Kohl's Misses Q2 Expectations, Shares Drop

Shares of

dropped over 5 percent in pre-market trading after the company reported weaker-than-expected results for the second quarter. The Menomonee Falls, Wisconsin-based company posted quarterly net income of $130 million, or $0.66 per share, compared to $232 million, or $1.13 per share, in the year-ago quarter. Excluding loss on extinguishment of debt, the company's earnings declined to $1.07 per share from $1.13 per share. Its sales climbed to $4.267 billion from $4.242 billion. However, analysts were expecting earnings of $1.16 per share on revenue of $4.31 billion. The average estimate among 18 Estimize users was for earnings of $1.17 per share and revenue of $4.32 billion. Comparable store sales rose 0.1 percent in the quarter. Its gross margin narrowed to 38.9 percent from 39 percent. On August 11, 2015, the company's board declared a quarterly cash dividend of $0.45 per share. The company ended the quarter with 1,164 stores in 49 states, versus 1,160 stores at the same time previous year. Kevin Mansell, Kohl's chairman, chief executive officer and president, said, "Our sales results were below our plan as the shift of sales in tax-free states from July into August was larger than anticipated. Our expenses were well managed for the season. Our inventory receipts are well-positioned for the back-to-school and fall seasons." Kohl's now projects fiscal 2015 adjusted EPS to be at the low end of its earlier-issued range of $4.40 to $4.60 per share. Kohl's shares dropped 5.69 percent to $58.00 in pre-market trading.