Terrible Tuesday for Department Stores

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Terrible Tuesday for Department Stores
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Kohl’s and J.C. Penney reported disappointing quarterly results, setting off a tumble in the department-store sector

Retailers got a so-so start to earnings season last week when Macy’s reported earnings that narrowly beat expectations. The tone got much worse on Tuesday. Kohl’s and J.C. Penney both reported earnings that disappointed investors, triggering a drop in their shares and a broader selloff in department store stocks.

Kohl’s reported adjusted earnings of 61 cents a share, compared with analyst expectations for 68 cents a share. Sales at stores open for at least 12 months fell 3.4%—far steeper than the 0.2% drop analysts were expecting....

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