Select Page

This stock outperformed its retail rivals by a mile in 2017

by | 10 Jan, 2018

While bricks and mortar retail companies in the US have been struggled as a whole over 2017, Kohl’s Corp saw its stock rise by 40 per cent over the past 12 months, despite several soft quarterly results!

Same-store sales for the firm surged 6.9 per cent in the holiday period, trouncing gains made by rival department stores like Macy’s and JCPenney, which saw holiday same-store sales growth of 1 per cent and 3.4 per cent.

These results suggest Kohl’s may be scooping up market share from the rash of stores closing across the US, most of which are tied to shopping malls, which are losing favour.

While major retail chains continue to shutter stores around America, Kohl’s Chairman, President and CEO Kevin Mansell said that his company’s success actually stems from its physical locations.

Speaking to CNBC, Mansell said: “Physical presence is important in people’s mindset as they think about where to shop”. He later added, “We’re not in malls. Ninety-five percent of our stores are off-mall, and they’re mostly single-level, free-standing, easy to get in, easy to get out.”

“Regardless of whether they (consumers) shop in the store or online, if you have a physical presence, you’re top of mind. So having a physical presence is critical.”

The company is managing well the transition to an omnichannel model and is taking advantage of competitors’ store closures to increase its market share. The firms revenue and margins have shown to be more resilient than the market initially expected too.

Related: Equities in focus – worst & best performing U.S. stocks in 2017

Nordstrom Kohl's Target Macys

Kohl’s massively outperformed retail rivals Target, Nordstrom and Macy’s in 2017

Want to learn more about the markets and how to become a better investor?

Download the Invstr App now.

All emails include an unsubscribe link. You can opt-out at any time. ​See our privacy policy.

ALL RIGHTS RESERVED © INVSTR LTD. 2018

Risk Disclosure:
Invstr is a technology platform, not a registered broker-dealer or investment adviser. Invstr does not offer its own recommendations of any security or provide its own research to any user regarding any security transaction or order.
Please note, investing involves risk and investments may lose value. Past performance does not guarantee future results.
Brokerage services are provided by the following:
US-traded securities, including fractional trading, are provided to Invstr users by DriveWealth LLC, a regulated member of FINRA/SIPC. DriveWealth may not establish investment accounts to residents of certain jurisdictions. For more information, including disclaimers, risk and transaction fees click here.
India account traded securities are provided by SIC Stocks & Services PVT Ltd. SIC does not make any personal recommendations to buy, sell or otherwise deal in investments. Investors make their own investment decisions. The services and securities provided by SIC may not be suitable for all customers and, if you have any doubts, you should seek advice from an independent financial adviser. For more information and disclaimers, click here.

Download on the App Store           Download on Google Play

ALL RIGHTS RESERVED © INVSTR LTD. 2018

Risk Disclosure:
Invstr is a technology platform, not a registered broker-dealer or investment adviser. Invstr does not offer its own recommendations of any security or provide its own research to any user regarding any security transaction or order.
Please note, investing involves risk and investments may lose value. Past performance does not guarantee future results.
Brokerage services are provided by the following:
US-traded securities, including fractional trading, are provided to Invstr users by DriveWealth LLC, a regulated member of FINRA/SIPC. DriveWealth may not establish investment accounts to residents of certain jurisdictions. For more information, including disclaimers, risk and transaction fees click here.
India account traded securities are provided by SIC Stocks & Services PVT Ltd. SIC does not make any personal recommendations to buy, sell or otherwise deal in investments. Investors make their own investment decisions. The services and securities provided by SIC may not be suitable for all customers and, if you have any doubts, you should seek advice from an independent financial adviser. For more information and disclaimers, click here.

 

Share This