NEW YORK (AP) — J.C. Penney and Kohl's struggled during the start of the year, raising concern about the challenges for the department store industry ahead.
Penney reported a wider than expected loss and sales declines during the first quarter while Kohl's cut its fiscal 2020 profit outlook as it struggled with slumping sales in the quarter.
Meanwhile, Home Depot reported better than expected profit and revenue for the first quarter despite a damp start to 2019. That inclement weather and an extra week in the previous fiscal year dragged down the home improvement retailer's comparable store sales.
The downbeat reports from the mid-priced department stores, announced Tuesday, were in contrast to Macy's performance, reported last week. Macy's first-quarter profit smashed Wall Street estimates. Macy's also put up its sixth consecutive quarter of increases in comparable store sales — or sales in stores open a year — fueled by its robust online business after a three-year sales slump. But it also said that President Trump's escalating trade war could mean higher prices for Macy's customers.
Department stores have been trying to reinvent themselves as more shoppers go online. They've also been hurt by increasing competition from the likes of T.J. Maxx and other off-price stores, which offer coveted brands at discount prices. So, retailers have been offering more exclusive merchandise and expanding online services. Last month, Kohl's said it was expanding is partnership with Amazon, with plans to accept Amazon returns in all of its 1,150 stores starting in July. But apparently, those efforts didn't translate to higher sales.
"The year has started off slower than we'd like, with our first quarter sales coming in below our expectation," said Michelle Gass, Kohl's CEO in a statement. "We are actively addressing the...
