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Why Amazon Could Be a Tailwind for Kohl's, TJX -- ICYMI

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Amazon (AMZN) is taking market share from high-end stores. This is creating a massive secular tailwind for discount retail houses, one analyst says, as high-end brands turn to the discounters to sell inventory.

Meanwhile, Kohl's  (KSS) , one of the better-known discount retail stores, saw its stock plummet 10.9% to $56.05 after it reported an earnings miss and significantly lowered earnings guidance for the year. TJX (TJX) did beat earnings expectations, and raised guidance. 

But for those who are concerned about the damage Amazon can do to brick-and-mortar on a longer-term basis, John Morris, senior brand apparel analyst at D.A. Davidson & Co., says learn to differentiate between retailers. It's the off-priced group that actually could see a tailwind from Amazon, while the full-priced retailers will get hurt, he told TheStreet.

That's because full-priced department stores like Nordstrom (JWN) and Macy's (M) have gotten hit at least somewhat by Amazon, so the up-scale brands like Ralph (RL) that couldn't get everything off the shelves in those stores may start selling in the off-priced stores, as those brands don't advertise discounts online. 

See the full interview here.  

Taking a look back shows an interesting trend. 

In the past five years, Amazon shares are up 495%. Yes, Amazon has scaled into several different sectors, but e-commerce has been a huge part of that stock run.

In the same span, the full-priced Nordstrom shares are down 43%. Macy's is down 62%. 

Off-priced TJX is up 111% in the pasty five years. Burlington (BURL) is up 465%. Ross Stores (ROST)  is up 185%. Kohl's is up 6%. 

Elsewhere, Home Depot (HD)   is TheStreet's premium publication Real Money's stock of the day, beat earnings expectations. 

Related. We're Seeing Some Concerning Signs From Retail as Home Depot, Kohl's Report

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