Over the summer, several department stores experienced huge demand increases and beat earnings estimates in their last reported quarter as consumer spending increased and retail sales soared. With sales expected to go up in the upcoming holiday season, it could be wise to bet on quality department store stocks Macy’s (M), Kohl’s (KSS), and Dillard’s (DDS).As the economy continues to recover, foot traffic at physical department stores has also increased. As a result, in October, U.S. retail sales surged 1.7% for the third straight month despite worries over the rising cost of living.
It seems as though people have been undeterred by the increasing inflation. So it’s no surprise that for 2021, the NRF is predicting the highest holiday retail sales on record.
Given this backdrop, it could be wise to add quality departmental store stocks Macy’s, Inc. (M), Kohl's Corporation (NYSE:KSS), and Dillard's, Inc. (NYSE:DDS) to your portfolio now. These companies beat the earnings estimates in the last reported quarter and are well-positioned to grow in the upcoming months.