Kohl's Analysts Increase Their Forecasts After Q4 Results
Portfolio Pulse from Avi Kapoor
Kohl's Corporation (NYSE:KSS) reported Q4 FY23 results with a slight sales decline but beat earnings expectations. Sales were $5.71 billion, a 1.1% decrease Y/Y, but above the $5.70 billion estimate. EPS was $1.67, surpassing the $1.28 estimate. The company highlighted strong store performance, growth in beauty sales through its Sephora partnership, and a 10% inventory reduction. FY24 sales are expected to range between a 1% decline and 1% growth, with EPS projected at $2.10 to $2.70. Kohl's anticipates an operating margin of 3.6% to 4.1% and plans $500 million in capital expenditures, including expanding its Sephora partnership. Following the earnings report, Kohl's shares dropped 6.7%. Analysts from Telsey Advisory Group, JP Morgan, and TD Cowen adjusted their price targets for Kohl's, reflecting varying levels of optimism.
March 13, 2024 | 12:44 pm
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Kohl's reported better-than-expected Q4 earnings, with a slight sales decline but significant achievements in store performance and beauty sales. The company provided a cautious FY24 outlook.
Despite beating Q4 earnings expectations and showcasing strong store performance and growth in beauty sales, Kohl's shares fell 6.7% following the announcement. The cautious FY24 outlook, with expected sales growth ranging from a 1% decline to 1% increase and EPS projections below the highest analyst estimates, may contribute to short-term negative sentiment among investors. Analysts' revised price targets reflect a mixed outlook, indicating uncertainty about the stock's direction in the near term.
CONFIDENCE 90
IMPORTANCE 90
RELEVANCE 100