2 Retail Stocks Moving Higher After Earnings

Kohls and Nordstrom both reported rather upbeat second-quarter financial results

Retail stocks across the sector are dealing with the fallout from their corporate reports this morning. In the winner circle today is Kohls Corp (NYSE:KSS) and Nordstrom Inc (NYSE:JWN), with both stocks seeing a surge in options activity following their encouraging reports.

At last glace, Kohls stock is 2.6% higher to trade at $20.11, though it remains 29.4% lower in 2024. While the department store chain reported second-quarter earnings that beat expectations and raised its full-year guidance, revenue missed its mark for the fifth straight quarter as “customers exhibited more discretion in their spending.”

At the moment, traders are targeting Kohls stock’s weekly 8/30 20.50-strike call. Overall, 18,000 calls and 8,937 puts have been traded so far today, which is 11 times the intraday average volume.

Nordstrom stock was last seen up 3.1% to trade at $21.80. Thanks to cost cutting and efficiency boosting efforts, the retailer’s second-quarter earnings, revenue, and full-year outlook all beat Wall Street’s expectations, though the lattermost figure was at the low end of estimates. Over the last 12 months, JWN is up nearly 40%.

For Nordstrom stock, 3,366 calls and 5,439 puts have crossed the tape so far today. Most popular by far is JWN’s weekly 8/30 16.50-strike put. Analysts are eyeing the equity too, with BMO and Citigroup both raising their price target to $22 from $20. 

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