Kohl's withdraws full-year guidance despite third-quarter beat
By Josh White
Date: Thursday 17 Nov 2022
(Sharecast News) - Suburban department store specialist Kohl's beat Wall Street expectations on third-quarter revenue and profit in a pre-open update on Thursday, but it withdrew its full-year guidance amid "significant" macroeconomic challenges.
The company, known for its coupon-heavy promotions and 'Kohl's Cash' store scrip, said net income for the period ended 29 October fell to $97m or 82 cents per share, from $243m and $1.65 per share a year prior.
Adjusted earnings came in at 82 cents per share, above consensus expectations for 77 cents.
Revenue for the quarter was down 7% to $4.28bn, which was also still above the $4.07bn economists had forecast according to FactSet, while same-store sales were down 6.9%, beating the 7% decline pencilled in.
Looking ahead, Kohl's said macroeconomic challenges heading into the key holiday season, as well as the unexpected departure of its chief executive officer, had led to the decision to withdraw its guidance for the full financial year.
CEO Michlle Gass announced her resignation from Kohl's last week to join jeans giant Levi Strauss, with Tom Kingsbury installed as interim chief executive.
"The Kohl's board is focussed on supporting the management team during this CEO transition period, as well as the board's search committee in its pursuit of finding the next CEO to lead Kohl's," said the independent chair of the Kohl's board, Peter Boneparth.
"We look forward to partnering with Interim CEO Tom Kingsbury and the entire leadership team to execute at the highest level this holiday season, while also capitalising on opportunities to strengthen the business.
"Kohl's is a great company with extremely bright prospects and I am confident we will find the right candidate to successfully position Kohl's to drive sales, grow earnings and create shareholder value."
At 0735 EST (1235 GMT), shares in Kohl's Corporation were down 4.03% in pre-market trading at $28.60, having fallen 7.08% by the closing bell on Wednesday.
Reporting by Josh White for Sharecast.com.
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