Kohl's Tops Q3 Expectations, Shares Surge

Shares of

jumped around 11 percent in pre-market trading after the company reported stronger-than-expected earnings for the third quarter. The Menomonee Falls, Wisconsin-based company posted quarterly net income of $120 million, or $0.63 per share, compared to $142 million, or $0.70 per share, in the year-ago quarter. Excluding items, the company's adjusted earnings came in at $0.75 per share. Its sales climbed to $4.43 billion from $4.37 billion. However, analysts were expecting earnings of $0.69 per share on revenue of $4.40 billion The average estimate among 39 Estimize users was for earnings of $0.71 per share and revenue of $4.43 billion. Its comparable store sales rose 1 percent year-over-year for the quarter. Gross margin narrowed to 37.1 percent from 37.2 percent. On November 11, 2015, the company's board declared a quarterly cash dividend of $0.45 per share. The company ended the quarter with 1,166 stores, versus 1,163 stores at the same time last year. Kevin Mansell, Kohl's chairman, chief executive officer and president, said, "Our 1% increase in sales was driven by strong back-to-school and late October selling periods offset by a weak September. Most of our key initiatives enjoyed strong success while weakness was concentrated in seasonal businesses." Kohl's shares jumped 10.96 percent to $47.89 in pre-market trading.