Kohl's Corp. (KSS) tumbled 4.8% on Thursday despite lifting fiscal-year guidance after same-store sales for the November-to-December holiday period rose 1.2%, down from year-earlier growth of nearly 7%.
The retailer said in a press release Thursday that it expects fiscal-year earnings of $5.50 to $5.55 a share, compared with prior guidance of $5.35 to $5.55. Analysts surveyed by FactSet had called for Kohl's to post fiscal-year profit of $5.51 a share.
Kohl's noted how the guidance excludes a debt extinguishment charge of $42 million, or 19 cents a share, that was recorded in the first quarter of fiscal 2018.
"We are delighted with our 1.2% shifted comparable sales increase for the holiday period, which builds on the positive momentum we have achieved throughout the year," said Michelle Gass, Kohl's CEO, in a statement.
The CEO added that Kohl's saw "double-digit digital growth" during the holiday period.
In other retail news, Macy's Inc. (M) was falling sharply after the retailer revised its fiscal 2018 sales and earnings guidance down from the guidance it provided in November.
Target said same-store sales for the two months ended in December rose 5.7%, well ahead of the 3.4% pace recorded in the same period last year. Target said full fiscal-year earnings should come in between $5.30 and $5.50 a share, compared to a Wall Street consensus of $5.39, with fourth-quarter comparable revenue rising 5%.