Kohl’s Corporation Reports Q1 Miss, Cuts Full-Year Guidance

Kohl’s Corporation (NYSE:KSS) reported its Q1 results, with EPS coming in at $0.11, missing the Street estimate of $0.71. Revenue was $3.47 billion, below the Street estimate of $3.71 billion.
Management cited a large drop in comp trends in April driven by unfavorable weather (northern stores were 800 bps below southern) as well as the lapping of stimulus and very tough compares in home (down 17% in Q1 vs. up 30% last year).
The company lowered its full-year adjusted EPS guidance to $6.45-$6.85 from $7-$7.5, compared to the Street estimate of $7.03.
While acknowledging the transitory nature of these headwinds, analysts at Deutsche Bank said that they do think investors are wary around the level of improvement baked into H2 guidance, with comps implied up low-single-digits compared to down low-single-digits in Q2 and down mid-single-digits in Q1, SG&A dollars improving to down low-single-digits year-over-year in H2 vs. up high-single-digits in H1, and elevated inventory levels coming out of Q1.


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