Kohl's shares closed down more than 7% to $60.61 on Tuesday, May 22, after the retailer posted a fiscal first-quarter same-store sales increase of 3.6%, compared with a drop of 2.7% a year earlier. Net income in the quarter rose to $75 million from $66 million last year.
Analysts had predicted a sluggish quarter due to rough weather in the Northeast and Great Lakes, but earnings came in stronger than anticipated. Adjusted earnings for the quarter were 64 cents a share, topping estimates of 50 cents. Revenue in the quarter was $4.21 billion, up from $4.07 billion a year earlier.
The retailer also raised its full-year guidance, saying it now expects fiscal 2018 adjusted profit of $5.05 to $5.50 a share, up from previous guidance of $4.95 to $5.45.
Kohl's new partnerships in the last year have made it a one-stop-shopping locale in a sense: Some of its stores are an exchange point for Amazon.com Inc. (AMZN - Get Report) purchases and have an Aldi grocery store within. That second part isn't a stretch for Kohl's, which opened as a supermarket in 1946, then sold off its grocery arm to the Great Atlantic & Pacific Tea Company, or A&P, in 1983.