Kohl's Corporation KSS shares tumbled as much as 15.7% in the pre-marketing session as the company posted fourth-quarter fiscal 2024 results and offered a muted fiscal 2025 outlook. The top and bottom lines decreased year over year but surpassed the Zacks Consensus Estimate.

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Kohl's posted earnings of 95 cents per share, down from $1.67 in the year-ago quarter. Nevertheless, the bottom line surpassed the Zacks Consensus Estimate of 72 cents.

Total revenues were $5,397 million, down from the prior-year quarter’s $5,956 million. Nevertheless, the top line surpassed the Zacks Consensus Estimate of $5,346.9 million. That being said, the company’s net sales fell 9.4% to $5,175 million, while comparable sales declined 6.7% year over year.

Kohl's Corporation Price, Consensus and EPS Surprise

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

Kohl’s Quarterly Margin Highlights

Kohl's gross margin expanded 49 basis points (bps) to 32.9% in the reported quarter. SG&A expenses dropped 4.5% to $1,539 million. As a percentage of total revenues, SG&A increased 148 basis points (bps) to 28.5%.

KSS posted an operating income of $126 million, down from $299 million in the year-ago period. The operating income margin contracted by 270 bps to 2.3%.

KSS’ Financial Health Snapshot & Other Updates

Kohl's ended the quarter with cash and cash equivalents of $134 million and shareholders’ equity of $3,802 million. The company provided an operating cash flow of $648 million for the 12 months ending Feb. 1, 2025.

Management expects capital expenditures of $400-$425 million for fiscal 2025.

On March 11, 2025, Kohl’s declared a quarterly cash dividend of 12.50 cents per share, payable on April 2, 2025, to its shareholders of record as of March 21.

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What to Expect From KSS in FY25?

For fiscal 2025, Kohl's forecasts a net sales decline of 5-7%. Comparable sales are projected to move down 4-6% during the year. The operating margin is expected to range from 2.2% to 2.6% in fiscal 2025. Management anticipates full-year earnings per share to be between 10 and 60 cents.

The Zacks Rank #5 (Strong Sell) company’s shares have dropped 14.8% in the past three months compared with the industry’s decline of 16.9%.

Stocks Looking Red Hot

Urban Outfitters URBN, a fashion lifestyle specialty retailer, currently sports a Zacks Rank of 1 (Strong Buy). URBN delivered an average earnings surprise of 28.4% in the trailing four quarters. You can see the complete list of today’s Zacks #1 Rank stocks here.

The consensus estimate for Urban Outfitters’ current financial-year sales indicates growth of 6% from the year-ago figure.

Nordstrom, Inc. JWN presently flaunts a Zacks Rank of 1. JWN has a trailing four-quarter earnings surprise of negative 26.1%, on average. 

The Zacks Consensus Estimate for JWN’s fiscal 2026 sales indicates a rise of 1.9% from the year-ago period’s levels.

Deckers DECK, a footwear and accessories dealer, currently has a Zacks Rank #2 (Buy). DECK delivered an average earnings surprise of 36.8% in the trailing four quarters.

The Zacks Consensus Estimate for Deckers’ current financial-year sales indicates growth of 15.6% from the year-ago figure.

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