Key points:
- Kohl’s reports earnings before the bell Thursday
- The company missed earnings estimates but topped revenue expectations
- Shares fell over 7% premarket
Shares of Kohl’s (NYSE: KSS) tumbled 0ver 7% premarket Thursday after the company posted second-quarter earnings, disappointing investors with an earnings miss and lower-than-expected guidance.
The company reported earnings of $1.11 per share on revenue of $4.087 billion. Analysts expected earnings of $1.12 per share on revenue of $3.96 billion.
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Despite the revenue beat, the company said its second-quarter results were impacted by a weakening macro environment, high inflation, and dampened consumer spending, which especially pressured our middle-income customers.
“We have adjusted our plans, implementing actions to reduce inventory and lower expenses to account for a softer demand outlook. Kohl’s has navigated difficult periods in the past and I am confident in our ability to successfully manage through the current uncertainty,” said Michelle Gass, Kohl’s chief executive officer.
Looking ahead, Kohl’s sees the full year 2022 net sales declining between 5% and 6% as compared to the prior year, while earnings per share is now expected to be in the range of $2.80 to $3.20.
“While 2022 has turned out to be more challenging than initially expected, Kohl’s remains a financially strong company with significant long-term growth potential. Our $500 million accelerated share repurchase underscores our steadfast confidence in Kohl’s future and focus on creating shareholder value. We also remain firmly committed to our current dividend,” added Gass.