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2022-05-19 18:51

Kohl's Corp. stock closed nearly 5.0% up after the company reported its first quarter fiscal 2022 financial results. Kohl's is an omnichannel powerhouse. Kohl's delivers fantastic national and exclusive brands at exceptional savings for families worldwide, with over 1,100 stores in 49 states and the online comfort of Kohls.com and the Kohl's App.

Kohl’s financial performance in fiscal Q1

For the first quarter fiscal 2022 the revenue generated was $3715 million compared to $3887 in the same period of previous year. This is a decrease of 4.4%. Net sales and comparable sales fell 5.2% in the first quarter. Selling, General and administrative expense for the first quarter of fiscal 2022 was $1293 million relative to $1170 million in first quarter of 2022, a surge of 10.5%.

The company’s reported net income for the first quarter of fiscal 2022 was $14 million similar to the first quarter of fiscal 2021, which shows a 0% change. Whereas the diluted earnings per share for the first quarter of fiscal 2022 was $0.11 compared to $0.09, represents a 22% change.

The Non-GAAP adjusted net income for the first quarter of fiscal 2022 was $14 million, a 92% decline from previous year’s same quarter. While the Non-GAAP adjusted diluted earnings per share was $0.11 compared to $1.05 in the first quarter of fiscal 2021. This is a decrease of 90% which is huge. The Gross margin for the first quarter was 38.3% compared to 39% in the first quarter of fiscal 2021.

Kohl's Board of Directors declared a quarterly cash dividend of $0.50 per share on the Company's common stock on May 10, 2022, as previously stated. The dividend will be paid on June 22, 2022 to stockholders who were on the records on June 8, 2022.

Kohl’s expectations for the balance of 2022

The followings have been added to the Company's full-year financial projection for 2022:

1.- In comparison to the previous year, net sales are now predicted to be in the range of 0% to 1%.

2.- Operating margins are now forecast to range between 7.0 and 7.2%.

3.- Excluding non-recurring costs, earnings per share is now estimated to range from $6.45 to $6.85.

Commenting on the quarterly results, CEO Michelle Gass said in the earnings press release:

“The year has started out below our expectations. Following a strong start to the quarter with positive low-single digits comps through late March, sales considerably weakened in April as we encountered macro headwinds related to lapping last year’s stimulus and an inflationary consumer environment.”

The $5.79 billion company that trades at a PE multiple of 7.11 is down more than 25% from its year-to-date high.