Kohl's Down 3% on Worse Than Expected Guidance

Kohl's Corporation

is trading lower on the session followings its Q1 earnings announcement this morning. The company reported an EPS of $0.63 vs $0.61 estimates and revenues of $4.2 billion vs $4.25 billion estimates. Kohl's also guided Q2 EPS $0.96-1.02 vs $1.13 estimates. Kevin Mansell, Kohl's chairman, president and chief executive officer, stated: “Our first quarter results reflect the implementation of our strategy to initiate lower pricing in order to provide greater value to our customers. This planned action led to significantly lower gross margins for the quarter. Strong management of expenses allowed us to achieve our earnings goal for the quarter. We have accelerated new receipts into second quarter to ensure we are well-positioned from an inventory perspective for the Back-to-School season. The combination of these two actions should allow us to greatly improve our sales for the fall season.” Kohl's Corporation is currently trading at $49.17, a loss of $1.69 or 3.32%.