Kohl's Shares Up As Analyst Says Launch of Simply Vera Will Help Sales
NEW YORK (AP) -- Shares of department-store operator Kohl's Inc. jumped Thursday, after a Deutsche Bank analyst said its new "Simply Vera" product line will help drive holiday sales.
Analyst William A. Dreher Jr. said in a note to investors on Thursday that "Simply Vera" by designer Vera Wang, which hit stores on Friday, is being positively received by customers.
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"The Simply Vera line has been described as fashionable, chic and on trend by customers, and we agree," Dreher wrote in a note to investors. "We believe merchandise launches, especially Vera, should help drive sales entering the holiday season and make Kohl's shares a compelling 'Buy.'"
Dreher said he expects the launch to surpass Kohl's launch of Chaps men's line in 2005.
"Given that the Vera Wang rollout is on a much larger scale than Chaps, we believe that third-quarter and holiday (same-store sales) will be positively affected and certainly will benefit from extensive cobranded advertising."
Dreher said that while prices are relatively high for the moderately priced department store, the quality is strong.
"Some shoppers may be concerned about the relatively high prices, with the lowest selling point in shoes at $59.99 and the lowest price for a full size comforter set at $329.99," Dreher wrote. "However, most typical Kohl's shoppers understand that a premium is typically associated with a quality, high-end designer's product."
Kohl's shares rose $3.31, or 6.2 percent, to $56.58 during afternoon trading. The stock has traded between $52.50 and $79.55 during the past 52 weeks.
Source: AP
1 Comment:
Kohl's is a pretty solid company.
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