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Kohl's (KSS) Q4 Earnings Coming Up: What Should You Know?
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Kohl's Corporation (KSS - Free Report) is likely to register bottom-line growth when it reports fourth-quarter fiscal 2023 earnings on Mar 12. The consensus mark for earnings has declined 5.3% in the past 30 days to $1.24 per share. However, it indicates a substantial increase from the year-ago quarter’s loss of $2.49 per share. KSS has a trailing four-quarter negative earnings surprise of 9.9%, on average.
The Zacks Consensus Estimate for revenues is pegged at $5.97 billion, indicating a decline of 0.8% from the $6.02 billion reported in the prior-year quarter.
Factors to Consider
Kohl's has been witnessing pressure in its online business for a while. The trend continued in the third quarter of fiscal 2023, with digital sales declining 16.5%. Management highlighted that sales were being affected due to the elimination of online-only promotions. Kohl’s expects a net sales decline of 2.8-4% in fiscal 2023, which also raises concerns for the fourth quarter.
Kohl's Corporation Price, Consensus and EPS Surprise
Kohl's has been witnessing higher SG&A expenses for a while now. In the third quarter of fiscal 2023, SG&A expenses escalated by 1.9% to $1,360 million. As a percentage of total revenues, SG&A expenses rose 235 basis points (bps) to 33.5%. The downside was caused by continued investments in Sephora shop openings, wages and other store-related expenses. The continuation of the rise in such costs may have posed a threat to the company’s profitability.
However, Kohl's progress toward key priorities has been aiding. These include improving customer experience, simplifying value strategies, undertaking disciplined inventory and expenses management and solidifying the balance sheet.
The company’s focus on building its home business, which represents a solid growth opportunity is also worth noting. In the third quarter of fiscal 2023, management started to flow new products into stores like wall art, glassware, ceramic home decor, barware, botanicals and lighting, among others. In the quarter, the home business outperformed in-store courtesy of impressive initial performance across new categories. These are likely to have fueled the home category.
What the Zacks Model Unveils
Our proven model does not conclusively predict 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 odds of an earnings beat, which is not the case here.
Kohl's has an Earnings ESP of +3.52% and carries a Zacks Rank #4 (Sell). You can uncover the best stocks to buy or sell before they’re reported with our Earnings ESP Filter.
Stocks With the Favorable Combination
Here are three companies you may want to consider as our model shows that these also have the right combination of elements to post an earnings beat:
DICK'S Sporting Goods (DKS - Free Report) currently has an Earnings ESP of +1.80% and a Zacks Rank #2. The company is likely to register top and bottom-lines increase when it reports fourth-quarter 2023 numbers. The Zacks Consensus Estimate for the quarterly earnings per share of $3.34 suggests a rise of almost 14% from the year-ago quarter. You can see the complete list of today’s Zacks #1 Rank stocks here.
The Zacks Consensus Estimate for DICK'S Sporting’s quarterly revenues is pegged at $3.75 billion, which indicates a jump of 4.2% from the figure reported in the prior-year quarter. DKS delivered a positive earnings surprise of 16.8% in the last reported quarter.
Dollar General (DG - Free Report) currently has an Earnings ESP of +0.36% and a Zacks Rank #3. The company is expected to register a bottom-line decrease when it reports fourth-quarter fiscal 2023 results. The Zacks Consensus Estimate for quarterly earnings per share of $1.74 suggests a decrease of 41.2% from the year-ago quarter.
The consensus mark for Dollar General’s revenues is pegged at $9.77 billion, indicating a decline of 4.2% from the figure reported in the year-ago quarter. DG delivered a positive earnings surprise of 5.9% in the last reported quarter.
Dollar Tree (DLTR - Free Report) currently has an Earnings ESP of +0.53% and a Zacks Rank #3. The company is likely to register top and bottom-lines increases when it reports fourth-quarter fiscal 2023 numbers. The Zacks Consensus Estimate for the quarterly earnings per share of $2.67 suggests a rise of 30.9% from the year-ago quarter.
The Zacks Consensus Estimate for Dollar Tree’s quarterly revenues is pegged at $8.67 billion, which indicates an increase of 12.4% from the figure reported in the prior-year quarter. DLTR has a trailing four-quarter negative earnings surprise of 0.7%, on average.
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Kohl's (KSS) Q4 Earnings Coming Up: What Should You Know?
Kohl's Corporation (KSS - Free Report) is likely to register bottom-line growth when it reports fourth-quarter fiscal 2023 earnings on Mar 12. The consensus mark for earnings has declined 5.3% in the past 30 days to $1.24 per share. However, it indicates a substantial increase from the year-ago quarter’s loss of $2.49 per share. KSS has a trailing four-quarter negative earnings surprise of 9.9%, on average.
The Zacks Consensus Estimate for revenues is pegged at $5.97 billion, indicating a decline of 0.8% from the $6.02 billion reported in the prior-year quarter.
Factors to Consider
Kohl's has been witnessing pressure in its online business for a while. The trend continued in the third quarter of fiscal 2023, with digital sales declining 16.5%. Management highlighted that sales were being affected due to the elimination of online-only promotions. Kohl’s expects a net sales decline of 2.8-4% in fiscal 2023, which also raises concerns for the fourth quarter.
Kohl's Corporation Price, Consensus and EPS Surprise
Kohl's Corporation price-consensus-eps-surprise-chart | Kohl's Corporation Quote
Kohl's has been witnessing higher SG&A expenses for a while now. In the third quarter of fiscal 2023, SG&A expenses escalated by 1.9% to $1,360 million. As a percentage of total revenues, SG&A expenses rose 235 basis points (bps) to 33.5%. The downside was caused by continued investments in Sephora shop openings, wages and other store-related expenses. The continuation of the rise in such costs may have posed a threat to the company’s profitability.
However, Kohl's progress toward key priorities has been aiding. These include improving customer experience, simplifying value strategies, undertaking disciplined inventory and expenses management and solidifying the balance sheet.
The company’s focus on building its home business, which represents a solid growth opportunity is also worth noting. In the third quarter of fiscal 2023, management started to flow new products into stores like wall art, glassware, ceramic home decor, barware, botanicals and lighting, among others. In the quarter, the home business outperformed in-store courtesy of impressive initial performance across new categories. These are likely to have fueled the home category.
What the Zacks Model Unveils
Our proven model does not conclusively predict 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 odds of an earnings beat, which is not the case here.
Kohl's has an Earnings ESP of +3.52% and carries a Zacks Rank #4 (Sell). You can uncover the best stocks to buy or sell before they’re reported with our Earnings ESP Filter.
Stocks With the Favorable Combination
Here are three companies you may want to consider as our model shows that these also have the right combination of elements to post an earnings beat:
DICK'S Sporting Goods (DKS - Free Report) currently has an Earnings ESP of +1.80% and a Zacks Rank #2. The company is likely to register top and bottom-lines increase when it reports fourth-quarter 2023 numbers. The Zacks Consensus Estimate for the quarterly earnings per share of $3.34 suggests a rise of almost 14% from the year-ago quarter. You can see the complete list of today’s Zacks #1 Rank stocks here.
The Zacks Consensus Estimate for DICK'S Sporting’s quarterly revenues is pegged at $3.75 billion, which indicates a jump of 4.2% from the figure reported in the prior-year quarter. DKS delivered a positive earnings surprise of 16.8% in the last reported quarter.
Dollar General (DG - Free Report) currently has an Earnings ESP of +0.36% and a Zacks Rank #3. The company is expected to register a bottom-line decrease when it reports fourth-quarter fiscal 2023 results. The Zacks Consensus Estimate for quarterly earnings per share of $1.74 suggests a decrease of 41.2% from the year-ago quarter.
The consensus mark for Dollar General’s revenues is pegged at $9.77 billion, indicating a decline of 4.2% from the figure reported in the year-ago quarter. DG delivered a positive earnings surprise of 5.9% in the last reported quarter.
Dollar Tree (DLTR - Free Report) currently has an Earnings ESP of +0.53% and a Zacks Rank #3. The company is likely to register top and bottom-lines increases when it reports fourth-quarter fiscal 2023 numbers. The Zacks Consensus Estimate for the quarterly earnings per share of $2.67 suggests a rise of 30.9% from the year-ago quarter.
The Zacks Consensus Estimate for Dollar Tree’s quarterly revenues is pegged at $8.67 billion, which indicates an increase of 12.4% from the figure reported in the prior-year quarter. DLTR has a trailing four-quarter negative earnings surprise of 0.7%, on average.
Stay on top of upcoming earnings announcements with the Zacks Earnings Calendar.