Kohl's Corp
The company reported a fourth-quarter sales decline of 9.4% year-on-year to $5.175 billion, beating the analyst consensus estimate of $5.145 billion.
Comparable sales for the quarter decreased 6.7%. Gross margin for the quarter expanded by 49 basis points to 32.9%.
Operating income for the quarter was $126 million versus $299 million last year. The operating margin compressed 270 basis points to 2.3%.
Selling, general and administrative expenses decreased 4.5% Y/Y to $1.5 billion. Adjusted EPS of $0.95 beat the consensus estimate of $0.73.
Kohl's held $134 million in cash and equivalents as of February 1, 2025. Operating cash flow was $596 million in the quarter. Inventory at the end of the quarter was $2.9 billion, a 2% increase Y/Y.
Kohl's Board of Directors declared a quarterly cash dividend on the company's common stock of $0.125 per share. The dividend is payable on April 2 to shareholders of record at the close of business on March 21.
The quarterly dividend is being lowered from $0.50 paid last quarter.
Outlook: Kohl's expects FY25 sales decline of 5% - 7%. It expects FY25 EPS of $0.10 - $0.60 versus the Street view of $1.25.
Kohl's anticipates FY25 comparable sales to decrease 4% - 6%. Kohl's expects an FY25 operating margin of 2.2% - 2.6% and capital expenditures of about $400 million - $425 million.
Price Action: KSS shares trading lower by 16.2% at $10.10 in premarket at last check Tuesday.
