Tags: Kohls | retail | sales | weather

Kohl's Same-Store Sales Nipped by Cold February, Shares Fall

Thursday, 14 May 2015 10:41 AM

Department store operator Kohl's Corp. reported quarterly same-store sales that missed analysts' expectation, hurt by colder-than-usual weather in February.

Shares of the company, which also reported lower-than-expected revenue, fell 11 percent to $66.25 at 10:45 a.m. on Thursday. They had risen 22.1 percent this year, trumping the S&P 500 Index's 1.92 percent rise.

The stock's multiple is likely to reset lower until the company can demonstrate sustainable 2-3 percent same-store sales growth, Baird Equity Research analyst Mark Altschwager wrote in a note.

Kohl's same-store sales rose 1.4 percent in the first quarter ended May 2, but widely missed analysts' expectation for a 2.6 percent rise, according to research firm Consensus Metrix.

The company reported a 3.4 percent decline in same-store sales in the year-earlier quarter.

Analysts had heightened expectations for same-store sales as a nationwide roll out of Kohl's loyalty program, upgraded beauty departments and more online and TV advertising were seen boosting results in the latest quarter.

"Weather, port issues, and weak consumer spending overall is the department store theme in 1Q - despite a plan to recover traffic, it does not appear that KSS escaped the trend," Evercore ISI analyst Matt McGinley wrote in a note.

Rival Macy's Inc said on Wednesday that first-quarter profit and sales were hurt by fewer customer visits due to unusually cold weather in February, disruptions at West Coast ports and lower foreign tourist spending in the United States.

Kohl's net income rose to $127 million, or 63 cents per share, from $125 million, or 60 cents per share, a year earlier.

Net sales rose 1.3 percent to $4.12 billion.

Analysts on average had expected earnings of 55 cents per share on revenue of $4.19 billion, according to Thomson Reuters I/B/E/S.

© 2017 Thomson/Reuters. All rights reserved.

   
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Department store operator Kohl's Corp. reported quarterly same-store sales that missed Wall Street's estimates, hurt by colder-than-usual weather in February.
Kohls, retail, sales, weather
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2015-41-14
Thursday, 14 May 2015 10:41 AM
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