Kohl’s (KSS) will report first-quarter earnings tomorrow

Department store chain Kohl’s (NYSE:KSS) will report earnings before the bell tomorrow. Here’s what to expect.

Kohl’s beat analyst revenue expectations by 3.2% last quarter, reporting revenue of $5.96 billion, down 1% year-over-year. It was a very strong quarter for the company, with it impressively beating analyst revenue and profit estimates.

Does the Kohl’s purchase or sale transaction affect earnings? Read our full analysis here, it’s free.

Analysts expect Kohl’s revenue to decline 6% year-over-year to $3.36 billion this quarter, a further slowdown from the 3.9% decline reported in the same quarter last year. Adjusted earnings per share are expected to be $0.06.

Analysts covering the company have broadly reaffirmed their estimates over the last 30 days, suggesting they expect the company to continue its course towards earnings. Over the past two years, Kohl’s has missed Wall Street revenue estimates only once, beating expectations by an average of 3.5%.

Looking at Kohl’s competitors in the general merchandise retail segment, some have already released first-quarter results, which gives us a hint of what to expect. Dillard’s revenue declined 2.5% year-over-year, beating analyst expectations by 1.5%, and Macy’s saw revenue decline 3.3%, beating estimates of 3.9%. Following the results, Dillard’s shares fell 3.8%, while Macy’s rose 5.2%.

Read our full analysis of Dillard’s results here and Macy’s results here.

There is positive sentiment among general merchandise retail investors, with share prices up an average of 9.3% over the past month. Meanwhile, Kohl’s is up 13.2% and heading toward earnings, with an average analyst price target of $26.8 (versus the current share price of $27.11).

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