Retail Flat sales and higher expenses
Kohl's reported a 20 percent decline in profit for the third quarter from last year on flat sales and higher expenses.
Adjusted earnings per share missed analysts' expectations, while revenues beat their estimates. In addition, the company raised the lower end of its adjusted earnings outlook for fiscal 2017.
Kohl's third-quarter net income was $117 million or $0.70 per share, down from $146 million or $0.83 per share in the prior-year quarter.
Adjusted earnings for the quarter were $0.70 per share, compared to $0.80 per share a year ago. On average, 20 analysts polled by Thomson Reuters expected the company to report earnings of $0.72 per share. Analysts' estimates typically exclude special items.
Net sales for the quarter edged up 0.1 percent to $4.332 billion from $4.327 billion in the same quarter last year. Analysts' were looking for revenue of $4.30 billion.
Comparable sales for the quarter edged up 0.1 percent, compared to a decline of 1.7 percent in the same period last year. According to Kohl's, it saw strong results during the back-to-school season, achieving a low single-digit positive comparable sales. The middle of the quarter was soft as the company experienced disruptions from the hurricanes and other unseasonal weather.
Selling, general and administrative expenses for the quarter rose 1.4 percent to $1.10 billion.
On November 8, 2017, the Kohl's board of directors declared a quarterly cash dividend on the Company's common stock of $0.55 per share. The dividend is payable December 20, 2017 to shareholders of record at the close of business on December 6, 2017.
For fiscal 2017, Kohl's now expects earnings of $3.72 to $3.92 per share, including the impact of a fourth quarter tax settlement. The company expects to receive a pre-tax benefit of $30 million from this state tax settlement which will be recorded through its tax rate.
Excluding the impact of the tax settlement, the company expects full-year adjusted earnings of $3.60 to $3.80 per share, compared to its prior guidance of $3.50 to $3.80 per share. The Street expects earnings of $3.76 per share for the year. ■