Kohl’s beats Street as turnaround shows progress; raises guidance
Kohl’s Corp. struck an optimistic note in reporting its third-quarter earnings, which came in above expectations.
The department store retailer reported its third-quarter results a day after it named interim CEO Michael Bender as its permanent chief executive.
“We are pleased with Kohl’s third quarter results, marking a third consecutive quarter of delivering top-line and bottom-line performance ahead of our expectations,” stated Bender. “These results are a direct reflection of the progress we are making against our 2025 initiatives, reinforcing our confidence as we continue to move in the right direction.”
Net income fell to $8 million, or $0.7 per share, for the quarter ended Nov. 1, compared to net income of $22 million, or $0.20 per share, in the year-ago period. Adjusted earnings per share were $0.10 per share.
Net sales declined 2.9% to $3.41 billion, topping estimates of $3.32 billion. Comparable sales fell 1.7%. Analysts had expected a 3.7% decline. Average transactions were flat to last year, but traffic improved both in stores and online. Business was especially strong among Kohl’s card holders.
“We are pleased with Kohl’s third quarter results, marking a third consecutive quarter of delivering top-line and bottom-line performance ahead of our expectations,” stated Bender. “These results are a direct reflection of the progress we are making against our 2025 initiatives, reinforcing our confidence as we continue to move in the right direction. We are focused on building on this momentum, as we remain committed to delivering quality products, great value, and a frictionless experience to our customers in an uncertain macroeconomic environment.”
Kohl’s raised its full-year guidance ranges for adjusted earnings per share to between $1.25 and $1.45 from between $0.50 and $0.80 cents. It expects sales growth to decline 3.5% to 4% compared to its previous forecast of 5% to 6%. Comparable sales are expected to fall 2.5% to 3% from a decrease of 4% to 5%.
“I am very proud of the work our team has accomplished to date, as we continue to operate our company with strong discipline, deliver solid cash flow generation, and maintain a healthy balance sheet,” Bender said. “This will serve as a strong foundation as we reposition Kohl’s for future growth.”
Kohl’s has more than 1,100 stores in 49 states,