Kohl's stock drops after profit miss, surprise sales decline
Kohl's Corp.'s stock dropped 4.4% in premarket trade Thursday, after the discount department store chain missed first-quarter profit and reported a surprise decline in sales. Earnings for the quarter ended April 30 fell to $58 million, or 31 cents a share, from $127 million, or 63 cents a share, in the same period a year ago. The FactSet consensus for earnings per share was 37 cents. Revenue fell 3.7% to $3.97 billion from $4.12 billion, below the FactSet consensus of $4.13 billion. Same-store sales declined 3.9%, compared with the FactSet consensus for a rise of 0.2%. "First quarter sales were challenging," said Chief Executive Kevin Mansell. "Despite the sales environment, we were able to manage our gross margin and inventory levels consistent with our expectations as we took the markdowns necessary to clear excess inventory." The stock has tumbled 19% year to date through Wednesday, while the S&P 500 has gained 1%.
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