Traditional retail is dying, that much is certain. What's uncertain is how fast it will take companies in the sector to bite the dust, and when that happens, which retailers will be left standing next to e-commerce titan Amazon.com Inc. (AMZN) .
The recent wave of second-quarter earnings from department stores gave us some insight into the latter.
- J.C. Penney Shares Suffering Vicious Bear Siege as Wall Street Questions Future
- No Doubt, the Retail Apocalypse Is Eating the Sector's Stocks Alive
J.C. Penney Co. Inc. (JCP) , Macy's Inc. (M) , Kohl's Corp. (KSS) and Dillard's Inc. (DDS) , for example, saw their stocks amass major losses, some more than others, over the past two days as earnings reports, despite some beating estimates, failed to prove that their businesses can survive the long haul. Nordstrom Inc.'s (JWN) stock originally rose after its earnings release on Thursday, Aug. 10, showing a same-store sales and online sales growth of 1.7% and 20%, respectively, but have since scaled back some of those gains on Friday.
"These are beaten up, hated names. They missed out on the entire market rally this year. Investors are just figuring out who's going to survive," RBC Capital Markets analyst Brian Tunick told TheStreet in an interview on Friday.