Kohl’s Corp (NYSE: KSS) reported second-quarter financial results ahead of the opening bell on Tuesday, Aug. 20. The department store operator posted a wider-than-anticipated slump in comparable-store sales as it struggled to draw shoppers to its stores during the quarter.
However, the company beat profit estimates in the latest quarter, thanks in part to partnerships with Amazon.com (NASDAQ: AMZN). Earlier this year, Kohl’s revealed plans to accept unwanted Amazon returns at all of its stores, a move aimed at increasing foot traffic.
Shares of Kohl’s rose nearly 6% in premarket trade, but lost some of those gains in the early minutes of regular trading. At 10:22 a.m. ET, the shares were down 4.90% to change hands at $45.84 apiece.
The stock has lost more than 27% since the beginning of the year and around 37% in the past 12 months.
KSS Earnings & Outlook
Kohl’s had net income to $241 million, or $1.51 per share, during the three months to August 3, compared with net income of $292 million, or $1.76 per share in the same period last year.
On an adjusted basis, earnings came to $1.55 per share in the quarter. Analysts polled by Refinitiv had called for adjusted earnings of $1.53 per share.
Companywide revenue stood at $4.17 billion, down from $4.31 billion from the earlier-year period. Analysts had forecast companywide revenue of $4.2 billion, according to data compiled by Refinitiv.
Comparable same-store sales, a closely watched metric among brick-and-mortar retailers, fell 2.9%. Wall Street expected comparable-store sales decline of 2.5%.
For the full year, Kohl’s still views adjusted earnings of between $5.15 to $5.45 per share.
Kohl’s CEO Comments
“We are pleased to report that our business strengthened as we progressed through the second quarter. Comparable sales were better than the first quarter and improved during the period, turning positive during the last six weeks of the second quarter with 1% growth. This positive trend has continued into August driven by a successful start to the back-to-school season,” commented Kohl’s chief executive officer Michelle Gass.
“We are confident that our upcoming brand launches, program expansions, and increased traffic from the Amazon returns program will incrementally contribute to our performance during the balance of the year and beyond,” Gass added.
Kohl’s Corp Profile
Kohl’s operates 1,155 department stores in 49 states that sell moderately priced private-label and national brand clothing, shoes, accessories, cosmetics, and home furnishings. Most of these stores are in strip centers.
Kohl’s also operates an e-commerce site (kohls.com), 12 FILA athletic apparel outlets, and four clearance stores. Women’s apparel constitutes Kohl’s largest line of business, generating approximately 28% of its sales. The retailer, headquartered in Menomonee Falls, Wisconsin, opened its first department store in 1962. – Warrior Trading News
