The 10-second takeaway
For the quarter ended July 28 (Q2), Kohl's met expectations on revenue and beat expectations on earnings per share.
Compared to the prior-year quarter, revenue shrank slightly and GAAP earnings per share contracted.
Margins dropped across the board.
Kohl's tallied revenue of $4.21 billion. The 11 analysts polled by S&P Capital IQ hoped for a top line of $4.23 billion on the same basis. GAAP reported sales were 1.0% lower than the prior-year quarter's $4.25 billion.
Source: S&P Capital IQ. Quarterly periods. Dollar amounts in millions. Non-GAAP figures may vary to maintain comparability with estimates.
EPS came in at $1.00. The 17 earnings estimates compiled by S&P Capital IQ predicted $0.96 per share. GAAP EPS of $1.00 for Q2 were 7.4% lower than the prior-year quarter's $1.08 per share.
Source: S&P Capital IQ. Quarterly periods. Non-GAAP figures may vary to maintain comparability with estimates.
For the quarter, gross margin was 39.0%, 170 basis points worse than the prior-year quarter. Operating margin was 10.9%, 200 basis points worse than the prior-year quarter. Net margin was 5.7%, 130 basis points worse than the prior-year quarter.
Next quarter's average estimate for revenue is $4.47 billion. On the bottom line, the average EPS estimate is $0.86.
Next year's average estimate for revenue is $19.45 billion. The average EPS estimate is $4.66.
The stock has a three-star rating (out of five) at Motley Fool CAPS, with 636 members out of 768 rating the stock outperform, and 132 members rating it underperform. Among 197 CAPS All-Star picks (recommendations by the highest-ranked CAPS members), 164 give Kohl's a green thumbs-up, and 33 give it a red thumbs-down.
Of Wall Street recommendations tracked by S&P Capital IQ, the average opinion on Kohl's is outperform, with an average price target of $56.00.
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