Kohl’s Corporation (KSS) Stock Plunges on FY15 EPS Guidance Cut


Kohl’s Corporation (NYSE:KSS) reported earnings today for their fourth quarter. They saw comparable sales increase 0.4 percent for the quarter and 0.7 percent for FY15. Total sales ofr the quarter also increased 0.8 percent on the quarter and 1 percent for the year. The stock, however, is trading down quite significantly this morning because of a cut in their FY15 EPS outlook.

Kohl’s Corporation (NYSE:KSS) expects diluted earnings per share to come in at just between $3.40 and $3.45 per share for fiscal 2015, which falls well short of Wall Street’s expectations of $4.30. Additionally, EPS for FY15, excluding debt extinguishment losses recorded in previous quarters, is expected to be between $3.95 and $4.00 falling short of the company’s previous guidance which expected $4.40 to $4.60 per diluted share.

“While we experienced our fifth consecutive quarter of positive comparable sales increases, sales were very volatile and less than planned in the fourth quarter. We experienced a very strong holiday selling season from the week of Thanksgiving through Christmas. These results were offset by a very slow start to the quarter in early November and a weaker-than-expected January as soft demand for cold-weather goods led to lower store traffic in these more discretionary shopping periods,” explained Kevin Mansell, Kohl’s chairman, chief executive officer and president.

The stock is down 15.71% or $8.03 following the news, hitting $43.1 per share. About 7.20 million shares traded hands or 86.05% up from the average. KSS has declined 18.34% since June 30, 2015 and is downtrending. It has underperformed the S&P500 by 11.04%.

From a total of 8 analysts covering Kohl’s Corporation (NYSE:KSS) stock, 3 rate it a “Buy”, 0 a “Sell”, and 5 a “Hold”. This means that 38% of the ratings are positive. The highest target price is $75 while the lowest target price is $42. The mean of all analyst targets is $56.70 which is 31.55% above today’s ($43.1) stock price. Kohl’s Corporation was the topic of 16 analyst reports since August 6, 2015 according to the firm StockzIntelligence Inc. M Partners maintained shares on November 10 with a “Buy” rating. Telsey Advisory Group maintained KSS stock in a recent report from October 16 with a “Outperform” rating. Finally, Deutsche Bank maintained the stock with a “Hold” rating in a report they issued on an August 15.

The institutional sentiment decreased to 1 in Q2 2015. It’s down 0.12, from 1.12 in 2015Q2. The ratio dropped, as 94 funds sold all their Kohl’s Corporation shares they owned while 192 reduced their positions. 63 funds bought stakes while 222 increased their total positions. Institutions now own 191.18 million shares which is 5.94% less than the previous share count of 203.26 million in 2015Q2.

Hutchinson Capital Management Ca holds 4.29% of its total portfolio in Kohl’s Corporation, equating to 278,504 shares. Addison Clark Management L.L.C. owns 102,015 shares representing 4.22% of their total US portfolio. Moreover, Athena Global Investors Llc has 4.09% of their total portfolio invested in the company, equating to 86,931 shares. The Ohio-based Eubel Brady & Suttman Asset Management Inc has a total of 3.58% of their portfolio invested in the stock. Loudon Investment Management Llc, a New Hampshire-based fund reported 84,592 shares owned.

Kohl’s Corporation is a specialty department store. The company has a market cap of $9.58 billion. As of January 31, 2015, the Company operated 1,162 department stores in 49 states and an e-Commerce Website (www.Kohls.com). It has 11.5 P/E ratio. The Firm sells private label, and national brand apparel, footwear, accessories, beauty and home products.