Kohl's Stock Eases; Same-Store Sales Miss, Payout to Resume

Kohl's shares slipped after the retailer's adjusted profit beat estimates and comparable-store sales were short of expectations.
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Kohl's  (KSS) - Get Report shares were lower Tuesday after the retailer's fiscal-third-quarter revenue and adjusted earnings beat analysts' estimates and comparable-store sales missed expectations. 

The company also said it planned to reinstate a dividend during the first half of 2021. A company statement didn't specify an amount or other details.

For the quarter ended Oct. 31 the Menomonee Falls, Wis., department-store chain swung to a loss of 8 cents a share from profit of 78 cents in the year-earlier quarter. Adjusted earnings in the latest period were a penny a share.

Revenue of $3.98 billion fell 14% from $4.63 billion.

Analysts surveyed by FactSet were calling for a GAAP loss of 41 cents a share, or an adjusted loss of 43 cents, on revenue of $3.88 billion. 

Comparable-store sales declined 13.3%, steeper than the 11.7% Wall Street was expecting for the period. 

"Our third-quarter results exceeded our expectations, with significant sequential sales and profitability improvement," Chief Executive Michelle Gass said in a statement. 

"Digital sales growth remained strong and our actions to improve our gross margin showed great progress." 

Gross margin in the quarter narrowed to 35.8% from 36.3% in the year-earlier quarter.

Kohl's shares at last check were off 1.3% at $25.80. They closed the regular session on Monday up 7.8% at $26.15.

"We also further strengthened our financial position and fully repaid our [revolving credit] during the period, which underscores the solid cash flow generation of our business," Gass said. 

And she said Kohl's "entered the holiday season well-positioned and prepared to serve our customers with more omnichannel conveniences in place."

Kohl's ended the quarter with $1.9 billion of cash.