Kohl's Narrows, Lowers Guidance after Q3 Earnings

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


Filed under: 24/7 Wall St. Wire, Earnings, Retail Tagged: KSS
Read Full Story

Markets

DJIA 21,363.97 -33.32 -0.16%
NASDAQ 6,229.83 -6.85 -0.11%
S&P 500 2,434.43 -0.07 0.00%
NIKKEI 225 20,132.67 22.16 0.11%
HANG SENG 25,670.05 -4.48 -0.02%
DAX 12,696.72 -97.28 -0.76%
USD (per EUR) 1.12 0.00 0.36%
USD (per CHF) 0.97 0.00 -0.27%
JPY (per USD) 111.29 0.01 0.00%
GBP (per USD) 1.27 0.00 0.35%

Can't get enough business news?

Sign up for Finance Report by AOL and get everything from retailer news to the latest IPOs delivered directly to your inbox daily!

Subscribe to our other newsletters

Emails may offer personalized content or ads. Learn more. You may unsubscribe any time.