Kohl's Q1 Profit Misses Estimates, Comps. Down 5.2%; Updates 2022 Outlook

Kohl's Corp. (KSS) said the year has started out below its expectations. Following a strong start to the quarter with positive low-single digits comps through late March, sales considerably weakened in April. Comparable sales declined 5.2%, for the quarter. Looking forward, the company continues to expect business to improve as the year progresses, with growth in the second half.

"Regarding our review of strategic alternatives, we continue to engage with multiple interested parties. We have formally communicated the specific procedures for the submission of actionable bids due in the coming weeks. We continue with our detailed diligence phase and are pleased with the number of parties who recognize the value of our business and plan," said Michelle Gass, CEO.

The company also updated its full year 2022 financial outlook. Net sales is now expected to be in the range of flat to an increase of 1% from prior year. Earnings per share is now expected to be in the range of $6.45 to $6.85, excluding any non-recurring charges. Analysts polled by Thomson Reuters expect the company to report profit per share of $7.18, for fiscal year.

First quarter adjusted earnings per share was $0.11 compared to $1.05, last year. Analysts on average had expected the company to earn $0.70 per share, according to figures compiled by Thomson Reuters. Analysts' estimates typically exclude special items.

Earnings totaled $14 million, or $0.11 per share compared with $14 million, or $0.09 per share, a year ago.

Revenue fell 4.4% to $3.72 billion from $3.89 billion, last year. Analysts on average had estimated $3.68 billion in revenue.

Shares of Kohl's were down 5% in pre-market trade on Thursday.

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