Kohl's (KSS) Q3 Earnings Report Preview: What To Look For

Jabin Bastian /
2023/11/20 2:01 am EST

Department store chain Kohl’s (NYSE:KSS) will be reporting earnings tomorrow before the bell. Here's what to expect.

Last quarter Kohl's reported revenues of $3.90 billion, down 4.7% year on year, beating analyst revenue expectations by 5%. It was an incredible quarter for the company, with an impressive beat of analysts' revenue and earnings estimates.

Is Kohl's buy or sell heading into the earnings? Read our full analysis here, it's free.

This quarter analysts are expecting Kohl's's revenue to decline 7.7% year on year to $3.95 billion, a further deceleration on the 7% year-over-year decrease in revenue the company had recorded in the same quarter last year. Adjusted earnings are expected to come in at $0.37 per share.

Kohl's Total Revenue

Majority of analysts covering the company have reconfirmed their estimates over the last thirty days, suggesting they are expecting the business to stay the course heading into the earnings. The company missed Wall St's revenue estimates twice over the last two years.

Looking at Kohl's's peers in the general merchandise retail segment, some of them have already reported Q3 earnings results, giving us a hint of what we can expect. Dillard's's revenues decreased 4.4% year on year, missing analyst estimates by 1.1% and Macy's reported revenue decline of 7.3% year on year, exceeding estimates by 4.3%. Dillard's traded up 2% on the results, Macy's was up 4%.

Read our full analysis of Dillard's's results here and Macy's's results here.

There has been positive sentiment among investors in the general merchandise retail segment, with the stocks up on average 8% over the last month. Kohl's is up 20.8% during the same time, and is heading into the earnings with analyst price target of $26.2, compared to share price of $25.6.

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The author has no position in any of the stocks mentioned.