Kohl’s (KSS) Stock Slumping as SSS, Revenue Miss Estimates

NEW YORK (TheStreet) -- Shares of Kohl's Corp. (KSS) are down by 9.93% to $67.11 in pre-market trading on Thursday morning, after the retail giant reported its first quarter 2015 earnings results, which showed the company's revenue and same-store-sales failed to meet analysts' expectations for the period.

For the most recent quarter Kohl's said its same store sales grew by 1.4%, but missed the 2.6% increase analysts were looking for. Same store sales were hurt by the harsh February winter.

The company's sales were $4.12 billion, a 1.3% rise from the 2014 first quarter. However, analysts polled by Thomson Reuters had forecast for revenue of $4.19 billion.

Kohl's reported an improvement in earnings for the quarter ended May 2 of 63 cents per diluted share, from 60 cents reported for the same period last year. Analysts were anticipating earnings of 55 cents for the quarter.

"Sales were modestly below our original expectations for the quarter, but accelerated in the March/April combined period after a weak February. We are very pleased with our earnings results, with a more balanced promotional calendar driving merchandise margin combined with strong expense control," Kohl's CEO Kevin Mansell said in a statement.

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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