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Kohl’s (NYSE:KSS) joined other major retailers in slashing the guidance amid rising fears of an economic slowdown.
KSS reported a Q1 adjusted EPS of 11c, compared to $1.05 per share in the year-ago period and analyst consensus of 71c per share. Net sales came in at $3.47 billion, missing the consensus projection of $3.71 billion.
Comparable sales were down 5.2% in the quarter, while analysts were projecting a 0.97% growth. KSS reported a Q1 gross margin of 38.3%, down from 39% in the year-ago period and compared to the analyst estimates of 38.1%.
Looking ahead, Kohl’s expects full-year adjusted EPS in the range of $6.45 to $6.85, down from $7 to $7.5, and below the consensus estimates of $7.03 per share.
The company noted a significant decline in sales in April. It also offered the following commentary on its strategic positioning.
“We continue to engage with multiple interested parties. We have formally communicated the specific procedures for the submission of actionable bids due in the coming weeks. We continue with our detailed diligence phase and are pleased with the number of parties who recognize the value of our business and plan,” said Kohl’s CEO Michelle Gass.
Goldman Sachs analyst Jenna Giannelli “expects sentiment around results to be negative given the slowdown in the consumer and inventory build. We anticipate the structure will continue to trade around the potential transaction.”
Vital Knowledge analysts said that shares are trading higher despite the earnings miss as the full-year guidance “isn’t as bleak as feared.”
