What to Expect From Kohl's Earnings

Retail

Published: August 12, 2015 2:05 pm

Kohl’s Corp. (NYSE: KSS) is scheduled to report its fiscal second-quarter results on Thursday before the markets open. Consensus estimates from Thomson Reuters call for $1.17 per share in earnings, as well as $4.32 billion in revenue. In the same period of the previous year, it posted earnings of $1.13 per share on $4.24 billion in revenue.

Last fall, Kohl’s launched two key national brands in its stores: Izod (for men) and Juicy Couture (for women). The company also implemented a nationwide roll-out for the new customer loyalty program it had been testing. Plus, in an important move to increase Internet sales, Kohl’s has been improving its e-commerce capabilities.

The company suffered a downgrade from Sterne Agee CRT after its last earnings report was not up to par. The analyst’s argument was that there is clearly a more challenged retail and consumer backdrop, and the path for same-store sales growth for 2015 and 2016 is less visible for Kohl’s. However, this earnings point could be a great time for the company to combat this call.

In this coming earnings report, the company will be looking for another sequential increase in same-store sales, but this time with the earnings to back it up.

So far in 2015, Kohl’s basically has matched the market, up to Tuesday’s close at $61.41. Shares are only up about 2% year to date, but they are up 13% in the past 52 weeks.

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A few analysts weighed in on Kohl’s before the company reported earnings:

Jefferies reiterated a Buy rating but lowered the price target to $72 from $82.
Sterne Agee CRT has a Neutral rating with a $64 price target.
Deutsche Bank reiterated a Hold rating with a $67 price target.

Other key retailers are reporting later on Thursday and Friday as well, such as J.C. Penney and Nordstrom; Macy’s has already reported.

Shares of Kohl’s were up 0.4% at $61.68 on Wednesday afternoon. The stock has a consensus analyst price target of $72.05 and a 52-week trading range of $53.86 to $79.60.

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