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Kohl's (KSS) to Report Q3 Earnings: Here's What You Should Note

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Kohl's Corporation (KSS - Free Report) is likely to register a decline in the top and the bottom line when it reports third-quarter fiscal 2022 earnings on Nov 17. The Zacks Consensus Estimate for quarterly revenues is pegged at $4,289 million, suggesting a drop of 6.8% from the prior-year quarter’s figure.

Although the Zacks Consensus Estimate for Kohl's quarterly earnings has moved up 52.8% in the past seven days to 81 cents per share, the projection indicates a decline of 50.9% from the year-ago quarter’s reported figure. The branded apparel, footwear, accessories, beauty and home products retailer has a trailing four-quarter earnings surprise of 15.3%, on average. Kohl's delivered an earnings surprise of 2.8% in the last reported quarter.

Kohl's Corporation Price and EPS Surprise

 

Kohl's Corporation Price and EPS Surprise

Kohl's Corporation price-eps-surprise | Kohl's Corporation Quote

 

Things To Note

Kohl's is battling a tough macroeconomic landscape, increased inflation and sluggish consumer spending. Escalated freight expenses, product cost inflation and more promotional activities have been putting pressure on the company’s margin. In its last earnings call, management highlighted that it expects freight costs to remain elevated in the third quarter of fiscal 2022. KSS anticipates a higher promotional environment during the fiscal third quarter. Apart from this, Kohl's has been grappling with escalated selling, general & administrative expenses (SG&A) for a while now.

Kohl’s is benefiting from its strategic framework, including driving top-line growth, expanding operating margin, implementing disciplined capital management and undertaking agile accountability. Its focus on optimizing store portfolios and accelerating digital business growth bodes well.

What the Zacks Model Unveils

Our proven model doesn’t conclusively predict an earnings beat for Kohl's this time around. The combination of a positive Earnings ESP and a Zacks Rank #1 (Strong Buy), 2 (Buy) or 3 (Hold) increases the odds of an earnings beat. You can uncover the best stocks to buy or sell before they’re reported with our Earnings ESP Filter.

Kohl's currently carries a Zacks Rank #3 and has an Earnings ESP of 0.00%.

Stocks With a Favorable Combination

Here are some companies worth considering, as our model shows that these have the right combination of elements to beat on earnings this season:

Dollar General (DG - Free Report) has an Earnings ESP of +2.35% and a Zacks Rank #3. DG is likely to register top-line growth from the year-earlier fiscal period’s reported number when it reports third-quarter fiscal 2022 numbers. The Zacks Consensus Estimate for quarterly revenues is pegged at $9.43 billion, suggesting 10.7% growth from the figure reported in the prior-year fiscal quarter. You can see the complete list of today’s Zacks #1 Rank stocks here.

The Zacks Consensus Estimate for Dollar General’s earnings for the fiscal third quarter is pegged at $2.54 per share, suggesting 22.1% growth from the year-ago fiscal quarter’s tally. The consensus mark has been stable in the past 30 days. DG delivered an earnings beat of 2.2%, on average, in the trailing four quarters.

Dollar Tree (DLTR - Free Report) has an Earnings ESP of +6.57% and a Zacks Rank of 3. DLTR is likely to register top-line growth from the year-ago fiscal quarter’s reported number when it reports third-quarter fiscal 2022 numbers. The Zacks Consensus Estimate for quarterly revenues is pegged at $6.83 billion, suggesting 6.5% growth from the figure reported in the prior-year fiscal quarter.

The Zacks Consensus Estimate for Dollar Tree’s earnings for the fiscal third quarter is pegged at $1.16 per share, suggesting 20.8% growth from the year-ago fiscal quarter’s tally. The consensus mark has been stable in the past 30 days. DLTR delivered an earnings beat of 8.6%, on average, in the trailing four quarters.

Macy's (M - Free Report) currently has an Earnings ESP of +18.92% and a Zacks Rank of 3. The company is likely to register a decline in the top and the bottom line when it reports third-quarter fiscal 2022 numbers. The consensus mark for M’s quarterly earnings has moved up by a penny in the past 30 days to 19 cents per share. However, the consensus estimate suggests an 84.6% decline from the year-ago quarter’s reported number.

Macy’s top line is expected to have declined year over year. The Zacks Consensus Estimate for quarterly revenues is pegged at $5.17 billion, which suggests a rise of 4.9% from the figure reported in the prior-year quarter.

Stay on top of upcoming earnings announcements with the Zacks Earnings Calendar.

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