Kohl’s (KSS) 2Q17 Results: Beats on EPS and Revenue, Maintains Guidance

Executive Summary

• Kohl’s reported 2Q17 adjusted EPS of $1.24, ahead of the $1.19 consensus estimate and up 1.6% from the year-ago period. Total revenues were $4.14 billion, down 0.9% year over year but beating the $4.13 billion consensus estimate.
• Comparable-store sales were down 0.4%, which was better than the 1.5% decline analysts had expected and the 1.8% decline recorded in the year-ago quarter. Comps benefited from higher average transaction value, driven by a continued increase in average unit retail that was partially offset by a decrease in units per transaction.
• The company did not update its prior EPS guidance of $3.50–$3.80 for FY17. The consensus calls for EPS of $3.68. FY17 guidance calls for revenue growth of (1.3)%–0.7% and comp growth in the range of (2)%–0%.