Kohl’s Earnings: Here’s Why Shares are Up Now

Kohl’s Corp. (NYSE:KSS) delivered a profit and missed Wall Street’s expectations, AND 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 1.79%.

Kohl’s Corp. Earnings Cheat Sheet

Results: Adjusted Earnings Per Share increased 4% to $1.04 in the quarter versus EPS of $1.00 in the year-earlier quarter.

Revenue: Rose 2% to $4.29 billion from the year-earlier quarter.

Actual vs. Wall St. Expectations: Kohl’s Corp. reported adjusted EPS income of $1.04 per share. By that measure, the company missed the mean analyst estimate of $1.05. It missed the average revenue estimate of $4.29 billion.

Quoting Management: Kevin Mansell, Kohl’s chairman, president and chief executive officer, said, “We are pleased with our progress in the second quarter. Sales improved significantly over the first quarter and our gross margin improved over last year. Expenses were well-managed and we ended the quarter with inventory per store up mid-single digits while funding our E-Commerce growth. I would like to thank each of our associates for their contribution to our results.”

Key Stats (on next page)…

Revenue increased 2.14% from $4.2 billion in the previous quarter. EPS increased 57.58% from $0.66 in the previous quarter.

Looking Forward: Analysts have a neutral outlook for the company’s next-quarter performance. Over the past three months, the average estimate for next quarter’s earnings is a profit of $0.94 and has not changed. For the current year, the average estimate has moved up from a profit of $4.35 to a profit of $4.36 over the last ninety days.

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