Kohl's (KSS) To Report Earnings Tomorrow: Here Is What To Expect

Department store chain Kohl’s (NYSE:KSS) will be reporting results tomorrow morning. Here’s what to look for.

Kohl's met analysts’ revenue expectations last quarter, reporting revenues of $3.38 billion, down 5.3% year on year. It was a weaker quarter for the company, with underwhelming earnings guidance for the full year and a miss of analysts’ 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 6.2% year on year to $3.65 billion, a further deceleration from the 4.7% decrease it recorded in the same quarter last year. Adjusted earnings are expected to come in at $0.44 per share.

The majority of analysts covering the company have 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 3.4% on average.

Looking at Kohl’s peers in the general merchandise retail segment, some have already reported their Q2 results, giving us a hint as to what we can expect. Macy’s revenues decreased 3.5% year on year, beating analysts’ expectations by 1%, and Dillard's reported a revenue decline of 5.2%, falling short of estimates by 1.1%. Macy's traded down 14.5% following the results while Dillard's was also down 9.5%.

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

Investors in the general merchandise retail segment have had steady hands going into earnings, with share prices up 1.1% on average over the last month. Kohl's is down 5.9% during the same time and is heading into earnings with an average analyst price target of $22.6 (compared to the current share price of $19.85).

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