What to Watch in Kohl’s Earnings Tuesday Morning

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Kohl’s Corp. (NYSE: KSS) is set to report its most recent quarterly results before the markets open on Tuesday. Consensus analyst estimates call for $2.18 in earnings per share (EPS) and $6.58 billion in revenue. The fiscal fourth quarter of last year had EPS of $1.87 and $6.78 billion in revenue.

This top retailer operates department stores in the United States that offer private label, exclusive and national brand apparel, footwear, accessories, beauty and home products to children, men and women customers. The company also sells its products online at Kohls.com and through mobile devices.

While retail chains have suffered from internet pressure, Kohl’s has held its own as consumers see the company as a solid discount retailer. In addition, Amazon is growing its partnership with the department store chain. Last summer, the two companies announced that Kohl’s would begin selling Amazon devices, such as the Echo and Fire tablets, at 10 of its stores. Kohl’s also will accept Amazon.com returns at certain U.S. locations.

In its most recent quarter, Kohl’s noted that comparable sales growth came in at 2.5%, versus an increase of 0.1% in the same period of last year. This marked the fifth consecutive quarter of positive growth.

Excluding Monday’s move, Kohl’s had underperformed the broad markets, with its stock up only 2.7% year to date. In the past 52 weeks, the stock was up only 3%.

A few analysts weighed in on Kohl’s ahead of the report:

  • Telsey Advisory Group has an Outperform rating with an $80 price target.
  • Cowen has a Buy rating with an $82 price target.
  • Citigroup has a Neutral rating and a $71 price target.
  • Credit Suisse has a Neutral rating and a $67 price target.
  • Piper Jaffray has a Hold rating with a $68 price target.

Shares of Kohl’s were last seen down nearly 1% at $67.58, in a 52-week range of $57.89 to $83.28. The consensus price target is $73.75.

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