Kohl’s (NYSE:) reported better-than-expected second-quarter earnings on Thursday, regardless of a decline in gross sales, and raised its full-year earnings steering. The retailer’s shares rose greater than 3% following the information.
The division retailer chain posted adjusted earnings per share of $0.59 for the quarter ended August 3, 2024, surpassing analysts’ estimates of $0.44. Nevertheless, income fell 4.2% YoY to $3.53 billion, lacking the consensus forecast of $3.69 billion. Comparable gross sales decreased 5.1% throughout the interval.
Regardless of the gross sales decline, Kohl’s managed to develop its gross margin by 59 foundation factors to 39.6%. The corporate additionally reported a 9% discount in stock ranges in comparison with the earlier yr.
“We have taken significant action to reposition Kohl’s for future growth. However, our efforts have yet to fully yield the intended outcome due in part to a continued challenging consumer environment and softness in our core business,” mentioned Tom Kingsbury, Kohl’s CEO.
Trying forward, Kohl’s raised its full-year 2024 earnings steering to $1.75 to $2.25 per share, above the analysts’ consensus of $1.53. The earlier steering vary was $1.25 to $1.85. The corporate expects web gross sales to lower 4% to six% for the yr. Nevertheless, its comparable gross sales steering was reduce. It’s now projected to fall 3% to five%.
Kohl’s additionally introduced a quarterly dividend of $0.50 per share, payable on September 25, 2024, to shareholders of report as of September 11, 2024.
