For the quarter, which ended in October, Kohl’s reported a same-store sales increase of 1.1%.
The company’s chairman said:
Our sales performance in the third quarter was consistent with our expectations, while our gross margin results were better than expected. Thanks to our dedicated teams, expenses were again well-managed. We have made noticeable investments in Holiday inventory — both in depth and content — and the in-store experience.
Kohl’s narrowed its full-year EPS range from an earlier estimate of $4.50 to $4.65 to a new range of $4.52 to $4.60. The current consensus estimate for full-year EPS is $4.62. For the company’s fourth quarter, the EPS guidance is $2.00 to $2.08, compared with the current consensus EPS estimate of $2.16.
In our early look at retail earnings, the estimate for Kohl’s earnings growth in the third quarter was 8.8%. As it turned out, the chain’s net income grew just 1.9% year-over-year. Combined with the narrower and lower guidance, Kohl’s is going to face the music today.
The company’s shares are down about 2.5% in premarket trading this morning, at $53.10 in a 52-week range of $42.72 to $56.66. The consensus target price for the shares was around $58.10 before today’s report.
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