Kohl's tanks after slashing earnings target
Kohl’s reported disappointing third-quarter earnings and cut its full-year forecast, sending shares tumbling.
Department stores Macy's and Nordstrom fell, too, as the report raised fresh doubts about the strength of the retail industry.
| Ticker | Security | Last | Change | Change % |
|---|---|---|---|---|
| KSS | KOHL'S CORP. | 17.04 | +0.66 | +4.00% |
| M | MACY'S INC. | 16.29 | +1.23 | +8.17% |
| JWN | NORDSTROM INC. | 23.25 | +0.89 | +3.96% |
Kohl's earned $123 million, or $0.74 per share, excluding some items, as revenue slipped 0.1 percent year-over-year to $4.63 billion, according to a statement. Wall Street analysts surveyed by Refinitiv were anticipating adjusted earnings of 86 cents a share on revenue of $4.39 billion.
“We are pleased to report that our business returned to growth during the third quarter, with a comparable-sales increase of 0.4%,” CEO Michelle Glass said in the statement. Kohl's cut the top end of its full-year earnings forecast 9 percent to $4.95 a share.
HOME DEPOT SALES MISS WALL STREET ESTIMATES
The chain, based in Menomonee Falls, Wisconsin, plans to step up investment in the lucrative holiday shopping season, a strategy it expects will fuel growth and bring in new customers, Glass added.
Kohl's shares have tumbled 12 percent this year, compared with the S&P 500's 24.5 percent gain.