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Kohl's Gears Up for Q4 Earnings: Here's What You Should Understand

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Kohl's Corporation (KSS - Free Report) is likely to register declines in the top and bottom lines when it reports fourth-quarter fiscal 2024 earnings on March 11. The Zacks Consensus Estimate for quarterly earnings has moved down a couple of cents in the past 30 days to 73 cents per share, indicating a decrease of 56.3% from the year-ago quarter’s reported figure. The consensus mark for fiscal 2024 earnings is pegged at $1.30 per share, reflecting a decline of 54.4% from the prior-year reported figure. KSS has a trailing four-quarter average negative earnings surprise of 165.8%.

Stay up-to-date with all quarterly releases: See Zacks Earnings Calendar.

The Zacks Consensus Estimate for Kohl's quarterly revenues is pegged at $5.4 billion, which indicates a 10.2% decrease from the year-ago quarter. The consensus mark for fiscal 2024 top line is pegged at $16.2 billion, which indicates a decline of 7.5% from the year-ago level.

Kohl's Corporation Price and EPS Surprise

Kohl's Corporation Price and EPS Surprise

Kohl's Corporation price-eps-surprise | Kohl's Corporation Quote

Things to Know Prior to KSS’ Q4 Results

Kohl's continues to bear the brunt of a challenging consumer environment. Declines in core business segments, including apparel and footwear sectors, have been hurting the company. A highly competitive holiday season is likely to have affected Kohl's performance in the to-be-reported quarter.

For fiscal 2024, management forecasts a net sales decline of 7-8%, while comparable sales are likely to have moved down 6-7%. Our model suggests a comparable sales decline of 6.9% in the fiscal 2024. The operating margin is expected to be in the range of 3-3.2% in fiscal 2024. Management anticipates fiscal 2024 earnings per share (EPS) to be between $1.20 and $1.50, suggesting a year-over-year decline.

That being said, Kohl’s continues to make progress in underpenetrated categories like home decor, gifting, impulse and baby products, which are likely to have offered some respite. In addition, its strategic partnership with Sephora is anticipated to have supported its performance in the fiscal fourth quarter.

Earnings Whispers for KSS Stock

Our proven model does not predict 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 not the case here. You can uncover the best stocks to buy or sell before they’re reported with our Earnings ESP Filter.

KSS carries a Zacks Rank #5 (Strong Sell) and has an Earnings ESP of -2.85%.

Some Stocks With the Favorable Combination

Here are some companies worth considering, as our model shows that these have the right combination of elements to beat on earnings this reporting cycle.

RH (RH - Free Report) currently has an Earnings ESP of +2.15% and a Zacks Rank of 2. You can see the complete list of today’s Zacks #1 Rank stocks here.

The company is likely to register an increase in the top and bottom lines when it reports fourth-quarter fiscal 2024 numbers. The Zacks Consensus Estimate for RH’s quarterly earnings per share is pegged at $1.90, up 163.9% from the year-ago period. RH has a trailing four-quarter negative earnings surprise of 113.6%, on average. 

The consensus estimate for RH’s quarterly revenues is pegged at $826.6 million, which implies an increase of almost 12% from the prior-year quarter's level.

Costco Wholesale (COST - Free Report) currently has an Earnings ESP of +0.14% and a Zacks Rank of 2. The company is likely to register growth in its top and bottom lines when it reports second-quarter fiscal 2025 numbers. The Zacks Consensus Estimate for Costco’s quarterly revenues is pegged at $63.2 billion, which suggests 8.2% growth from the prior-year quarter.

The Zacks Consensus Estimate for Costco’s quarterly earnings per share is pegged at $4.09, indicating a 10.2% increase from the year-ago period. COST has a trailing four-quarter earnings surprise of 2%, on average.

Sysco (SYY - Free Report) currently has an Earnings ESP of +0.65% and a Zacks Rank of 3. The company is likely to register an increase in the top and bottom lines when it reports first-quarter 2025 numbers. The Zacks Consensus Estimate for quarterly earnings per share is pegged at $1.04, up 8.3% from the year-ago period. SYY has a trailing four-quarter negative earnings surprise of 0.4%, on average.

The consensus estimate for Sysco’s quarterly revenues is pegged at $20.09 billion, which implies an increase of 3.7% from the prior-year quarter.

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