|Bid||0.00 x 3000|
|Ask||65.25 x 1000|
|Day's Range||64.38 - 66.04|
|52 Week Range||35.16 - 69.48|
|PE Ratio (TTM)||12.75|
|Forward Dividend & Yield||2.44 (3.73%)|
|1y Target Est||N/A|
Solid earnings from key players like Kohl’s Corporation (NYSE:KSS) and TJX Companies Inc (NYSE:TJX) have helped bolster sentiment within the group. As the company’s earnings report recently proved, Kohl’s is not just my wife’s favorite clothing retailer. With consumers becoming increasingly selective about where they shop, Kohl’s has hit the sweet spot.
Forward PE (price-to-earnings) multiples are one of the most common metrics that inform investment decisions. Forward PE is arrived at by dividing the stock price by analysts’ earnings estimates for the next four quarters. As of May 22, Kohl’s (KSS) was trading at a 12-month forward PE ratio of 11.2x.
On May 22, Kohl’s (KSS) stock fell over 7.4% after the company posted first-quarter results. The company reported net sales of $3.95 billion, which was marginally better than the analyst estimate. The company’s adjusted EPS (earnings per share) of $0.64 came in better than the Wall Street estimate of $0.50. Also, comps rose 3.6% in the first quarter driven by strength in both store and digital comps.
Kohl’s (KSS) adjusted earnings in the first quarter were $0.64, much better than analysts’ estimate of $0.50 and Q1 2017’s adjusted earnings of $0.39. On a reported basis, earnings came in at $0.45, up 15.4% on a year-over-year basis. Higher revenue and profits offset the impact of rising expenses as well as a loss on the extinguishment of debt.
Other revenue came in at $255 million as against $250 million reported in the prior-year quarter. The company has changed its revenue recognition practice and is now considering revenue from credit card operations under the Other revenue segment. Earlier, revenue from credit card operations was recorded as a reduction from the SG&A (selling, general and administrative) expenses.
Last Thursday Macy's beat quarterly sales and earnings expectations and many on Wall Street promptly lost their mind. Same story with Dillard's. Then Kohl’s followed up earlier this week with a similarly surprising upside report that led some to conclude that maybe, just maybe, the long-beleaguered department store sector might be seeing a resurgence or—dare we say it out loud?—the beginning of a renaissance. To be sure, both Macy's and Kohl's sales and profits were much improved over last year.
It left no shortage of top stock trades to dissect for Thursday. While General Electric Company (NYSE:GE) didn’t fall 7.5% in response to the U.S. trade situation, it did drop on management’s comments about its power unit. Target Corporation (NYSE:TGT) puked more than 5% Wednesday after the company reported its first-quarter earnings results.
Kohl's Corp. CEO Michelle Gass said sales of Under Armour clothing are experiencing "strong growth" in the second year of a partnership between the two companies.
The situation with North Korea seems more volatile and although news about trade with China has been fairly positive, concern developed after yesterday’s remarks from President Trump. The market dip began Tuesday afternoon when Trump told the media he’s not happy with China trade talks and that a June summit with North Korea might not happen. Geopolitics could start having an outsized influence now that earnings season is basically over, and that appeared to be what happened as stocks tumbled late Tuesday and stock futures continued to slide in the pre-market hours Wednesday.
Kohl’s Corp. partnership with Amazon.com Inc. may still be in the pilot stage, but analysts think it’s already giving business a boost, attracting millennial shoppers that may not otherwise have been interested. Kohl’s (KSS) announced in September 2017 that it would partner with Amazon (AMZN) for returns at select stores. Executives offered little in the way of an update about the program during Tuesday morning’s earnings call except to say that after six months it continues to be “a positive experience for both our customers as well as Amazon customers.” But Neil Saunders, managing director at GlobalData Retail says the program is doing much more than that.
Kohl's on Tuesday reported much-better-than-expected first-quarter earnings. J.C. Penney CEO Marvin Ellison will become Lowe's CEO. He previously was a top Home Depot executive.
Shares of the department store chain sold off in spite of a strong earnings report after management said sales growth would slow later in the year.
A CEO shakeup and a mixed bag of earnings reports left investors in department stores and discounters confused on Tuesday. The SPDR S&P Retail ETF (XRT) started the day in the black but was down 1.5% by midday. Some of the stocks making headlines—notably Lowe's and Kohl's—should be worth picking out of the bargain bin once investors figure out the winners and losers. The biggest news of the day came at JC Penney (JCP), where CEO Marvin Ellison announced his sudden departure to take the helm at Lowe's (LOW).
The retailer reported a surprise increase in first-quarter sales as revenue rose 3.5% to $4.21 billion. Analysts polled by Thomson Reuters were expecting a 2.8% decline from a year ago.
Kohl's Corp warned of slower same-store sales growth in the second half of the year on Tuesday, overshadowing first-quarter profit and revenue that beat analysts' estimates, sending its shares down more than 7 percent. The company raised its annual earnings forecast, while maintaining expectations for same-store sales. Kohl's now expects adjusted earnings of between $5.05 and $5.50 per share for the 2019 fiscal year, compared with an earlier forecast of $4.95 to $5.45.
Kohl's (KSS) first-quarter fiscal 2018 results gain from consistent growth in comps. Management raises bottom-line view for fiscal 2018.
Favorable trade winds continue to fill the market’s sails this morning. After stocks rallied yesterday on news that the potential trade war between the U.S. and China was being put on hold, the positive news flow continued. Adding to positive sentiment, Kohl’s Corporatrion (NYSE: KSS) reported better-than-expected earnings and revenue, and same-store sales were up 3.6 percent.