Kohl’s Corp. (NYSE: KSS) Stock
After reporting fiscal third quarter earnings on Tuesday, Kohl’s stock price is being pummeled. The Wisconsin-based company reported sales and earnings that were above expectations. It also upped its full-year earnings guidance, but not as much as analysts were expecting.
Kohl’s is enjoying higher customer traffic thanks to its partnership with Amazon, which even allows customers to return items bought on certain Kohl’s outlets and Amazon website. Shares of Kohl’s shares, lost as much as 10% in premarket trade. The stock was down 8.96% to $64.43 at 1.25 p.m. in New York.
KSS Earnings & Outlook
The company posted net income of $161 million, or $0.98 per share, up from $117 million, or $0.70 per share, in the same period a year ago. Total revenue came to $4.63 billion, an increase of 1.3% year over year.
Analysts had called for adjusted earnings of $0.96 per share on revenue of $4.365 billion, according to figures compiled by Refinitiv. Same-store sales jumped 2.5% during the three months ended Nov. 3, surpassing estimates of 1.74% rise. Gross margin rate grew to 37% during the quarter, compared with a rise of 36.8% in the prior-year period.
For the full year, the company expects to report adjusted earnings of between $5.35 and $5.55 per share, compared with its earlier estimate for adjusted earnings of $5.15 to $5.55 per share. Meanwhile, analysts expect Kohl’s to report full-year adjusted earnings of $5.12 to $6 per share.
The chain also boosted its full-year diluted earnings guidance to the range of $5.16 to $5.36 per share, compared to its previous outlook of $4.96 to $5.36 per share.
Kohl’s CEO Comments
“We are very pleased that our strong performance continued into the third quarter, resulting in a comparable sales increase of 2.5%, our fifth consecutive quarter of positive growth,” commented Michelle Gass, Kohl’s chief executive officer.
“We experienced strength across our entire apparel business, and our focus on speed to market and inventory management are driving relevancy with our customers, resulting in sales growth, margin expansion, and clean inventory levels. We are executing extremely well in our stores and our digital channels, and our efforts across the company have us well-positioned going into the fourth quarter. I want to thank our teams for another strong quarter and for the energy and enthusiasm they are bringing to the holiday season ahead of us.”
Kohl’s Corp. Company Profile
Kohl’s Corp. owns and operates family-oriented department stores. It offers exclusive brand apparel, shoes, accessories and home & beauty products through its department stores. Its stores offer apparel, footwear and accessories for women, men and children; soft home products, such as sheets and pillows and housewares targeted to middle-income customers.
Its stores generally carry a consistent merchandise assortment with some differences attributable to regional preferences. The company was founded in 1962 and is headquartered in Menomonee Falls, WI. – CNN Money
