Credit Suisse Releases Q2 Coverage On Department Store Retailers

In a report released Wednesday, Credit Suisse analysts released coverage on department store retailers performance during the second quarter.

The note mentions department stores controlling inventories much better in Q2 than in Q1, with sales growing faster than inventories for the first time in three years. The note mentioned Kohl's KSS, Macy's M and Dillard's DDS as an example of decreasing inventories.

Multiple retailers increased focus on market share gains versus margin expansion; department stores mentioned in the category were Nordstrom JWN, Macy's and Dillard's.

At a valuation standpoint, department stores are currently at the higher end of the five-year range on an EV/EBITDA multiple basis, giving a 2015 FY2 mean of 6.6x compared to the five-year range of 4.6 to 7.5x.