$KSS (+0.83%) | Kohl’s Corporation Q3 Earnings Highlights:

🔹 EPS: $0.20 (Est. $0.30) 🔴

🔹 Revenue: $3.51B (Est. $3.85B) 🔴; DOWN -8.8% YoY

🔹 Comparable Sales: -9.3% (Est. -5.19%) 🔴

CUTS FY24 Guidance:

🔹 Net Sales: -7% to -8% (Prev. -4% to -6%) 🔴

🔹 Comparable Sales: -6% to -7% (Prev. -3% to -5%) 🔴

🔹 Operating Margin: 3.0% to 3.2%

🔹 Diluted EPS: $1.20 to $1.50 (Est. $1.86) 🔴

🔹 Capital Expenditures: ~$500M

Key Q3 Metrics:

🔹 Gross Margin: 39.1%; UP +20 bps YoY

🔹 SG&A as % of Revenue: 34.8%; UP +125 bps YoY

🔹 Operating Income: $98M; DOWN -37.6% YoY

Shareholder Returns:

🔹 Dividend: $0.50/share; payable December 24, 2024

CEO Commentary:

🔸 "Sales softness in apparel and footwear offset strong growth in categories like Sephora, home decor, and gifting. Aggressive actions are being taken to reverse declines."

Strategic Updates:

🔸 CEO Tom Kingsbury to step down in January 2025, succeeded by retail veteran Ashley Buchanan.

🔸 Expansion of Sephora partnership and addition of Babies “R” Us shops in 200 locations.

Key Challenges:

🔹 Eleventh consecutive quarter of declining same-store sales.

🔹 Continued pressure from higher consumer costs and reduced foot traffic.