As department store stocks’ Q4 earnings season wraps, let's dig into this quarter's best and worst performers, including Nordstrom (NYSE:JWN) and its peers.

Department stores emerged in the 19th century to provide customers with a wide variety of merchandise under one roof, offering a convenient and luxurious shopping experience. They played an important role in the history of American retail and urbanization, and prior to department stores, retailers tended to sell narrow specialty and niche items. But what was once new is now old, and department stores are somewhat considered a relic of the past. They are being attacked from multiple angles–stagnant foot traffic at malls where they’ve served as anchors; more nimble off-price and fast-fashion retailers; and e-commerce-first competitors not burdened by large physical footprints.

The 4 department store stocks we track reported a solid Q4; on average, revenues beat analyst consensus estimates by 1.7% Valuation multiples for growth stocks have reverted to their historical means after reaching highs in early 2021, but department store stocks held their ground better than others, with the share prices up 8.3% on average since the previous earnings results.

Weakest Q4: Nordstrom (NYSE:JWN)

Known for its exceptional customer service that features a ‘no questions asked’ return policy, Nordstrom (NYSE:JWN) is a high-end department store chain.

Nordstrom reported revenues of $4.42 billion, up 2.3% year on year, in line with analyst expectations. It was a slower quarter for the company, with underwhelming earnings guidance for the full year.

"We delivered on our 2023 guidance and are confident in our expectations for continued sales improvement and sustained profitability in 2024," said Erik Nordstrom, chief executive officer of Nordstrom,

Nordstrom scored the fastest revenue growth of the whole group. The stock is down 8.2% since the results and currently trades at $19.18.

Read our full report on Nordstrom here, it's free.

Best Q4: Dillard's (NYSE:DDS)

With stores located largely in the Southern and Western US, Dillard’s (NYSE:DDS) is a department store chain that sells clothing, cosmetics, accessories, and home goods.

Dillard's reported revenues of $1.50 billion, down 4.4% year on year, falling short of analyst expectations by 1%. It was a mixed quarter for the company, with an impressive beat of analysts' earnings estimates. On the other hand, Same store sales missed fairly meaningfully, leading to a revenue miss.

Dillard's had the weakest performance against analyst estimates and slowest revenue growth among its peers. The stock is up 41.4% since the results and currently trades at $436.39.

Is now the time to buy Dillard's? Access our full analysis of the earnings results here, it's free.

Macy's (NYSE:M)

With a storied history that began with its 1858 founding, Macy’s (NYSE:M) is a department store chain that sells clothing, cosmetics, accessories, and home goods.

Macy's reported revenues of $8.38 billion, down 2.4% year on year, exceeding analyst expectations by 3.5%. It was a mixed quarter for the company, with an impressive beat of analysts' revenue estimates. On the other hand, its full-year earnings forecast missed analysts' expectations and its full-year revenue guidance slightly missed Wall Street's estimates.

Macy's scored the biggest analyst estimates beat in the group. The stock is up 0.5% since the results and currently trades at $19.4.

Read our full analysis of Macy's's results here.

Kohl's (NYSE:KSS)

Founded as a corner grocery store in Milwaukee, Wisconsin, Kohl’s (NYSE:KSS) is a department store chain that sells clothing, cosmetics, electronics, and home goods.

Kohl's reported revenues of $5.96 billion, down 1% year on year, surpassing analyst expectations by 3.2%. It was a mixed quarter for the company, with an impressive beat of analysts' revenue and earnings estimates. On the other hand, its full-year earnings forecast missed analysts' expectations.

The stock is down 0.6% since the results and currently trades at $27.03.

Read our full, actionable report on Kohl's here, it's free.

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