Despite Same-Store Sales Growth, Kohl’s Earnings Short of Expectations –

Despite Same-Store Sales Growth, Kohl’s Earnings Short of Expectations


Kohl’s Corp. (KSS) on Thursday, Nov. 9, reported income and same-store gross sales progress, however earnings per share upset.

During the corporate’s fiscal quarter, ending Oct. 28, Kohl’s generated earnings of 70 cents per share, down 12.5% from the identical quarter final yr. Revenue of $four.33 billion was up zero.1% yr over yr, and same-store gross sales have been additionally up zero.1%, in comparison with a 1.7% decline within the similar quarter in 2016. Analysts surveyed by FactSet anticipated Kohl’s to report earnings of 72 cents per share on gross sales of $four.three billion.

Kohl’s is betting on including new prospects to its shops by way of a partnership with retail boogeyman Inc. (AMZN) .

On Oct. 18, Kohl’s launched a three way partnership with Amazon, beforehand introduced in September, which provides new Amazon Smart Home Experience Amazon-focused areas in ten Kohl’s shops in Los Angeles and Chicago, in addition to providing Amazon returns in 82 Kohl’s shops.

Despite, in his view, a grim long-term prognosis, “Street estimates are likely to move higher (and not lower) in the coming quarters and with the company dancing with Amazon to some degree, we think shares have more room to grind higher in the near-term,” wrote Gordon Haskett Research Advisors LLC badyst Chuck Grom.

At an Oct. 26 go to to Kohl’s headquarters in Menomonee Falls, Wisc., Grom stated the corporate expressed “a greater willingness to change as well as an open-minded approach towards adopting new strategies – ala the company’s recent venture with Amazon,” noting that CEO Kevin Mansell advised them “‘all things are on the table’ when speaking to future new initiatives across all aspects of its operating model.”

In addition to growing on-line gross sales and driving visitors by way of the Amazon partnerships, Grom wrote, Kohl’s is concentrated on growing retailer visits, together with the extremely touted and profitable addition of Under Armour Inc. (UAA) merchandise to its shops, increasing its active-wear choices with different manufacturers together with Adidas AG (ADDYY) and Nike Inc. (NKE) , luring prospects who favored now-closed outposts of rivals like J.C. Penney Co. Inc. (JCP) and a brand new loyalty program to be rolled out subsequent yr.

Not resistant to declining brick-and-mortar purchasing throughout the retail sector, Kohl’s plans to shrink shops moderately than closing them like lots of its rivals. Sears Holdings Corp. (SHLD) introduced Nov. 2 that it’ll shutter 45 Kmart shops and 18 Sears shops. Sears stated Wednesday that same-store gross sales fell 13.6% on the two chains through the quarter ending Oct. 28, an acceleration from the 12.four% decline within the prior quarter.

Kohl’s additionally reported this quarter, on Sept. 26, that Mansell, its CEO of almost a decade, will retire in May. He’ll get replaced by Chief Merchandising and Customer Officer Michelle Gbad, who joined Kohl’s in 203 after stints at Starbucks Corp. (SBUX) and Procter & Gamble Co. (PG) .

Kohl’s shares fell 5.6% to $38.50 in premarket buying and selling Thursday.

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