Kohls Earnings: Net Income Keeps Falling

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

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Kohls Earnings Cheat Sheet for the First Quarter

Results: Net income for the retail-regional department stores fell to $154 million (63 cents per share) vs. $201 million (69 cents per share) a year earlier. This is a decline of 23.4% from the year-earlier quarter.

Revenue: Rose 1.9% to $4.24 billion from the year-earlier quarter.

Actual vs. Wall St. Expectations: Kohls Corporation beat the mean analyst estimate of 60 cents per share. Analysts were expecting revenue of $4.27 billion.

Quoting Management: Kevin Mansell, Kohl’s chairman, president and chief executive officer, said, “Our first quarter results reflect the implementation of our strategy to initiate lower pricing in order to provide greater value to our customers. This planned action led to significantly lower gross margins for the quarter. Strong management of expenses allowed us to achieve our earnings goal for the quarter. We have accelerated new receipts into second quarter to ensure we are well-positioned from an inventory perspective for the Back-to-School season. The combination of these two actions should allow us to greatly improve our sales for the fall season.”

Key Stats:

The company has now surpassed analyst estimates for four quarters in a row. It beat the mark by one cent in the fourth quarter of the last fiscal year, by one cent in the third quarter of the last fiscal year, and by one cent in the second quarter of the last fiscal year.

After dropping in the quarter before, revenue increased last quarter. Revenue fell 0.3% to $6.02 billion in the fourth quarter of the last fiscal year from the year earlier.

Looking Forward: The outlook for the company’s results in the upcoming quarter is unfavorable. The average estimate for the second quarter is $1.14 per share, down from $1.19 ninety days ago. At $4.76 per share, the average estimate for the fiscal year has fallen from $4.99 ninety days ago.

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

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