Retail stores have announced their June sales numbers, and this has caused a great deal of disappointment from investors. In this article, I will address the June sales reports of five retail companies and how the stocks appear, given this new information. Kohl’s (KSS), Target (TGT), Costco (COST), Macy’s (M), and Buckle (BKE) have all experienced weak June sales numbers. Some are in better positions than others. At the moment, however, I would be hesitant to recommend most of them.
Kohl’s stock is currently trading around $47 and has actually been increasing since it reported its June sales numbers. Its 52-week low is $42.14, and its 52-week high is $57.39, so there is plenty of room for growth in the stock. Its price/book ratio is 1.70.
Kohl’s reported that its June sales dropped by 2.6%, but it also noted that comparable stores had a 4.2% decrease. Kohl’s does appear to be doing better than average, therefore, and it has another reason to be optimistic as well. Its chairman, Kevin Mansell, pointed to the better sales in the later parts of June. Mansell said, “We are encouraged by improved sales in the latter weeks of the month as we continued to build inventory levels.” It is not surprising that Kohl’s stock is on the rise, therefore, as it is showing signs of strength in an industry where many are struggling. Of all the stocks I am reviewing in this article, this would be the one that I would most recommend.