Executive Summary

• Kohl’s reported 3Q17 adjusted EPS of $0.70, below the $0.72 consensus estimate and down 12.5% from the year-ago period. Total revenues were $4.33 billion, up slightly year over year and beating the $4.30 billion consensus estimate.
• Comparable-store sales were up 0.1% year over year, ahead of the 0.7% decline analysts had expected and the prior-year quarter’s 1.7% decline. Comps benefited from higher average transaction value, driven by an increase in average unit retail that was partially offset by a decrease in units per transaction.
• The company narrowed its FY17 adjusted EPS guidance upward and now expects adjusted EPS of $3.60–$3.80 versus $3.50–$3.80 previously and the $3.76 consensus estimate.