Kohl's is looking to boost its sagging sales by promoting value to consumers who have been buffeted by high interest rates and inflation. During the quarter ended May 4, the retailer's net sales decreased 5.3% year-over-year and its comparable sales declined 4.4%, according to a Thursday (May 30) earnings release. Kohl's attributed the drop in part to a reduction in clearance sales, which more than offset an increase in regular price sales. "As it relates to the consumer backdrop, our customers continue to ...

Core Viewpoint - Kohl's Corporation reported disappointing first-quarter fiscal 2024 results, with both revenue and earnings declining year over year and missing the Zacks Consensus Estimate [1][3] Financial Performance - The company posted a loss of $0.24 per share compared to earnings of $0.13 in the same quarter last year, falling short of the Zacks Consensus Estimate of $0.04 [3] - Total revenues were $3,382 million, down from $3,571 million in the prior-year quarter, with net sales decreasing by 5.3% year over year to $3,178 million, missing the consensus estimate of $3,540 million [3] - Comparable sales decreased by 4.4%, although regular price sales showed growth in underpenetrated categories and strength in the Women's business and Sephora [4] Margins and Expenses - Gross margin improved by 48 basis points to 39.5%, exceeding expectations of a 40 basis point increase [5] - SG&A expenses decreased by 0.8% to $1,228 million, but as a percentage of total revenues, it increased by 166 basis points to 36.3% [5] - Operating income fell to $43 million from $98 million in the previous year, with the operating income margin contracting by 148 basis points to 1.3% [6] Cash Flow and Capital Expenditures - At the end of the quarter, Kohl's had cash and cash equivalents of $228 million and shareholders' equity of $3,813 million, with an operating cash flow usage of $7 million for the year ended May 4, 2024 [7] - The company anticipates capital expenditures of nearly $500 million for 2024, focusing on expanding its Sephora collaboration and store-related investments [7] Dividend Declaration - On May 15, 2024, Kohl's declared a quarterly cash dividend of $0.50 per share, payable on June 26, 2024, to shareholders of record as of June 12 [8] Updated Guidance - Kohl's expects net sales to decline by 2-4% in 2024, with comparable sales anticipated to decrease by 1-3%, a revision from earlier expectations of flat to 2% growth [9] - The operating margin is now projected to be between 3-3.5%, down from the previous estimate of 3.6-4.1% [9] - Management envisions earnings per share to be in the range of $1.25-$1.85 [9] Stock Performance - Shares of Kohl's have increased by 12.5% over the past six months, compared to the industry growth of 19.9% [10]

Economic Data Summary - Q1 GDP was revised down to 1.3%, which is 30 basis points lower than the initial estimate, with consumption at 2.0%, the lowest since Q2 2023 [2] - Initial Jobless Claims rose to 219K, exceeding expectations by 1K, while Continuing Claims remained steady at 1.79 million, indicating healthy employment levels [3] - The Advanced U.S. Trade Balance in Goods for April showed a deficit of -$99.4 billion, significantly worse than the expected -$91.5 billion, marking the largest deficit in nearly two years [4] Company Performance - Kohl's (KSS) shares fell nearly 25% after reporting a negative earnings surprise of -700% with losses of -$0.24 per share and revenues of $3.38 billion, which was about 4.5% lower than consensus [5] - Burlington Stores (BURL) saw a stock increase of approximately 17% following a positive earnings beat of 36.5%, reporting earnings of $1.42 per share and revenues of $2.36 billion, exceeding estimates [6] - Foot Locker (FL) shares rose by 15% after beating earnings expectations by 83%, reporting earnings of $0.22 per share, although revenues of $1.88 billion fell short of expectations by 0.41% [7] Housing Market Insights - Pending Home Sales for April are expected to decline by 0.4%, following a significant drop in New Home Sales last week, indicating a slowdown in the housing market amid high mortgage rates [8]

If you're looking for a generous dividend stock, Kohl's could be it -- and it just got a lot cheaper. Kohl's Corporation (KSS -25.91%) stock imploded Thursday morning -- down 26.3% through 10:15 a.m. ET - - after reporting a big net loss where investors had expected a profit. Heading into the first quarter, analysts forecast Kohl's would earn $0.04 per share on sales of $3.3 billion. Both predictions represented declines from Kohl's Q1 2023 report, but the news was even worse than expected. Kohl's didn't ea ...

Kohl's Corp (NYSE:KSS) announced a surprise loss and revenue miss for the first quarter. The retailer also cut its annual sales forecast due to weaker demand, despite discounts and brand variety. Kohl's stock was last seen down 26.4% at $20.08, trading at its lowest level since October as it paces for its worst single-day percentage drop on record. The shares are down more than 28% for 2024, and are trading below recent support stemming from the 20-day moving average. Short sellers are already firmly in con ...

Kohl's (KSS) reported $3.38 billion in revenue for the quarter ended April 2024, representing a year-over-year decline of 5.3%. EPS of -$0.24 for the same period compares to $0.13 a year ago. The reported revenue compares to the Zacks Consensus Estimate of $3.54 billion, representing a surprise of -4.47%. The company delivered an EPS surprise of -700.00%, with the consensus EPS estimate being $0.04. While investors scrutinize revenue and earnings changes year-over-year and how they compare with Wall Street ...

Key Takeaways Kohl's shares fell sharply Thursday after it posted an unexpected net loss for the first quarter. The retailer also lowered its guidance for the full year, citing "ongoing uncertainty" among consumers. Shares plummeted 27% soon after the opening bell to their lowest point since October. Kohl's Corp. (KSS) shares tumbled Thursday after the retailer reported an unexpected net loss for the first quarter and lowered its guidance for the full year. Revenue fell 5% year-over-year to $3.38 billion, m ...

Core Viewpoint - Kohl's reported a quarterly loss of $0.24 per share, significantly missing the Zacks Consensus Estimate of $0.04, marking a 700% earnings surprise [1] - The company's revenues for the quarter were $3.38 billion, falling short of the Zacks Consensus Estimate by 4.47% and down from $3.57 billion year-over-year [2] Financial Performance - Over the last four quarters, Kohl's has surpassed consensus EPS estimates three times, but has not beaten revenue estimates during the same period [2] - The current consensus EPS estimate for the upcoming quarter is $0.67 on revenues of $3.92 billion, and for the current fiscal year, it is $2.24 on revenues of $17.13 billion [6] Market Position - Kohl's shares have declined approximately 5% since the beginning of the year, contrasting with the S&P 500's gain of 10.4% [3] - The Zacks Rank for Kohl's is currently 3 (Hold), indicating expected performance in line with the market in the near future [5] Industry Context - The Retail - Regional Department Stores industry, to which Kohl's belongs, is currently in the top 15% of over 250 Zacks industries, suggesting a favorable outlook compared to lower-ranked industries [7]

About this content About Oliver Haill Oliver has been writing about companies and markets since the early 2000s, cutting his teeth as a financial journalist at Growth Company Investor with a focusing on AIM companies and small caps, before a few years later becoming a section editor and then head of research. He joined Proactive after a couple of years freelancing, where he worked for the Financial Times Group, ITV, Press Association, Reuters sports desk, the London Olympic News Service, Rugby World Cup New ...

Core Insights - Kohl's shares fell over 20% in premarket trading after reporting a surprise loss per share of 24 cents, significantly below Wall Street's expectation of a profit of 4 cents [1] - The company reported a net loss of $27 million compared to a profit of $14 million in the same quarter last year [1] Financial Performance - Net sales decreased by 5.3% to $3.18 billion, with comparable sales down 4.4% [2] - The company lowered its 2024 guidance, now expecting full-year net sales to decline between 2% and 4%, contrasting with analysts' expectations of a 0.2% gain [2] - Full-year diluted earnings per share are now projected to be between $1.25 and $1.85, significantly lower than the expected $2.34 per share [2] Management Commentary - CEO Tom Kingsbury acknowledged the need for improvement in business areas and indicated a more conservative financial outlook due to first-quarter underperformance and consumer uncertainty [3] - Positive trends were noted in the women's category and growth in the Sephora shop-in-shop partnership [3] - The company plans to add Babies 'R' Us in-store locations to about 200 sites, indicating a focus on strategic partnerships for growth [3][4] Strategic Initiatives - The company maintains confidence in its growth strategy, emphasizing key initiatives such as Sephora, home decor, gifting, and the upcoming partnership with Babies 'R' Us [4]