KSS: Validating Read on PSS

Datapoints continue to trickle out that validate our view that PSS operating momentum is misunderstood.



For anyone that cares on PSS (which you should) KSS was one of the more notable callouts this morning. KSS said that the Northeast and Southeast were the strongest geographies and that Footwear achieved the strongest comp.


Looking back to PSS comments on Tuesday night, the company noted weakness came from California and Southwest. We've since run the math on PSS store weightings by state, and it is definitely overindexed to the economies that were weaker during the month.


In addition, take a look at the KSS website at its footwear offering. What's new? Toning. Check out the images below. Several best sellers are web-exclusive. KSS also noted 50% growth in e-commerce.


Not a coincidence.


What do I like the most here? PSS will up its ante by 3x in 'Toning' in 2H. KSS is supporting price points as high as $115, and is commanding $40 for even simple thong sandals.  PSS has plenty of room to go with price point given that its company avg price point is in the teens.


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