Kohls Earnings: Profit Increase Breaks Streak of Falling Profits

S&P 500 (NYSE:SPY) component Kohls Corporation (NYSE:KSS) reported its results for the third quarter. Kohl’s operates department stores that offer apparel, footwear and accessories as well as home products and housewares.

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Kohls Corporation Earnings Cheat Sheet

Results: Net income for Kohls Corporation rose to $215 million (91 cents per share) vs. $211 million (80 cents per share) in the same quarter a year earlier. This marks a rise of 1.9% from the year-earlier quarter.

Revenue: Rose 2.8% to $4.5 billion from the year-earlier quarter.

Actual vs. Wall St. Expectations: Kohls Corporation beat the mean analyst estimate of 87 cents per share. It beat the average revenue estimate of $4.27 billion.

Quoting Management: Kevin Mansell, Kohl’s chairman, president and chief executive officer, said, “Our sales performance in the third quarter was consistent with our expectations, while our gross margin results were better than expected. Thanks to our dedicated teams, expenses were again well-managed. We have made noticeable investments in Holiday inventory – both in depth and content – and the in-store experience. Our stores are festive and fun to shop. We are also very excited about our expanded gift strategy and our ability to offer great products at great values.”

Key Stats:

The company has now topped analyst estimates for the last four quarters. It beat the mark by 4 cents in the second quarter, by 3 cents in the first quarter, and by one cent in the fourth quarter of the last fiscal year.

The profit increase last quarter broke a three-quarter streak of profit decreases. In the second quarter, net income fell 19.7% from the year earlier, while the figure dropped 27% in the first quarter and 7.3% in the fourth quarter of the last fiscal year.

Revenue rose last quarter after seeing a drop the quarter before. Revenue fell 1% to $4.21 billion in the second quarter from the year earlier.

Looking Forward: The outlook for the company’s results in the upcoming quarter is unfavorable. The average estimate for the fourth quarter is $2.17 per share, down from $2.19 ninety days ago. At $4.63 per share, the average estimate for the fiscal year has risen over the past seven days from $4.62.

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(Company fundamentals provided by Xignite Financials. Earnings estimates provided by Zacks)

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