Retail Stock Breakdown: What Investors Need to Know About Kohl's, and Bed Bath & Beyond

Let's break down Kohl's after it reported a weaker-than-expected outlook, and Bed Bath & Beyond's disappointing earnings.
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Is it Friday yet?

Jim Cramer is out Thursday, so Jeff Marks, senior portfolio analyst with Cramer's Action Alerts PLUS portfolio, will be filling in on TheStreet's Daily Live show. 

Marks will be weighing in on Kohl's outlook and Bed Bath & Beyond's disappointing earnings. 

Let's Start With Bed Bath & Beyond

Real Money's stock of the day Bed Bath & Beyond  (BBBY) - Get Report posted disappointing earnings after the bell Wednesday. 

The company posted a loss of 31 cents per share in the fiscal third quarter, falling short of the Street forecast of a 3 cents per share profit. Group revenues, the company said, fell 9% to $2.8 billion, just shy of analysts' forecast of a $2.86 billion tally. 

Same-store sales, which were hit by having one fewer week this year compared to 2018, and the fact that Cyber Monday revenues will be booked in the fourth quarter, tumbled 8.3%.

"Let me be clear, these results are unsatisfactory and underscore the imperative for change and strengthen our sense of priorities and purpose," CEO Mark Tritton told investors on a conference call late Wednesday. "We must respond to the challenges we face as a business, including pressured sales and profitability and reconstruct a modern durable model for long-term profitable growth." 

Year-to-date, Bed Bath & Beyond is down nearly 4%. 

So, is it too late for Kohl's to execute a turnaround strategy? 

And Then There's Kohl's

Kohl's  (KSS) - Get Report also disappointed investors Thursday morning. 

In a regulatory filing, Kohl's said comparable-store sales for fiscal November and December 2019 combined decreased 0.2% from the same period last year, which surprised analysts and investors, who had expected the company performed well over the holidays.

Kohl’s said it now expects fiscal 2019 per-share earnings to be at the low end of its previously announced guidance range of $4.75 to $4.95. The guidance excludes 22 cents a share related to debt and impairment write-offs, store closings, and other costs.

“We continue to see momentum in key areas including our digital business, active, beauty and children’s, and solid performance in footwear and men’s,” CEO Michelle Gass said. “This was offset by softness in women’s, which we are working with speed to address.”