Kohl’s tops experts’ forecast for earnings and revenue in Q2

Kohl’s Corp (NYSE: KSS) revealed to have a swung to a loss in the fiscal second quarter on Tuesday. Its net quarterly loss, however, came in narrower than what experts had forecast. The company refrained from reporting its comparing-store sales citing the Coronavirus pandemic that pushed the majority of its stores into closure in recent months. Kohl’s said last week that its customers can now virtually try on clothes vis Snapchat.

Shares of the company opened more than 10% down on Tuesday. The stock lost another 3.5% in the next hour. Kohl’s is now trading at £15.23 per share. In comparison, it had started the year 2020 at a per-share price of £37.12 and had sunk to £8.70 per share in the first week of April.

Kohl’s Q2 financial results versus analysts’ estimates

Kohl’s said on Tuesday that its net income in Q2 came in at £35.53 million that translates to 22.68 pence per share. In its comparable quarter of 2019, its net income was reported at a much higher £182.18 million or £1.14 per share.

According to FactSet, analysts had anticipated the company to print £2.34 billion in revenue in the quarter that concluded on 1^st August. For loss per share, their estimate was capped at 66.52 pence. In its report on Tuesday, Kohl’s topped both estimates posting a higher £2.58 billion in revenue and a lower 18.90 pence of adjusted loss per share in the second quarter.  

On a year over year basis, the retail chain’s revenue registered a 23.1% decline in the recent quarter. Kohl’s peer, Walmart, also reported quarterly earnings on Tuesday.

CEO Michelle Gass’ comments on Tuesday

CEO Michelle Gass commented on Kohl’s earnings report on Tuesday and said:

“As we look ahead, we are planning for the crisis to continue to impact our business in the near-term. We are well-positioned to capitalise on evolving customer behaviours and the retail industry disruption, which we believe will drive long-term growth and increased market share.”

The American department store also highlighted in its earnings report on Tuesday that its gross profit margin contracted from 38.8% last year to 33.1% as of the end of the second quarter. The company attributed the shrink to heightened promotions and increases shipping costs ascribed to online orders.

Kohl’s boasted to have concluded Q2 with £1.81 billion in cash, and access to an additional £378 million via its revolving credit facility. Here’s what you need to know about cash flow statements.

At the time of writing, the Menomonee Falls-based company is valued at £2.40 billion and has a price to earnings ratio of 40.64.