“When companies are priced for death, slight increases seem heroic,” observes Simeon Siegel of Nomura Securities. Indeed, holiday sales, reported over the last week by a cluster of such doomed retailers, suggest an extraordinary revival.
On Tuesday, Target became the latest retailer to surprise investors with good news. The company posted 3.4% holiday growth and lifted its fourth-quarter and full-year earnings outlook, sending its shares up 4%.
A day before, Kohl’s again dazzled investors with a 6.9% increase over last year. The company, whose shares are up nearly 40% in two months, also raised 2017 earnings guidance from $3.72-$3.92 to $4.10-$4.20.
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The retail industry is undergoing another major shift — to e-commerce. How did we get here? Photo: Associated Press
It isn’t surprising that Kohl’s and Target were among the best performers. Both have made big investments in e-commerce and innovation. Kohl’s attributed its growth to digital demand and stronger in-store traffic. Its new partnership with…