Australia  

Celebrating 10 Years of Trusted News Discovery
One News Page
> >

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

Video Credit: The Street - Duration: 03:33s - Published < > Embed
Why Amazon Could Be a Tailwind for Kohl's, TJX -- ICYMI

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

Amazon 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 , 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 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 and Macy's have gotten hit at least somewhat by Amazon, so the up-scale brands like Ralph 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 is up 465%.

Ross Stores is up 185%.

Kohl's is up 6%.

Elsewhere, Home Depot 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 Sign up for the daily In Case You Missed It Newsletter Here Amazon, Kohl's and Home Depot are holdings in Jim Cramer's Action Alerts PLUS member club.

Want to be alerted before Jim Cramer buys or sells those?

Learn more now.

0
shares
ShareTweetSavePostSend
 

You Might Like

Environmentally friendly: One News Page is hosted on servers powered solely by renewable energy
© 2019 One News Page Ltd. All Rights Reserved.
About us  |  Contact us  |  Disclaimer  |  Press Room  |  Terms & Conditions  |  Content Accreditation
 RSS  |  News for my Website  |  Free news search widget  |  In the News  |  DMCA / Content Removal  |  Privacy & Data Protection Policy
How are we doing? FeedbackSend us your feedback  |   LIKE us on Facebook   FOLLOW us on Twitter  •  FOLLOW us on Pinterest
One News® is a registered trademark of One News Page Ltd.