Earnings Report Caused Kohl's Shares to Soar
Thursday morning Kohl's stock soared after the chain store retailer published estimates for second-quarter revenue and profit.
Kohl's shares (KSS) increased 10% in pre-market trading to $41.83 after the big box retailer announced a 7.7% increase in net income that reached $140 million and a 16.7% increase in earnings per-share to 77 cents in the reporting period finishing July 30.
Even though the company's quarter revenue decreased 2% to $4.2 billion traders got heartened. By the end of July the company owned and operated 1,150 Kohl's stores, while a year ago their number reached 1,164.
There was a stock increase even though in the company statement the chain's performance was characterized as below their expectations. In addition, the company decreased its earnings forecast for the fiscal year 2016 from $4.05 to $4.25 per share to a new range of $3.80 to $4.
The last quarter's profit of 77 cents per share excelled the estimated 66 cents per share projected by S&P Global Market Intelligence. According to the information provided by the company's representative Kohl's managed to increase its gross margin from 38.9% to 39.5%. This became possible mostly due to effective inventory management initiatives that resulted in prudent cost management as a timely response to changing sales trends.