Shares of Kohl's Corporation (NYSE:KSS) tumbled 11 percent Thursday after the retailer’s revenue came in just shy of Wall Street expectations--even as its profit beat forecasts, rising 2 percent from a year ago. The stock plunged around to as low as $65.80 after the company’s same store sales, a key metric in the retail sector, rose 1.4 percent last quarter, below analysts’ forecasts of 2.6 percent.
Harsh winter weather has traditionally effected Kohl’s more than other retailers, says Jessica Bornn, senior merchant at Merchant Forecast. “Historically, Kohl’s has been the retailer that’s most sensitive to weather,” Bornn said. “We think the same-store sales miss was a blip last quarter, and that the second quarter will be excellent for them.”
Kohl’s has improved its fashion offerings and has increased its athletic wear, Bornn said. The Menomonee Falls, Wisconsin, company also announced in February a partnership with upscale skin-care brand Bliss to add products to its beauty assortment.
Bad weather also hurt rival Macy’s Inc. last quarter after the department store’s quarterly profit missed Wall Street estimates and its revenue slid when compared with the same period a year ago. Meanwhile, struggling retailer J C Penney Company Inc. narrowed its losses last quarter from a year earlier by 52 percent.
For the quarter ended May 2, Kohl's turned in first-quarter net income of $127 million, or 63 cents per share, on revenue of $4.12 billion, compared with a profit of $125 million, or 60 cents per share, on sales of $4.07 billion a year ago.
Wall Street had expected Kohl’s to report first-quarter net income of $112.29 million, or earnings per share of 56 cents, on revenue of $4.19 billion, according to analysts polled by Thomson Reuters.
Prior to Thursday's trading, shares of Kohl's had jumped nearly 22 percent this year.