Kohlís tops earnings forecasts on lower costs

Associated Press

Nov. 11, 2016

NEW YORK ó Kohlís Corp. reported a fiscal third-quarter profit that beat Wall Street expectations as lower costs offset a decline in sales.

Shares jumped more than 11 percent in afternoon trading Thursday.

The Menomonee Falls-based companyís profit jumped 21.6 percent to $146 million, or 83 cents per share. Earnings, adjusted for non-recurring gains, came to 80 cents per share.

Meanwhile, revenue fell 2.3 percent to $4.33 billion, but general costs fell 1.7 percent to $1.08 billion and merchandise costs fell 2.3 percent to $2.72 billion.

The results surpassed Wall Street expectations. The average estimate of 10 analysts surveyed by Zacks Investment Research was for earnings of 67 cents per share. Five analysts surveyed by Zacks expected $4.28 billion in revenue.

Same-store sales, a key metric of a retailerís health, fell 1.7 percent during the quarter. Kohlís and its competitors have been facing a tougher market with more competition from online retailers as consumers increasingly enjoy the ease and speed at which they can shop from electronic devices.

Kohlís and other retailers have been trying to expand their online presence as shopping trends continue to shift. In September, Kohlís said it will open a fifth distribution center dedicated to online orders, located in Indiana. It already has centers in California, Ohio, Maryland and Texas.

Kohlís expects full-year earnings in the range of $3.80 to $4 per share. The company also declared a quarterly dividend of 50 cents per share.

Kohlís shares rose $5.12, or 11.2 percent, to $50.82 in afternoon trading. The stock has climbed more than 11 percent in the last 12 months.