More of the Same: Kohl's (KSS) Delivers a Q1 Miss, Guides Lower While Inventories Rise

May 19, 2022 10:10 AM EDT
Get Alerts KSS Hot Sheet
Price: $39.25 --0%

Rating Summary:
    9 Buy, 20 Hold, 4 Sell

Rating Trend: Up Up

Today's Overall Ratings:
    Up: 6 | Down: 7 | New: 11
Trade Now! 
Join SI Premium – FREE

News and research before you hear about it on CNBC and others. Claim your 1-week free trial to StreetInsider Premium here.

Kohl’s (NYSE: KSS) joined other major retailers in slashing the guidance amid rising fears of an economic slowdown.

KSS reported a Q1 adjusted EPS of 11c, compared to $1.05 per share in the year-ago period and analyst consensus of 71c per share. Net sales came in at $3.47 billion, missing the consensus projection of $3.71 billion.

Comparable sales were down 5.2% in the quarter, while analysts were projecting a 0.97% growth. KSS reported a Q1 gross margin of 38.3%, down from 39% in the year-ago period and compared to the analyst estimates of 38.1%.

Looking ahead, Kohl’s expects full-year adjusted EPS in the range of $6.45 to $6.85, down from $7 to $7.5, and below the consensus estimates of $7.03 per share.

The company noted a significant decline in sales in April. It also offered the following commentary on its strategic positioning.

“We continue to engage with multiple interested parties. We have formally communicated the specific procedures for the submission of actionable bids due in the coming weeks. We continue with our detailed diligence phase and are pleased with the number of parties who recognize the value of our business and plan,” said Kohl’s CEO Michelle Gass.

Goldman Sachs analyst Jenna Giannelli “expects sentiment around results to be negative given the slowdown in the consumer and inventory build. We anticipate the structure will continue to trade around the potential transaction.”

Vital Knowledge analysts said that shares are trading higher despite the earnings miss as the full-year guidance “isn’t as bleak as feared.”

By Senad Karaahmetovic

Serious News for Serious Traders! Try Premium Free!

You May Also Be Interested In

Related Categories

Analyst Comments, Earnings, Guidance, Hot Earnings, Hot Guidance, Hot List, Management Comments

Related Entities

Goldman Sachs, Earnings, Senad Karaahmetovic