Highlights From BofA's Consumer Conference: Burlington Stores, Kohl's, Macy's Discuss Outlook

BofA Securities hosted multiple retail executives at its virtual Consumer Conference. Here's what executives from Burlington Stores Inc BURL, Kohl's Corporation KSS, and Macy's Inc M had to say, according to notes by BofA analyst Lorraine Hutchinson. 

Burlington Stores: Burlington has a path to expand its footprint beyond its long-term 2,000-store goal through smaller concepts in new markets.

Smaller stores can generate similar sales volumes to large stores but contribute superior margins.

Burlington has a multiyear plan to grow its merchandising organization faster than sales.

Kohl's: Kohl's expects to deliver margin expansion through 2023.

The company's goal of hitting a 36% gross margin is reasonable given inventory management, sourcing efficiency and other initiatives.

The recent Sephora partnership and Amazon return counter should help drive customer acquisition.

Kohl's is well-positioned to gain market share in the women's category.

Macy's: Online sales represented more than 40% of total sales in 2020.

Management is focused on retaining digital and young customers and turning them into loyal shoppers.

Macy's is demanding more upfront discounts on costs from vendors.

A $900-million cost reduction plan is permanent.

Asset sale gains will be a driver of income in 2021.

BURL, KSS, M Price Action: Shares of Burlington Stores lost 3.48% Wednesday, closing at $293.38. Kohl's shares were down 0.43% at $57.24. Macy's stock lost 0.91%, closing at $16.95.