Kohl’s (ticker: KSS) surpassed Wall Street’s expectations for its third-quarter earnings, with earnings per share reaching 53 cents, compared to the estimated 35 cents. However, the retailer experienced a decline in sales, raising concerns among investors.
According to FactSet, Kohl’s earnings per share in the same quarter last year were 82 cents. Despite beating earnings estimates, the company fell short of analysts’ predictions for net sales, which amounted to $3.843 billion, compared to an estimated $3.988 billion. Additionally, same-store sales dropped by 5.5% year-over-year, exceeding the anticipated decline of 3.8%.
CEO Tom Kingsbury acknowledged that the company’s efforts to improve sales and earnings are still a work in progress. Kohl’s has made significant strides towards repositioning itself but is in the early stages of implementing these strategies.
As a result of the earnings report, Kohl’s adjusted its full-year 2023 earnings guidance. The new range is projected to be between $2.30 and $2.70 per share, endorsing higher expectations than the previous estimate of $2.10 to $2.70 per share. Similarly, the updated forecast for net sales anticipates a decline of 2.8% to 4%, as opposed to the previously projected drop of 2% to 4%.
Following the release of these figures, Kohl’s stock was down 4.1% in premarket trading.