Looking back on department store stocks’ Q4 earnings, we examine this quarter’s best and worst performers, including Kohl's (NYSE:KSS) and its peers.

Department stores emerged in the 19th century to provide customers with a wide variety of merchandise under one roof, offering a convenient and luxurious shopping experience. They played an important role in the history of American retail and urbanization, and prior to department stores, retailers tended to sell narrow specialty and niche items. But what was once new is now old, and department stores are somewhat considered a relic of the past. They are being attacked from multiple angles–stagnant foot traffic at malls where they’ve served as anchors; more nimble off-price and fast-fashion retailers; and e-commerce-first competitors not burdened by large physical footprints.

The 4 department store stocks we track reported a satisfactory Q4. As a group, revenues beat analysts’ consensus estimates by 0.6%.

Amidst this news, share prices of the companies have had a rough stretch. On average, they are down 13.2% since the latest earnings results.

Weakest Q4: Kohl's (NYSE:KSS)

Founded as a corner grocery store in Milwaukee, Wisconsin, Kohl’s (NYSE:KSS) is a department store chain that sells clothing, cosmetics, electronics, and home goods.

Kohl's reported revenues of $5.40 billion, down 9.4% year on year. This print was in line with analysts’ expectations, but overall, it was a slower quarter for the company with full-year EPS guidance missing analysts’ expectations.

Ashley Buchanan, Kohl’s Chief Executive Officer, said “Kohl’s is built on a strong foundation that includes operating more than 1,100 conveniently located stores nationwide, serving over 60 million customers, with 30 million of those customers being Kohl’s Loyalty Members. Kohl’s has a tremendous opportunity to build on our strengths, address key areas of opportunity and better serve our customers every day. “Kohl's Total Revenue

Kohl's delivered the slowest revenue growth of the whole group. The stock is down 33.1% since reporting and currently trades at $8.06.

Read our full report on Kohl's here, it’s free.

Best Q4: Dillard's (NYSE:DDS)

With stores located largely in the Southern and Western US, Dillard’s (NYSE:DDS) is a department store chain that sells clothing, cosmetics, accessories, and home goods.

Dillard's reported revenues of $2.05 billion, down 5% year on year, outperforming analysts’ expectations by 1%. The business had an exceptional quarter with an impressive beat of analysts’ EPS estimates and a solid beat of analysts’ EBITDA estimates.

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Dillard's Total Revenue

Dillard's scored the biggest analyst estimates beat among its peers. The stock is down 13.8% since reporting. It currently trades at $393.87.

Is now the time to buy Dillard's? Access our full analysis of the earnings results here, it’s free.

Nordstrom (NYSE:JWN)

Known for its exceptional customer service that features a ‘no questions asked’ return policy, Nordstrom (NYSE:JWN) is a high-end department store chain.

Nordstrom reported revenues of $4.32 billion, down 2.2% year on year, exceeding analysts’ expectations by 0.6%. Still, it was a mixed quarter as it posted a miss of analysts’ EBITDA estimates.

Interestingly, the stock is up 1.3% since the results and currently trades at $24.57.

Read our full analysis of Nordstrom’s results here.

Macy's (NYSE:M)

With a storied history that began with its 1858 founding, Macy’s (NYSE:M) is a department store chain that sells clothing, cosmetics, accessories, and home goods.

Macy's reported revenues of $8.01 billion, down 4.4% year on year. This print was in line with analysts’ expectations. Zooming out, it was a satisfactory quarter as it also produced an impressive beat of analysts’ EBITDA estimates but full-year EPS guidance missing analysts’ expectations.

Macy's had the weakest performance against analyst estimates among its peers. The stock is down 7.1% since reporting and currently trades at $12.36.

Read our full, actionable report on Macy's here, it’s free.

Market Update

In response to the Fed’s rate hikes in 2022 and 2023, inflation has been gradually trending down from its post-pandemic peak, trending closer to the Fed’s 2% target. Despite higher borrowing costs, the economy has avoided flashing recessionary signals. This is the much-desired soft landing that many investors hoped for. The recent rate cuts (0.5% in September and 0.25% in November 2024) have bolstered the stock market, making 2024 a strong year for equities. Donald Trump’s presidential win in November sparked additional market gains, sending indices to record highs in the days following his victory. However, debates continue over possible tariffs and corporate tax adjustments, raising questions about economic stability in 2025.

Want to invest in winners with rock-solid fundamentals? Check out our Hidden Gem Stocks and add them to your watchlist. These companies are poised for growth regardless of the political or macroeconomic climate.

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