Kohl’s Earnings Hurt by Negative Same-Store Sales
Kohl's reported disappointing third-quarter results Thursday before the markets opened and shares fell in the premarket.
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Kohl’s Corp. (NYSE: KSS) reported its third-quarter results Thursday before the market open as $0.70 in earnings per share on $4.37 billion in revenue. That was against Thomson Reuters consensus estimates of $0.74 in earnings per share on $4.41 billion in revenue. In the third quarter of the previous year, Kohl’s posted $0.81 in earnings per share on revenue of $4.44 billion.
Net income for the third quarter was $142 million, compared to $177 million in the same period from the previous year. The drop in net income was more pronounced this year as comparable store sales for this quarter recorded a loss of 1.8%, compared to the previous year’s loss of 1.6%. The year-to-date number does not look any better. Comparable store sales are down 2.2% from the previous year, which was only down 0.9% at this time.
Kohl’s closed the quarter with 1,163 stores in 49 states, up from 1,158 stores at the same time last year. In this past quarter, the company opened stores in three new locations and reopened one store that had been previously closed in the first quarter for a complete rebuild.
Earlier this week, the board of directors declared a quarterly cash dividend of $0.39 would be payable to shareholders on December 24.
Barclays downgraded Kohl’s to a Sell rating from Equal Weight, and moved its price target down to $30 from $50, on November 10.
Shares of Kohl’s closed Wednesday up 3% at $57.91. Following the release of the earnings report, the initial response in the premarket was negative and shares were down over 3% at $56.05.
The consensus analyst price target is $59.74, and the 52-week trading range is $48.68 to $63.54. Kohl’s has a market cap of nearly $12 billion.
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Chris Lange is a financial and geopolitical writer with more than a decade of experience covering a myriad of topics. He has published thousands of articles for 24/7 Wall St., with past coverage focused heavily on stocks, IPOs, healthcare, defense, global affairs, and technology.
His work has been quoted, or referenced by a number of outlets including Business Insider, USA Today, Yahoo Finance, MSN, The Motley Fool, and many other publications. A graduate of Southwestern University, he studied business with a focus on investments and has previous experience in banking and startups.
When not reading or writing the news, he is following his passion for Lacrosse, playing chess, or building solar projects with his dad.
