Home / Business / Kohl's (KSS) reports earnings loss in the third quarter of 2019

Kohl's (KSS) reports earnings loss in the third quarter of 2019

Customers are leaving a cabbage store on November 12, 2015 in San Rafael, California.

Justin Sullivan | Getty Images News | Getty Images

Kohl's earnings and sales in the last quarter lagged behind analysts' estimates, the company reported Tuesday. It also lowered the earnings outlook for the full year.

The stock fell more than 11% in premarket trading in the news.

Compared to analysts' expectations based on refinance, Kohl's has achieved the following results for the third fiscal quarter:

  • Earnings per share: 74 cents, adjusted, compared to 86 cents expected
  • Revenues: $ 4.36 billion compared to $ 4.40 billion expected
  • Sales in the same business: plus 0.4% expected against growth of 0.8% [1
    9659009] Kohl's now expects Adjusted earnings of $ 4.75 to $ 4.95 per share for fiscal year 2019, compared to an earlier range of $ 5.15 to $ 5.45. Analysts demanded $ 5.19 per share. [2,959,002] Second-November net income was $ 123 million, or 78 cents per share, compared to $ 161 million, or 98 cents per share, a year ago. Excluding one-time effects, Kohl earned 74 cents per share, which did not meet the expectations of 86 cents based on refinancing data.

    Net sales decreased from $ 4.37 billion a year ago to $ 4.36 billion, with expectations for $ 4.4 billion missing.

    Kohl's store, which has been open for at least 12 months and has been published on its website, increased by 0.4%, below the expected growth of 0.8% in October, "said CEO Michelle Gass "We enter the holiday season with momentum and strategically increase our investment."

    Gass said "a short-term investment" should help the company "drive profitable growth in the long term."

    Business is under increased pressure this year, especially at Christmas time, as brands like Nike invest more in their own stores and websites to sell goods and move away from middlemen Companies such as Kohl & # 39; s, Macy & # 39; s and JC Penney need to look for new ways to attract buyers.

    Kohl's has launched some of its own brands, relying on celebrities Partner for enthusiasm. Last month, a household goods line called Scott Living was launched, designed by HGTV stars "Property Brothers" Drew and Jonathan Scott. In collaboration with the well-known comedian and TV presenter Ellen DeGeneres (ED Ellen DeGeneres Pets Collection), the sale of a new brand for pet clothing and toys was started.

    50 stores are testing pop-up marketplaces where younger brands are spinning in and out. In 200 stores, "Beauty Impulse" areas have been added, presenting 20 top beauty brands.

    Kohl's shares fell by around 12% at the close of the market on Monday this year. The department store chain has a market capitalization of approximately $ 9.3 billion.

    The full press release can be found here.

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