Kohl's Reports Lower Q3 Earnings, Weak Same-Store Sales

Kohl's (NYSE: KSS) third quarter earnings were weaker-than-expected due to a drop in same-store sales, the retailer reported today, Nov. 14.

The company disclosed net income for the third quarter of $177 million, or $0.81 per share, down 18 percent from $215 million, or $0.91 per share, in the same quarter last year.

Net sales for the quarter declined 1 percent to $4.44 billion from $4.49 billion a year ago, falling short of analysts' predictions of $4.55 billion.

Same-store sales decreased 1.6 percent, compared to an increase of 1.1 percent in the year-ago period.

The weaker-than-predicted numbers are a source of concern for Kohl's as it heads into the all-important holiday shopping season. Promotions are already expected to be at a maximum this year, as retailers scramble for sales in a holiday shopping season that's six days shorter than last year's. Kohl's CEO Kevin Mansell said in a statement that the company thinks it is "well-positioned from a merchandise content and inventory perspective to gain market share" as it enters the holiday shopping season.

For fiscal 2013, Kohl's lowered its outlook to a range of $4.08 to $4.23 per share from the prior range of $4.15 to $4.35 per share. Analysts predict the company to report earnings of $4.23 per share for the year.

As a result of the earnings report, shares of Kohl's fell to 8.26 percent to $53.45 in pre-market trading Thursday.

For more see:
-This Kohl's press release
-This Reuters article

Related stories:
Kohl's Joins Other Retailers by Announcing Thanksgiving Day Opening
J.C. Penney Plans 8 p.m. Opening for Thanksgiving Day
Macy's To Open Its Stores On Thanksgiving Day
Walmart Boosts Ad Spending On NFL Broadcast For Thanksgiving Day
Kohl's, Dillard's And Macy's Top List Of Department Stores With Best Profit Margins

Suggested Articles

Costco changes up its menu items, and Alibaba and Guess partner for a physical store.

Janey Whiteside, Walmart's new chief customer officer, is well acquainted with the importance of customer service in modern retail.

Whole Foods will offer deals on Amazon's Prime Day, and tariffs against China are causing pricing hikes.