www.jpmorganmarkets.comNorthAmericaEquityResearch07January2019EquityRatingsandPriceTargetsMktCapRatingPriceTargetCompanyTicker($mn)Price($)CurPrevCurEndDatePrevEndDateKohl'sCorp.KSSUS15,722.5766.41OWn/c78.00Dec-19n/cn/cMacy's,Inc.MUS9,166.5629.38Nn/c33.00Dec-1936.00Dec-19J.C.PenneyCo.,Inc.JCPUS335.501.10UWn/c——n/cn/cDillard's,Inc.DDSUS1,749.8963.31NUW62.00Dec-1958.00Dec-19Nordstrom,Inc.JWNUS7,956.7246.97Nn/c51.00Dec-1956.00Dec-19BurlingtonStoresBURLUS11,267.63163.37OWn/c184.00Dec-19n/cn/cTJXCompaniesTJXUS57,472.7745.40OWn/c51.00Dec-19n/cn/cRossStoresROSTUS32,904.6385.34OWn/c93.00Dec-19n/cn/cSource:Companydata,Bloomberg,J.P.Morganestimates.n/c=nochange.Allpricesasof04Jan19.DeptStores&Off-PriceRetailBoss’4Q/HolidayFieldwork&MgmtAccessTakeaways;UpgradeDDSToNeutralRetailing/DepartmentStores&SpecialtySoftlinesMatthewR.Boss,CPAAC(1-212)622-2630matthew.boss@jpmorgan.comBloombergJPMABOSSStevenZaccone,CFA(1-212)622-8996steven.zaccone@jpmorgan.comGraceSmalley(1-212)622-4894grace.smalley@jpmorgan.comAaronTGrey,CFA,CPA(1-212)622-4967aaron.t.grey@jpmorgan.comJ.P.MorganSecuritiesLLCSeepage22foranalystcertificationandimportantdisclosures.J.P.Morgandoesandseekstodobusinesswithcompaniescoveredinitsresearchreports.Asaresult,investorsshouldbeawarethatthefirmmayhaveaconflictofinterestthatcouldaffecttheobjectivityofthisreport.Investorsshouldconsiderthisreportasonlyasinglefactorinmakingtheirinvestmentdecision.With~80%of4Qnowinthebooks(&aheadofHolidaypre-announcementsthisweek)–wethoughtvalueaddtosharetakeawaysfromourrecentfieldworkandmanagementaccessacrosstheDepartmentStoresandOff-Priceretailers.(1)DepartmentStores=Mixed4QBag:(i)OW-ratedKSS/Neutral-ratedM–modelingupsidetoStreetsame-store-salesandEPSnotingmoremixedDecembertrends(relativetoNovember)particularlyatM.(ii)DDS–raising4QEPSmateriallyaboveConsensusandupgradingtoNeutral(fromUnderweight),(iii)UW-ratedJCP–loweringtopandbottom-lineestimatesbelowtheStreet,(iv)Neutral-ratedJWN–lowering4QEPSbelowtheStreet(modelingSSSmore/l...
