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Kohl's (KSS) Q4 Earnings Top Estimates, Revenues & Comps Decline
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Kohl's Corporation (KSS - Free Report) posted fourth-quarter fiscal 2023 results, with the bottom line increasing year over year and surpassing the Zacks Consensus Estimate. However, the top line fell from the year-ago quarter’s levels and missed the consensus mark.
Quarter in Detail
Kohl's posted earnings of $1.67 per share against a loss of $2.49 posted in the year-ago quarter. The bottom line came ahead of the Zacks Consensus Estimate of $1.24.
Total revenues came in at $5,956 million, down from the prior-year quarter’s level of $6,019 million. Net sales inched down 1.1% year over year to $5,710 million. The Zacks Consensus Estimate for the top line was pegged at $5,969.5 million.
Comparable sales decreased 4.3%. We had expected a comparable sales decline of 1.2%.
Kohl's Corporation Price, Consensus and EPS Surprise
Kohl's gross margin expanded 937 basis points (bps) to 32.4% in the reported quarter. We had expected the gross margin to expand 880 bps to 31.8% in the quarter under review.
SG&A expenses dropped 4% to $1,610 million. As a percentage of total revenues, SG&A expenses fell 82 bps to 27%. Our model suggested an SG&A expense decline of 2.9%, with the rate contracting 50 bps to 27.4%.
The company posted an operating income of $299 million, down from $302 million in the year-ago period. The operating income margin expanded by 1,005 bps to 5%.
Other Details
Kohl’s ended the quarter with cash and cash equivalents of $183 million and shareholders’ equity of $3,893 million. The company generated an operating cash flow of $1,168 million for the year ended Feb 3, 2024.
Management expects capital expenditures of nearly $500 million for 2024 (including the expansion of its Sephora collaboration and store-related investments).
On Feb 28, 2024, Kohl’s declared a quarterly cash dividend of 50 cents per share, payable on Apr 3, 2024, to shareholders of record as of Mar 20.
In another press release, Kohl’s unveiled its partnership with the owner of the Babies“R”Us brand. The partnership will bring baby gear, furniture and activity among others to Kohl’s.
Image Source: Zacks Investment Research
Guidance
Kohl’s expects net sales in the range of 1% growth to 1% decline in 2024. Comparable sales are anticipated to be flat to 2% growth. The operating margin is likely to be 3.6-4.1%.
Earnings per share (EPS), excluding non-recurring charges, are envisioned in the band of $2.10-$2.70. The company delivered an EPS of $2.85 in 2023.
Shares of this Zacks Rank #4 (Sell) company have declined 5.2% year-to-date against the industry’s growth of 1%.
The Zacks Consensus Estimate for Deckers’ current fiscal-year earnings and sales indicates growth of 38.6% and 15.7%, respectively, from fiscal 2024’s reported figures. DECK's trailing four-quarter average earnings surprise is 32.1%.
The Gap, Inc. (GPS - Free Report) is a premier international specialty retailer offering a diverse range of clothing, accessories and personal care products. The company currently sports a Zacks Rank #1.
The Zacks Consensus Estimate for Gap’s current financial-year sales indicates growth of 0.2% from the year-ago reported actuals.
Abercrombie & Fitch Co. (ANF - Free Report) is a specialty retailer of premium, high-quality casual apparel. The company carries a Zacks Rank #2 (Buy). ANF delivered a 5.7% earnings surprise in the last reported quarter.
The Zacks Consensus Estimate for Abercrombie’s current financial-year sales and earnings suggests growth of 5.6% and 9.2%, respectively, from the year-ago reported numbers. ANF has a trailing four-quarter average earnings surprise of 715.6%.
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Kohl's (KSS) Q4 Earnings Top Estimates, Revenues & Comps Decline
Kohl's Corporation (KSS - Free Report) posted fourth-quarter fiscal 2023 results, with the bottom line increasing year over year and surpassing the Zacks Consensus Estimate. However, the top line fell from the year-ago quarter’s levels and missed the consensus mark.
Quarter in Detail
Kohl's posted earnings of $1.67 per share against a loss of $2.49 posted in the year-ago quarter. The bottom line came ahead of the Zacks Consensus Estimate of $1.24.
Total revenues came in at $5,956 million, down from the prior-year quarter’s level of $6,019 million. Net sales inched down 1.1% year over year to $5,710 million. The Zacks Consensus Estimate for the top line was pegged at $5,969.5 million.
Comparable sales decreased 4.3%. We had expected a comparable sales decline of 1.2%.
Kohl's Corporation Price, Consensus and EPS Surprise
Kohl's Corporation price-consensus-eps-surprise-chart | Kohl's Corporation Quote
Kohl's gross margin expanded 937 basis points (bps) to 32.4% in the reported quarter. We had expected the gross margin to expand 880 bps to 31.8% in the quarter under review.
SG&A expenses dropped 4% to $1,610 million. As a percentage of total revenues, SG&A expenses fell 82 bps to 27%. Our model suggested an SG&A expense decline of 2.9%, with the rate contracting 50 bps to 27.4%.
The company posted an operating income of $299 million, down from $302 million in the year-ago period. The operating income margin expanded by 1,005 bps to 5%.
Other Details
Kohl’s ended the quarter with cash and cash equivalents of $183 million and shareholders’ equity of $3,893 million. The company generated an operating cash flow of $1,168 million for the year ended Feb 3, 2024.
Management expects capital expenditures of nearly $500 million for 2024 (including the expansion of its Sephora collaboration and store-related investments).
On Feb 28, 2024, Kohl’s declared a quarterly cash dividend of 50 cents per share, payable on Apr 3, 2024, to shareholders of record as of Mar 20.
In another press release, Kohl’s unveiled its partnership with the owner of the Babies“R”Us brand. The partnership will bring baby gear, furniture and activity among others to Kohl’s.
Image Source: Zacks Investment Research
Guidance
Kohl’s expects net sales in the range of 1% growth to 1% decline in 2024. Comparable sales are anticipated to be flat to 2% growth. The operating margin is likely to be 3.6-4.1%.
Earnings per share (EPS), excluding non-recurring charges, are envisioned in the band of $2.10-$2.70. The company delivered an EPS of $2.85 in 2023.
Shares of this Zacks Rank #4 (Sell) company have declined 5.2% year-to-date against the industry’s growth of 1%.
Some Solid Picks
Deckers Outdoor Corporation (DECK - Free Report) is a leading designer, producer and brand manager of innovative, niche footwear and accessories. It currently sports a Zacks Rank #1 (Strong Buy). You can see the complete list of today’s Zacks #1 Rank stocks here.
The Zacks Consensus Estimate for Deckers’ current fiscal-year earnings and sales indicates growth of 38.6% and 15.7%, respectively, from fiscal 2024’s reported figures. DECK's trailing four-quarter average earnings surprise is 32.1%.
The Gap, Inc. (GPS - Free Report) is a premier international specialty retailer offering a diverse range of clothing, accessories and personal care products. The company currently sports a Zacks Rank #1.
The Zacks Consensus Estimate for Gap’s current financial-year sales indicates growth of 0.2% from the year-ago reported actuals.
Abercrombie & Fitch Co. (ANF - Free Report) is a specialty retailer of premium, high-quality casual apparel. The company carries a Zacks Rank #2 (Buy). ANF delivered a 5.7% earnings surprise in the last reported quarter.
The Zacks Consensus Estimate for Abercrombie’s current financial-year sales and earnings suggests growth of 5.6% and 9.2%, respectively, from the year-ago reported numbers. ANF has a trailing four-quarter average earnings surprise of 715.6%.