Earnings To Watch: Kohl's (KSS) Reports Q1 Results Tomorrow

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

Kohl's beat analysts' revenue expectations by 3.2% last quarter, reporting revenues of $5.96 billion, down 1% year on year. It was a very strong quarter for the company, with an impressive beat of analysts' revenue and earnings estimates.

Is Kohl's a buy or sell going into earnings? Read our full analysis here, it's free.

This quarter, analysts are expecting Kohl's revenue to decline 6% year on year to $3.36 billion, a further deceleration from the 3.9% decrease it recorded in the same quarter last year. Adjusted earnings are expected to come in at $0.06 per share.

Analysts covering the company have generally reconfirmed their estimates over the last 30 days, suggesting they anticipate the business to stay the course heading into earnings. Kohl's has only missed Wall Street's revenue estimates once over the last two years, exceeding top-line expectations by 3.5% on average.

Looking at Kohl's peers in the general merchandise retail segment, some have already reported their Q1 results, giving us a hint as to what we can expect. Dillard's revenues decreased 2.5% year on year, beating analysts' expectations by 1.5%, and Macy's reported a revenue decline of 3.3%, topping estimates by 3.9%. Dillard's traded down 3.8% following the results while Macy's was up 5.2%.

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

There has been positive sentiment among investors in the general merchandise retail segment, with share prices up 9.3% on average over the last month. Kohl's is up 13.2% during the same time and is heading into earnings with an average analyst price target of $26.8 (compared to the current share price of $27.11).

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