Kohl’s (KSS) Stock Gains, Stores Opening Thanksgiving Evening
NEW YORK (TheStreet) -- Kohl's Corp. (KSS) - Get Report stock is rising 1.64% to $44.70 in afternoon trading on Tuesday after the company said it plans to open its retail stores at 6 p.m. on Thanksgiving Day this year.
The department stores will have Black Friday deals and other promotions online and in stores.
Kohl's stock fell about 4% on Monday after Citigroup analysts said retailers are facing a "tough" quarter due to warmer weather and a weak traffic.
The company is scheduled to report its fiscal 2015 third quarter financial results on Thursday before the market open.
Analysts are not expecting any changes in earnings for the quarter, which totaled 70 cents per share for the same quarter last year.
Revenue is expected to increase 0.8% to $4.41 billion for the latest quarter, compared with $4.37 billion for the quarter ended November 1, 2014.
Separately, TheStreet Ratings team rates KOHL'S CORP as a Hold with a ratings score of C+. TheStreet Ratings Team has this to say about their recommendation:
We rate KOHL'S CORP (KSS) a HOLD. The primary factors that have impacted our rating are mixed - some indicating strength, some showing weaknesses, with little evidence to justify the expectation of either a positive or negative performance for this stock relative to most other stocks. The company's strengths can be seen in multiple areas, such as its revenue growth, reasonable valuation levels and largely solid financial position with reasonable debt levels by most measures. However, as a counter to these strengths, we also find weaknesses including deteriorating net income, weak operating cash flow and a generally disappointing performance in the stock itself.
Highlights from the analysis by TheStreet Ratings Team goes as follows:
- Despite its growing revenue, the company underperformed as compared with the industry average of 7.4%. Since the same quarter one year prior, revenues slightly increased by 0.6%. This growth in revenue does not appear to have trickled down to the company's bottom line, displayed by a decline in earnings per share.
- The debt-to-equity ratio is somewhat low, currently at 0.89, and is less than that of the industry average, implying that there has been a relatively successful effort in the management of debt levels. Even though the company has a strong debt-to-equity ratio, the quick ratio of 0.29 is very weak and demonstrates a lack of ability to pay short-term obligations.
- The company, on the basis of change in net income from the same quarter one year ago, has significantly underperformed when compared to that of the S&P 500 and the Multiline Retail industry. The net income has significantly decreased by 44.0% when compared to the same quarter one year ago, falling from $232.00 million to $130.00 million.
- Net operating cash flow has significantly decreased to $251.00 million or 54.44% when compared to the same quarter last year. In addition, when comparing to the industry average, the firm's growth rate is much lower.
- You can view the full analysis from the report here: KSS
Any reference to TheStreet Ratings and its underlying recommendation does not reflect the opinion of Jim Cramer, TheStreet or any of its contributors.