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Kohl's Corp. (KSS) Lags Q1 Earnings and Revenue

Kohl’s Corporation KSS is a U.S. based department store chain that operates specialty department stores and an e-commerce site in the U.S. The department store appeals to middle-class consumers as it sells discounted branded and private label clothing and home goods.

Kohl’s has been struggling hard since more than one year, owing to a challenging retail/sales environment in the U.S. A general slowdown in consumer spending and a highly competitive promotional environment has also been impacting the profits. Though Kohl’s continuous efforts to improve its business coupled with its strategic initiative "the Greatness Agenda" is expected to improve sales of the company over the long term, but the initiative is generating weaker returns in the near term which is a concern. Due to this, investors are eagerly awaiting Kohl’s earnings report.

Investors should also note the recent earnings estimate revisions for KSS, as the consensus estimate has been moving downwards over the past 30 days. KSS has a mixed history in earnings season. KSS has delivered positive surprise in three of the last four quarters, with negative surprise in the remaining one, making for an average positive surprise of 3.76%.

Currently, KSS has a Zacks Rank #3 (Hold), but that could definitely change following Kohl’s’ earnings report which was just released. We have highlighted some of the key stats from this just-revealed announcement below:

Earnings: KSS posted earnings of 31 cents per share, missing our consensus of 36 cents per share. Investors should note that these figures take out stock option expenses.

Revenue: KSS posted revenues of $3.972 billion, missing our consensus estimate of $4.124 billion.

Key Stats to Note: Kohl’s’ comparable store sales decreased 3.9%, compared with an increase of 0.4% in the preceding quarter and an increase of 1.4% in the year ago quarter.

Stock Price: Shares remained inactive in the pre-market trading.

Check back later for our full write up on this KSS earnings report later!

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KOHLS CORP (KSS): Free Stock Analysis Report
 
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