Diamonds and Dogs
Expect great things with today's diamond, Kohl's (KSS). The stock is up 5% thanks to strong earnings due in part to a strong back to school sales season. The company that specializes in clothing and home furnishings beat earnings estimates by 6 cents while sales came in better than expected as well at $4.43 billion. The company is moving towards private label products with higher profit margins similar to Macy's. Let's hope this boosts sales further since the stock even with today's run up is still down over 40% from the yearly highs.
Advanced Auto Parts (AAP) looks like a wreck today. The auto parts supplier is down 15% to a four month after missing quarterly estimates, lowering full year guidance, and kicking the CEO out the door. On top of that, AAP will be closing 30 stores before the end of this year which actually will help earnings going forward. With the CEO "stepping down" , the activist investor group, Starboard Value LP will be taking a more direct role adding a board member and looking to cuts costs where they can to boost sales and earnings. Look for more changes coming from Advance Auto Parts.
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