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Kohl's (KSS) Ready to Report Q1 Earnings: Is a Beat in Store?
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Kohl's Corporation (KSS - Free Report) is likely to register top and bottom-line declines when it reports first-quarter fiscal 2024 earnings on May 30 before the opening bell. The Zacks Consensus Estimate for revenues is pegged at $3.54 billion, which suggests a drop of 0.9% from the prior-year quarter’s reported figure.
The consensus mark for quarterly earnings has decreased by 2 cents in the past 30 days to 4 cents per share. This indicates a slump of 69.2% from the year-ago quarter’s reported figure. However, KSS has a trailing four-quarter earnings surprise of 84.2%, on average.
Factors to Note
Kohl's has been witnessing pressure on its online business for a while. The trend continued in the fourth quarter of fiscal 2023, with digital sales (excluding the 53rd week) declining 16.5%. The persistence of this trend may have affected revenues in the quarter under review. Additionally, an uncertain macroeconomic landscape due to inflation and interest rate hikes remains a factor. We expect a 0.4% decline in comparable sales in the first quarter.
However, Kohl's progress toward key priorities, including improving customer experience, simplifying value strategies, undertaking disciplined inventory and expenses management and solidifying the balance sheet, has been working well. The company has been benefiting from its home business, which represents a solid growth opportunity.
Kohl's Corporation Price, Consensus and EPS Surprise
Kohl's has revamped its home assortment by expanding certain categories and introducing new products in areas like wall art, glassware, ceramic decor, barware and lighting, among others. In addition to maintaining popular programs like bedding and bath, Kohl's has updated its offerings to include more modern designs, frequent pattern and color updates and a continuous stream of stylish options to meet evolving customer preferences.
Management expects to witness an increase in home sales due to the rising awareness of the expanded assortment during 2024. This also bodes well for the quarter under review.
What the Zacks Model Unveils
Our proven model predicts an earnings beat for Kohl's this time. The combination of a positive Earnings ESP and a Zacks Rank #1 (Strong Buy), 2 (Buy) or 3 (Hold) increases the odds of an earnings beat, which is the case here.
Kohl's has an Earnings ESP of +85.06%, and it currently carries a Zacks Rank #3. You can uncover the best stocks to buy or sell before they’re reported with our Earnings ESP Filter.
Other Stocks With the Favorable Combination
Here are some more companies worth considering, as our model shows that these, too, have the right combination of elements to beat on earnings this reporting cycle.
Dollar Tree (DLTR - Free Report) currently has an Earnings ESP of +0.16% and a Zacks Rank of 3. The company is likely to register a top-line increase when it reports first-quarter fiscal 2024 numbers. The Zacks Consensus Estimate for Dollar Tree’s quarterly revenues is pegged at $7.6 billion, which implies growth of 4.2% from the figure reported in the prior-year quarter. You can see the complete list of today’s Zacks #1 Rank stocks here.
However, the Zacks Consensus Estimate for Dollar Tree’s quarterly earnings of $1.45 suggests a drop of 2.7% from the year-ago quarter’s levels. DLTR has a trailing four-quarter negative earnings surprise of 1.9%, on average.
Bath & Body Works (BBWI - Free Report) currently has an Earnings ESP of +5.23% and a Zacks Rank of 2. The Zacks Consensus Estimate for first-quarter fiscal 2024 earnings per share is pegged at 33 cents, flat year over year.
Bath & Body Works’ top line is expected to decline year over year. The Zacks Consensus Estimate for quarterly revenues is pegged at $1.37 billion, which indicates a drop of 2.1% from the figure reported in the prior-year quarter. BBWI has a trailing four-quarter earnings surprise of 23.2%, on average.
American Eagle Outfitters (AEO - Free Report) currently has an Earnings ESP of +3.98% and a Zacks Rank #3. The company is likely to register an increase in the bottom line when it reports first-quarter fiscal 2024 numbers. The Zacks Consensus Estimate for quarterly earnings per share of 28 cents suggests a jump of 64.7% from the year-ago quarter.
American Eagle Outfitters’ top line is anticipated to rise year over year. The consensus mark for revenues is pegged at $1.15 billion, which implies an increase of 6.2% from the figure reported in the year-ago quarter. AEO has a trailing four-quarter earnings surprise of 22.7%, on average.
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Kohl's (KSS) Ready to Report Q1 Earnings: Is a Beat in Store?
Kohl's Corporation (KSS - Free Report) is likely to register top and bottom-line declines when it reports first-quarter fiscal 2024 earnings on May 30 before the opening bell. The Zacks Consensus Estimate for revenues is pegged at $3.54 billion, which suggests a drop of 0.9% from the prior-year quarter’s reported figure.
The consensus mark for quarterly earnings has decreased by 2 cents in the past 30 days to 4 cents per share. This indicates a slump of 69.2% from the year-ago quarter’s reported figure. However, KSS has a trailing four-quarter earnings surprise of 84.2%, on average.
Factors to Note
Kohl's has been witnessing pressure on its online business for a while. The trend continued in the fourth quarter of fiscal 2023, with digital sales (excluding the 53rd week) declining 16.5%. The persistence of this trend may have affected revenues in the quarter under review. Additionally, an uncertain macroeconomic landscape due to inflation and interest rate hikes remains a factor. We expect a 0.4% decline in comparable sales in the first quarter.
However, Kohl's progress toward key priorities, including improving customer experience, simplifying value strategies, undertaking disciplined inventory and expenses management and solidifying the balance sheet, has been working well. The company has been benefiting from its home business, which represents a solid growth opportunity.
Kohl's Corporation Price, Consensus and EPS Surprise
Kohl's Corporation price-consensus-eps-surprise-chart | Kohl's Corporation Quote
Kohl's has revamped its home assortment by expanding certain categories and introducing new products in areas like wall art, glassware, ceramic decor, barware and lighting, among others. In addition to maintaining popular programs like bedding and bath, Kohl's has updated its offerings to include more modern designs, frequent pattern and color updates and a continuous stream of stylish options to meet evolving customer preferences.
Management expects to witness an increase in home sales due to the rising awareness of the expanded assortment during 2024. This also bodes well for the quarter under review.
What the Zacks Model Unveils
Our proven model predicts an earnings beat for Kohl's this time. The combination of a positive Earnings ESP and a Zacks Rank #1 (Strong Buy), 2 (Buy) or 3 (Hold) increases the odds of an earnings beat, which is the case here.
Kohl's has an Earnings ESP of +85.06%, and it currently carries a Zacks Rank #3. You can uncover the best stocks to buy or sell before they’re reported with our Earnings ESP Filter.
Other Stocks With the Favorable Combination
Here are some more companies worth considering, as our model shows that these, too, have the right combination of elements to beat on earnings this reporting cycle.
Dollar Tree (DLTR - Free Report) currently has an Earnings ESP of +0.16% and a Zacks Rank of 3. The company is likely to register a top-line increase when it reports first-quarter fiscal 2024 numbers. The Zacks Consensus Estimate for Dollar Tree’s quarterly revenues is pegged at $7.6 billion, which implies growth of 4.2% from the figure reported in the prior-year quarter. You can see the complete list of today’s Zacks #1 Rank stocks here.
However, the Zacks Consensus Estimate for Dollar Tree’s quarterly earnings of $1.45 suggests a drop of 2.7% from the year-ago quarter’s levels. DLTR has a trailing four-quarter negative earnings surprise of 1.9%, on average.
Bath & Body Works (BBWI - Free Report) currently has an Earnings ESP of +5.23% and a Zacks Rank of 2. The Zacks Consensus Estimate for first-quarter fiscal 2024 earnings per share is pegged at 33 cents, flat year over year.
Bath & Body Works’ top line is expected to decline year over year. The Zacks Consensus Estimate for quarterly revenues is pegged at $1.37 billion, which indicates a drop of 2.1% from the figure reported in the prior-year quarter. BBWI has a trailing four-quarter earnings surprise of 23.2%, on average.
American Eagle Outfitters (AEO - Free Report) currently has an Earnings ESP of +3.98% and a Zacks Rank #3. The company is likely to register an increase in the bottom line when it reports first-quarter fiscal 2024 numbers. The Zacks Consensus Estimate for quarterly earnings per share of 28 cents suggests a jump of 64.7% from the year-ago quarter.
American Eagle Outfitters’ top line is anticipated to rise year over year. The consensus mark for revenues is pegged at $1.15 billion, which implies an increase of 6.2% from the figure reported in the year-ago quarter. AEO has a trailing four-quarter earnings surprise of 22.7%, on average.
Stay on top of upcoming earnings announcements with the Zacks Earnings Calendar.