Kohl's Stock: Plunges 17% Despite Strong Quarter

Shares of U.S. retailer Kohl's tumbled more than 17% in pre-market trading Tuesday after the company delivered a disappointing outlook for fiscal year 2025. The dramatic selloff came as the department store chain projected significant declines in both sales and earnings that fell considerably short of analyst expectations. For the current year, Kohl's forecasts diluted earnings per share between $0.10 and $0.60, substantially below the $1.32 analysts had anticipated. Revenue is expected to decrease between 5% and 7%, with comparable sales projected to fall 4% to 6% compared to the 0.9% decline analysts had forecast. The company's operating margin is estimated to range between 2.2% and 2.6%.

Q4 Performance Exceeds Expectations

In contrast to its gloomy outlook, Kohl's reported better-than-expected results for the fourth quarter of fiscal 2024. The company posted adjusted diluted earnings per share of $0.95, surpassing analyst estimates of $0.73. Quarterly revenue reached $5.18 billion, in line with consensus expectations. Gross margin improved to 32.9%, up from 32.4% in the same period last year and slightly above the expected 32.7%. However, operating income came in at $126 million, missing the projected $185.8 million, while total profit declined from $186 million to $48 million year-over-year. New CEO Ashley Buchanan emphasized that the company is building on a strong foundation and has identified key areas to reposition Kohl's for future success.

Ad

Fresh Kohl's information released. What's the impact for investors? Our latest independent report examines recent figures and market trends.

Source StockWorld