Fourth-quarter sales strong at Best Buy, Kohl’s and others
Best Buy, Kohl’s, Gap and Nordstrom all reported strong sales during the quarter that includes the holiday season, a sign of success as retailers learn to steady themselves — and work with — online companies.
At Best Buy, sales at established stores rose 9 percent. That’s a big turnaround in a key measure from a year earlier, when they dipped 0.9 percent. The consumer electronics retailer also topped Wall Street’s profit and revenue expectations, and gave an upbeat outlook.
Meanwhile, Kohl’s enjoyed a 6 percent increase in sales at established stores, its largest such gain since 2001. Business was helped by more customers both coming into the stores and shopping online. Its profit also was better than expected as it offered fewer discounts. Kohl’s, based in Menomonee Falls, Wisconsin, also said Thursday it has teamed up with nofrills grocery chain Aldi to lease space in five to 10 stores.
Nordstrom, which has said that members of the founding family are looking into a buyout of the department store chain, reported profits and overall revenue Thursday that fell short of expectations for the quarter that includes the holiday season. The missed targets overshadowed Nordstrom’s healthy 2.6 percent increase in sales at established stores, which is a key measure of a retailer’s health.
Gap’s fourth-quarter profit fell 7 percent, but the clothing retailer reported strong holiday sales and increased its dividend. The company’s overall sales at established stores rose 5 percent, fueled by a 9 percent gain at its low-price chain Old Navy. The Gap brand, which saw its CEO resign last month, saw the measure unchanged from a year ago.
The results follow a decent showing from many other retailers over the past few days. Macy’s broke out of its three-year sales funk, and a strong home-improvement market pushed Home Depot’s profit higher. At rival Lowe’s, though, healthy same-store sales were overshadowed by a profit miss and lower overall revenue
As shoppers spend more online, retailers have revamped their businesses, from closing poorly performing stores to changing their product lineups to expanding their online services. Stores are also benefiting from an improving economy — and sometimes from the struggles of some rivals.