Kohl's Shares Tumble On Downbeat Q1 Sales

Shares of

tumbled over 6 percent in pre-market trading after the company reported downbeat sales for the first quarter. However, the company's profit exceeded analysts' estimates. The Menomonee Falls, Wisconsin-based company posted quarterly earnings of $127 million, or $0.63 per share, compared to $125 million, or $0.60 per share, in the year-ago period. Its sales climbed to $4.12 billion from $4.07 billion. However, analysts were expecting earnings of $0.55 per share on revenue of $4.19 billion. The average estimate among 13 Estimize users was for earnings of $0.58 per share and revenue of $4.18 billion. Its same-store sales rose 1.4 percent in the quarter, versus analysts' expectations for a 2.5 percent growth. During the quarter, Kohl's opened 2 new stores. Kevin Mansell, Kohl's chairman, chief executive officer and president, said, "Sales were modestly below our original expectations for the quarter, but accelerated in the March/April combined period after a weak February. We are very pleased with our earnings results, with a more balanced promotional calendar driving merchandise margin combined with strong expense control." Kohl's shares dropped 6.67 percent to $69.54 in pre-market trading.