Log in
E-mail
Password
Remember
Forgot password ?
Become a member for free
Sign up
Sign up
Settings
Settings
Dynamic quotes 
OFFON

MarketScreener Homepage  >  Equities  >  Nyse  >  Kohl's Corporation    KSS

KOHL'S CORPORATION

(KSS)
  Report  
SummaryQuotesChartsNewsRatingsCalendarCompanyFinancialsConsensusRevisions 
News SummaryMost relevantAll newsOfficial PublicationsSector newsAnalyst Recommendations

Macy's cuts profit, sales forecast after weak holiday season

share with twitter share with LinkedIn share with facebook
share via e-mail
0
01/10/2019 | 06:59pm EDT
People gather at Macy's Herald Square store ahead of early opening for the Black Friday sales in Manhattan

(Reuters) - Macy's Inc shares plunged 18 percent on Thursday after the department store operator slashed its full-year profit and sales forecast on the back of an anemic holiday season, sending a chill through the wider retail sector.

Macy's said its sales slowed after a good start to the holidays, and flagged particular weakness in women's sportswear, sleepwear, fashion jewelry, fashion watches and cosmetics. Its comparable sales over the critical November and December months rose 1.1 percent.

Department stores in recent quarters had shown signs they were finding ways to cope with declining mall traffic and tough competition from online seller Amazon.com Inc. A robust economy and strong consumer spending had been expected to offer further relief.

Kohl's Corp reported similarly muted comparable sales growth for the holidays, sending its shares down as much as 9 percent. Target Corp was down nearly 4 percent even after the retailer posted relatively strong holiday sales growth of nearly 6 percent.

Those results come as overall sales for the 2018 U.S. holiday shopping season hit a six-year high as shoppers were encouraged by early discounts, according to a Mastercard report in late December. But some are already calling for an industry-wide slowdown this year.

"It looks like the consumer is in good shape but generally there are signs of some slowing in the economy," said Ken Perkins, founder of research firm Retail Metrics.

Consumer confidence in 2019 is seen as likely to be strained by rising U.S. interest rates, the ongoing trade spat with China, market volatility due to concerns over global growth and political deadlock in Washington.

A recession could hit many department stores particularly hard, some industry watchers said.

"If we do get a recession, the retailers that can offer strong value in both physical bricks-and-mortar format, as well as a good online experience will do best," said Jeff Yastine, senior equities analyst at investment advisory firm Banyan Hill Publishing.

"That leaves many department store chains, like Macy's, on the outside of this trend until they can figure out how to marry 'luxury' with the convenience of online retail that consumers want," he said.

FORECAST CUTS

Macy's now expects 2 percent growth in comparable sales for the full year, down from a previous outlook of 2.3 percent to 2.5 percent growth. Its comparable sales, including licensed departments, rose 1.1 percent during November and December.

The retailer is now calling for diluted earnings per share of $3.95 to $4.00 for fiscal 2018, excluding settlement charges, impairment and other costs. Its previous guidance issued in November called for EPS of $4.10 to $4.30.

"The holiday season began strong - particularly during Black Friday and the following Cyber week, but weakened during the mid-December period and did not return to expected patterns until the week of Christmas," Jeff Gennette, chairman and chief executive officer at Macy's, said in a statement.

The retailer has reported four consecutive quarters of same-store sales growth, and its shares had risen more than 80 percent over a 12-month period heading into Thanksgiving.

Kohl's reported comparable sales growth of 1.2 percent during the final two months of 2018, down sharply from 6.9 percent a year earlier.

Target was a bright spot with comparable sales growth of 5.7 percent during November and December, up from growth of 3.4 percent in the same period last year, but its performance on Thursday was overshadowed by its rivals.

Target said its sales were helped by higher customer visits and strong online sales during the holiday season, as well as strength in with toys, baby and seasonal gifts. It expects same-store sales growth of about 5 percent for the fourth quarter through January.

Target reaffirmed its full-year earnings and sales forecast, putting it on track for its fastest full-year comparable sales growth since 2005.

(Reporting by Nandita Bose in New York and Aishwarya Venugopal in Bengaluru; Editing by Bernadette Baum and Meredith Mazzilli)

By Nandita Bose and Aishwarya Venugopal

Stocks mentioned in the article
ChangeLast1st jan.
AMAZON.COM -0.68% 1964.52 Delayed Quote.30.80%
KOHL'S CORPORATION 1.56% 49.33 Delayed Quote.-25.64%
MACY'S 2.55% 22.1 Delayed Quote.-25.79%
TARGET CORPORATION -0.55% 88.01 Delayed Quote.33.17%
VALUE8 2.51% 5.72 Delayed Quote.20.68%
share with twitter share with LinkedIn share with facebook
share via e-mail
0
Latest news on KOHL'S CORPORATION
07/18KOHL : Media Welcome In Store to Cover Tax-Free Shopping
PU
07/17KOHL : kicks off hiring for back-to-school, holiday seasons
AQ
07/17KOHL'S : Is Hiring at Stores and Distribution Centers
BU
07/16KOHL'S : Cares Guides Young Readers on Adventures with Award-Winning Illustrator..
BU
07/16KOHL : Cares Guides Young Readers on Adventures with Award-Winning ... tor and A..
PU
07/15KOHLS CORP : Change in Directors or Principal Officers (form 8-K)
AQ
07/15KOHL : Michael Bender Elected to Kohl's Corporation Board of Directors
BU
07/12KOHL : Select Kohl's Stores Currently Closed Due to Tropical Storm Barry
PU
07/11KOHL : Shop Kohl's 2-Day Summer Deals for Incredible Online Deals July 15-16
PU
07/11KOHL : Achieves U.S. Department of Energy's Better Buildings Challenge
PU
More news
Financials (USD)
Sales 2020 19 242 M
EBIT 2020 1 313 M
Net income 2020 803 M
Debt 2020 2 243 M
Yield 2020 5,56%
P/E ratio 2020 9,60x
P/E ratio 2021 9,02x
EV / Sales2020 0,53x
EV / Sales2021 0,53x
Capitalization 7 993 M
Chart KOHL'S CORPORATION
Duration : Period :
Kohl's Corporation Technical Analysis Chart | MarketScreener
Full-screen chart
Technical analysis trends KOHL'S CORPORATION
Short TermMid-TermLong Term
TrendsBullishBearishBearish
Income Statement Evolution
Consensus
Sell
Buy
Mean consensus OUTPERFORM
Number of Analysts 21
Average target price 62,17  $
Last Close Price 49,33  $
Spread / Highest target 92,6%
Spread / Average Target 26,0%
Spread / Lowest Target -14,9%
EPS Revisions
Managers
NameTitle
Michelle D. Gass Chief Executive Officer & Director
Sona Chawla President & Chief Operating Officer
Frank V. Sica Chairman
Bruce H. Besanko Chief Financial Officer & Chief Accounting Officer
Stephen E. Watson Director
Sector and Competitors
1st jan.Capitalization (M$)
KOHL'S CORPORATION-25.64%7 993
S.A.C.I. FALABELLA--.--%16 085
CANADIAN TIRE CORPORATION LIMITED1.52%7 033
MACY'S-25.79%6 826
LOJAS AMERICANAS SA-13.40%6 823
NORDSTROM-36.24%4 596