Kohl’s Corporation (KSS - Analyst Report) 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 struggled hard in the past one year, owing to a challenging retail/sales environment in the U.S. However, Kohl’s continuous efforts to improve its business coupled with its strategic initiative "the Greatness Agenda" is expected to improve sales of the company. Further, the recovery in macro-economic environment and reducing fuel prices might also increase consumer spending power, which in turn will boost traffic at the stores. However, gross margin pressure and higher expense burden remain its headwinds. 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. KSS has a mixed history in earnings season. KSS has delivered positive surprise in three of the last four quarters, with negative surprise in one, making for an average positive surprise of 2.48%.
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 $1.07 per share, missing on our consensus of $1.14 per share. Investors should note that these figures take out stock option expenses.
Revenue: KSS posted revenues of $4.267 billion, lagging our consensus estimate of $4.310 billion.
Key Stats to Note: Kohl’s’ comparable store sales increased 0.1%, compared with an increase of 1.4% in the preceding quarter.
Stock Price: Inactive in the pre-market trading.
Update on Kohl earnings.
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