Kohl’s Doesn’t Stand Up to Macy’s (KSS, M)
The earnings report from Kohl’s Corporation (NYSE: KSS) was partly like the Macy’s Inc. (NYSE: M) report yesterday, but the outlook from Kohl’s leaves a simple observation: Macy’s is taking share from Kohl’s. That is the verdict from the stock…
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The department store chain beat earnings this morning at $0.84 EPS vs. $0.82 expected from Thomson Reuters. Revenues were up 7.7% to $4.1 billion, effectively in-line with the $4.09 billion expected. Same store sales rose 4.6%.
It is the next quarter guidance where things get cloudy at Kohl’s as it sees $0.57 to $0.63 EPS versus an estimate of $0.74 EPS from Thomson Reuters. It sees revenues rising 4.5% to 6.5% from a year before to $4.23 to $4.31 billion, mostly in-line with $4.29 billion expected from Thomson Reuters. Kohl’s also sees same-store sales up 2% to 4% for the quarter. This sounds like over-promotion being the kicker with discounting.
The end of year quarter is seen at $1.51 to $1.59 EPS versus $1.57 EPS expected from Thomson Reuters. Revenues were projected up 4.5% to 6.5% to roughly $5.94 billion to $6.05 billion versus Thomson Reuters consensus estimates. It sees same-store sales being up 2% to up 4%.
Macy’s managed to close up by $1.14 at $20.52 yesterday despite the triple-digit DJIA losses. Kohl’s fell $0.65 to $47.78 yesterday with the broader market and shares are down another $1.50 to $46.28 in pre-market trading.
JON C. OGG
Contact [email protected] for any questions or corrections.
Jon Ogg has been a financial news analyst since 1997. Mr. Ogg set up one of the first audio squawk box services for traders called TTN, which he sold in 2003. He has previously worked as a licensed broker to some of the top U.S. and E.U. financial institutions, managed capital, and has raised private capital at the seed and venture stage. He has lived in Copenhagen, Denmark, as well as New York and Chicago, and he now lives in Houston, Texas. Jon received a Bachelor of Business Administration in finance at University of Houston in 1992. www.247wallst.com.
