Kohl’s Corp. (NYSE: KSS) opened higher this morning after the company posted a better-than-expected second-quarter profit as cost cutting offset weak sales.
The retailer said its quarterly profit totaled $240 million, or $1.00 per share. That was down from $299 million, or $1.08 per share, in the same period of last year. However, EPS topped the consensus forecast by four cents. Revenue fell 1% year over year to $4.21 billion. That fell short of consensus expectations of $4.27 billion.
These results also compare with those of competitor Macy’s (NYSE: M), which yesterday reported a 16% increase in net income for its second quarter and boosted its full-year EPS guidance. However, analysts anticipate that JCPenney Co. Inc. (NYSE: JCP) will post a net loss and declining sales when it reports tomorrow.
Kevin Mansell, Kohl’s chairman, president and chief executive officer, said:
Our sales performance in the second quarter was disappointing. Our gross margin performance for the quarter, however, was better than expected. Our teams remain disciplined in their expense management and, again, delivered solid results. We accomplished our goal of improving inventory levels for the fall season and our sales improved considerably in July as units were received. As we look forward to the fall season, we are excited about the fashion content and level of newness in our assortments.
Kohl’s expects third-quarter earnings of $0.83 to $0.89 per share, compared with the $0.87 Wall Street analysts are expecting, according to Thomson Reuters.
Shares of Kohl’s were down slightly in premarket trading to $52.05 but opened at $52.99. The 52-week trading range is $42.14 to $56.66. Thomson Reuters had a consensus analyst price target of $56.00 before this news.