Kohl’s Tops Q2 Profit Forecast, Lowers Outlook for Year

The chain says sales will rise this quarter due to back-to-school spending

   

Kohl’s Tops Q2 Profit Forecast, Lowers Outlook for Year

Kohl‘s (NYSE:KSS) offered investors a mixed picture on Thursday, lowering its guidance for the full year, while predicting improved sales in the current quarter.

The company said it earned $240 million in the second quarter, down 20% from $299 million in the same period last year.

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Revenue at the department store chain was $4.21 billion, down 1% from 2011, and narrowly missing the $4.22 billion Wall Street was looking for, Fox Business noted.

EPS for the quarter was $1. That beat the 96 cents a share analysts had forecast.

Company officials called the results “disappointing.” Gross margins fell from 40.7% last year, to 39%.

The chain cut its full-year earnings outlook from a prior estimate of $4.75 a share, to between $4.50 and $4.65 a share. Analysts expect earnings of about $4.64 a share for the year.

Third-quarter sales are expected to rise between 1% and 3% as the back-to-school shopping season begins. The company projects current quarter earnings of between 83 cents and 89 cents a share. Wall Street predicts that Kohl’s will earn about 87 cents a share for the current quarter.

Shares of Kohl’s slipped more than 1% in Thursday morning trading.

Yesterday, rival department store chain Macy’s (NYSE:M) reported second-quarter earnings that topped analysts’ estimates and raised its outlook for the full year.


Article printed from InvestorPlace Media, http://investorplace.com/2012/08/kohls-tops-q2-profit-forecast-lowers-outlook-for-year/.

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