Kohl’s Sees Lackluster Holiday Sales Numbers; Cuts Q4 and FY2012 Forecast (KSS)

Despite a rise in December sales reported by Kohl’s Corporation (KSS) on Thursday, the discount retailer lowered its Q4 and fiscal year 2012 earnings per shares guidance.

The Menomonee Falls, Wisconsin-based company said its December net sales increased +4.0% compared to the period a year ago, while comparable store sales rose +3.4% over the same period. E-commerce sales were up +46% over December 2011.

For the the combined November and December period, net sales rose only +0.7% while comparable sales rose just +0.01%. Year-to-date sales rose +1.0% while comparable sales decreased -0.3% in the same period.

Because of the lackluster sales numbers, Kohl’s adjusted its fourth quarter and fiscal 2012 earnings per share guidance. The company now expects fourth quarter EPS to be in the $1.60 to $1.62 range, down from previous guidance of earning $2.00 to $2.08 per share. For the fiscal year, KSS sees earnings to be about $4.11 to $4.13 per share, down from the $4.52 to $4.60 per share forecast.

Kohl’s shares were down 60 cents, or -1.42%, in premarket trading on Thursday.

The Bottom Line
Shares of Kohl’s (KSS) have a 3.03% dividend yield, based on last night’s closing stock price of $42.21. The stock has technical support in the $39-$40 price area. If the shares can firm up, we see overhead resistance around the $45-$46 price levels.

Kohl’s Corporation (KSS) is not recommended at this time, holding a Dividend.com DARS™ Rating of 3.3 out of 5 stars.

Be sure to visit our complete recommended list of the Best Dividend Stocks, as well as a detailed explanation of our ratings system here.

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