“Nordstrom was the original digital strategy store, but Macy’s has caught up and really has done more. Macy’s has embraced a more data-driven, disciplined approach to managing all aspects of the business,” retail analyst Jane Hali said.

Analysts also expect Kohl’sSephora

The Context 

In its last quarter, Macy’s added 4.4 million new customers, up 28% from pre-pandemic levels, with around a third of them returning to the brand after months. J.P. Morgan

Macy’s quarterly online sales has grown for nearly two years, thanks to its loyalty program that has attracted million of younger customers. It plans on building on the momentum by launching a marketplace, where third-party sellers could sell brands it does not carry and help expand its customer base.

The Fundamentals

Analysts polled by Refinitiv expect Macy’s fourth-quarter revenue to jump 25% and profit to more than double. They expect Nordstrom sales to decline sharply from pre-pandemic levels, although that implies a 24% increase from a year earlier when it faced shipping delays. Kohl’s revenue is expected to jump 11% from a year earlier, but was likely to be roughly flat when compared with pre-pandemic levels.

Wall Street Sentiment

Macy’s current mean price target implies a 35% upside to Thursday’s close, while Nordstrom’s and Kohl’s are both roughly 13% above their last closing price.