Macy's (M) Share Gains Came at Kohl's (KSS) Expense, Says Wells Fargo

Investors on Thursday learned where Macy's, Inc. (NYSE: M) increased share came from after Kohl's (NYSE: KSS) reported Q3 results, says analyst Paul Lejuez of Wells Fargo.

"KSS reported disappointing FQ3 results, missing both our estimates and consensus. After hearing more positive results from M, it is more clear that KSS is losing share in the mid-tier space," said Lejuez.

"Though new loyalty/beauty initiatives seem to be gaining traction, and the addition of two new national brands (IZOD and Juicy) is a positive, we remain concerned that comps could be worse than expected in 4Q driven by less inventory and weak traffic trends, and GM could fall short of expectations pressured by promotional pressures," he added.

Wells Fargo has a Market Perform rating on Kohl's with a price target of $50.00

For an analyst ratings summary and ratings history on Kohl's (NYSE: KSS) click here. For more ratings news on Kohl's click here.

Shares of Kohl's closed at $58.26 yesterday.

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