Earnings Preview: Kohl's Corp.

Kohl's Corp. (KSS) is expected to report Q3 earnings after the market close on Thursday, November 12 with a conference call scheduled for 5 pm ET.

Guidance

Analysts are looking for a profit of 61c on revenue of $4.03B. The consensus range is 60c-61c for EPS, and revenue of $3.85B-$4.12B, according to First Call. The retailer recently reported that September same-store sales increased 5.5% and October SSS rose 1.4%. The company also bumped its Q3 EPS view twice in the quarter, to 60c-61c from 52c-54c and previous guidance of 40c-44c. On September 30, Kohl's opened 35 stores in failed Mervyns locations, 30 of them in California. There was a significant overlap in the customers who shopped at both. If the chain succeeds, its gamble could pay off not only for the roughly 5,000 workers it hired but for communities around the state.

Analyst Views

Deutsche Bank believes Kohl's is positioned to benefit from a continued increase in industrial production. Additionally, analysts expect Kohl's to benefit from cost cutting and its expansion of store exclusive brands like Simply Vera Vera Wang. Stifel Nicolaus said the quarter was helped by improved inventory management and tight expense control, and that shoppers responded to attractive merchandise and promotions. Kohl's shares rose 14% during the quarter.