Kohl’s stock (KSS) jumped by more than 12 percent to $42.98 in early trading Thursday after the retailer reported results for the second quarter ended July 30 that beat Wall Street expectations. Though revenue fell 2 percent, from $4.27 billion to $4.18 billion, and comparable sales declined 1.8%, Kohl’s net income rose 8 percent from $130 million to reach $140 million or 77 cents per diluted share. The retailer said it was pleased with the performance of juniors and young men’s as it entered the back-to-school season.
Macy’s shares (M) surged more than 14 percent to $39.11 Thursday after the retailer announced plans to close 100 stores next year, but the stock is still down by nearly half over the last year—and it’s not out of the woods yet. Despite the success of its first-ever “Black Friday in July” event, sales in the second quarter ended July 30 were down 3.9% to $5.87 billion compared to last year’s $6.1 billion. Comparable store sales were down 2 percent, though Macy’s attributed this decline largely to the closing of 41 underperforming stores in fiscal 2015. The retailer’s quarterly profit also took a big hit, plunging from last year’s $217 million or 64 cents per diluted share to $11 million or 3 cents per diluted share.
News of the upcoming Macy’s closings could impact Ralph Lauren’s (RL) wholesale segment, already suffering from slow traffic in the U.S. department store channel. In the first quarter ended July 2, wholesale revenue dropped 5 percent to $607 million—a performance that was echoed in the retail segment (down 3 percent to $907 million) as well as licensing (down 8 percent to $38 million). Ralph Lauren also swung to a loss of $22 million, versus a $64 million profit or 73 cents per diluted share in the year-ago period, which the company attributed to restructuring and other related charges.