– ‘Kohllapse’: Retailer Routed As Consumer Turnaround Stalls:
Shares of Kohl’s Corp. crashed during the early morning cash session following a dismal earnings report. Or better yet, let’s call it what it is: a ‘Kohllapse’…
Kohl’s slashed guidance for the full year after reporting first-quarter results that missed about every metric.
Comparable sales, which measure the performance of stores open for more than one year, dropped 4.4% in the quarter ended May 4 — the ninth consecutive decline. Analysts tracked by Bloomberg were expecting a 1.74% decline.
Here’s a snapshot of the first quarter (courtesy of Bloomberg):
- Comparable sales -4.4%, estimate -1.74% (Bloomberg Consensus)
- Adjusted loss per share 24c vs. EPS 13c y/y, estimate EPS 6.7c
- Gross margin 39.5% vs. 39% y/y, estimate 39.5%
- Net sales $3.18 billion, -5.3% y/y, estimate $3.34 billion
- Merchandise inventories $3.08 billion, -13% y/y, estimate $3.24 billion (2 estimates)
The midmarket department store chain also slashed its full-year forecast to $1.25 to $1.85 a share, well below the Bloomberg consensus estimate of $2.39 a share.
Here’s a snapshot of the full-year forecast (courtesy of Bloomberg):
- Sees adjusted EPS $1.25 to $1.85, saw $2.10 to $2.70, estimate $2.39
- Sees net sales -2% to -4%, saw -1% to +1%
- Sees operating margin 3% to 3.5%, saw 3.6% to 4.1%, estimate 3.89%
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