Retail

Kohl’s Narrows, Lowers Guidance after Q3 Earnings

thinkstock
Kohl’s Corp. (NYSE: KSS) reported third-quarter 2012 earnings this morning. For the quarter, the department store chain posted diluted earnings per share (EPS) of $0.91 on revenues of $4.5 billion. In the same period a year ago, the company reported EPS of $0.80 on revenues of $4.4 billion. Third-quarter results also compare to the Thomson Reuters consensus estimates for EPS of $0.88 and $4.47 billion in revenues.

For the quarter, which ended in October, Kohl’s reported a same-store sales increase of 1.1%.

The company’s chairman 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.

Kohl’s narrowed its full-year EPS range from an earlier estimate of $4.50 to $4.65 to a new range of $4.52 to $4.60. The current consensus estimate for full-year EPS is $4.62. For the company’s fourth quarter, the EPS guidance is $2.00 to $2.08, compared with the current consensus EPS estimate of $2.16.

In our early look at retail earnings, the estimate for Kohl’s earnings growth in the third quarter was 8.8%. As it turned out, the chain’s net income grew just 1.9% year-over-year. Combined with the narrower and lower guidance, Kohl’s is going to face the music today.

The company’s shares are down about 2.5% in premarket trading this morning, at $53.10 in a 52-week range of $42.72 to $56.66. The consensus target price for the shares was around $58.10 before today’s report.

Paul Ausick

Credit card companies are handing out rewards and benefits to win the best customers. A good cash back card can be worth thousands of dollars a year in free money, not to mention other perks like travel, insurance, and access to fancy lounges. See our top picks for the best credit cards today. You won’t want to miss some of these offers.

Flywheel Publishing has partnered with CardRatings for our coverage of credit card products. Flywheel Publishing and CardRatings may receive a commission from card issuers.

Thank you for reading! Have some feedback for us?
Contact the 24/7 Wall St. editorial team.