Kohl's (KSS) Stock Lower Ahead of Thursday's Earnings Release

NEW YORK (TheStreet) -- Shares of Kohl's Corp  (KSS) were lower by 0.74% to $73.75 in midday trading Wednesday, one day ahead of the retailer's first quarter earnings report, scheduled to be released before the market opens Thursday.

TheStreet's Jim Cramer, Portfolio Manager of the Action Alerts PLUS Charitable Trust Portfolio says he's expecting a good quarter from the department store chain.

"I know people want to leave retail because they're looking at the aggregate retail sales, but I think those may no longer be as good a tell anymore," said Cramer in a video.

"Kohl's is a turnaround and I think it's doing a very good job. Kohl's has run a lot. If it comes in, that's when you buy," he added.

For the first quarter, analysts are expecting the department store chain to earn 55 cents per share on revenue of $4.187 billion, according to analysts surveyed by Thomson Reuters.

In the same quarter of last year, Kohl's reported a profit of 60 cents per share on revenue of $4.07 billion.

Head of retail at ITG Investment Research John Tomlinson raised his revenue estimate for the first quarter, saying Kohl's accelerating volume growth is "encouraging."

The firm revised its mid-quarter sales and comparable store sales forecasts for the retailer. It now expects revenue of $4.27 billion at the midpoint.

ITG forecasts comparable store sales to grow between 3.5% to 5.5% year over year, higher compared to the consensus forecast of a 2.6% growth.

The firm wrote in a note, "Kohl's first quarter domestic comps and revenues appear to have finished solidly above Street expectations driven by improved transaction trends."

Menomonee Falls, Wis.-based Kohl's operates family-oriented department stores and a website that sells apparel, footwear, accessories, soft home products and housewares.

Separately, TheStreet Ratings team rates KOHL'S CORP as a Buy with a ratings score of A. TheStreet Ratings Team has this to say about their recommendation:

"We rate KOHL'S CORP (KSS) a BUY. This is based on the convergence of positive investment measures, which should help this stock outperform the majority of stocks that we rate. The company's strengths can be seen in multiple areas, such as its revenue growth, attractive valuation levels, solid stock price performance, growth in earnings per share and increase in net income. We feel its strengths outweigh the fact that the company shows low profit margins."

You can view the full analysis from the report here: KSS Ratings Report

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