Post Earnings Coverage as Kohl's Earnings Soared 39%
ACCESS Newswire
Upcoming AWS Coverage on TJX Cos. Post-Earnings Results
LONDON, UK / ACCESSWIRE / May 31, 2017 / Active Wall St. announces its post-earnings coverage on Kohl's Corp. (NYSE: KSS). The Company announced its first quarter fiscal 2017 financial results on May 11, 2017. The US based department store chain surpassed revenue expectations. Register with us now for your free membership at:
One of Kohl's' competitors within the Department Stores space, The TJX Companies, Inc. (NYSE: TJX), announced on May 16, 2017, its sales and earnings results for Q1 FY18 which ended on April 29, 2017. AWS will be initiating a research report on TJX Cos. in the coming days.
Today, AWS is promoting its earnings coverage on KSS; touching on TJX. Get our free coverage by signing up to:
For the quarter ended April 29, 2017, Kohl's net sales dropped to $3.84 billion compared to net sales of $3.97 billion in Q1 2016, declining for the fifth consecutive quarter. The Company's sales number lagged behind analysts' consensus of $3.91 billion. Kohl's same store sales declined 2.7% in Q1 2017, wider than the preceding quarter's decline of 2.2%; however it was better than Q1 2016 same store sales decline of 3.9%.
For Q1 2017, Kohl's net income soared to $66 million, or $0.39 per share, compared to net income of $17 million, or $0.09 per share, in Q1 2016. The Company had recorded a $64 million charge related to impairments and store closures in the year-earlier quarter. On an adjusted basis, Kohl's posted adjusted earnings of $0.39 per share compared to $0.31 per share in the year earlier same quarter, outperforming Wall Street's expectations of $0.28 per share.
Cash Matters
As of April 29, 2017, Kohl's had $625 million of cash and cash equivalents, an increase of $202 million on a y-o-y basis, reflecting conservative cash management and continued inventory discipline. The Company made additional progress on its inventory reduction initiatives during the reported quarter, where inventory per store decreased 1%, while units per store were 5% lower. Kohl's Account Payable as a percent of inventory increased 400 basis points to 37.1% as a result of lower inventory levels and timing of Easter receipts.
For Q1 2017, Kohl's capital expenditures were $216 million, approximately $40 million higher than last year. The Company stated that most of the increase was due to spending on its fifth ecommerce fulfillment center, which will open later this year. The Company repurchased 4 million shares of its stock during the reported quarter. Net cash provided by operating activities was $46 million in Q1 2017 compared to net cash of $140 million in Q1 2016.
Dividend
On May 10, 2017, the Kohl's Board of Directors declared a quarterly cash dividend on the Company's common stock of $0.55 per share. The dividend is payable June 21, 2017, to shareholders of record at the close of business on June 07, 2017.
Store Update
Kohl's ended the quarter with 1,154 Kohl's stores, 12 FILA Outlet stores, and three off/Aisle clearance centers in 49 states compared with 1,167 Kohl's stores at the same period last year.
Stock Performance
At the close of trading session on Tuesday, May 30, 2017, Kohl's stock price was marginally up by 0.15% to end the day at $38.79. A total volume of 3.30 million shares were exchanged during the session. The Company's stock has advanced 7.42% in the last twelve months. The Company's shares are trading at a PE ratio of 11.34 and have a dividend yield of 5.67%. At Tuesday's closing price, the stock's net capitalization stands at $6.71 billion.
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