Kohl's stock drops after profit tops expectations but same-store sales miss

Shares of Kohl's Corp. (KSS) dropped 3.3% in premarket trading Tuesday, after the department store chain beat profit expectations but missed on same-store sales and trimmed its full-year revenue outlook. Net income for the quarter to Oc.t 28 fell to $111 million, or 53 cents a share, from $119 million, or 82 cents a share, in the year-ago period. The FactSet consensus was for earnings per share of 35 cents. Total revenue fell 5.2% to $4.05 billion, above the FactSet consensus of $3.99 billion, while same-store sales declined 5.5% to miss expectations of a 3.8% fall. Gross margin improved 1.58 percentage points to 38.9% while inventories declined 13%. For Fiscal 2023, the company lifted its EPS guidance range to $2.30 to $2.70 from $2.10 to $2.70 but cut its sales growth outlook to negative 2.8% to 4.0% from negative 2% to 4%. The stock has shed 13.4% over the past three months through Monday while the S&P 500 has gained 3.4%.

-Tomi Kilgore

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11-21-23 0716ET

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