Yahoo Finance Kohl's (KSS) Set to Report Q1 Earnings: What Should You Know?
Kohl's Corporation KSS is likely to register a top-and-bottom-line decline when it reports first-quarter fiscal 2023 earnings on May 24. The Zacks Consensus Estimate for revenues is pegged at $3,519 million, suggesting a decrease of 5.3% from the prior-year quarter’s reported figure.
The Zacks Consensus Estimate for the bottom line has moved from a loss of 43 cents to a loss of 44 cents per share in the past seven days. The projection indicates a significant deterioration from earnings of 11 cents reported in the year-ago period quarter. Kohl's has a trailing four-quarter negative earnings surprise of 105.8%, on average.
Kohl's Corporation Price, Consensus and EPS Surprise
Kohl's Corporation price-consensus-eps-surprise-chart | Kohl's Corporation Quote
Factors to Consider
Kohl's experienced a tough macroeconomic environment in the fourth quarter of fiscal 2022. Rising inflationary pressure continued to hamper consumer spending and business. Management saw middle-income customers buy lesser products per trip and switch to value-oriented private brands.
Due to the recent volatile business trends and major macroeconomic headwinds, management gave weak net sales guidance for fiscal 2023, wherein it expects a net sales decline of 2-4%. This also raises concerns for the quarter under review. Apart from this, product cost inflation and a rise in SG&A expenses might have weighed on margins.
However, a focus on enhancing customer experience, accelerating and simplifying value strategies, managing inventory and expenses with discipline and a strengthening balance sheet bodes well. Kohl’s has also been benefiting from its commitment to growing its store portfolio and accelerating digital business growth.
What the Zacks Model Unveils
Our proven model doesn’t conclusively predict an earnings beat for Kohl's this time. The combination of a positive Earnings ESP and a Zacks Rank #1 (Strong Buy), 2 (Buy) or 3 (Hold) increases the chances of an earnings beat, which is not the case here.
Kohl's has an Earnings ESP of -8.03% and a Zacks Rank #3. You can uncover the best stocks to buy or sell before they’re reported with our Earnings ESP Filter.
Stocks With the Favorable Combination
Here are three companies you may want to consider as our model shows that these have the right combination of elements to post an earnings beat:
Costco Wholesale COST currently has an Earnings ESP of +0.04% and a Zacks Rank #3. The company’s bottom line is expected to increase year over year when it reports third-quarter fiscal 2023 results. The Zacks Consensus Estimate for the quarterly EPS is pegged at $3.32, suggesting 4.7% growth from the year-ago period figure. You can see the complete list of today’s Zacks #1 Rank stocks here.
The Zacks Consensus Estimate for Costco’s quarterly revenues is pegged at $54.6 billion, which implies a rise of 3.8% from the figure reported in the prior-year quarter. COST has a trailing four-quarter earnings surprise of 2.4%, on average.
Deckers Outdoor Corporation DECK currently has an Earnings ESP of +10.63% and a Zacks Rank of 3. DECK is likely to register a top-line decline when it reports fourth-quarter fiscal 2023 results. The Zacks Consensus Estimate for revenues is pegged at $703.6 million, suggesting a dip of 4.4% from the prior-year quarter’s reported figure.
The Zacks Consensus Estimate for Deckers’ quarterly earnings has increased from $2.57 per share to $2.60 in the past 30 days. The consensus estimate indicates growth of 3.6% from the figure reported in the prior-year quarter. DECK has a trailing four-quarter earnings surprise of nearly 31%, on average.
lululemon athletica LULU currently has an Earnings ESP of +0.24% and a Zacks Rank of 3. LULU is expected to register a top-line and bottom-line improvement when it reports first-quarter fiscal 2023 numbers.
The Zacks Consensus Estimate for lululemon’s quarterly revenues is pegged at $1.9 billion, calling for growth of 19.3% from the prior-year quarter’s reported figure. The Zacks Consensus Estimate for the quarterly EPS of $1.97 suggests growth of 33.1% from the figure reported in the year-ago fiscal quarter. LULU has a trailing four-quarter earnings surprise of 6.8%, on average.
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Kohl's Corporation (KSS) : Free Stock Analysis Report
Deckers Outdoor Corporation (DECK) : Free Stock Analysis Report
Costco Wholesale Corporation (COST) : Free Stock Analysis Report
lululemon athletica inc. (LULU) : Free Stock Analysis Report
