Kohl’s Earnings: KSS Stock Craters 19% on Mixed Q3, Lowered Outlook

KSS missed EPS estimates by 12 cents

Kohl’s (NYSE:KSS) earnings for the retail company’s third quarter of 2019 have KSS stock falling hard on Tuesday. This is due to its Non-GAAP EPS of 74 cents, which is well below Wall Street’s estimate of 86 cents. Revenue of $4.63 billion beats out analysts’ estimates of $4.40 billion, but couldn’t save KSS stock.

Kohl's Earnings: KSS Stock Craters 19% on Mixed Q3, Lowered Outlook
Source: Sundry Photography/Shutterstock.com

Here’s a more in-depth look at the Q3 Kohl’s earnings report.

  • Adjusted earnings per share for the quarter are down 24.49% YoY from 98 cents.
  • Revenue is sitting at roughly the same levels as it was in the third quarter of 2018.
  • Operating income of $204 million is 20.93% worse than the $258 million in the same period of the year prior.
  • The Kohl’s earnings report also has net income for the quarter coming in at $123 million.
  • That’s a 23.60% decline from KSS’ net income of $161 million in the third quarter of the previous year.

Michelle Gass, CEO of Kohl’s, doesn’t offer much in the way of helpful insight to holders of KKS stock.

“We are pleased to report that our business returned to growth during the third quarter, with a comparable sales increase of 0.4%. The quarter started off positive in August with another successful back-to-school season and ended strong in October.”

The Kohl’s earnings report also includes a guidance update for 2019. KSS now expects adjusted per-share earnings to range from $4.75 to $4.95. The previous outlook was between $5.15 and $5.45. This is bad news for KSS stock with its high EPS guidance below Wall Street’s estimate of $5.19 for 2019.

KSS stock was down 19.06% as of Tuesday afternoon.

As of this writing, William White did not hold a position in any of the aforementioned securities.


Article printed from InvestorPlace Media, https://investorplace.com/2019/11/kohls-earnings-hammers-kss-stock/.

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