Track the companies that matter to you. It's FREE! Click one of these fan favorites to get started: Apple; Google; Ford.



Why Kohl's Shares Dropped

Don't let it get away!

Keep track of the stocks that matter to you.

Help yourself with the Fool's FREE and easy new watchlist service today.

Although we don't believe in timing the market or panicking over market movements, we do like to keep an eye on big changes -- just in case they're material to our investing thesis.

What: Shares of all-purpose retailer Kohl's (NYSE: KSS  ) were hitting the sales rack today, falling as much as 11%, after the company reported surprisingly weak November same-store sales.

So what: Comparable sales were low across the retail sector but, at Kohl's, they tumbled 5.6% in the four-week period ended on November 24. Despite the disappointing results, CEO Kevin Mansell said that sales improved during the Thanksgiving week, and that Black Friday sales had migrated toward the online channel. Online revenue increased 50% during the busy shopping week, and much of that revenue will not be recognized until December. Same-store sales were negative in all regions nationwide, but were especially weak in the Northeast, due to the effects of Superstorm Sandy. About 8% of Kohl's stores are in New York and New Jersey.

Now what: Notably, the company's same-store sales decrease in November 2011 was even worse, at 6.2%, than this year's, and December sales were below the average for that year. E-commerce only makes up about 5% of the company's sales, so even if Mansell is correct about his December revenue prediction, the upward swing won't be enough to counter the November losses. More concerning than just one month's results should be the fact that same-store sales, which include online transactions, have fallen 1.1% for the year, and overall revenue has grown just 0.4% in 2012. With results like that, especially at a time with multi-year highs in consumer confidence, Kohl's looks like a middling pick, at best.

Don't miss the next newsflash on Kohl's. Add the company to your Watchlist by clicking right here.

Read/Post Comments (0) | Recommend This Article (0)

Comments from our Foolish Readers

Help us keep this a respectfully Foolish area! This is a place for our readers to discuss, debate, and learn more about the Foolish investing topic you read about above. Help us keep it clean and safe. If you believe a comment is abusive or otherwise violates our Fool's Rules, please report it via the Report this Comment Report this Comment icon found on every comment.

Be the first one to comment on this article.

Compare Brokers

Fool Disclosure

Sponsored Links

Leaked: Apple's Next Smart Device
(Warning, it may shock you)
The secret is out... experts are predicting 458 million of these types of devices will be sold per year. 1 hyper-growth company stands to rake in maximum profit - and it's NOT Apple. Show me Apple's new smart gizmo!

DocumentId: 2133300, ~/Articles/ArticleHandler.aspx, 10/25/2016 8:59:19 PM

Report This Comment

Use this area to report a comment that you believe is in violation of the community guidelines. Our team will review the entry and take any appropriate action.

Sending report...

Today's Market

updated Moments ago Sponsored by:
DOW 18,169.27 -53.76 -0.30%
S&P 500 2,143.16 -8.17 -0.38%
NASD 5,283.40 -26.43 -0.50%

Create My Watchlist

Go to My Watchlist

You don't seem to be following any stocks yet!

Better investing starts with a watchlist. Now you can create a personalized watchlist and get immediate access to the personalized information you need to make successful investing decisions.

Data delayed up to 5 minutes

Related Tickers

10/25/2016 4:05 PM
KSS $43.51 Down -0.93 -2.09%
Kohl's CAPS Rating: **