Kohl’s Shares Surge 10% on Earnings Beat, Despite Lower Forecast

kohls-kss-logoDepartment store operator Kohl’s Corporation (NYSE:KSS) this morning reported Q2 earnings results that easily beat Wall Street’s view, sending the stock soaring in premarket trading.

The Menomonee Falls, WI-based company posted second quarter net income of $1.22 per share, crushing analysts’ view for $1.03. Revenue fell 2% from last year to $4.18 billion, in-line with Wall Street estimates for $4.17 billion.

Looking ahead, KSS forecast full-year 2016 earnings to range from $3.80 to $4.00 per share, down from $4.05 to $4.25 previously. Wall Street currently expects $3.84 per share for the year.

From the press release:

Kevin Mansell, Kohl’s chairman, chief executive officer and president, said, “Our sales improved over our first quarter results, but were below our expectations. We are encouraged by the performance of juniors and young men’s as we enter the Back-to-School season. Our inventory management initiatives helped us to achieve a strong increase in gross margin with ending inventory per store down significantly from last year. Our associates throughout the organization continue to effectively manage expenses in response to changing sales trends and I appreciate all of their efforts.”

Other notes from the call included:

  • Q2 same-store sales fell -1.8% versus a +0.1% gain last year.
  • Gross margins rose to 39.5% from 38.9% last year.
  • Kohl’s ended Q2 with 1,150 Kohl’s stores, down from 1,164 Kohl’s stores last year.

Kohl’s shares jumped $3.46 (+9.10%) to $41.50 in premarket trading Thursday. Prior to today’s report, KSS had lost 20% year-to-date, versus a 7% gain in the benchmark S&P 500 index.

KSS-2016-08-11

You are viewing an abbreviated republication of ETF Daily News content. You can find full ETF Daily News articles on (www.etfdailynews.com)

Powered by WPeMatico