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Kohl’s reported a surprise profit in its fiscal first quarter. (Photo by Justin Sullivan/Getty Images)
Kohl’s
stock was rising sharply Wednesday after the retailer reported a surprise profit in its fiscal first quarter, a reversal from a previous unexpected loss.
Kohl’s (ticker: KSS) posted earnings of 13 cents a share. Analysts were calling for a loss of 43 cents. A year earlier, Kohl’s reported earnings of 11 cents a share.
Net sales in the quarter fell 3.3% from last year to $3.36 billion, slightly below analysts’ predictions of $3.42 billion. Comparable-store sales slid 4.3%, less than the 4.5% decline that Wall Street had forecast. Gross margins rose to 39% from 38.3% a year earlier, while both expenses and inventory declined in the first quarter.
“While there is still work to be done and the macroeconomic environment remains challenging, we are affirming our 2023 guidance and continue to have conviction in Kohl’s longer term opportunity,” said CEO Tom Kingsbury in a news release.
Shares of Kohl’s were up almost 16%, at $22.28, in recent trading, after having lost nearly 24% since the start of the year through Tuesday’s close.
An unexpected profit is usually reason to celebrate, although in Kohl’s case it’s particularly welcome news as it comes after its holiday quarter was just the opposite: a surprise hefty $2.49 per-share loss when analysts were looking for nearly $1 a share in earnings.
Likewise, the market was probably happy to hear the company reiterate its full-year guidance after other retailers this earnings season have sounded a cautious note about shoppers’ willingness to spend on discretionary items…
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