Kohl’s (NYSE:KSS) touched the lowest in three months after the department-store operator reported quarterly same-store sales that fell short of market expectation, weakened by colder-than-usual weather in February.
Shares fell 11.6 percent to $65.86, the lowest since February 4, at 10:22 p.m. in New York.
Same-store sales rose 1.4 percent in the period ended May 2, but lagged behind analysts’ expectation for a 2.6 percent rise, according research firm Consensus Metrix.
As a middle-market department store, Kohl’s has been squeezed on the high end by Macy’s and on the lower end by Wal-Mart Stores and Target.
“Sales were modestly below our original expectations for the quarter, but accelerated in the March/April combined period after a weak February,” chief executive officer Kevin Mansell said in the statement.
Macy's Inc said yesterday that first-quarter profit and sales were hurt by fewer customer visits due to unusually cold weather in February, disruptions at West Coast ports and lower foreign tourist spending in the United States.
Net income rose to $127 million, or $0.63 per share, in the fiscal first quarter, from $125 million, or $0.60 per share, a year earlier, the Menomonee Falls, Wisconsin-based company said in a statement today.
Sales rose 1.3 percent to $4.12 billion.
The average estimate of 22 analysts was for earnings of $0.55 and revenue of $4.19 billion, according to Capital IQ.
Operating margin for the quarter contracted 10 basis points to 6.8 percent from last year, while gross margin improved 17 basis points.
Yesterday, Kohl's declared a quarterly cash dividend on the company's common stock to $0.45 per share, unchanged from the previous quarter. The dividend is payable June 24 to shareholders of record at the close of business on June 10.
Kohl's opened two new stores during the quarter, and ended the quarter with 1,164 stores in 49 states.