Kohl's (KSS) falls after reporting a seventh-straight drop in comparable sales

Kohl’s (NYSE: KSS) shares slipped more than 3% in early Tuesday trade after third-quarter results showed a seventh-straight drop in comparable sales.

The Q3 results include an EPS of $0.53, surpassing the analyst estimate of $0.36. However, revenue for the quarter was $3.84 billion, falling short of the consensus estimate of $3.99 billion.

Kohl’s said its gross margin climbed 150 basis points year-over-year to 38.9%, exceeding the consensus of 38%. Merchandise inventories amounted to $4.24 billion, a decrease of 13% YoY, beating the estimate of $4.44 billion.

Same-store sales in the third quarter fell 5.5%, worse than the average analyst estimate of a 3.5% decline.

“Our strategies to reposition Kohl’s for improved sales and earnings performance remain in the early stages,” Chief Executive Officer Tom Kingsbury said in a statement.

Kohl's forecasts full-year EPS in the range of $2.30-$2.70, up from the prior guidance of $2.10-$2.70. This is also better than the consensus estimate of $2.41.

By Senad Karaahmetovic

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