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Kohl's Reported Weak Quarter Earnings

Kohl's just released their 3rd quarter earnings and it is reported that their profits fell 18%.  This decrease is very much due to weak same-store sales as that is a good indicator of how well a multi-store business is running.  Share prices dropped 9.5% and is trading at $52.75, and the company cut its profit guidance for the year.  However, Kohl's is up 36% for this year, so it can't be that bad can it?  For this quarter, they reported a profit of $177 million, which equates to 81 cents a share, which came down from $215 million (91c a share) last year.  Revenue also dropped 1% and same store sales dropped 0.1% when analysts expected it to go up 0.7%.

On the other hand, Macy's had a great 3rd quarter earning report and things are looking up for them for the upcoming holiday season.  It appears that Macy's success for this quarter was due to the many deals they offer.  Perhaps Kohl's can learn a thing or two from its rival to stay afloat in the business.  The one thing that looks positive for both however, is the announcement to stay open on Thanksgiving and offer crazy discounts which will definitely attract price shoppers.