UPDATE: Kohl's Posts Drop In Q1 Earnings, Reaffirms Outlook

Kohl's

reported a 15% drop in its fiscal first-quarter earnings. Kohl's same-store sales slipped 3.4% in the period, versus analysts' estimates of a 0.2% gain. Kohl's posted a quarterly profit of $125 million, or $0.60 per share, versus a year-ago profit of $147 million, or $0.66 per share. Its revenue slipped 3.1% to $4.07 billion. However, analysts were projecting earnings of $0.62 per share on revenue of $4.22 billion. Kohl's gross margin widened to 36.8% from 36.4%. Kohl's opened four new store locations and permanently closed two stores in the first quarter. Kohl's also reaffirmed its earnings forecast for the fiscal year. The company's press release offered the following comment from Kevin Mansell, Kohl's chairman, president and chief executive officer: “We did not achieve our first quarter sales goals, but we were encouraged by the improvement in sales as the quarter progressed. Our teams managed our inventory levels appropriately and expenses were controlled throughout the organization during the quarter." Kohl's shares fell 3.33% to close at $54.03 yesterday.