Kohl's 1Q Profit Falls As It Lowers Prices
MENOMONEE FALLS, Wis. (AP) — Kohl's Corp. said Thursday that its first-quarter profit dropped 23 percent as it cut prices and indicated it expects earnings in the second quarter will be below analysts' current expectations.
Shares of the department store chain fell more than 2 percent in premarket trading.
Kohl's reported net income of $154 million, or 63 cents per share, for the three months ended April 28 compared with $201 million, or 69 cents per share, during the same period a year earlier.
The performance still beat the 60 cents per share that analysts polled by FactSet expected.
Revenue increased 2 percent to $4.24 billion from $4.16 billion. Wall Street expected $4.25 billion.
Revenue at stores open at least a year edged up 0.2 percent. This metric is a key indicator of a retailer's health because it excludes results from stores recently opened or closed.
Kohl's, which is based in Menomonee Falls, Wis., also said that it declared a quarterly dividend of 32 cents per share on Wednesday. The dividend will be paid on June 27 to shareholders of record on June 6.
The company anticipates second-quarter earnings of 96 cents to $1.02 per share. The outlook assumes a revenue increase of 2 percent to 3 percent, with revenue at stores open at least a year flat to up 1 percent. The revenue growth forecast implies revenue of $4.34 billion to $4.38 billion.
Analysts predict earnings of $1.13 per share on revenue of $4.38 billion.
Kohl's reaffirmed its guidance for fiscal 2012 earnings of $4.75 per share. Analysts, on average, expect earnings of $4.74 per share.
Kohl's shares fell $1.16, or 2.3 percent, to $49.70 in premarket trading.
The company had 1,134 stores in 49 states at quarter's end.
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