The two “hottest” IBD industry groups to end 2021 were retail department stores and consumer electronics retailers. The six-stock retail department store group collectively rallied 136% in 2021, earning the most gains among the 197 industry groups tracked by IBD. Consumer electronics retailers, a five-stock group, was up 107%. In addition, jewelry retailers gained 81% in 2021. Data Investors Business Daily
Summary
Retail Sales and Earnings
Department stores like Macy’s (M), Dillard’s (DDS) and Kohl’s (KSS) all posted better-than-expected earnings for the holiday shopping season.
Macy’s printed a double bottom pattern, popping on above average volume on Monday when the S&P500 was trading markedly lower in the morning session. When the indices found buyers, Macy’s soared 18% on above average volume (+152%).
Macy’s topped estimates whith robust sales in Q3 to end 2021. Earnings growth accelerated $1.23 per share, vs. views for 31 cents.
Management an increase in sales of 36%, posting $5.44 billion vs. estimates for $5.2 billion. Same-store sales also increased to 37.2%. Online sales climbed 19% vs. the same period on 2020, surging 49% vs. the same period in 2019.
As a result, Macy’s management expects net sales of $24.12 billion-$24.28 billion vs. prior guidance of $23.55 billion-$23.95 billion.
Retail Department Stores
Dillard’s handily beat estimates for the third quarter, finishing off 2021 with earnings of 586%, highlighted by an increase in revenue of 434%, while posting a huge increase (48%) in same-store sales.
Technically speaking, the stock surged (+14.73%) on Monday, while attempting a break out from a flat base on above average volume of (+77%).
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Vinny
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