We use cookies to understand how you use our site and to improve your experience. This includes personalizing content and advertising. To learn more, click here. By continuing to use our site, you accept our use of cookies, revised Privacy Policy and Terms of Service.
You are being directed to ZacksTrade, a division of LBMZ Securities and licensed broker-dealer. ZacksTrade and Zacks.com are separate companies. The web link between the two companies is not a solicitation or offer to invest in a particular security or type of security. ZacksTrade does not endorse or adopt any particular investment strategy, any analyst opinion/rating/report or any approach to evaluating individual securities.
If you wish to go to ZacksTrade, click OK. If you do not, click Cancel.
The Zacks Consensus Estimate for revenues is pegged at $3,906 million, suggesting a decrease of 4.4% from the prior-year quarter’s reported figure.
The Zacks Consensus Estimate for the bottom line has improved by 2 cents per share over the past 30 days to 24 cents. The projection indicates a 78.4% decline from earnings reported in the year-ago period. This omnichannel retailer has a trailing four-quarter negative earnings surprise of 52.1%, on average.
Kohl's Corporation Price, Consensus and EPS Surprise
Kohl’s is likely to have borne cost headwinds in the quarter under review. The company’s SG&A expenses included wage cost headwinds in the first quarter of fiscal 2023. Management expects a year-over-year gross margin decline in the second quarter due to faster goods clearance. It also expects an SG&A expense increase of 3-4% in the second quarter, which includes investments associated with Sephora openings, along with store-related investments.
We project an SG&A expense increase of 3.2% in the quarter, wherein we expect a gross margin contraction of 210 basis points.
On its first-quarter fiscal 2023 earnings call, management stated that it continues to witness softness in the home category. This could be accountable to the fact that the company entered the year with leaner inventories in the home category, which received lesser benefits from Kohl’s clearance activities.
That said, management has been focused on enhancing home results by rebuilding its core business and strengthening understated categories like gifting, pet, impulse and outdoor, among others. For the second quarter, we expect home category sales to indicate a slight increase of 0.9% to $506.4 million.
Kohl’s has been benefiting from its omnichannel efforts, which include growing its store portfolio and accelerating digital business growth. The company has been benefiting from its strategic framework, which includes enhancing customer experience, simplifying value strategies, undertaking disciplined inventory and expense management and solidifying the balance sheet.
What the Zacks Model Unveils
Our proven model predicts an earnings beat for Kohl's this time. The combination of a positive Earnings ESP and a Zacks Rank #1 (Strong Buy), 2 (Buy) or 3 (Hold) increases the chances of an earnings beat, which is the case here.
Kohl's has an Earnings ESP of +5.26% and a Zacks Rank #3. You can uncover the best stocks to buy or sell before they’re reported with our Earnings ESP Filter.
Other Stocks With the Favorable Combination
Here are three other companies you may want to consider as our model shows that these also have the right combination of elements to post an earnings beat:
Ulta Beauty (ULTA - Free Report) currently has an Earnings ESP of +0.20% and a Zacks Rank #3. The company’s top line is expected to increase year over year when it reports second-quarter fiscal 2023 results. The Zacks Consensus Estimate for Ulta Beauty’s quarterly revenues is pegged at $2.5 billion, calling for growth of around 9% from the figure reported in the prior-year quarter. You can see the complete list of today’s Zacks #1 Rank stocks here
The Zacks Consensus Estimate for the quarterly EPS is pegged at $5.84, indicating a rise of 2.5% from the figure reported in the year-ago quarter. ULTA has a trailing four-quarter earnings surprise of 15.9%, on average.
Coty (COTY - Free Report) currently has an Earnings ESP of +20.00% and a Zacks Rank #3. The company’s top and bottom lines are expected to increase year over year when it reports fourth-quarter fiscal 2023 results. The Zacks Consensus Estimate for Coty’s quarterly revenues is pegged at $1.3 billion, which implies a rise of 13.4% from the figure reported in the prior-year quarter.
The Zacks Consensus Estimate for the quarterly EPS is pegged at 2 cents, which indicates 300% growth from the year-ago period figure. COTY has a trailing four-quarter earnings surprise of 145%, on average.
Hormel Foods (HRL - Free Report) currently has an Earnings ESP of +3.45% and a Zacks Rank #3. The company’s top and bottom lines are expected to increase year over year when it reports third-quarter fiscal 2023 results. The Zacks Consensus Estimate for Hormel Foods’ quarterly revenues is pegged at $3.1 billion, which implies a rise of 2.8% from the figure reported in the prior-year quarter.
The Zacks Consensus Estimate for the quarterly EPS is pegged at 41 cents, which indicates a 2.5% jump from the year-ago period figure. HRL has a trailing four-quarter negative earnings surprise of 2.3%, on average.
Image: Bigstock
Is a Beat in Store for Kohl's Corporation (KSS) in Q2 Earnings?
Kohl's Corporation (KSS - Free Report) is likely to register a top-and-bottom-line decline when it reports second-quarter fiscal 2023 earnings on Aug 23.
The Zacks Consensus Estimate for revenues is pegged at $3,906 million, suggesting a decrease of 4.4% from the prior-year quarter’s reported figure.
The Zacks Consensus Estimate for the bottom line has improved by 2 cents per share over the past 30 days to 24 cents. The projection indicates a 78.4% decline from earnings reported in the year-ago period. This omnichannel retailer has a trailing four-quarter negative earnings surprise of 52.1%, on average.
Kohl's Corporation Price, Consensus and EPS Surprise
Kohl's Corporation price-consensus-eps-surprise-chart | Kohl's Corporation Quote
Factors to Consider
Kohl’s is likely to have borne cost headwinds in the quarter under review. The company’s SG&A expenses included wage cost headwinds in the first quarter of fiscal 2023. Management expects a year-over-year gross margin decline in the second quarter due to faster goods clearance. It also expects an SG&A expense increase of 3-4% in the second quarter, which includes investments associated with Sephora openings, along with store-related investments.
We project an SG&A expense increase of 3.2% in the quarter, wherein we expect a gross margin contraction of 210 basis points.
On its first-quarter fiscal 2023 earnings call, management stated that it continues to witness softness in the home category. This could be accountable to the fact that the company entered the year with leaner inventories in the home category, which received lesser benefits from Kohl’s clearance activities.
That said, management has been focused on enhancing home results by rebuilding its core business and strengthening understated categories like gifting, pet, impulse and outdoor, among others. For the second quarter, we expect home category sales to indicate a slight increase of 0.9% to $506.4 million.
Kohl’s has been benefiting from its omnichannel efforts, which include growing its store portfolio and accelerating digital business growth. The company has been benefiting from its strategic framework, which includes enhancing customer experience, simplifying value strategies, undertaking disciplined inventory and expense management and solidifying the balance sheet.
What the Zacks Model Unveils
Our proven model predicts an earnings beat for Kohl's this time. The combination of a positive Earnings ESP and a Zacks Rank #1 (Strong Buy), 2 (Buy) or 3 (Hold) increases the chances of an earnings beat, which is the case here.
Kohl's has an Earnings ESP of +5.26% and a Zacks Rank #3. You can uncover the best stocks to buy or sell before they’re reported with our Earnings ESP Filter.
Other Stocks With the Favorable Combination
Here are three other companies you may want to consider as our model shows that these also have the right combination of elements to post an earnings beat:
Ulta Beauty (ULTA - Free Report) currently has an Earnings ESP of +0.20% and a Zacks Rank #3. The company’s top line is expected to increase year over year when it reports second-quarter fiscal 2023 results. The Zacks Consensus Estimate for Ulta Beauty’s quarterly revenues is pegged at $2.5 billion, calling for growth of around 9% from the figure reported in the prior-year quarter. You can see the complete list of today’s Zacks #1 Rank stocks here
The Zacks Consensus Estimate for the quarterly EPS is pegged at $5.84, indicating a rise of 2.5% from the figure reported in the year-ago quarter. ULTA has a trailing four-quarter earnings surprise of 15.9%, on average.
Coty (COTY - Free Report) currently has an Earnings ESP of +20.00% and a Zacks Rank #3. The company’s top and bottom lines are expected to increase year over year when it reports fourth-quarter fiscal 2023 results. The Zacks Consensus Estimate for Coty’s quarterly revenues is pegged at $1.3 billion, which implies a rise of 13.4% from the figure reported in the prior-year quarter.
The Zacks Consensus Estimate for the quarterly EPS is pegged at 2 cents, which indicates 300% growth from the year-ago period figure. COTY has a trailing four-quarter earnings surprise of 145%, on average.
Hormel Foods (HRL - Free Report) currently has an Earnings ESP of +3.45% and a Zacks Rank #3. The company’s top and bottom lines are expected to increase year over year when it reports third-quarter fiscal 2023 results. The Zacks Consensus Estimate for Hormel Foods’ quarterly revenues is pegged at $3.1 billion, which implies a rise of 2.8% from the figure reported in the prior-year quarter.
The Zacks Consensus Estimate for the quarterly EPS is pegged at 41 cents, which indicates a 2.5% jump from the year-ago period figure. HRL has a trailing four-quarter negative earnings surprise of 2.3%, on average.
Stay on top of upcoming earnings announcements with the Zacks Earnings Calendar.