Kohl’s Corporation (NYSE:KSS) shares experienced a decline of over 11% intra-day today following the announcement of its third-quarter results, which marked the seventh consecutive quarter of falling comparable sales.
The company reported earnings per share (EPS) of $0.53 for the third quarter, which exceeded the analyst estimate of $0.36. However, their quarterly revenue was $3.84 billion, missing the Street expectation of $3.99 billion.
Kohl’s highlighted that its gross margin rose by 150 basis points year-over-year to 38.9%, surpassing the expected 38%. The company’s merchandise inventories decreased by 13% year-over-year to $4.24 billion, which is better than the anticipated $4.44 billion. The same-store sales for the quarter dropped by 5.5%, a steeper decline than the average analyst prediction of a 3.5% decrease.
For the full year, Kohl’s has revised its EPS forecast to a range of $2.30 to $2.70, up from the previous guidance of $2.10 to $2.70. This updated projection is also more favorable than the Street estimate of $2.41.