by -1.96% to $9.27, and Lands’ End Inc. (LE), down -1% to $34.70.
Separately, TheStreet Ratings team rates KOHL'S CORP as a Buy with a ratings score of B. TheStreet Ratings Team has this to say about their recommendation:
"We rate KOHL'S CORP (KSS) a BUY. This is driven by several positive factors, which we believe should have a greater impact than any weaknesses, and should give investors a better performance opportunity than most stocks we cover. The company's strengths can be seen in multiple areas, such as its reasonable valuation levels, expanding profit margins, increase in stock price during the past year and largely solid financial position with reasonable debt levels by most measures. We feel these strengths outweigh the fact that the company has had sub par growth in net income."