Brick-And-Mortar Retailers Had An Awful Christmas Season

It hasn’t been a happy New Year for shareholders of some of America’s top brick-and-mortar retailers.

Macy’s Inc M shares were down more than 10 percent in pre-market trading after the company reported lower-than-expected November and December comparable sales of -2.1 percent and lowered its 2016 full-year EPS guidance from $3.15–$3.40 to $2.95–$3.10. In addition, Macy’s will be closing another 100 stores and laying off an estimated 6,200 employees as part of a cost-cutting and restructuring initiative.

The disappointing holiday sales numbers are bad news for Macy’s shareholders, but they can take comfort in the fact that they are certainly not alone.

Not An Isolated Phenomenon

Kohl’s Corporation KSS shares were seen down more than 15 percent after the company also reported -2.1 percent comps in November and December and lowered its fiscal 2016 EPS guidance to $2.92–$2.97, well short of consensus estimates of $3.94.

L Brands Inc LB reported December comps of +1 percent, but also said that it expects Q4 EPS to come in on the low end of its $1.85–$2.00 guidance.

J C Penney Company Inc JCP hasn’t released holiday sales numbers yet, but it recently completed the sale of its corporate headquarters complex in Plano, Texas, to help pay down the company’s massive debt load.

Nordstrom, Inc. JWN also hasn’t released holiday sales numbers, but the company did recently announce the departure of its chief technology officer less than a year after he joined the company. Nordstrom is currently reassessing the long-term leadership structure of its technology unit.

All the major names in retail look to open Thursday's session down in sympathy to the disappointing holiday numbers from Macy’s and Kohl's.

At Last Check

• JC Penney shares were down 7.91 percent at $7.80.
• Kohl's was down 18.04 percent at $42.52.
• L Brands was down 6.03 percent at $63.28.
• Shares of Macy's were down 13.53 percent at $30.99.
• Nordstrom shares were down 8.34 percent at $44.84.