NEW YORK (AP)— The outlook for department stores grew murkier Tuesday after JCPenney, Kohl’s and Nordstrom reported fiscal first quarter results that reflected their struggles at the start of the year.
Penney, which has been trying to turn around its business for several years after a disastrous reinvention plan, reported a wider than expected loss and sales declines during the quarter.
Kohl’s sales momentum also stalled and it cut its fiscal 2020 profit outlook . It cited damp weather that cut into sales of spring clothing and a competitive environment in discounted home goods.
Upscale Nordstrom, which reported results after the close of trading on Wall Street, reported a first quarter sales drop and cut its annual sales forecast.
The downbeat reports from the department store chains were in contrast to Macy’s performance. Macy’s reported a first-quarter profit last week that smashed Wall Street estimates. It also put up its sixth consecutive quarter of increases in comparable store sales — or sales in stores open a year — fueled by its robust online business after a three-year sales slump. However, it’s still facing challenges attracting shoppers.
Department stores have been trying to reinvent themselves as more shoppers go online. They are also facing increasing competition from the likes of T.J. Maxx and other off-price stores, which offer coveted brands at cheaper prices. T.J. Maxx’s parent reported strong results Tuesday that topped Wall Street estimates, indicating that shoppers continue to be drawn to it.