The 10-second takeaway
For the quarter ended Oct. 27 (Q3), Kohl's met expectations on revenues and beat expectations on earnings per share.
Compared to the prior-year quarter, revenue grew slightly and GAAP earnings per share grew.
Gross margins contracted, operating margins were steady, net margins were steady.
Kohl's reported revenue of $4.49 billion. The 17 analysts polled by S&P Capital IQ predicted a top line of $4.48 billion on the same basis. GAAP reported sales were 2.6% higher than the prior-year quarter's $4.38 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 $0.91. The 21 earnings estimates compiled by S&P Capital IQ averaged $0.87 per share. GAAP EPS of $0.91 for Q3 were 14% higher than the prior-year quarter's $0.80 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 38.1%, 50 basis points worse than the prior-year quarter. Operating margin was 9.5%, about the same as the prior-year quarter. Net margin was 4.8%, about the same as the prior-year quarter.
Next quarter's average estimate for revenue is $6.45 billion. On the bottom line, the average EPS estimate is $2.16.
Next year's average estimate for revenue is $19.34 billion. The average EPS estimate is $4.62.
The stock has a two-star rating (out of five) at Motley Fool CAPS, with 633 members out of 763 rating the stock outperform, and 130 members rating it underperform. Among 212 CAPS All-Star picks (recommendations by the highest-ranked CAPS members), 183 give Kohl's a green thumbs-up, and 29 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 $57.45.
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Seth Jayson had no position in any company mentioned here at the time of publication. You can view his stock holdings here. He is co-advisor of Motley Fool Hidden Gems, which provides new small-cap ideas every month, backed by a real-money portfolio. TMFDisclosureHere