Latest news with #Kohl's
Yahoo
3 days ago
- Business
- Yahoo
Kohl's Q1 Loss Narrower Than Estimates, Sales Decline 4% Y/Y
Kohl's Corporation KSS reported first-quarter fiscal 2025 loss per share of 13 cents, which was narrower than the Zacks Consensus Estimate of a loss of 22 cents. The bottom line showed an improvement from the year-ago period's loss of 24 cents. (Find the latest EPS estimates and surprises on Zacks Earnings Calendar.) Kohl's Corporation price-consensus-eps-surprise-chart | Kohl's Corporation Quote Total revenues were $3,233 million, down from the prior-year quarter's $3,382 million. Nevertheless, the top line surpassed the Zacks Consensus Estimate of $3,176 million. The company's net sales fell 4.1% to $3,049 million, while other revenues fell 9.8% to $184 million. We note that comparable sales declined 3.9% year over year. We expected comparable sales to decrease 6%. Kohl's gross margin expanded 37 basis points (bps) to 39.9% in the reported quarter. We expected a gross margin increase of 10 bps. SG&A expenses dropped 5.2% to $1,164 million. As a percentage of total revenues, SG&A expenses decreased 32 bps to 36%. We anticipated SG&A expenses, as a percentage of net sales, to increase 70 bps. KSS posted an operating income of $60 million, up from $43 million in the year-ago period. The operating income margin expanded 58 bps to 1.9%. Kohl's ended the quarter with cash and cash equivalents of $153 million and shareholders' equity of $3,779 million. Net cash used in operating activities was $92 million for the three months ending May 3, expects capital expenditures of $400-$425 million for fiscal May 14, 2025, Kohl's declared a quarterly cash dividend of 12.50 cents per share, payable on June 25, to its shareholders of record as of June 11. For fiscal 2025, Kohl's continues to foresee a net sales decline of 5-7%. Comparable sales are projected to decline 4-6% during the year. The operating margin is expected to range from 2.2% to 2.6% in fiscal 2025. Management anticipates full-year earnings per share to be between 10 cents and 60 Zacks Rank #3 (Hold) company's shares have lost 28.5% in the past three months compared with the industry's decline of 5.5%. Image Source: Zacks Investment Research Urban Outfitters, Inc. URBN offers lifestyle products and services. It currently sports a Zacks Rank #1 (Strong Buy). You can see the complete list of today's Zacks #1 Rank stocks Zacks Consensus Estimate for Urban Outfitters' current fiscal-year earnings and sales indicates growth of 20.9% and 8%, respectively, from the year-ago period's reported figures. URBN delivered a trailing four-quarter average earnings surprise of 29%.Genesco Inc. GCO operates as a retailer and wholesaler of footwear, apparel and accessories, carrying a Zacks Rank #2 (Buy). GCO delivered a trailing four-quarter earnings surprise of 37.2%, on Zacks Consensus Estimate for Genesco's current fiscal-year earnings and sales indicates growth of 63.8% and 0.6%, respectively, from the year-ago period's reported Goose Holdings Inc. GOOS designs, manufactures and sells performance luxury apparel for men, women, youth, children and babies. It carries a Zacks Rank of 2 at present. GOOS delivered a trailing four-quarter average earnings surprise of 57.2%.The Zacks Consensus Estimate for Canada Goose's current fiscal-year earnings and sales implies a decline of 10% and 2.9%, respectively, from the year-ago actuals. Want the latest recommendations from Zacks Investment Research? Today, you can download 7 Best Stocks for the Next 30 Days. Click to get this free report Kohl's Corporation (KSS) : Free Stock Analysis Report Urban Outfitters, Inc. (URBN) : Free Stock Analysis Report Genesco Inc. (GCO) : Free Stock Analysis Report Canada Goose Holdings Inc. (GOOS) : Free Stock Analysis Report This article originally published on Zacks Investment Research ( Zacks Investment Research
Yahoo
3 days ago
- Business
- Yahoo
KSS Q1 Earnings Call: Kohl's Outlines Turnaround Priorities Amid Challenging Retail Backdrop
Department store chain Kohl's (NYSE:KSS) missed Wall Street's revenue expectations in Q1 CY2025, with sales falling 4.4% year on year to $3.23 billion. Its GAAP loss of $0.13 per share increased from -$0.24 in the same quarter last year. Is now the time to buy KSS? Find out in our full research report (it's free). Revenue: $3.23 billion (4.4% year-on-year decline) Adjusted Operating Income: $60 million vs analyst estimates of $43.42 million (1.9% margin, 38.2% beat) EPS (GAAP) guidance for the full year is $0.35 at the midpoint, missing analyst estimates by 47.4% Operating Margin: 1.9%, in line with the same quarter last year Same-Store Sales fell 3.9% year on year, in line with the same quarter last year Market Capitalization: $901.7 million Kohl's first quarter results reflected the early stages of a turnaround effort, with management emphasizing renewed focus on product assortment and customer needs. Interim CEO Michael Bender, newly appointed after a period of leadership change, stressed the importance of rebalancing the merchandise mix and restoring categories popular with core customers. CFO Jill Timm highlighted solid performance in reintroduced fine jewelry and petite apparel, attributing gains to reversing past decisions that alienated loyal shoppers. Management was candid that progress would be gradual, noting the turnaround is ongoing and that much of the required work still lies ahead. Timm acknowledged, 'This is a turnaround and will continue to take time, and much of the work remains ahead of us.' Looking forward, Kohl's is focused on driving improved value for customers while navigating ongoing pressures, including tariffs and cautious consumer spending. Management discussed initiatives to enhance proprietary brand penetration and expand coupon eligibility, aiming to regain lost wallet share from core shoppers. Bender emphasized the company's intention to 'align the business to meet the needs of our customers,' especially as many consumers face budget constraints. Timm outlined efforts to mitigate tariff impacts through diversified sourcing and cost management, stating, 'We believe we can achieve our financial guidance for the year…as we continue to work to reduce our exposure to high tariff countries.' The company expects the benefit of new assortments and promotional actions to build gradually through the year. Management traced first quarter performance to changes in merchandise strategy, efforts to restore lost customer segments, and continued operational discipline. Several key business updates shaped the quarter's outcome. Assortment rebalance underway: Kohl's re-emphasized core categories such as fine jewelry and petites after previously deprioritizing them, resulting in double-digit growth in those segments. Management attributed this to listening to long-time customers and rectifying past assortment decisions. Proprietary brands regaining traction: With renewed investment in value-oriented private label brands like Tek Gear and Lauren Conrad, Kohl's began to reverse underperformance in these lines. Timm noted proprietary brands improved 400 basis points quarter-over-quarter, but acknowledged they remain below company averages and require further attention. Sephora rollout completed: The chain finished adding Sephora shops to all locations, with beauty segment net sales up 6%. While growth rates have moderated as the rollout matures, management sees ongoing market share gains in beauty, especially in fragrance and hair categories. Digital channel lags but improving: Online sales declined again, driven by weakness in home and among Kohl's card customers. However, management pointed to early improvements as more brands became coupon-eligible online, with expectations of further gains as promotional changes expand. Operational cost control: SG&A expenses fell 5% year over year, reflecting disciplined store and marketing expenditures. Management credited ongoing efficiency efforts and a shift in credit servicing to an external party for helping offset sales pressures. Kohl's forward guidance is shaped by efforts to rebuild customer loyalty, manage external cost headwinds, and deliver value-focused merchandising. Customer wallet share recovery: Management is prioritizing regaining spend from core Kohl's card customers who reduced their shopping frequency and basket size after prior assortment changes. The company is expanding coupon eligibility and reintroducing favored proprietary brands to address this, aiming to increase both store and digital engagement. Tariff mitigation and sourcing: The company is actively shifting product sourcing to a wider range of countries to limit exposure to tariffs, working closely with suppliers to manage price elasticity and inventory flow. Management believes most tariff-related cost pressures can be offset through these sourcing strategies and promotional adjustments. Margin discipline amid investment: While investing in store layout improvements, digital upgrades, and fulfillment expansion, management plans to tightly control inventory and general expenses. They expect margin benefits as proprietary and impulse categories expand, but acknowledged ongoing gross margin pressure from value-focused pricing and cautious consumer behavior. In the coming quarters, the StockStory team will monitor (1) the effectiveness of efforts to win back core Kohl's card customers and drive proprietary brand growth, (2) the impact of new coupon eligibility and promotional strategies on both in-store and digital channels, and (3) progress in offsetting tariff pressures through sourcing and inventory management. Store layout changes and the performance of new product categories will also be critical indicators of turnaround momentum. Kohl's currently trades at a forward P/E ratio of 30.6×. Is the company at an inflection point that warrants a buy or sell? The answer lies in our full research report (it's free). The market surged in 2024 and reached record highs after Donald Trump's presidential victory in November, but questions about new economic policies are adding much uncertainty for 2025. While the crowd speculates what might happen next, we're homing in on the companies that can succeed regardless of the political or macroeconomic environment. Put yourself in the driver's seat and build a durable portfolio by checking out our Top 5 Strong Momentum Stocks for this week. This is a curated list of our High Quality stocks that have generated a market-beating return of 183% over the last five years (as of March 31st 2025). Stocks that made our list in 2020 include now familiar names such as Nvidia (+1,545% between March 2020 and March 2025) as well as under-the-radar businesses like the once-small-cap company Exlservice (+354% five-year return). Find your next big winner with StockStory today. Error in retrieving data Sign in to access your portfolio Error in retrieving data Error in retrieving data Error in retrieving data Error in retrieving data
Business Wire
3 days ago
- Business
- Business Wire
KOHL'S INVESTOR ALERT: Scott+Scott Attorneys at Law LLP Investigates Kohl's Corporation's Directors and Officers for Breach of Fiduciary Duties
NEW YORK--(BUSINESS WIRE)-- Scott+Scott Attorneys at Law LLP ('Scott+Scott'), an international securities and consumer rights litigation firm, is investigating whether the leadership of Kohl's Corporation ('Kohl's') (NYSE: KSS), breached their fiduciary duties to Kohl's and its shareholders. Scott+Scott is investigating whether members of the Kohl's board of directors or senior management failed to manage Kohl's in an acceptable manner, in breach of their fiduciary duties to Kohl's, and whether Kohl's and its shareholders have suffered damages as a result. On May 1, 2025, Kohl's announced it had fired its CEO for funneling contracts with Kohl's to his romantic partner for above their fair market value. What You Can Do – If you own shares of Kohl's, you may have legal claims against directors and officers of Kohl's. If you wish to discuss this investigation, or have questions about this notice or your legal rights, please contact attorney Joe Pettigrew toll-free at (844) 818-6982 or jpettigrew@ About Us Scott+Scott is an international law firm known for its expertise in representing corporate clients, institutional investors, businesses, and individuals harmed by anticompetitive conduct or other forms of wrongdoings, including securities law and shareholder violations. With more than 100 attorneys in nine offices in the United States, as well as three offices in Europe, our advocacy has resulted in significant monetary settlements on behalf of our clients, along with other forms of relief. Our highly experienced attorneys have been recognized for being among the top financial lawyers in 2024 by Lawdragon, WWL: Commercial Litigation 2024, and Legal 500 in Antitrust Civil Litigation, and have received top Chambers 2024 rankings. In addition, we have been recognized by the American Antitrust Institute for the successful litigation of high-stakes anticompetitive claims in the United States. To learn more about Scott+Scott, our attorneys, or complex case resolution, please visit Attorney Advertising
Fibre2Fashion
3 days ago
- Business
- Fibre2Fashion
American retailer Kohl's Q1 sees progress despite 4.1% sales decline
American omnichannel retailer Kohl's, in the first quarter (Q1) of fiscal 2025 (FY25) ended May 3, has reported net sales of $3 billion, marking a year-over-year (YoY) decline of 4.1 per cent, with comparable sales down 3.9 per cent. The gross margin improved by 37 basis points (bps) to 39.9 per cent of net sales, and selling, general and administrative (SG&A) expenses fell by 5.2 per cent to $1.2 billion, representing 36 per cent of total revenue—down 32 bps YoY. Kohl's has reported net sales of $3 billion in Q1 FY25, down 4.1 per cent YoY, with comparable sales down 3.9 per cent. Operating income rose to $60 million, while net loss narrowed to $15 million. Gross margin improved to 39.9 per cent and SG&A expenses declined. CEO Bender expressed optimism as he assumed leadership. FY25 outlook includes a 5â€'7 per cent sales decline and capex of $400â€'$425 million. The operating income rose to $60 million, compared to $43 million in the prior-year period, with the operating margin improving by 58 bps to 1.9 per cent. The company reported a net loss of $15 million, or $0.13 per diluted share, compared to a net loss of $27 million, or $0.24 per diluted share, in Q1 FY24. Inventory levels stood at $3.1 billion, a 2 per cent increase from the previous year, while operating cash flow recorded an outflow of $92 million, Kohl's said in a press statement. 'Our first quarter performance was ahead of our expectations and the actions we are taking are starting to make progress with early signs of a positive impact. Our team is focused and motivated to deliver great products, great value, and a great shopping experience to our customers. I want to thank our amazing team of associates for their hard work and dedication,' said Michael Bender, Kohl's interim chief executive officer (CEO). 'I am honoured to assume the role of interim CEO at such an important time for our company. Kohl's has a tremendous opportunity to build on our strong foundation of over 1,100 conveniently located stores and a large and loyal customer base,' added Bender on assuming his new role as CEO. 'I am excited to lead this next chapter of Kohl's and build on the momentum we have begun to generate.' For FY25, Kohl's expects net sales to decline by 5–7 per cent and comparable sales to fall by 4–6 per cent. The operating margin is projected between 2.2–2.6 per cent, with diluted EPS in the range of $0.1 to $0.6. Capital expenditures (capex) are estimated at $400–$425 million. Fibre2Fashion News Desk (SG)
Business Insider
3 days ago
- Business
- Business Insider
TD Cowen Remains a Hold on Kohl's (KSS)
In a report released today, Oliver Chen from TD Cowen maintained a Hold rating on Kohl's (KSS – Research Report). The company's shares closed yesterday at $8.04. Confident Investing Starts Here: Chen covers the Consumer Cyclical sector, focusing on stocks such as Kohl's, Macy's, and e.l.f. Beauty. According to TipRanks, Chen has an average return of 5.8% and a 52.41% success rate on recommended stocks. In addition to TD Cowen, Kohl's also received a Hold from Telsey Advisory's Jason Strominger in a report issued yesterday. However, on May 19, J.P. Morgan maintained a Sell rating on Kohl's (NYSE: KSS). Based on Kohl's' latest earnings release for the quarter ending February 1, the company reported a quarterly revenue of $5.4 billion and a net profit of $48 million. In comparison, last year the company earned a revenue of $5.96 billion and had a net profit of $186 million
