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Kohl's (KSS) Q3 Earnings Beat Estimates, Sales Fall Y/Y
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Kohl's Corporation (KSS - Free Report) posted third-quarter fiscal 2020 results, with the top line missing the Zacks Consensus Estimate and declining year over year. Moreover, the company’s bottom line was significantly lower than the year-ago quarter’s levels. However, the metric came ahead of the consensus mark.
The company highlighted that it saw significant improvement in sales and profit on a sequential basis in the fiscal third quarter. Moreover, online sales remained strong during the quarter. Also, management repaid its full revolver credit.
Kohl's is optimistic about its performance and strength in its omichannel capabilities during the holiday season. Also, management plans to reinstate a dividend during the first half of 2021.
Kohls Corporation Price, Consensus and EPS Surprise
Kohl's posted adjusted earnings of 1 cent per share. The Zacks Consensus Estimate was pegged at a loss of 43 cents per share. However, the figure was significantly lower than adjusted earnings of 74 cents per share reported in the year-ago quarter.
Total revenues came in at $3,979 million, down 14% from the prior-year quarter’s levels. Also, the metric lagged the Zacks Consensus Estimate of $4,056.6 million. Net sales have declined 13.3% in the quarter.
Gross margin contracted 48 basis points to 35.8% in the quarter under review from 36.3% in the year-ago quarter. Notably, SG&A expenses declined 8.2% year over year to $1,302 million. However, as a percentage of total revenues, SG&A expenses increased to 32.7% in the quarter from 30.7% in the prior-year quarter. The company reported operating income of $22 million compared with $204 million posted in the prior-year quarter.
Other Financial Details
Kohl’s ended the quarter with cash and cash equivalents of $1,939 million, long-term debt of $2,450 million and shareholders’ equity of $4,838 million. The company generated net cash from operating activities of $910 million during nine months ended Oct 31.
Shares of this Zacks Rank #3 (Hold) company have gained 30.7% in the past three months compared with the industry’s growth of 24.3%.
Target (TGT - Free Report) , which holds a Zacks Rank #2, has a long-term earnings growth rate of 7.2%.
Kroger (KR - Free Report) , which carries a Zacks Rank #2, has a long-term earnings growth rate of 6.2%.
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Kohl's (KSS) Q3 Earnings Beat Estimates, Sales Fall Y/Y
Kohl's Corporation (KSS - Free Report) posted third-quarter fiscal 2020 results, with the top line missing the Zacks Consensus Estimate and declining year over year. Moreover, the company’s bottom line was significantly lower than the year-ago quarter’s levels. However, the metric came ahead of the consensus mark.
The company highlighted that it saw significant improvement in sales and profit on a sequential basis in the fiscal third quarter. Moreover, online sales remained strong during the quarter. Also, management repaid its full revolver credit.
Kohl's is optimistic about its performance and strength in its omichannel capabilities during the holiday season. Also, management plans to reinstate a dividend during the first half of 2021.
Kohls Corporation Price, Consensus and EPS Surprise
Kohls Corporation price-consensus-eps-surprise-chart | Kohls Corporation Quote
Q3 in Details
Kohl's posted adjusted earnings of 1 cent per share. The Zacks Consensus Estimate was pegged at a loss of 43 cents per share. However, the figure was significantly lower than adjusted earnings of 74 cents per share reported in the year-ago quarter.
Total revenues came in at $3,979 million, down 14% from the prior-year quarter’s levels. Also, the metric lagged the Zacks Consensus Estimate of $4,056.6 million. Net sales have declined 13.3% in the quarter.
Gross margin contracted 48 basis points to 35.8% in the quarter under review from 36.3% in the year-ago quarter. Notably, SG&A expenses declined 8.2% year over year to $1,302 million. However, as a percentage of total revenues, SG&A expenses increased to 32.7% in the quarter from 30.7% in the prior-year quarter. The company reported operating income of $22 million compared with $204 million posted in the prior-year quarter.
Other Financial Details
Kohl’s ended the quarter with cash and cash equivalents of $1,939 million, long-term debt of $2,450 million and shareholders’ equity of $4,838 million. The company generated net cash from operating activities of $910 million during nine months ended Oct 31.
Shares of this Zacks Rank #3 (Hold) company have gained 30.7% in the past three months compared with the industry’s growth of 24.3%.
Don’t Miss These Bets
Ross Stores (ROST - Free Report) , which carries a Zacks Rank #2 (Buy), has a long-term earnings growth rate of 10%. You can see the complete list of today’s Zacks #1 Rank (Strong Buy) stocks here.
Target (TGT - Free Report) , which holds a Zacks Rank #2, has a long-term earnings growth rate of 7.2%.
Kroger (KR - Free Report) , which carries a Zacks Rank #2, has a long-term earnings growth rate of 6.2%.
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Imagine getting in early on a young industry primed to skyrocket from $17.7 billion in 2019 to an expected $73.6 billion by 2027.
Although marijuana stocks did better as the pandemic took hold than the market as a whole, they’ve been pushed down. This is exactly the right time to get in on selected strong companies at a fraction of their value before COVID struck. Zacks’ Special Report, Marijuana Moneymakers, reveals 10 exciting tickers for urgent consideration.
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