Kohl’s (KSS) 4Q16 Results: Beats Expectations; Top Line Remains Challenging

Executive Summary

• Kohl’s reported 4Q16 revenues of $6.2 billion, down 2.8% from $6.4 billion in the year-ago quarter and in line with the consensus estimate. EPS was $1.44, beating the consensus estimate of $1.33 and down 9% from $1.58 in the year-ago quarter.
• Total comps for the quarter were down 2.2%, missing the consensus estimate of a 2.1% decline. Holiday comps declined by 2.1%. Average transaction value increased by 3.8% and average unit retail increased by 3.7%.
• The company expects FY17 adjusted EPS of $3.50–$3.80, versus consensus of $3.73. The guidance is based on an expected total sales decline of 0.7%–1.3%.