Kohl’s Earnings: Here’s Why Investors are Happy Now

Kohl’s Corp. (NYSE:KSS) delivered a profit and beat Wall Street’s expectations, BUT came up short on beating the revenue expectation. The revenue miss is a negative sign to shareholders seeking high growth out of the company. Shares are up 6.68%.

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Kohl’s Corp. Earnings Cheat Sheet

Results: Adjusted Earnings Per Share increased 4.76% to $0.66 in the quarter versus EPS of $0.63 in the year-earlier quarter.

Revenue: Decreased 1.04% to $4.2 billion from the year-earlier quarter.

Actual vs. Wall St. Expectations: Kohl’s Corp. reported adjusted EPS income of $0.66 per share. By that measure, the company beat the mean analyst estimate of $0.58. It missed the average revenue estimate of $4.29 billion.

Quoting Management: Kevin Mansell, Kohl’s chairman, president and chief executive officer, said, “After a slow start, sales improved considerably in April as the weather finally improved in our most weather-sensitive regions. Despite the lower than expected sales, we outperformed our earnings guidance as gross margin results and expense management were better than expected. Our inventory levels are consistent with our expectations.”

Key Stats (on next page)…

Revenue decreased 33.79% from $6.34 billion in the previous quarter. EPS decreased 60.24% from $1.66 in the previous quarter.

Looking Forward: Analysts have a more negative outlook for the company’s next-quarter performance. Over the past three months, the average estimate for next quarter’s earnings has fallen from a profit of $1.09 to a profit $1.05. For the current year, the average estimate has moved down from a profit of $4.57 to a profit of $4.29 over the last ninety days.

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(Company fundamentals provided by Xignite Financials. Email any earnings discrepancies to earnings [at] wallstcheatsheet.com)

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