We use cookies to understand how you use our site and to improve your experience.
This includes personalizing content and advertising.
By pressing "Accept All" or closing out of this banner, you consent to the use of all cookies and similar technologies and the sharing of information they collect with third parties.
You can reject marketing cookies by pressing "Deny Optional," but we still use essential, performance, and functional cookies.
In addition, whether you "Accept All," Deny Optional," click the X or otherwise continue to use the site, you accept our Privacy Policy and Terms of Service, revised from time to time.
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.
Kohl's Q1 Loss Narrower Than Estimates, Sales Decline 4% Y/Y
Read MoreHide Full Article
Kohl's Corporation (KSS - Free Report) reported first-quarter fiscal 2025 loss per share of 13 cents, which was narrower than the Zacks Consensus Estimate of a loss of 22 cents. The bottom line showed an improvement from the year-ago period’s loss of 24 cents. (Find the latest EPS estimates and surprises on Zacks Earnings Calendar.)
Kohl's Corporation Price, Consensus and EPS Surprise
Total revenues were $3,233 million, down from the prior-year quarter’s $3,382 million. Nevertheless, the top line surpassed the Zacks Consensus Estimate of $3,176 million. The company’s net sales fell 4.1% to $3,049 million, while other revenues fell 9.8% to $184 million. We note that comparable sales declined 3.9% year over year. We expected comparable sales to decrease 6%.
Kohl’s Quarterly Margin Highlights
Kohl's gross margin expanded 37 basis points (bps) to 39.9% in the reported quarter. We expected a gross margin increase of 10 bps. SG&A expenses dropped 5.2% to $1,164 million. As a percentage of total revenues, SG&A expenses decreased 32 bps to 36%. We anticipated SG&A expenses, as a percentage of net sales, to increase 70 bps.
KSS posted an operating income of $60 million, up from $43 million in the year-ago period. The operating income margin expanded 58 bps to 1.9%.
KSS’ Financial Health Snapshot & Other Updates
Kohl's ended the quarter with cash and cash equivalents of $153 million and shareholders’ equity of $3,779 million. Net cash used in operating activities was $92 million for the three months ending May 3, 2025.
Management expects capital expenditures of $400-$425 million for fiscal 2025.
On May 14, 2025, Kohl’s declared a quarterly cash dividend of 12.50 cents per share, payable on June 25, to its shareholders of record as of June 11.
What to Expect From KSS in FY25?
For fiscal 2025, Kohl's continues to foresee a net sales decline of 5-7%. Comparable sales are projected to decline 4-6% during the year. The operating margin is expected to range from 2.2% to 2.6% in fiscal 2025. Management anticipates full-year earnings per share to be between 10 cents and 60 cents.
This Zacks Rank #3 (Hold) company’s shares have lost 28.5% in the past three months compared with the industry’s decline of 5.5%.
The Zacks Consensus Estimate for Urban Outfitters’ current fiscal-year earnings and sales indicates growth of 20.9% and 8%, respectively, from the year-ago period’s reported figures. URBN delivered a trailing four-quarter average earnings surprise of 29%.
Genesco Inc. (GCO - Free Report) operates as a retailer and wholesaler of footwear, apparel and accessories, carrying a Zacks Rank #2 (Buy). GCO delivered a trailing four-quarter earnings surprise of 37.2%, on average.
The Zacks Consensus Estimate for Genesco’s current fiscal-year earnings and sales indicates growth of 63.8% and 0.6%, respectively, from the year-ago period’s reported figures.
Canada Goose Holdings Inc. (GOOS - Free Report) designs, manufactures and sells performance luxury apparel for men, women, youth, children and babies. It carries a Zacks Rank of 2 at present. GOOS delivered a trailing four-quarter average earnings surprise of 57.2%.
The Zacks Consensus Estimate for Canada Goose’s current fiscal-year earnings and sales implies a decline of 10% and 2.9%, respectively, from the year-ago actuals.
See More Zacks Research for These Tickers
Normally $25 each - click below to receive one report FREE:
Image: Bigstock
Kohl's Q1 Loss Narrower Than Estimates, Sales Decline 4% Y/Y
Kohl's Corporation (KSS - Free Report) reported first-quarter fiscal 2025 loss per share of 13 cents, which was narrower than the Zacks Consensus Estimate of a loss of 22 cents. The bottom line showed an improvement from the year-ago period’s loss of 24 cents. (Find the latest EPS estimates and surprises on Zacks Earnings Calendar.)
Kohl's Corporation Price, Consensus and EPS Surprise
Kohl's Corporation price-consensus-eps-surprise-chart | Kohl's Corporation Quote
Total revenues were $3,233 million, down from the prior-year quarter’s $3,382 million. Nevertheless, the top line surpassed the Zacks Consensus Estimate of $3,176 million. The company’s net sales fell 4.1% to $3,049 million, while other revenues fell 9.8% to $184 million. We note that comparable sales declined 3.9% year over year. We expected comparable sales to decrease 6%.
Kohl’s Quarterly Margin Highlights
Kohl's gross margin expanded 37 basis points (bps) to 39.9% in the reported quarter. We expected a gross margin increase of 10 bps. SG&A expenses dropped 5.2% to $1,164 million. As a percentage of total revenues, SG&A expenses decreased 32 bps to 36%. We anticipated SG&A expenses, as a percentage of net sales, to increase 70 bps.
KSS posted an operating income of $60 million, up from $43 million in the year-ago period. The operating income margin expanded 58 bps to 1.9%.
KSS’ Financial Health Snapshot & Other Updates
Kohl's ended the quarter with cash and cash equivalents of $153 million and shareholders’ equity of $3,779 million. Net cash used in operating activities was $92 million for the three months ending May 3, 2025.
Management expects capital expenditures of $400-$425 million for fiscal 2025.
On May 14, 2025, Kohl’s declared a quarterly cash dividend of 12.50 cents per share, payable on June 25, to its shareholders of record as of June 11.
What to Expect From KSS in FY25?
For fiscal 2025, Kohl's continues to foresee a net sales decline of 5-7%. Comparable sales are projected to decline 4-6% during the year. The operating margin is expected to range from 2.2% to 2.6% in fiscal 2025. Management anticipates full-year earnings per share to be between 10 cents and 60 cents.
This Zacks Rank #3 (Hold) company’s shares have lost 28.5% in the past three months compared with the industry’s decline of 5.5%.
Image Source: Zacks Investment Research
Key Picks
Urban Outfitters, Inc. (URBN - Free Report) offers lifestyle products and services. 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 Urban Outfitters’ current fiscal-year earnings and sales indicates growth of 20.9% and 8%, respectively, from the year-ago period’s reported figures. URBN delivered a trailing four-quarter average earnings surprise of 29%.
Genesco Inc. (GCO - Free Report) operates as a retailer and wholesaler of footwear, apparel and accessories, carrying a Zacks Rank #2 (Buy). GCO delivered a trailing four-quarter earnings surprise of 37.2%, on average.
The Zacks Consensus Estimate for Genesco’s current fiscal-year earnings and sales indicates growth of 63.8% and 0.6%, respectively, from the year-ago period’s reported figures.
Canada Goose Holdings Inc. (GOOS - Free Report) designs, manufactures and sells performance luxury apparel for men, women, youth, children and babies. It carries a Zacks Rank of 2 at present. GOOS delivered a trailing four-quarter average earnings surprise of 57.2%.
The Zacks Consensus Estimate for Canada Goose’s current fiscal-year earnings and sales implies a decline of 10% and 2.9%, respectively, from the year-ago actuals.