Kohl's 3Q net income rises 2 pct, cuts FY guidanceKohl's Corp. said Thursday that its third-quarter net income rose about 2 percent, but issued a disappointing profit prediction for the current quarter and cut its earnings prediction for the full year.
By: The Associated Press, Superior Telegram
MENOMONEE FALLS, Wis. (AP) — Kohl's Corp. said Thursday that its third-quarter net income rose about 2 percent, but issued a disappointing profit prediction for the current quarter and cut its earnings prediction for the full year.
Its shares fell more than 3 percent ion premarket trading.
For the quarter ended Oct. 27, the Menomonee Falls, Wis.-based department store chain earned $215 million, or 91 cents per share, up from $211 million, or 80 cents per share, in the same quarter last year.
Revenue rose 3 percent to $4.49 billion from $4.38 billion, as revenue at stores open at least a year increased 1.1 percent.
The latter figure is a key measure of a retailer's health, because it excludes revenue at stores that opened or closed during the year.
The earnings beat Wall Street expectations, while the revenue matched them. Analysts, on average, expected earnings of 87 cents per share on $4.49 billion in revenue, according to a FactSet poll.
For the quarter ending Feb. 2, the company said it expects to post earnings of $2 to $2.08 per share on sales growth of 7 to 8 percent. Based on the company's year-ago revenue of $6.02 billion, the guidance implies current-quarter revenue of $6.44 billion to $6.5 billion.
Analysts expect fourth-quarter higher earnings of $2.16 per share on $6.44 billion in revenue.
Based on those expectations and its results for the year-to-date, Kohl's said it now expects to post a fiscal 2012 profit of $4.52 to $4.60 per share, down from its previous prediction of $4.50 to $4.65 per share.
Analysts expect higher earnings of $4.62 per share.
Kohl's shares fell $1.70, or 3.1 percent, to $52.62 in premarket trading.