Kohl's Lags on Q3 Earnings, Lowers View - Analyst Blog
14 Novembre 2013 - 9:06PM
Zacks
Retailer Kohl’s Corporation (KSS) posted
third-quarter fiscal 2013 earnings of 81 cents per share, lagging
the Zacks Consensus Estimate of 86 cents by 5.81%. Earnings were
below management’s expected range of 83 cents to 92 cents per share
and also fell 11.0% from the prior-year quarter earnings of 91
cents. Earnings dipped due to lower sales and gross margins during
the quarter.
Sales and Margins
Net sales dipped 1.0% from the year-ago level to $4.444 billion,
due to lower comparable sales. Sales also missed the Zacks
Consensus Estimate of $4.556 billion. Comps declined 1.6% during
the quarter compared to a 1.1% increase in the prior-year period.
The company was able to manage its inventory and merchandise
content during the quarter.
Gross margin shrank 60 basis points (bps) to 37.5% due to lower
revenues. Operating margin declined 120 bps to 8.2% from the
year-ago quarter due to higher operating expenses. Depreciation
expenses were higher in the quarter.
Store Update
Kohl’s opened three stores in the reported quarter. The company
ended the quarter with 1,158 stores in 49 states including the nine
stores that it opened in the first quarter. Kohl’s remodeled 30
stores in fiscal 2013.
Other Financial Details
As of Nov 2, 2013, Kohl's’ cash and cash equivalents were $598
million compared with $592 million in the previous quarter.
Long-term debt increased to $2.792 billion during the period
compared with $2.492 billion in the previous quarter.
During the quarter, the board at Kohl's declared a quarterly
cash dividend of 35 cents per share, which will be paid on Dec 24,
2013 to shareholders of record as of Dec 11, 2013.
Guidance
Kohl’s has issued guidance for the fourth quarter of fiscal
2013. The company expects earnings in the range of $1.59 to $1.74
per share, sales to decline in the range of 2%–4% and comparable
store sales to dip in the range of 0%–2%.
For fiscal 2013, Kohl’s has lowered its earnings guidance from
$4.08–$4.23 per share to $4.15–$4.45 per share following soft
results in the third quarter.
Kohl’s now has a Zacks Rank #3 (Hold). Other retail and
wholesale stocks that warrant a look include hhgregg
Inc (HGG), Best Buy Inc (BBY) and
Conns Inc. (CONN). While hhgregg holds a Zacks
Rank #1 (Strong Buy), Best Buy and Conns Inc. carry a Zacks Rank #2
(Buy).
BEST BUY (BBY): Free Stock Analysis Report
CONNS INC (CONN): Free Stock Analysis Report
HHGREGG INC (HGG): Free Stock Analysis Report
KOHLS CORP (KSS): Free Stock Analysis Report
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