Kohl's is scheduled to report its second-quarter financial results before the market opens on Wednesday. Here is what to know.
REVENUE: The department-store retailer is expected to report $3.32 billion in sales, compared with $3.35 billion in the prior-year quarter, according to FactSet.
NET PROFIT: The Menomonee Falls, Wis., company is expected to post a profit of $65.5 million, compared with a profit of $153 million the year before, according to FactSet.
ADJUSTED EARNINGS PER SHARE: Adjusted earnings are expected to come in at 58 cents a share, compared with 56 cents a share the prior year.
The stock is down 13% this year, and recently traded at $17.73.
WHAT TO WATCH
--Retail earnings have been mixed during the second quarter. Ross Stores and Target both raised their outlooks, citing solid demand and higher-than-expected quarterly sales. At the same time, Walmart posted its smallest quarterly sales increase in six years, as low-income consumers remain pressured. A spate of sportswear companies have cut guidance and missed Wall Street estimates with their results.
--Discretionary spending increased in July and accelerated at the end of the quarter, JPMorgan analysts say. Spending on clothing and accessories was especially strong, which the analysts think will help Kohl's earnings come in ahead of consensus estimates.
--Executives have said Kohl's full-year outlook reflects an assumption that each quarter this year will have stronger sales growth than the one before. This is the result of company-specific initiatives that will phase throughout the year, such as improved signage in stores, new merchandise for back-to-school and setups to encourage impulse buying.
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