Discount retailer Kohl's is in buying range after showing
surprising strength following a mixed earnings report.
) stock is still in the 5% buy zone from Wednesday's breakout
past a 58.30 buy point. Volume was a little shy of the 40% jump
that signals a healthy breakout.
The stock has advanced since Aug. 13, the day before Kohl's
second-quarter earnings report. The firm said that its profit
rose 9% from a year earlier to $1.13 a share, above
Revenue slipped 1% to $4.24 billion, the fourth straight
decline and below estimates.
Retailers have struggled to boost sales amid tepid wage
growth, which has forced many consumers to trim spending.Macy's (
) andDillard's (
) also reported weaker-than-expected quarterly sales.
Yet the Retail-Department Stores industry group was ranked No.
26 out of 197 as of Thursday's IBD.
On Wednesday, Credit Suisse said that department stores
controlled inventories much better in Q2 than in Q1, with sales
growing faster than inventories for the first time in three
years, according to stock-information website
theflyonthewall.com. Kohl's, Dillard's and Macy's decreased
On Thursday, Gilford Securities upgraded Kohl's to buy from
Menomonee Falls, Wis.-based Kohl's is expected to report
full-year profit of $4.28 a share, up 6% from last year, followed
by a 10% increase in 2015. Kohl's three-year earnings stability
factor is 3 on a scale of 0 (most stable) to 99 (least
The company began offering a dividend in 2011 and has
increased the payout every year.
The latest increase came earlier this year, when Kohl's
increased its dividend by 4 cents, or 11%, to 39 cents a share.
The annual rate of $1.56 a share is good for a yield of 2.6% at
the current share price, above the S&P 500 average of 1.9%.
The dividend growth rate is a robust 15%.