Kohl's Q4 Earnings & Sales Beat Estimates, Stock Up 5%

Kohl's Corporation (KSS - Free Report) delivered fourth-quarter fiscal 2018 results, wherein both top and bottom lines came ahead of the Zacks Consensus Estimate. The bottom line also improved year over year.

Notably, this marked the company’s seventh straight quarter of revenue beat, while earnings surpassed the consensus mark for the fifth time in a row. These factors along with management’s impressive earnings guidance for fiscal 2019 seem to have raised investors’ spirits.

Kohl's Corporation Price, Consensus and EPS Surprise

Kohl's Corporation Price, Consensus and EPS Surprise | Kohl's Corporation Quote

Notably, shares of the company gained 5.2% in the pre-market trading session. Further, this Zacks Rank #3 (Hold) stock has increased by 2.3% in the past three months, against the industry’s decline of 7%.

Well, for fiscal 2019, management expects adjusted earnings per share of $5.80-$6.15, which stands above the current Zacks Consensus Estimate of $5.70.

Q4 in Detail

Kohl’s adjusted earnings of $2.24 per share easily surpassed the Zacks Consensus Estimate of $2.17 and rallied 19.8% on a year-over-year basis. We believe that bottom-line growth was backed by lower interest expenses and decline in SG&A costs.

Total revenues came in at $6,823 million, which fell 3.3% from the prior-year quarter’s figure. Nonetheless, the figure came ahead of the Zacks Consensus Estimate of $6,780 million. Net sales also fell 3.4% to $6,535 million, while other revenues dipped 2.4% to $288 million in the quarter.

Further, comps rose 1%, against rise of 6.3% recorded in the year-ago quarter. Well, comps have been positive since the past six quarters. Comps in the quarter were fueled by solid performance in the holiday season.

Moving on, gross margin remained nearly flat at 33.5% in the reported quarter. However, operating income came in at $441 million, down from the prior-year quarter’s $567 million.

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