Kohl’s Corp. (NYSE:KSS) posts a yet another negative quarter
Kohl’s (NYSE:KSS) posted its third quarter earnings for the fiscal year 2014 before the company started trading on Thursday. There wasn’t much to cheer about for Kohl’s Corp. (NYSE:KSS) as same store sales were morose all around. Earnings per share came out to be at 0.70 dollars on the revenue of 4.37 billion dollars. It’s less when you compare it to last year earnings of 0.81 EPS and 4.44 billion dollars revenue. Kohl’s Corp. (NYSE:KSS) couldn’t even manage to beat the consensus estimate which was 0.74 earnings per share while 4.41 billion revenue.
Third quarter’s net income for this year came out to be 142 million dollars as compared to the 177 million dollars of the same quarter last year. This year’s losses are more prominent as compared to losses suffered last year. According to analysts’ observation, there wasn’t really a chance for profits to begin with. Year-to-date numbers doesn’t look good at all. This year, same store sales took a hit by 2.2 percent, which was 1.9 percent last year.
Although Kohl’s Corp. (NYSE:KSS) has expanded its stores to new states since last year, the move hasn’t brought any good news as of yet. In fact, Kohl’s Corp. (NYSE:KSS) has had a rather grey year in terms of finances all around. The company is expected to give dividends worth 0.39 dollar per share to shareholders by the end of this year. Barclays added to Kohl’s Corp. (NYSE:KSS) woes by squeezing the company to a Sell rating from Equal weight and sending its target price down to 30 dollars from 50 dollars.
Kohl’s Corp. (NYSE:KSS) shares were the only good news they came across. Shares went up by 3 percent to 57.91 dollars. The initial response after the earnings report came out negative and shares went down by 3 percent to 56.05 dollars. Investors were put off by the constant rise in losses. The third quarter reported an overall loss of 20 percent but the retail market is facing obvious competition from large retailers like Amazon and Walmart.
It will take some time to regain its composure, for the competition in this area has been toughened by some of the major players. However, Kohl’s Corp. (NYSE:KSS) can’t kid itself to improve with time by doing nothing. It has to take measures against the losses it is experiencing; the growing losses when it comes to same store sales. It is true retailers in general are suffering from low traffic this time of the season but holidays are approaching which means big business lies ahead.
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Kohl’s Corp. (NYSE:KSS) should take advantage of that fact and capitalize on the opportunity provided. Kohl’s Corp. (NYSE:KSS) has more than 17 million people enrolled in its loyalty program, perhaps which could be the key to a turnaround for the company. The loyalty program is relatively new, and in a test made by the company, customers visited the store twice and spent an extra 80 dollars a year at the store due to the program.