Tags: kohls | stores | earnings | sales

Kohl's Cuts Profit Forecast as Same-Store Sales Drop

Thursday, 14 Nov 2013 08:04 AM

Department store chain Kohl's Corp. cut its full-year earnings forecast after reporting weaker-than-expected third-quarter results due to a surprise fall in same-store sales.

Shares of Kohl's, which caters mainly to middle-class shoppers, fell 9 percent in premarket trading.

The company reported a 1.6 percent drop in third-quarter same-store sales, missing analysts' average estimate of an increase of 0.7 percent, according to Thomson Reuters I/B/E/S.

Kohl's results mirrored those of Wal-Mart Stores Inc., which on Thursday reported an unexpected decline in U.S. comparable sales in what the company called a competitive retail environment.

Kohl's said it would increase its spending on marketing to pull in more shoppers ahead of the key holiday shopping season.

The company cut its full year earnings forecast to $4.08-$4.23 per share from $4.15-$4.35.

Wall Street was expecting earnings of $4.23 per share.

Net income fell 18 percent to $177 million, or 81 cents per share, in the quarter ended Nov. 2.

Revenue fell 1 percent to $4.44 billion.

Analysts on average were expecting the company to earn 86 cents per share, on revenue of $4.55 billion.

Kohl's shares, which have risen 14 percent in the past 12 months, were down 8.2 percent at $53.50 in premarket trading.

© 2017 Thomson/Reuters. All rights reserved.

   
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Department store chain Kohl's cut its full-year earnings forecast after reporting weaker-than-expected third-quarter results due to a surprise fall in same-store sales.
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2013-04-14
Thursday, 14 Nov 2013 08:04 AM
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