This Day On The Street
Continue to site right-arrow
This account is pending registration confirmation. Please click on the link within the confirmation email previously sent you to complete registration.
Need a new registration confirmation email? Click here
Stocks Under $10 with 50-100% upside potential - 14 days FREE!

Walmart Misses, Kohl's Beats, Stocks React

Stocks in this article: WMT KSS M TJX JCP

New information has been added to this story.

NEW YORK ( TheStreet) - The stocks of two big department stores, Wal-Mart Stores (WMT) and Kohl's (KSS) performed vastly different on Thursday, despite both retailers reporting earnings results that missed revenue expectations.

Shares of Wal-Mart, the world's largest retailer, stumbled after it reported that sales in its U.S. stores fell, even with a more positive outlook for the second quarter. The stock was trading down 2.1% to $78.20 in trading Thursday.

Wal-Mart said net income attributable to the company for the first quarter was $3.8 billion, up 1.1% from a year earlier. Diluted earnings per share attributable to Wal-Mart rose 4.6% to $1.14 a share, the company said in a press release Thursday.

Wal-Mart's net sales for the quarter came in at $113.4 billion, up 1% from last year. Total revenue for the quarter nudged higher by 1% to $114.2 billion.

Analysts, on average, expected the Bentonville, Ark.-based company to earn $1.15 a share on revenue of $116.4 billion.

Wal-Mart said sales in its U.S. stores fell 1.4% for the 13-week period through April 26, 2013. The company, with a market cap of $263 billion, blamed "a delay in income tax refund checks, challenging weather conditions, less grocery inflation than expected and the payroll tax increase."

The company said it expects same-store sales comps for both its U.S. stores to range from flat to up 2% for the second quarter. Wal-Mart expects second-quarter earnings per share to range between $1.22 to $1.27 vs. $1.18 a share it earned in the second quarter of 2012.

"We're encouraged by the start of sales in the second quarter because we've seen more normalized weather and we're getting past the main effects of the reduced tax refunds," Bill Simon, head of Wal-Mart's U.S. operations, said in the pre-recorded call.

Meanwhile, Kohl's (KSS) shares surged Thursday after the retailer posted better-than-expected first-quarter earnings despite lower sales and profit. It too alluded to improved performance for the second quarter.

Kohl's net income fell 4% to $147 million in the first quarter from the prior year. Earnings per diluted share came in at 66 cents. Comparable-store sales fell 1.9% versus rising 2% in the 2012 quarter. Total revenue fell 1% to $4.19 billion.

Analysts, on average, expected Kohl's to report diluted earnings per share of 58 cents on revenue of $4.27 billion.

The stock was surging 4.9% to $52.08 at last check on strong volume. Earlier in the day, Kohl's shares hit a new 52-week-high of $52.94 shortly after the markets opened.

Kohl's said for its August-ending quarter it expects to post earnings between $1 and $1.08 a share. The guidance is based off of sales growth of 1% to 3% and comparable-store sales growth that would be flat to up 2% and includes share repurchases of $250 million.

"After a slow start, sales improved considerably in April as the weather finally improved in our most weather-sensitive regions," said Kevin Mansell, Kohl's chairman, president and CEO. Despite the lower-than-expected sales, we outperformed our earnings guidance as gross margin results and expense management were better than expected. Our inventory levels are consistent with our expectations."

Wal-Mart and Kohl's earnings come a day after Macy's (M) reported better-than-expected earnings and a dividend increase.

Troubled retailer J.C. Penney (JCP) reports Thursday after the markets close. The company already pre-announced that quarterly sales suffered a wider decline than expected. High-end retailer, Nordstrom (JWN) also reports earnings after the bell.

-- Written by Laurie Kulikowski in New York.

To contact Laurie Kulikowski, send an email to:

>To submit a news tip, email:


Follow TheStreet on Twitter and become a fan on Facebook

Disclosure: TheStreet's editorial policy prohibits staff editors, reporters and analysts from holding positions in any individual stocks.

Select the service that is right for you!

Action Alerts PLUS
Try it NOW

Jim Cramer and Stephanie Link actively manage a real portfolio and reveal their money management tactics while giving advanced notice before every trade.

Product Features:
  • $2.5+ million portfolio
  • Large-cap and dividend focus
  • Intraday trade alerts from Cramer
  • Weekly roundups
TheStreet Quant Ratings
Try it NOW
Only $49.95/yr

Access the tool that DOMINATES the Russell 2000 and the S&P 500.

Product Features:
  • Buy, hold, or sell recommendations for over 4,300 stocks
  • Unlimited research reports on your favorite stocks
  • A custom stock screener
  • Upgrade/downgrade alerts
Stocks Under $10
Try it NOW

David Peltier, uncovers low dollar stocks with extraordinary upside potential that are flying under Wall Street's radar.

Product Features:
  • Model portfolio
  • Stocks trading below $10
  • Intraday trade alerts
  • Weekly roundups
Dividend Stock Advisor
Try it NOW

Jim Cramer's protege, David Peltier, identifies the best of breed dividend stocks that will pay a reliable AND significant income stream.

Product Features:
  • Diversified model portfolio of dividend stocks
  • Alerts when market news affect the portfolio
  • Bi-weekly updates with exact steps to take - BUY, HOLD, SELL
Real Money Pro
Try it NOW

All of Real Money, plus 15 more of Wall Street's sharpest minds delivering actionable trading ideas, a comprehensive look at the market, and fundamental and technical analysis.

Product Features:
  • Real Money + Doug Kass Plus 15 more Wall Street Pros
  • Intraday commentary & news
  • Ultra-actionable trading ideas
Options Profits
Try it NOW

Our options trading pros provide daily market commentary and over 100 monthly option trading ideas and strategies to help you become a well-seasoned trader.

Product Features:
  • 100+ monthly options trading ideas
  • Actionable options commentary & news
  • Real-time trading community
  • Options TV
To begin commenting right away, you can log in below using your Disqus, Facebook, Twitter, OpenID or Yahoo login credentials. Alternatively, you can post a comment as a "guest" just by entering an email address. Your use of the commenting tool is subject to multiple terms of service/use and privacy policies - see here for more details.
Submit an article to us!


DOW 17,778.15 +421.28 2.43%
S&P 500 2,061.23 +48.34 2.40%
NASDAQ 4,748.3960 +104.0840 2.24%

Brokerage Partners

Rates from

  • Mortgage
  • Credit Cards
  • Auto

Free Newsletters from TheStreet

My Subscriptions:

After the Bell

Before the Bell

Booyah! Newsletter

Midday Bell

TheStreet Top 10 Stories

Winners & Losers

Register for Newsletters
Top Rated Stocks Top Rated Funds Top Rated ETFs