Kohl's (KSS) lowers FY17 EPS guidance

** charts after guidance **

 

** charts before guidance **

 

Kohl's lowers FY17 EPS guidance below consensus; co cites lower than expected gross margins due to the mix and timing of the sales and the competitive promotional environment; Nov-Dec comps -2.1% :

• Co issues lowered guidance for FY17 (Jan), sees EPS of $3.60-3.65 from $3.80-4.00 vs. $3.93 Capital IQ Consensus Estimate.
• Co reported that its comparable sales decreased 2.1 percent in the fiscal months of November and December 2016 combined, compared with the prior year period. Total sales for the combined fiscal November and December period decreased 2.7 percent. 
• "Sales were volatile throughout the holiday season. Strong sales on Black Friday and during the week before Christmas were offset by softness in early November and December." From a line of business perspective, Men's, Home and Footwear were the strongest categories while Accessories was the most challenging.
• The change in guidance is primarily a result of lower than planned sales for the quarter. Gross margin is projected to be lower than plan due to the mix and timing of the sales and the competitive promotional environment. SG&A expenses are projected to be as planned. Inventories per store at the end of the fourth quarter are projected to decrease from prior year levels in the mid-to-high single digit range.
• Peers of Note: JCP, M, DDS, JWN, SHLD, SHOS