Kohl's Q4 EPS $1.67 Beats Est. of $1.29; Weak FY Guidance, Stock Down 1.5% Pre-Market

Kohl's reported its Q4 earnings with an adjusted EPS of $1.67, surpassing the estimated $1.29, but fell slightly short on net sales with $5.71 billion against the expected $5.73 billion. The company's comparable store sales declined by 4.3%. Despite a smaller-than-expected drop in holiday-quarter sales, attributed to holiday discounts and strong beauty sales, Kohl's issued mixed financial guidance for the fiscal year, projecting an operating margin between 3.6% to 4.1% (est 4.25%) and an adjusted EPS of $2.10 to $2.70 (est $2.67), both below analyst expectations. The retailer's performance reflects broader challenges within the department store sector, with even its 'best' comparable store sales in 14 years being negative. Amidst a general consumer boom in the US, Kohl's has seen a significant decline, with its projected earnings midpoint for the current year being over 50% lower than in 2019. The stock was up 1.5% pre-market but later was down 1.5% pre-market.