) posted third-quarter fiscal 2013 earnings of 81 cents per
share, lagging the Zacks Consensus Estimate of 86 cents by 5.81%.
Earnings were below management's expected range of 83 cents to 92
cents per share and also fell 11.0% from the prior-year quarter
earnings of 91 cents. Earnings dipped due to lower sales and
gross margins during the quarter.
Sales and Margins
Net sales dipped 1.0% from the year-ago level to $4.444
billion, due to lower comparable sales. Sales also missed the
Zacks Consensus Estimate of $4.556 billion. Comps declined 1.6%
during the quarter compared to a 1.1% increase in the prior-year
period. The company was able to manage its inventory and
merchandise content during the quarter.
Gross margin shrank 60 basis points (bps) to 37.5% due to
lower revenues. Operating margin declined 120 bps to 8.2% from
the year-ago quarter due to higher operating expenses.
Depreciation expenses were higher in the quarter.
Kohl's opened three stores in the reported quarter. The
company ended the quarter with 1,158 stores in 49 states
including the nine stores that it opened in the first quarter.
Kohl's remodeled 30 stores in fiscal 2013.
Other Financial Details
As of Nov 2, 2013, Kohl's' cash and cash equivalents were $598
million compared with $592 million in the previous quarter.
Long-term debt increased to $2.792 billion during the period
compared with $2.492 billion in the previous quarter.
During the quarter, the board at Kohl's declared a quarterly
cash dividend of 35 cents per share, which will be paid on Dec
24, 2013 to shareholders of record as of Dec 11, 2013.
Kohl's has issued guidance for the fourth quarter of fiscal
2013. The company expects earnings in the range of $1.59 to $1.74
per share, sales to decline in the range of 2%-4% and comparable
store sales to dip in the range of 0%-2%.
For fiscal 2013, Kohl's has lowered its earnings guidance from
$4.08-$4.23 per share to $4.15-$4.45 per share following soft
results in the third quarter.
Kohl's now has a Zacks Rank #3 (Hold). Other retail and
wholesale stocks that warrant a look include
Best Buy Inc
). While hhgregg holds a Zacks Rank #1 (Strong Buy), Best Buy and
Conns Inc. carry a Zacks Rank #2 (Buy).
BEST BUY (BBY): Free Stock Analysis Report
CONNS INC (CONN): Free Stock Analysis Report
HHGREGG INC (HGG): Free Stock Analysis Report
KOHLS CORP (KSS): Free Stock Analysis Report
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