Nomura Comments On Retail, Raises Price Targets

Nomura analyst Robert Drbul issued an updated view of Q4 and FY 2015 retail on Friday.

Drbul continued “to expect a comp store sales increase of 1.5-2.0 percent for our Broadlines / Dept Stores and E-Commerce group in 4Q, though now believe our group will come in at the higher end of that range.”

Drbul also noted that the “last two weeks of December appear to have been quite solid. We believe foot traffic was strong in stores despite the extended promotional activity that we saw this season, and that online/mobile activity was even more robust.

“We also surmise that the added selling day between Thanksgiving and Christmas this year vs last year provided an extra 50-100bp boost to the top line, and that weather was not a hindrance to traffic as it was last year. SSI noted solid sales and margin performance over the Holiday period.”

The firm increased Kohl's Corporation KSS “4Q and FY14 EPS estimates to $1.64 and $4.04 from $1.60 and $4.00, respectively.”

Drbul also increased the target prices for the following companies in the firm’s coverage universe:

Wal-Mart Stores, Inc. WMT from $90 to $95.

Target Corporation TGT from $70 to $78.

TJX Companies Inc TJX from $65 to $74.

Macy's, Inc. M from $65 to $70.

Stage Stores Inc SSI from $17 to $20.

VF Corp VFC from $75 to $80.